State pay raises may be endorsed

Media General News Service
Published: February 21, 2008

RICHMOND - House and Senate budget committees are expected to recommend 2 percent and 2.5 percent raises, respectively, for all public employees, General Assembly sources say.

The House-proposed increase would be effective Dec. 1. It was unclear whether the Senate-recommended raise kicks in this year or in 2009.

House Appropriations and Senate Finance committees will roll out their own versions of a two-year budget buffeted by the declining economy.

The House draft will rely in part on a $220 million withdrawal from the state’s $1.2 billion rainy-day fund. That’s about half the amount that Gov. Timothy M. Kaine, a Democrat, proposed this week.

The Senate proposal is expected to include the $420 million drawdown from the emergency account recommended by Kaine.

Kaine said the state’s revenue shortfall had ballooned from $641 million to $2 billion, because of the impact of the economic downturn on state tax revenues.

Republicans who control the House initially criticized Kaine for proposing draining about $260 million from the rainy-day fund, but GOP budget negotiators said Friday that falling revenues require a withdrawal.

The two chambers will consider their budget proposals on Thursday.

The sources said the House’s proposed 2 percent salary increase would apply to all civil service workers, teachers, college professors and state-paid local employees.

These sources also said the raise to be advanced in the Democrat-dominated Senate - it’s a half-percent sweeter than that recommended by the House - applies to the full range of government workers.

Kaine initially proposed raises, beginning July 1, 2009, of 3 percent for state workers and 3.5 percent for teachers. With the budget bleeding cash, Kaine trimmed his proposed increases to 2 percent for workers and 2.5 percent for teachers.

In a briefing for reporters Friday, House budget negotiators said most of Kaine’s proposed new programs would be eliminated, including his plan to put $55 million in additional money into a pre-kindergarten program for low-income youngsters. That proposal was one of the cornerstones of Kaine’s successful run for governor in 2005.

Del. Phillip A. Hamilton, R-Newport News, vice chairman of the House Appropriations Committee, said the budget will include the $42 million that Kaine proposed for mental health.

After the Virginia Tech tragedy, Kaine proposed adding clinicians, case managers and psychiatrists to the state’s mental health system.

Del. Beverly J. Sherwood, R-Frederick, said many new programs proposed by Kaine will not be financed.

The appropriations committee staff compiled a list of Kaine initiatives totaling about $85 million over the next two years.

These include $13 million in performance grants for the Qimonda semi-conductor plant in eastern Henrico County and $200,000 for marketing the state to India and China, Sherwood said.

Jeff E. Schapiro and Tyler Whitley are staff writers for Media General’s Richmond Times-Dispatch.