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In an article in today's Washington Post, Moodys Investors Service said that raising taxes is not what they are looking for to maintain Virginias AAA bond rating, it is the out-of-control spending that is the problem. A tax hike may be a temporary band-aid, but it won't be long (one budget cycle, maybe two?) before our hungry legislators will have spent any surplus they may have raised and will be moaning about the need for more "revenue" for the state. Until spending is under control, we will NEVER solve our budget problems (does anyone remember Gov. Baliles one-cent sales tax increase in 1986 that would solve our transportation problem "well into the next millennium?").

Below is a quote from the Post article:

Bob Kurtter, senior vice president for state ratings at Moody's Investors Service, said finding a long-term fix to the state's budget problems is a top concern for the credit rating agency. Kurtter said Moody's is not going to wait indefinitely before deciding whether to downgrade the state's AAA bond rating.

"We are looking for what the final solution is," he said. "If the decision of the commonwealth is not to raise taxes, then fine; just don't continue to spend more than you raise."

Don't forget the Virginia Republican Party anti-tax increase/pro-referendum rally with Attorney General Jerry Kilgore, Senator Ken Cuccinelli and State Party Chairman Kate Griffin, Monday, March 8, 11:00 a.m. at the Bell Tower on the Capitol grounds. For more information, please contact Jeff Britt at RPV, (804)780-0111.