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WEDNESDAY, JANUARY 16, 2002
Our View
Car Tax pothole
Repeal of Car Tax, lower revenue
expectations pose serious problems
Gov. Mark Warner appears to have made a good
start this week in his relations with the
Virginia General Assembly and in leadership of the state.
In his inaugural address Saturday and his remarks Monday to the General Assembly, he did his best to get his term off on a bi-partisan, if not nonpartisan, initial footing.
The state faces a severe fiscal crisis. Although Warner Would like to have the luxury of sufficient revenue to embark on new and expanded programs, including more funding for higher education, he made it clear that he and the legislature could not do that without shifting away from other programs.
Instead, Warner called for a 3 percent reduction in state spending during the remainder of this fiscal year, followed by 7 percent the next year and 8 percent the third year. To do that will require belt tightening and shifts in program funding.
One issue the governor and legislature face together is the result of former Gov. James Gilmore’s car tax repeal.
Car tax repeal may still be politically sacrosanct, yet this measure — even if it remains at today’s level will cost the state more money every year.
The vehicle registration renewal notices sent to car owners by the Department of Motor Vehicles carry a notice crediting Gilmore’s “Historic Personal Property Tax Relief Act.”
Maybe the DMV notice should carry information about the hole in the state budget that the car tax created, and how it is responsible for the state’s current fiscal crisis.
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