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Spirited=20 Debate
Lt. Gov. Bolling talked about the General Assembly's = wins and=20 challenges at an insurance fraud conference

Annie=20 McCallum
Tuesday March = 21, 2006=20

Capital News Service -- The General = Assembly's=20 protracted battle over crafting a state=20 budget is a reflection of a healthy democracy, Lt. Gov. = Bill=20 Bolling said last week at a conference at Virginia = Commonwealth=20 University.

Debate over the budget should not be a cause = for=20 concern; it's a sign of good government, Bolling said. =

"The best=20 public policies often emerge from a clash of ideas," he said. = "When you=20 see leaders disagree, it's not necessarily a bad thing." =

Bolling=20 spoke at a VCU conference on insurance fraud last Tuesday. =

"To be=20 here today gives me a chance to talk about things that I know=20 professionally because of my years in the insurance business, but = then=20 also to help communicate additional knowledge to folks about = what's going=20 on in state government," he said.

During his speech, = Bolling, a=20 Republican and former state senator from Mechanicsville, recapped = the=20 legislative session that ended March 11. Lawmakers couldn't reach=20 agreement on transportation funding and other budget issues; so = they must=20 reconvene for a special session March 27.

Despite the = budget=20 impasse, Bolling said the General Assembly approved significant=20 legislation, including:

A constitutional amendment to ban same-sex marriages

Criminal penalties for owners of "dangerous dogs"

Tougher penalties for sex offenders

A sales tax holiday for school supplies

Communication tax reform, which will eliminate state and local = taxes=20 on phone bills.

Bolling expressed disappointment that = legislators=20 did not pass bills to eliminate Virginia's estate or inheritance = tax,=20 which opponents call the "death tax"; to rewrite the power of = eminent=20 domain =96 the rules under which government can condemn property; = and to=20 prohibit teenage drivers from using cell phones.

"I hope = you will=20 remember there is a lot of stuff that we did get done," Bolling = said.=20

He also addressed the issue of the day, insurance. =

"We=20 still have a million Virginians uninsured. This year, we did a = couple=20 things I'm hoping the governor will sign to make things better," = Bolling=20 said.

For example, the General Assembly authorized = businesses with=20 fewer than 50 employees to form pools for purchasing group = insurance. "We=20 believe it will help them provide health insurance to employees = cheaper,"=20 Bolling said.

He discussed a growing state and national = problem =96=20 rising Medicaid costs. He said Medicaid long-term care is the = fastest=20 growing part of the budget because Virginians are getting older = and going=20 into long-term care.

"If we don't do something, it will = bankrupt=20 the commonwealth," Bolling said.

One thing legislators did = is to=20 encourage individuals to purchase long-term care insurance. A new = law=20 would allow Virginians to deduct from state income taxes up to 10 = percent=20 of the cost of long-term care insurance premiums.

Bolling = said=20 this is important because if an individual buys long-term care = insurance,=20 it could mean one fewer person on Medicaid.

Bolling has = been in=20 the insurance industry for 28 years. He was elected lieutenant = governor=20 last November during a bitter campaign in which his background was = used=20 against him by Leslie Byrne, his Democratic opponent. =

Byrne=20 questioned Bolling's ethics because he had worked for the = Reciprocal=20 Group, a Richmond-area insurance company that collapsed after = a fraud=20 investigation involving high-ranking executives.

"That was = really=20 a 'guilty by association' charge. There was never any evidence = produced=20 that Bill Bolling acted in anyway that was unethical or illegal," = said=20 Robert D. Holsworth, a VCU political analyst. =

Holsworth was=20 one of about 130 people who attended the Fraud: Fighting the = Dark Side=20 of Insurance conference. The event was presented by the VCU = Risk=20 & Insurance Studies Center.

In Bolling's speech at = the=20 conference, he tried "to really focus on the positive = accomplishments of=20 the Assembly rather than on the issues that are really dividing = it,"=20 Holsworth said.

"They're coming back on the 27th, and no = one, at=20 least at the moment, thinks you're going to have an agreement on = the 28th=20 or the 29th."

Holsworth said the argument before the = Legislature=20 is less about how much to spend on transportation that about where = to get=20 the money.

Gov. Tim Kaine and most senators believe = the=20 money should come from new taxes. But most House members oppose = more taxes=20 and believe transportation funds should come from the state's = budget=20 surplus.

"I personally happen to agree with the House of=20 Delegates," said Bolling, who as lieutenant governor presides over = the=20 Senate. "I don't believe it's necessary to raise taxes. I don't = think it's=20 necessary or appropriate."

Holsworth said someone must = mediate to=20 forge a deal and settle the budget.

"Someone is going to = have to=20 act as a broker here and transcend the battle and come out with a=20 compromise, and probably the person who may be in the best = position to do=20 so is the governor," he said.

The only consensus at the = moment is=20 "we'll see."

"We'll just see at the end of the day which=20 perspective is able to get a majority of the vote and whether or = not a=20 potential compromise arises along the way that everyone can be = equally=20 satisfied or dissatisfied with," Bolling said. "We'll just have to = see."=20

Capital News Service is staffed by students from = the=20 School of Mass Communications at Virginia Commonwealth = University.=20 They provide state government news coverage for news outlets = throughout=20 Virginia including Richmond.com.=20

A service of Richmond.com=20