Read the Bills Act Coalition

Monday, February 4, 2008

Gilmore Responds to Warner Lies

From Ana Gamonal the Communications Director for Jim Gilmore for Senate Campaign...

"In a recent article in The Alexandria Times, former Virginia Gov. Mark Warner was quoted as citing a “$6 billion budget deficit that he faced when he took office in 2001.”

This is a myth that Mark Warner continues to promulgate and it is time to set the record straight.

When Mark Warner took office as Governor he not only inherited a balanced budget (the Virginia Constitution by definition prohibits budget deficits) but he inherited a fully funded $1 billion Rainy Day Fund, the largest cash reserve in Virginia’s history, which under former Governor Jim Gilmore was the key component in preserving the state’s pristine credit rating (AAA) during tough post 9/11 economic times.

Even with no growth in revenues because of a slowing national economy, in fiscal year 2001, guided by his fiscally conservative principles, Gov. Gilmore not only cut spending and balanced the budget, he left office with a record $1 billion in Virginia’s state savings account, the Rainy Day Fund.

Gov. Gilmore deposited more into that account than any other governor in Virginia history. Gov. Gilmore’s final budget was not only balanced but it still gave hard working Virginians substantial tax relief. In 2002, the entire country experienced a national recession and practically every state had to reassign its spending priorities to balance its budget.

This revenue decline should have been a signal to Governor Mark Warner to reduce spending, however, he instead chose to raise taxes on Virginians and raid the Rainy Day Fund, rather than adopt a fiscally conservative policy of cutting wasteful government spending.

There was no deficit and no shortfall, unless one defines it as the difference between state revenues and what Mark Warner wanted to spend."

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