McDonnell proposes budget compromises

Gov. Bob McDonnell is offering a way for House and Senate budget negotiators to align their diverging budget-balancing plans, including the Senate eliminating what he calls unrealistic revenue presumptions.

And once the budget battle is settled, McDonnell will look ahead to funding transportation and restructuring state government. He says either issue could trigger a special session of the legislature this year.

In an interview yesterday with reporters and editors at the Richmond Times-Dispatch, McDonnell said the framework of the House and Senate budget proposals is good, but they are $500 million apart, "which is not inconsequential."

The Senate has $280 million of additional revenue presumptions, including projections for proceeds from land-preservation tax credits and the tobacco tax that McDonnell doesn't believe are realistic. "We've asked them to change those," he said.

The Senate also has about $223 million in fees, while the House basically scrapped the fees in outgoing Gov. Timothy M. Kaine's introduced budget. "I don't think that's realistic, either," he said, referring to the House's blanket rejection of fees.

McDonnell has said that if there is a clear link between the fee and the service it supports or finances, it's reasonable to consider.

"I've outlined for them kind of a way of hopefully bridging that compromise," said McDonnell, who has held several meetings with budget negotiators.

The General Assembly must agree to a spending plan by March 13, when the session is scheduled to end. The governor wants the budget completed on time to avoid affecting local governments, which are trying to put together their own budgets supplemented with state dollars, and to reassure credit-rating agencies.

McDonnell said that once the legislative session concludes, his administration will continue work on a transportation-funding package using ideas put forth during the gubernatorial campaign in addition to new ones.

During the campaign, McDonnell put forth a 12-point plan for transportation improvements, several components of which are winding through the General Assembly.

To avoid a repeat of unsuccessful attempts to forge agreement on a roads plan, he does not intend to bring back lawmakers unless there is general agreement, he said.

"The key, to me, is having it well-thought-out, having a fairly significant consensus prior to going into a session and not wasting the taxpayers' money on a special session that's not going to produce results," he said.

McDonnell also said he will evaluate the results from his government reform and restructuring commission, which he established through his second executive order, and consider a special session on that basis sometime this year.

He is expected to name the panel members this month to find ways to increase efficiencies and consolidate agencies. He said he has a draft list of commission members and a draft work plan.

If he deems that the commission finds substantial reforms that generate "real dollars," he will ask lawmakers back for a special session, he said.

"The sooner we start saving money, the better," he said, adding that when he documents any savings, he can begin to plow the money back into the budget.

As for his relationship with Attorney General Ken Cuccinelli, McDonnell said they meet once every two weeks. He said he approved of Cuccinelli's major actions so far on challenging the reach of the federal government and an Environmental Protection Agency finding that global warming endangers the public.