State Senator offers preview of legislative 2010 session

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By M.K. Luther -- mkluther@nvdaily.com

FRONT ROYAL -- The General Assembly again will face hefty budget challenges when it convenes for the 2010 legislative session, according to one area lawmaker.

Sen. Mark Obenshain, R-Harrisonburg, delivered a legislative preview Tuesday at Samuels Public Library on Criser Road.

The event was sponsored in part by the Front Royal-Warren County Chamber of Commerce.

Obenshain, whose party won the governor's office in the Nov. 3 election, said the upcoming budget process will pose significant hurdles for local legislators.

"This is a classic case of having the tiger by the tail," Obenshain said. "And I think we know what to do with it but it is going to be a challenge."

Virginia's budget is heavily dependent on state tax revenue generated by income, sales and business taxes.

The budget was calculated based on a projected tax revenue increase of 7 percent a year, but revenue actually declined by more than 7.5 percent from last year, Obenshain said.

Ultimately, offsetting deficits in last year's budget was accomplished by accessing finite sources -- mainly by dipping into the state's rainy day fund and using stimulus funds, Obenshain said.

"We relied on some one-time fixes," Obenshain said, cautioning that neither of those funding sources would be readily available for future budgets.

However, Virginia, a "tradition-bound state," has begun to consider innovative ways to generate new sources of revenue, such as privatizing liquor sales and green energy projects.

"I am heartened greatly by the fact that we have some really fresh ideas that we are bringing to the table in Richmond," Obenshain said.

For example, after 75 years Virginia is considering withdrawing from a "state-run monopoly on the sale of distilled spirits," Obenshain said.

"Virginia may be about to step into the post-prohibition era in the next couple of years and actually look at privatizing the sale of distilled spirits and getting the government's hand out of a business that it probably, frankly, never should have gotten into in the first place." Obenshain said.

Front Royal Police Chief Richard Furr asked Obenshain to explain the effects of possible state budget cuts on public safety funding, saying he could run the risk of losing personnel if law enforcement funds are reduced.

Obenshain said Virginia must give priority to essential services, such as law enforcement, education and transportation, in the budget process.

"These should be held as harmless as they possibly can be," Obenshain said. "It is absolutely hypocritical for us to cut essential funding for services that have to be provided."

Del. Clifford "Clay" Athey, R-Front Royal, was unable to attend the event because of a family matter, Obenshain said.