The state Capitol is abuzz today as legislators return to Richmond for what's known as the "long" session.  Sessions alternate in length, with even years lasting sixty days and odd years lasting forty-five days. Governor Kaine will deliver his last State of the Commonwealth address this evening and on Saturday Governor-elect Bob McDonnell will be sworn in and "takeover the reigns" of state government. 

To say that he enters statewide office at an inopportune time would be an understatement.  Crafting the state budget will overshadow most policy issues this year, as legislators must address a  revenue shortfall of approximately $4 billion.  Because Virginia's Constitution prohibits deficit spending, this means that they must either cut this amount from the budget or increase revenue (raise taxes).  While the Senate has a Democrat majority,  the Republicans control the House of Delegates and are firmly opposed to any tax increases for the most part.  Legislators are hearing from many constituents concerned about the looming budget cuts and what they mean for certain government programs.  The sizeable shortfall places most government services, even education, public safety and transportation on the budgetary "chopping block."

Officials from both parties have been quick to assign reasons and place blame for the shortfall. They were, however, able to mitigate more painful cuts last session due to Virginia's share of the federal economic stimulus funds.  Some of those funds were used to offset the budget shortfall, which many warned would simply prolong the inevitable.

As it stands now, Kaine has introduced his final biennial budget to the General Assembly.  The House Appropriations Committee and Senate Finance Committee will use this as a starting point for crafting a balanced budget. Closer to the end of session, the House and Senate will have different versions of a budget bill, which will then be sent to a conference committee in order to work out the differences.  This process has sometimes postponed the adjournment of session, as legislators had not completed work on a budget.  Hopefully there will be few bumps in the road and that, as much as we like them in Richmond, legislators will head back home when session adjourns in mid-March.

Homeowners should be aware that the state budget directly impacts local governments' ability to fund programs and should prepare to see significant cuts in education, transportation and public safety. This could mean fewer teachers or support staff, canceled road improvements or new construction projects and a variety of scenarios with regard to the number of local policemen, sheriffs, firemen and others.  The Virginia Homeowners Alliance will keep you posted in the upcoming weeks on the budget situation and, more specifically, how it directly affects you and your home.