ACTION ALERT FROM THE VIRGINIA INTERFAITH CENTER
Date: December 22, 2004
Issue: Governor Warner's Budget Proposal

Since this is the second year of the biennial budget cycle, the Governor and General Assembly will merely make amendments to the budget that was passed during the special session last year. The estimated $919 million surplus will probably translate into several spending increases as well as some tax relief. Friday morning, Governor Warner released his package of amendments which included:

1. Reduction in the Grocery Tax - A 1.5% decrease on the 4% grocery tax effective July 1, 2005. This decrease, which was approved in last year's budget, was originally to be phased in over three years. For the past several weeks, the Virginia Interfaith Center has been working with legislators to craft a similar proposal. We are encouraged by the administration's proposal to reduce this regressive tax that disproportionately affects the poor.

2. Expansion of Prenatal Care Access - An additional $3.3 million to expand Medicaid eligibility for pregnant women from 133% to 175% of poverty. This is a major expansion of coverage that we must applaud and support. However, the Interfaith Center's goal is to increase the eligibility level to 200% of poverty. Since the babies born will be covered under the FAMIS (Family Access to Medical Insurance Security, provides healthcare to low income children) with family income at 200% poverty, the pregnant mothers should be eligible at that income level as well. An additional $2 million of General Funds will be needed to raise eligibility to 200%.

3. Raises for State Employees, Teachers, and State-Supported Local Employees - 3% raises for state workers, teachers, state-supported local employees, and professors to be enacted next December. Governor Warner referred to these workers as "the face of state government to all Virginians" and that "Virginia's state government functions as well as it does because our employees routinely go the extra mile...The same can be said about faculty in our colleges and universities, teachers in our public schools, sheriff's deputies and other state supported local employees."

4. Transportation - While transportation is not a core issue for the Interfaith Center, it will be a very important issue during the 2005 session. Governor Warner has proposed new funding totally $824 million for various programs including repaying the General Fund, a Rail Partnership Fund, highway improvements, and a Local Partnership Fund to promote through incentives greater local government roles in local road construction.

If you have any legislative or policy questions, please do not hesitate to contact your Interfaith Center staff at office@Virginia Interfaith Center.org or 804-643-2474.

Please visit our web site at www.virginiainterfaithcenter.org to find more information about upcoming events such as the Day of All People of Faith on February 3rd, or to donate by credit card through our online donation page.