The Democrats "Why be honest now?" policy of fiscal management
J.R. At Bearing Drift has a great article up discussing the Tax and Spend mentality of Former Governor Mark Warner and current Governor Tim Kaine.
In 2004, then Secretary of Finance John Bennett informed then Gov. Mark Warner that state revenues were on the rise. Despite this knowledge, Warner shoved the largest tax increase in Virginia history $1.4 Billion down the throats of Virginia taxpayers.
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Whether it’s Mark Warner, Tim Kaine, or Jody Wagner — the pattern is obvious: they will say anything to get elected. They will fudge numbers to get their way. And they will spend the treasury into oblivion.
The letters from John Bennett are online, here is a brief synopsis.
1) March 12, 2004 - February Revenue Data
http://www.finance.virginia.gov/KeyDocuments/RevenueReports/FY2003-2004/Feb04.htm
“Total general fund revenue collections increased 7.1 percent in February, with strength in withholding and sales tax collections. Revenue growth for the month was healthy, but is distorted somewhat by being compared to February 2003, when a significant blizzard disrupted business activity and sales.
Year-to-date revenue growth through February stands at 6.4 percent — slightly behind the forecast of 6.7 percent growth for the year.”
2) April 16, 2004 - March Revenue Data
http://www.finance.virginia.gov/KeyDocuments/RevenueReports/FY2003-2004/Mar04.htm
“….year-to-date revenue growth stands at 7.7 percent — ahead of the annual forecast of 6.7 percent growth”
“Current economic indicators suggest the economy is gaining strength”
“Monthly revenue collections grew 22.5 percent in March, largely due to a strengthening employment picture and the temporary spending stimulus of federal income tax refunds.”
3) May 14, 2004 – April Revenue Data
http://www.finance.virginia.gov/KeyDocuments/RevenueReports/FY2003-2004/Apr04.htm
“Total general fund revenues grew 22.5 percent in April.”
“Recent strength in employment has also spurred revenue growth.”
“Through April, year-to-date growth in general fund revenue is 9.5 percent greater than the same period last year - well ahead of the estimate of 6.7 percent. “
4) June 11, 2004 – May Revenue Data
http://www.finance.virginia.gov/KeyDocuments/RevenueReports/FY2003-2004/May04.htm
“Total general fund revenues in June must exceed $1.17 billion in order to meet the fiscal year 2004 forecast.”
“Recent strength in revenue collections, combined with increases in payroll employment, makes it highly likely that actual collections will substantially exceed the forecast. “
“Monthly revenue collections grew 7.3 percent in May. The strengthening economy is driving solid growth in sales tax collections and in withholding receipts. A few large estate tax payments and fewer income tax refunds in May also boosted growth for the month. Total year-to-date revenue growth of 9.3 percent exceeds the annual estimate of 6.7 percent growth.”
5) August 23, 2004 – June Revenue Data (Year End) *
http://www.finance.virginia.gov/KeyDocuments/JMCmaterials/JMC-Aug2004.pdf
* - Revenue letters are not published in June, but the information is released in the Secretary of Finance’s presentation to the Joint Money Committee’s in August.
Forecast Actual $ Variance % Growth
Total GF Revenue $ 11,594.1 $ 11,917.9 $ 323.8 9.7 %
“Actual collections exceeded the forecast by 2.8%.”
[Revenue growth in the month of June was 12.5% !]
Comments
By Dexter on July 24th, 2008 at 13:06 pm
Let’s not overlook the biggest lie of all. On Dec 13,03 he submitted a revenue forecast that indicated revenues would drop by $3 billion over the next couple of years,2004 to 2006. It was enough to scare Moody’s and to gain support for his tax hike. That forecast ended up being…[you guessed it] $3 billion less than actual revenues. It was all a big shell game from a Governor who had no legacy and needed to buy one with our tax dollars to fulfill his political ambitions.
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