Financial stability is Job One
Northam’s efforts to keep Virginia’s fiscal house in order require further vigilance
It was a bit awkward — standing in a near-empty House chamber on Wednesday evening, for his nextto-last State of the Commonwealth address — but Gov. Ralph Northam delivered his remarks with purposeful grace and good humor.
It always helps, of course, to come calling at the General Assembly with happy numbers — financial numbers, that is.
This time next year, Northam plans to hand off Virginia’s fiscal baton in good order, telling the Richmond Times-Dispatch last week that, “Virginia is going to be in probably the best financial shape that they’ve ever been.”
The latest numbers give credence to that promise. General Fund revenues rose 15.1% in December. And, “on a fiscal yearto-date basis,” announced Northam, “total revenue collections rose 7.8% through December, well ahead of the annual forecast of 1.2% growth.”
Not bad, all things considered, and substantially better than fiscal conditions in many other states.
It has not been pretty out there, folks.
Other states have been obliged to “lay off workers, cut services, and borrow money to cover operating costs,” Northam says. “But here, our finances are solid, and the actions we have taken have kept our triple-A bond rating secure.”
Ah, yes. The bond rating.
Occasionally, you hear little noises murmured within the rookie caucus of the General Assembly that, gee, c’mon, maybe the bond rating is no big deal?
Why not just cut loose and spend without restraint?
Those voices have yet to gain sway. Virginia’s traditional “fiscal prudence” remains the prevailing instinct. Pray it stays that way. There have not been any raids on the state retirement fund, either. A similar temptation.
The opposite, in fact, as Northam points out: “Our budget proposes investing $100 million in our retirement plan for public school teachers, the state employee health insurance credit program, and benefits for our first responders through the Line of Duty Act.”
These are not small considerations. Not small at all. Northam is right to underline, boldface and fire off a few illuminating rockets.
The numbers cited by Northam describe the board landscape of the commonwealth.
Break it down by region, however, get away from the job-rich “golden crescent,” that runs from Northern Virginia to Richmond to Hampton Roads, and economic opportunity looks less sparkling.
In some places, there’s nary an ember. Yet, somehow Northam worked through his roughly hourlong speech without uttering the word “rural.” (Citing the glories of the “Virginia Creeper Trail” in Southwest Virginia doesn’t count.)
Granted, you can’t do it all in these annual gubernatorial speeches. But when it comes time to describe the “State of the Commonwealth,” there ought to be a fixed, obligatory section dedicated to the better part of Virginia’s geography and the conditions within.
On balance, Northam gets plenty right. His priorities are sound, especially on topic A — a pillar of hope in rural Virginia
— public education, where theoretically all boats get lifted at once.
Northam urges improvements in education funding, including raises for teachers and he’ll have to make sure local government officials, who run the schools, share that commitment. The education investment must happen. The effects of the ongoing pandemic, devastating to public education already, will be inventoried in full someday and the toll will be daunting.
“We need to rebuild this economy, creating an environment and jobs that will attract business and industry to get people back to work,” said Majority Leader Sen. Dick Saslaw, in response to the governor’s address.
“We’ve got a lot to do, and we are determined to get the job done for the future of Virginia,” he said.
Yes, there’s plenty to do — including major items (capital punishment, for instance) not discussed here.
But keeping the commonwealth on a solid financial footing is crucial. Essential. Gov. Northam said so — has said it often and will keep saying it — and he’s correct.