Here’s why sane folks are saying there is no real “surplus” in the state’s budget.
They note that most of the surplus is being spent to repay special accounts Virginia raided to balance the budget during the recession. They point to reports saying that inflationary increases in health care and education mean that the state will have to generate at least $2.5 million in new revenues just to keep pace during the two-year budget cycle starting July 1, 2006.