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Governor Kaine Signs Biennial Budget, Issues Line-item Vetoes

RICHMOND – Governor Timothy M. Kaine today signed House Bill 5002, the appropriation act that contains the state budget for the 2006-2008 biennium. The spending plan takes effect at midnight.

“This budget reflects the important objectives that the General Assembly and I share, especially in the areas of public education, higher education, public health, and conservation of our natural resources,” Governor Kaine said. “I remain hopeful that, with the budget battle behind us, we will now turn our focus to the still unresolved need for a long-term, sustainable plan to address the Commonwealth’s transportation challenges.”

Among the budget accomplishments this year were a number of initiatives recommended in the Governor’s budget.  These include:

• Record funding for K-12 education, including a four percent pay raise for teachers, and more than $1.5 billion in overall funding increases,

• A $200 million investment in the Chesapeake Bay,

• More than $40 million in investments in early childhood programs, including the Virginia Early Childhood Foundation, additional investments in the At-Risk Four Year Old Program, and addressing the waiting list for young children needing waiver slots,

• Significant investments in higher education research, including operating and capital funding to promote economic development, foster innovation, and develop tomorrow’s cures for disease,

• More than $120 million invested in community mental health and mental retardation care, including additional waiver slots for people with mental retardation and developmental disabilities and innovative services to serve people in the community rather than in institutions,

• Funding for construction of a new Eastern State Hospital and planning funds for replacement of three other mental health and mental retardation facilities (Western State Hospital, Central Virginia Training Center, and Southeastern Virginia Training Center).

The Governor also announced four line-item vetoes of technical language included in the re-enrolled appropriation bill.

“My four vetoes are technical, but they are substantive in that they maintain the practice of at least the past 20 years with respect to the Governor's ability to take budget actions while the General Assembly is not in session,” Governor Kaine said. “In addition, my vetoes preserve the separation of powers between the legislative and executive branches.”

§ 4-1.02: Adds a number of limitations to the Governor's authority to reduce appropriations administratively, in the event of an unanticipated revenue shortfall. 

§ 4-1.06 b.: Includes language allowing the State Comptroller to authorize the disbursement of up to $3 million against appropriations of a subsequent fiscal year, when an emergency arises or when July 1 falls on a weekend, provided that the Auditor of Public Accounts provides written concurrence. 

§ 4-6.01 b.:  Includes new language that attempts to prohibit a Governor from withdrawing a Cabinet nomination during a General Assembly session and then reappointing the same person after adjournment of that legislative session.

§ 4-8.02 b. : Includes language requiring that agencies submit to the General Assembly copies of any budget reduction proposals provided to the Governor, the Governor's Cabinet Secretaries, Chief-of-Staff, or the Department of Planning and Budget. 

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