Growls

David Sherfinski of the Washington Examiner reports that “Virginia's budget surplus is projected to end up at about $400 million for the past fiscal year -- nearly twice as much as previously estimated.”

Official figures will not be available until Gov. McDonnell (R) speaks before the so-called money committees of the Virginia General Assembly on Thursday morning. However, sources spoke “on condition of anonymity.” According to Sherfinski, the budget surplus will total almost $404 million, about double the $220 million projected a month ago. However, that’s the good news since Sherfinski also writes:

“Despite the rosy projections, though, the state will defer $620 million in payments to the Virginia Retirement System, the state's $50 billion employee retirement fund, in fiscal 2011 and 2012 -- to be paid back over 10 years with 7.5 percent interest. The state deferred nearly $140 million in VRS payments in the fourth quarter of 2010.

“Virginia also will reap $540 million from the approximately $28 billion in state aid signed into law by President Obama last week. About $290 million will go toward Medicaid funding, and about $250 million will go toward public education.

“The governor's office has estimated that the federal health care overhaul, passed in March, will cost the state $1.5 billion through 2022.”

Although the reports of a budget surplus sound like good news, it seems its more than negated by the bad news. And as Norm Leahy notes at Tertium Quids yesterday, don’t expect any of the money to be refunded to Virginia taxpayers.