Finance and Appropriation Committees of the Virginia General Assembly

f EXCERPTS FROM REMARKS MADE TO THE FINANCE AND APPROPRIATIONS COMMITTEES OF THE VIRGINIA GENERAL ASSEMBLY AUGUST 14, 1992 RICHMOND, VIRGINIA BY GOVERNOR L. DOUGLAS WILDER Mr. Chairmen, members of the committees, good morning. I am pleased to be here this morning to report on just what the financial condition of the Commonwealth is as of June 30, 1992. We, like many other states around the country, were and continue to be adversely affected by the recession that began in 1990. I first brought this to your attention at that time, and cautioned against any optimism for a speedy recovery. The decline in our economy may have bottomed out, but there is only very limited evidence of an upturn. Nevertheless, we have much to be thankful for. Unlike those on the other side of the Potomac, Virginia is living within its means. We met all of our obligations at the close of fiscal year 1992. The largest revenue shortfall in Virginia's history was addressed with quick and decisive actions ... and I might add, without a tax increase. Our recently-enacted budget for 1992 through 94 continues to reflect the principles of fiscal responsibility and financial integrity that have served us so well during the past 30 months. Virginia is fortunate to be one of only 5 states whose full faith and credit general obligation bonds enjoy a AAA rating by each of the three bond rating agencies. Just two weeks ago, I announced the sale of Virginia Public Building Authority Revenue Bonds totalling $174 million to help finance state facilities which you approved at the 1992 General Assembly Session. These bonds carried an average interest rate of only 5.57 percent, reflecting rates at their lowest levels since the late 1970s. Compared to assumptions made prior to the sale, the Commonwealth will save $2 million per year, or $40 million over the next twenty years. These are double A bonds which were priced at the same level as triple A bonds of other states, and that is a clear indication of the overall credit strength of our Commonwealth.