1. September 7, 2010 The 2010-11 Virginia Budget Crisis: A Balanced Solution
2. Virginia FY2010-11 Budget: General Fund Revenue Side Other Taxes & Revenue Corporate Income Tax 9% 5% Source: http://dpb.virginia.gov/budget/08-10/revenue.cfm , Virginia Dept. of Planning and Budget 2 This revenue is based on economic forecasts and subject to change. Individual Income Tax Sales & Use Taxes Includes: • Public Utilities Taxes • Insurance Premium Taxes 66% 20%
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4. Cuts To the State Budget Since the Recession Began Source: The Commonwealth Institute, www.thecommonwealthinstitute.org Because of the failing economy, former Governor Kaine, current Governor McDonnell, and the Virginia General Assembly have been forced to cut over $15 billion from the state’s General Fund. Fiscal Year Billions of $ in Cuts 2008 .882 2009 1.926 2010 4.066 2011 4.269 2012 4.501 Total for period= $15.644
5. How Did the 2010 General Assembly Close Its Budget Shortfall? Source: Commonwealth Institute Analysis of the 2010 Acts of Assembly Chapter 874, 2008 Acts of Assembly Chapter 879, and ARRA Reports The General Assembly raised about $270 million in new revenue, but cut over $4.5 billion from the budget in Education, Health, Human Services and other programs.
6. Who Is Hurt by the Deep Budget Cuts? Everyone. Source: http://dpb.virginia.gov/forms/20090908-1/Reductions2010.PDF Public Colleges & Universities K-12 Education Public Safety Medicaid Mental Health Treatment Centers Libraries At-Risk Youth & Families Conservation & Recreation
7. Percent of Income Paid in State and Local Taxes in Virginia Source: Institute on Taxation & Economic Policy, Who Pays , November 2009 For non-elderly taxpayers in 2007, middle and low-income Virginia families have a higher tax responsibility than wealthy families. Income Level Percent of Income 9% 1% 2% 3% 4% 5% 6% 7% 8% 8.8% 8.4% 8.4% 7.9% 6.9% 6.6% 5.2% Lowest 20% Top 1% Next 4% Next 15% Fourth 20% Middle 20% Second 20%
8. Dollars Paid and Dollars Left Over by Income Quintile Source: Institute on Taxation & Economic Policy, Who Pays , November 2009 This chart compares the real dollars paid in taxes with the income left over for Virginia families. $90,000 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 Lowest 20% Top 1% Next 4% Next 15% Fourth 20% Middle 20% Second 20% Income Level Dollars Line goes half-way through next page Line goes through NEXT 8 PAGES $977 $10,122 $2,251 $24,549 $3,889 $42,411 $6,138 $71,562 $9,557 $19,846 $280,854 $81,000 $1.5 million $128,943