Arthur G. Purves, president of the Fairfax County Taxpayers Alliance,
was one of approximately thirty speakers at a public hearing before the Commission
on the Revision of Virginia's Tax Code. The hearing, the last before next
month's elections, was held in Richmond on Thursday, Sept. 25, 2003.
According to Mr. Purves, Virginia's budget crisis is the result of too
much revenue, not too little. During the so-called "dot-com" bubble,
Virginia state government received $8 billion more than previous revenue
projections had predicted. Mr. Purves stated, "The government made a mistake
by assuming that this increase would continue forever, and it increased spending
for recurring programs. When the dot-com bubble burst and revenue returned
to its normal level, government was over-extended."
The claim that Virginia suffered a $6 billion revenue shortfall since
2001 is misleading since it implies that the state budget decreased by
$6 billion. In fact, since 2001 the state budget has increased, from $23.3
billion to $25 billion this year. Spending per resident has increased since
2001, even after adjusting for inflation. Since the dot-com bubble began
in 1997, Virginia inflation-adjusted spending per resident has increased
20 percent.
Mr. Purves also questioned the accountability for state spending. He cited
a Joint Legislative Audit and Review Commission (JLARC) report that stated
that Virginia inflation-adjusted spending for public schools increased nearly
ten times faster than enrollment between 1981 and 1997. Inflation-adjusted
budgets for four-year public colleges increased four times faster than enrollment.
The state government has offered no explanation for why these increases
were needed or what they accomplished.
A link to Mr. Purves' testimony is on the Fairfax County Taxpayers Alliance
website, www.fcta.org.
FAIRFAX COUNTY TAXPAYERS ALLIANCE PRESS RELEASE