The Commonwealth Iconoclast

A site dedicated to covering issues relevant to the Commonwealth of Virginia, and nation at large, plus other interesting things too, as I see fit...

Friday, June 24, 2005

Conservative Virginia GOP criticizes the Warner administration for being well, too conservative

I realize that Governor Mark Warner is popular and generally well liked in the Commonwealth - with only the GOP kool-aid-crowd disapproving of Warner's leadership. Of course the Virginia GOP has to maneuver and angle in order find things that they disapprove of, I understand how the game is played. But last week members of the grand old party really seemed to be stretching for a "controversy". Oh, how times have changed in the Commonwealth!

It appears that some GOP state delegates are concerned at the large budget surplus the Commonwealth is running these days. Therefore, they are upset at the conservative revenue projections that the Commonwealth's Secretary of Finance uses to forecast future revenues.

It's also important to note that increases in sales tax revenues are a significant contributor to this revenue spike. In Public Finance 101 (which many politicians probably never bother to take, especially "conservative" republican politicians), you learn that sales taxes are highly elastic revenues, and can fluctuate depending on the overall economic conditions at the time.

Essentially some members of the GOP are upset that Warner, and members of their own party, chose to increase taxes during the last legislative session. To them, the surplus of revenue indicates that taxes did not have to be raised. I'm not saying this is not a cogent argument, but when you consider the financial mismanagement, and out right deception of the former republican Gilmore administration, a revenue surplus is welcome news.


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