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McDonnell boasts of budget surplus on FOX News

Anita Kumar

Gov. Bob McDonnell (R) continued spreading the word about Virginia's budget surplus this morning in a brief appearance on FOX and Friends.

"It's just good solid fiscal management,'' McDonnell said. "It was bipartisan cooperation...Families are hurting. Businesses are hurting. We've got to stimulate the economy for economic development and job creation and get entrepreneurs doing what they do best and we've got to cut spending."

McDonnell always credits both Republicans leaders in the House and Democratic leaders in the Senate for the $403.2 million budget surplus, but he never voluntarily mentions the federal stimulus package.

This morning, interviewer Dana Perino (yes, the former White House press secretary) asked him about the Recovery Act and McDonnell reluctantly acknowledged that $2.5 billion in stimulus funding helped fill some holes in the budget.

"I think in the short run most governors would say that some of the money that came in the last couple of years into the budget certainly plugged a few holes, but long term that's not going to be the solution because what you do is you build those requirements into your base operating budget, which creates more demands in the future," he said.

McDonnell said the only way to restore "fiscal responsibility in the states" is to have "longterm permanent reductions."

"I got a little short-term help from Washington,'' he said. "It certainly has reduced some of the cuts but long term what we have done here in Virginia this year is significant new structural cuts."

By Anita Kumar  |  August 24, 2010; 10:15 AM ET
Categories:  Anita Kumar , Robert F. McDonnell  
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Next: Where does the money from Virginia's liquor sales really go?

Comments

so "$2.5 billion in stimulus funding helped fill some holes in the budget."

and the virginia "surplus" was $400 to $200 million?

mcdonnell is a joke.
there is no surplus, just accounting gimmicks.

apparently, mcdonnell thinks most virginians are idiots.

well they did elect him, so maybe he has a point.

Posted by: MarilynManson | August 24, 2010 11:28 AM | Report abuse

McDonnell is a joke.

Posted by: jckdoors | August 24, 2010 2:27 PM | Report abuse

The joke was pumping up budgets during the housing bubble and expecting all those new employees, programs, raises, and increased pensions to continue in perpetuity.

The Federal government needs to realize that the party is over.

Kumar really has it in for McDonnell. C'mon, beating him up for a budget surplus? Even considering the Federal help, most states are in worse shape.

Posted by: postfan1 | August 24, 2010 4:16 PM | Report abuse

Funny that he doesn't mention Virginia accepted Federal stimulus for protecting teaching jobs that would have otherwise been lost.

Posted by: slydell | August 24, 2010 4:39 PM | Report abuse

Although I'm no fan of Gov. McDonnell, it was a small step in the right direction when he reduced the delay given to businesses before they must forward collected sales tax to the state. Sales tax is not a tax on businesses, it's a tax on customers and a short term loan to businesses, the duration of the loan dependent on when the sales tax collected from customers is due to the state. For example, suppose a customer pays $10 in sales tax on June 1st. Virginia law allows the business to keep the $10 until July 20th, a 49 day interest-free loan to the business.

It's like the "float" that banks use for extra unearned profit, when a bank accepts a deposit but delays making a payment by putting a hold on the funds.

Now that we're in the computer age, the deadline for (electronically) forwarding the sales tax to the state ought to be the day after the business receives the sales tax from the customer (or from the customer's bank or credit card company, if those institutions delay paying the business).

Posted by: Condorcet_Voting | August 26, 2010 12:50 PM | Report abuse

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