Monday, August 23, 2010

Yes, Virginia, There Is a Surplus

According to Think Progress, Virginia was able to produce not only a balanced budget this year, but they actually have a surplus. Kudos to Gov. Bob McDonnell (R) for his fiscal prudence, right?

McDonnell’s “prudence” would be a shining example for the federal government if he hadn’t relied on one important contributor: the federal government. According to a Commonwealth Institute for Fiscal Analysis report released this week, last year’s Recovery Act provided $2.5 billion in stimulus relief to “maintain crucial services for [Virginia] citizens” and “help close the state’s budget shortfall in 2010-2012.” Virginia legislators relied on $1.3 billion in enhanced Medicaid funding, $1 billion in funding for K-12 and higher education, $39 million for public safety, and $200 million in general support to reduce “what would otherwise have been a $5.4 billion budget hole.”

But remember, the stimulus was a complete failure.