Kilgore's General Fund
GOP gubernatorial candidate Jerry Kilgore told a Greater Richmond Chamber of Commerce group yesterday that a growing state budget surplus means the general fund will be able to fund transportation projects, thus adding to the funding that traditionally comes from nongeneral fund sources such as the fuels tax. Democrat Tim Kaine also supports using the general fund for transportation projects.
This AP story in the Daily Press outlines details of the $544 million surplus. The surplus is actually closer to $1 billion above the revenue expected when the biennial budget was passed in 2004, says the story, which also has thoughtful analysis of this event by the gubernatorial candidates and their clever spokespersons.
A point worth noting:
As hearty as the revenue collections have been, they are unlikely to last, at least at their 2005 pace.
The bulk of the growth came from the most volatile and unpredictable sources: non-withholding income taxes generally paid by the self-employed or on bonuses and stock dividends; taxes on real estate transactions during the home-buying and refinancing boom; and record corporate income tax receipts. "Those account for $414 (million) of the $544 (million), and separate those out and we're only about 1 percent over the forecast," (Finance Secretary John) Bennett said.