The budget is actually a policy-oriented document since it provides appropriations for programs and causes that both the executive and legislative branches have agreed to fund. Thus, it is a source of power over the allocation of scarce resources (perhaps winning the gratitude of voters), as well as a bone of contention among all parties as they vie to fund their favorite programs. The latter is made more difficult during economic downturns because by law, Virginia’s budget must be balanced and cannot accrue deficits. (Morgan & Giesen, Jr., 2012, p. 54)
The budget-making process includes setting tax rates for Virginia. When the Constitution of Virginia mandates that the state has a balanced budget, it means that expenditures (or spending) must not exceed the revenue stream.
Where does the money come from for the Commonwealth’s biennial budget, and where does this money go? In Virginia, money for the budget can come from a variety of resources. These include, but are not limited to, income tax, sales tax, fees (e.g., licensing fees), lottery monies, and even federal grants. Virginia divides the money it receives into two separate funds: the non-general fund and the general fund. The non-general fund is money that is set-aside for specific purposes. For example, money that comes from student tuition at universities must be used to support higher education.
The second fund in Virginia is the general fund. Money in this fund comes mainly from taxes that are paid by citizens and businesses, including income and sales taxes. This money is generally not earmarked for certain purposes, which allows the Governor and General Assembly to have discretion over where this money is spent. (There are some exceptions, such as lottery proceeds, which are designated for the public schools.) In even-numbered years the budget is enacted into law, with amendments enacted in odd-numbered years. The actual development of the budget is a time-consuming process and has many individuals involved, from the public to state agencies to the legislature.
Would you like to know more about the five phases involved in preparing the budget? Then click here. (For more details on Virginia’s budget-making process, read Callahan, Jr., 2012).
Oversight of the Government in the Commonwealth
Effective, efficient, and economical government does not occur in a vacuum. The Commonwealth of Virginia’s Joint Legislative Audit and Review Commission (JLARC) of the General Assembly (http://jlarc.virginia.gov) has been recognized as a model for legislative oversight and accountability for more than 35 years. JLARC conducts oversight studies to ensure that General Assembly funds are used efficiently and also provides performance assessments of agencies and programs to ensure they are managed appropriately by state and local agencies. JLARC’s mission includes, but is not limited to: (1) program and agency savings; (2) improved efficiency and effectiveness across programs and agencies; (3) an informed legislature which is knowledgeable about agencies, programs, and ongoing activities; and (4) ensuring agency and program compliance and alignment with the laws or goals of the legislature.
JLARC has received awards and recognition for a number of studies including the following: (1) Assessment of Services for Virginians with Autism Spectrum Disorders; (2) Evaluation of Children’s Residential Services Delivered Through the Comprehensive Services Act; (3) Special Report: Certain Personnel Issues at the Virginia Retirement System; (4) Virginia Medicaid Reimbursement of Nursing Facilities; (5) Preliminary Inquiry: DEQ and VDH Activities to Identify Water Toxic Problems and Inform the Public; (6) Follow Up Review of Child Day Care in Virginia; (7) Solid Waste Facility Management in Virginia: Impact on Minority Communities; and (8) Virginia Community College Report. JLARC has also conducted a number of studies focusing on education in Virginia including Strategies to Promote Third Grade Reading Performance in Virginia and a Review of Coordination Needs Within Virginia’s Educational System.
Did You Know? Both the U.S. Congress and the Virginia General Assembly go through reapportionment or redistricting every ten years as a result of the U.S. Census. This is because residents may move to different areas during each decade, which makes certain districts more heavily populated than others. However, the U.S. Constitution requires each legislative district to be represented by approximately the same number of people. Redistricting readjusts these district boundaries to reflect population changes. The majority party of the Virginia General Assembly drives the redistricting process, which often sparks controversy and creates political issues when district lines are moved and new districts are created. This process is often referred to as gerrymandering when the district appears oddly shaped and has been challenged in both Virginia and federal courts. As a result of the 1902 Constitution of Virginia that was found to disenfranchise African-Americans, Virginia is mandated by the federal Voting Rights Act (1965) to get pre-clearance (or approval) from the U.S. Justice Department before it can officially enact its redistricting map. |