This year the legislature develops the next two-year budget for Virginia. Although the outgoing governor prepared a budget for the next two years, it really is nothing but his personal recommendation – and not anchored in what anyone really expects to happen. This past November’s election clearly showed that the majority of Virginia citizens were not happy with government and now want meaningful changes.
It will be a tough budget to develop as Virginia has lost considerable federal funding. It is difficult to know exactly how much money has been reduced. I found one estimate, from Chris Saxman, a former Republican state delegate and president of Virginia FREE (a business-focused nonpartisan organization), that reductions in federal funding will cost Virginia $7 billion. These losses include about $2 billion from Medicaid reimbursement, and nearly $500 million from SNAP reimbursement. I also found mention of an additional $1 billion required to support K-12 education. Of course, I cannot be sure of any of the numbers that I am finding on the web, although I do my best to check that they come from reliable sources. We will all know much more after the budget is actually developed.
Very likely too is that the need for state-sponsored social services will increase due to the rising cost of living, and rising unemployment. The Virginia Department of Workforce Development and Advancement reports that unemployment claims have been rising meaningfully statewide. I cannot find documentation of the local situation, but my “next door” account has a lot of activity by people looking for work. Certainly that does not produce reliable information on overall employment needs, but it is something that might signal increased problems ahead.
We know that people are experiencing enormous increases for health insurance – in many cases more than doubling their previous premiums. Some will opt out of health insurance – putting more of a burden on them, and on social services, in the event of a health problem. Others will somehow pay the increased premiums, leaving little room for other expenses and again perhaps leading for more demand for social services. This means more need for services paid for by the state. It also might force some of our hospitals to close – as the law requires them to provide care even when they are not paid. Too much non-payment of services can simply end their financial viability.
Let’s not forget too that last year’s budget took away funding that would have been very important to our region. For example, funding to expand the VT-Carilion School of Medicine and Fralin Biomedical Research Institute was withdrawn because of the reduction in federal support to the Commonwealth. Certainly our region suffers from a lack of qualified medical professionals. Nothing seems more straightforward in getting more practitioners here locally is to train them locally. Some would surely like living in this lovely region and take advantage of the professional opportunities. And those who leave will help others – certainly a good thing too. But if funds could not be made available last year – where will they come from now with the state’s revenue from the federal government being reduced so sharply? Our legislators will have a tough job selecting how best to respond to competing demands among a host of worthwhile needs. Let’s wish them well!
