RICHMOND — As goes the federal government, so goes Virginia's budget.
“It’s great for us. I’m the happiest man alive,” he told reporters after a closed-door meeting with his economic advisers. But, he said, across-the-board federal spending cuts known as sequestration are not gone forever:
“It’ll be at our front doorstep in two years. Shame on us if we don’t take care of this,” he said.
McAuliffe is preparing a two-year budget that gives the term-limited governor his best shot at furthering his agenda. He’ll unveil his plan Dec. 17.
Despite frosty relations with the Republican-controlled General Assembly, both sides put a happy face on the upcoming budget negotiations.
S. Chris Jones (R-Suffolk), chairman of the Virginia House of Delegates’ Appropriations Committee, said last year his caucus found common ground with McAuliffe when it came to extending benefits to some mentally ill Virginians — and erasing a $2.4 billion projected shortfall.
“We don’t always agree, but we can sit down and disagree without being disagreeable,” he said.
Yet one area of major discord remains. McAuliffe’s goal of expanding Medicaid under the Affordable Care Act is a nonstarter in the House.
“I don’t see Medicaid expansion happening,” Jones said in an interview. “If that’s put in the budget, that won’t stay in the budget.”
But health care — as well as education and economic development dollars — will be debated in the upcoming session.
Lawmakers are likely to offer bills to charge hospitals a “bed tax” in hopes of drawing down a federal match. Some Republicans have speculated that McAuliffe will try to use the money to expand health care to 400,000 Virginians under the Affordable Care Act.
There’s also the matter of certificate of public need, which requires doctors and hospitals to receive special permission before they can offer certain services and equipment. Proponents say it keeps costs down; opponents say it stifles the free market.
“There’s always a surprise or two that occurs during session,” Jones said.
Sen. Emmett W. Hanger Jr. (R-Augusta) is the newly installed co-chairman of the Senate Finance Committee with Senate Majority Leader Thomas K. Norment Jr. (R-James City).
“I don’t want to be premature on my judgment on that,” he said. “That’s something we’ll certainly talk about — I don’t think we’ve come to a conclusion in either of those areas as far as any significant movement.”
Hanger also offered a reality check on the genial tone Monday.
“Both the House and Senate will be looking to see where the governor lays the marker,” he said. “Then we’ll criticize him and move forward.”
“I’m ready!” McAuliffe said with a laugh.
