Al Eisenberg

Delegate Al Eisenberg (D)
Virginia House of Delegates

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Richmond Roundup
March 18, 2004

FOR IMMEDIATE RELEASE
Richmond, VA
March 18, 2004
CONTACT: Sue Rafferty,
Legislative Assistant, (804)698-1047

Delegate Al Eisenberg issued the following Richmond Roundup on March 18, 2004

Dear Friends,

SPECIAL SESSION ADDENDUM TO RICHMOND ROUNDUP # 5

After the regular General Assembly was extended beyond the constitutional adjournment date of March 13 and the House and Senate adjourned sine die, the Governor quickly called a special session to reconcile the budget disagreements among the House of Delegates, State Senate, and the Governor.

As a result, when this special session began on Wednesday, March 17, the entire budget process had to start anew. In the Governor's call for a special session, he required that the session allow only new legislation that specifically addresses budget and revenue items, plus such non-controversial items as memorial or commending resolutions. This means that any legislator can introduce brand new budget or revenue bills or amendments during the term of the special session.

The State Senate made an important move on March 17 by proposing to eliminate $1.6 billion dedicated to transportation through gas taxes and related revenue increases, thereby reducing the Senate tax measure to $1.9 billion in taxes and fees over two years.

Before the end of the regular session, the House Republicans had pushed through a bill terminating sales tax exemptions on many of our most important state industries, including shipbuilding and airlines, among others. With the beginning of the new special session, the House Republicans reintroduced that bill, adding new industries to the mix of those slated to loose their sales tax exemptions. Today, March 18, the House Republicans rammed that new bill through after the Speaker cut short any debate on the bill by ignoring a Democratic legislator rising to speak, and instead recognizing a Republican legislator who asked for an immediate vote on the "pending question." The pending question cuts off all debate, and the bill passed on a party line vote.

This legislation purports to raise $520 million, but this assumption has been flawed from the outset. The estimates of new revenue were based on figures dating back to 1995. The Virginia Department of Taxation strongly disputes the House Republican assumptions as way out of line. In addition, the sponsors of the Republican House bill had almost no analysis on the impact of the elimination sales tax exemptions on individual industries, their employees, and the state's ability to attract and retain businesses and grow its economy. I oppose budgetary gimmicks and sleight of hand in crafting the budget that Virginia deserves.

The Governor and the Democratic members of the House continue to stand firm in our united belief that the basic principles of tax fairness, meeting core needs, and protecting our AAA bond rating must underlie any budget compromise. Moreover, we believe that we must build a responsible budget that truly recognizes the serious crisis that will exist if this state does not invest in such critically-challenged areas such as education at all levels, public safety, transportation, the environment, and economic development, and in the most prudent way. Unless common sense prevails, the state will suffer tangible losses in our quality of life, and that will ultimately impose a costly and demonstrable tax on every household's ability to have the basic services on which the citizens of Virginia can depend and which they rightly deserve.

Let me again conclude by saying what an honor it is to serve the people of the 47th District. I thank you for your support and your trust. Please do not hesitate to contact me if I may be of assistance.

Our Contact Information In Richmond: Phone: 804-698-1047; email: del_eisenberg@house.state.va.us; website: www.aleisenberg.com.