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Well, it appears that Jody Wagner’s warped budget predictions will come back to haunt her this election. With the Commonwealth of Virginia facing budget cuts that include layoffs, furloughs, prison closures, and reduced student aid to higher education.

Richmond Times-Dispatch reports that Bill Bolling is highlighting how Wagner’s budget predictions have led to some of the largest cuts. For a long time, Bolling has been providing warnings since 2007 that the state’s revenues were too high. Bolling also mentioned in a previous op-ed that

“”it is important to remember that while state revenues are not increasing as rapidly as had been expected, they are still increasing.”

Instead of 3.3 percent growth in the 2008-09 fiscal year and 6.6 percent in the 2009-10 fiscal year, the tax revenues are projected to decline an estimated 10.8 percent in the two years.”

It is the role of the Secretary of Finance to draw up a responsible budget with realistic predictions and monitor expenditures. Even when reports were showing that our national economy was headed for a downturn in 2007, Virginia could have been better prepared for this situation by having a realistic budget that had cut some unnecessary, wasteful program.

Bill Bolling has every right to criticize Jody Wagner, as her budget predictions have clearly led to cuts, furloughs, etc.

Governor Tim Kaine released his budget that was filled with several shortfalls. He actually projects that the budget will be down by $1.2 billion, in addition to $300 million in shortfalls from last year.

Meanwhile, the blame just doesn’t go to Kaine for his part to overestimate the budget. Former Secretary of Finance and Lieutenant Governor candidate, Jody Wagner, predicted more revenue than what was coming in. Wagner’s duties were simple, as she had to craft the budget and setting the revenue. During her tenure, the budget projections were over by 20 percent, the state debt grew significantly, and depleted the Rainy Day Fund. Talk about huge oversight. Is this who we want as Lieutenant Governor?

Bill Bolling has warned about the disastrous consequences that these budget projections would have on the Commonwealth’s economy.

“The budget shortfalls that Governor Kaine announced today are serious, but they should not surprise anyone. I have been warning for the past two years that the current state budget is based on overly optimistic revenue projections and that huge budget shortfalls would be the result. This is what happens when you base your budget on money you don’t have to make promises you can’t keep.“For the past four years we have based our budget on overly optimistic revenue projections, the use of one-time revenues to pay for ongoing programs, spiraling amounts of state debt and raids on the rainy day fund. That is not fiscally responsible and we cannot continue to manage Virginia’s finances this way.

“Unfortunately, the budget shortfalls we are facing in the current fiscal year may only be the beginning of our long term fiscal challenges. We will likely face additional budget shortfalls in the 2010-2012 biennium when the federal stimulus dollars we used to balance the budget last year run out. In fact, those shortfalls could be larger than the shortfalls we are experiencing in the current fiscal year.

“Going forward, we must make certain that our budgets are based on realistic revenue projections, reduce spending to match available revenue and eliminate the budget gimmicks. This will require us to make many difficult choices, but these are the same kind of choices that families and businesses have had to make in recent months, and the people of Virginia expect state government to live by the same economic realities that they must live by.”

The fruits of Jody Wagner’s budget projections are a bitter pill to swallow for Virginia.

Happy Birthday Jody!  I hear that Virginia has a perfect gift for you, a calculator. I mean, after all, managing a budget is hard work without a calculator. Since Virginia has a sales tax free holiday, you can send her one on the cheap (Thanks to Wal Mart ).

The reason I mention the calculator as being the perfect gift is that Wagner, while serving over the past three years as Secretary of Finance, has made the claim that Virginia is better off than California in terms of the budget. While that might be true, Virginia has a budget shortfall of $730 million. Clearly, this estimate must be due to calculation errors. The Richmond Times-Dispatch reports:

“No matter how you look at it, the forecast is pain.

Spending in the current Virginia budget for fiscal 2010 will have to be slashed up to $1.5 billion if the most dire economic forecast for state revenue prevails, according to the Governor’s Advisory Board of Economists.

That figure was the worst of three scenarios the board offered the governor.

Even the most optimistic forecast for state revenue during the current fiscal year, which began July 1, still calls for more than $730 million in reductions in state spending to balance the last year of the commonwealth’s 2009-10 budget.

The standard, middle-of-the-road forecast projects a deficit of about $1.1 billion.

Even Jeff Schapiro of the Richmond Times-Dispatch made this good point:

“[The Wagner term as Secretary of Finance were] years marked by muff-ups and miscalculations,” wrote columnist Jeff Schapiro (Richmond Times-Disptach, September 21, 2008). “There are legitimate reasons for taking a hammer to Wagner . . . The Kaine administration’s fiscal sins, perceived and actual, are numerous. Among them: pushing for higher transportation taxes even as the economy began its decline, and missing revenue projections by a mile – or two or three. Also, taking baby steps to balance the $77 billion budget more than a year ago, when perhaps more aggressive measures were justified.”

Jody wants us to trust her, when she says that she has brought fiscal responsibility to the government. Huh? Come again? Her budget predictions have been over, Virginia will now have to face future layoffs, etc. and yet, she expects Virginians to elect her as Lieutenant Governor.