Yesterday the State Senate passed the state's biennium budget on a party-line vote (21-19).  The House adopted its own Budget.  Over the next two weeks, the "budget conferees" will meet and work out an agreement on the overall structure.  There are some agreed items, e.g. increased funding for mental health, foster care and Virginia's pre-K iniative.

Here are the basic points of disagreement:

1.  Transportation:  Major disagreement here.  Last year's HB 3202 dedicated $180M from the "surplus" for transportation.  What surplus?  The Senate corrects that fallacy by raising the gas tax (one cent a year) to fill the gap in the transportation budget.  The House does not make that change.  Instead, they transfer $180M from education and human services to fill the gap. 

2.  Education:  Minor disagreement in short term, Major in long term.  As described in an earlier post, the House calculation for Basic Aid robs Fairfax County of its "prevailing wage" factor to recognize higher costs.  That is a major hit to our school system, which will take effect in future years (not so much in 2008-2009).

3.  State Properties:  Major disagreement here.  The Senate has approved a major bond package which is principally focused on higher education and state parks.  The benefit is that interest rates are low and so it's a good time to sell bonds.  The House disagrees and calls it unwise spending.  Again, this will need to be worked out in conference. 

4.  Lottery:  No disagreement but still an issue.  Both budgets transfer surplus Lottery funds into basic aid payments for local schools as a short-term way to balance accounts.  The Senate Republicans called that "unconstitutional" in voting against our Budget.  Ironically the House Republican budget does that exact same thing.  Are the Senate Repubs going to protest when we reach final agreement?

Anyway, the budget is big and complex.  I think it's fair to say that these are the short, simple issues.  Otherwise, the budgets are similar in that there is no "non-state" funding, i.e. funds for private non-profits, and reduced funding for public health, especially on the House side.