Va. Governor Proposes Mental Heath Cuts

Highlights of Gov. Kaine's proposed budget

Major provisions of Gov. Timothy M. Kaine's two-year budget proposed Friday:

REVENUE:

—Eliminates the car tax in favor of phased-in 1 percent income tax increase.

—Increases the cost of liquor by 2 percent.

—Eliminates the dealer discount, a share of the state's sales tax merchants were allowed to keep for collecting and remitting the tax to the state once a month.

PUBLIC SAFETY:

—Cuts $270.5 million to constitutional officers such as sheriffs and commonwealth's attorneys.

—Cuts $73.4 million from local police departments.

—Leases 1,000 prison beds to out-of-state inmates to raise $19.8 million.

—Increases what the state pays to local jails to house state inmates from $8 to $12 per day.

—Changes the deputy-population ration from 1 to 1,500 to 1 to 2,000 to save about $25 million.

—Delays the opening of a new prison in Grayson and pushes back construction of another in Charlotte.

HEALTH & HUMAN RESOURCES:

—Cuts $12.2 million from community service boards that provide treatment and crisis services to the mentally ill.

—Closes Commonwealth Center for Children and Adolescents, the geriatric unit at Southwestern Virginia mental Health Institute and the Southwestern Virginia Mental Health Institute adolescent unit.

—Cuts nearly $419 million from Medicaid budget by adjusting payments to providers, and makes administration, eligibility and benefit changes.

—Continues $7 million annual cut in indigent care funding for teaching hospitals.

EDUCATION:

—Transfers $18.8 million in fees collected by colleges and universities to the general fund.

—Recaptures $134 million in unused health insurance premiums paid for school teachers.

STATE EMPLOYEES:

—Freezes salary increases for two years.

—Cuts another 664 positions.

—Requires state workers to start contributing toward their pensions.

—Increases the retirement age for new hires from 50 to 55.