"Virginia Gov. Mark R. Warner (D) announced his final spending plan for state government Friday, proposing to bestow the fruits of a growing economy on roads and mass transit, the environment, university research and mental health programs.

The two-year, $72 billion budget that Warner offered to lawmakers caps a tumultuous financial ride for the outgoing governor that began in 2001 with a faltering economy and billions in shortfalls and ended four years later with one of the nation's fastest-growing job sectors and billions in surplus cash.

Along the way, Warner survived a political battle over a tax plan that cut some taxes and raised others, boosting state spending by $750 million a year. He emerged with the support of a majority of Virginians and helped Gov.-elect Timothy M. Kaine (D) to victory in November.

'It felt pretty crummy that first year,' said Warner, who is considering a bid for president in 2008, after his budget speech. 'It feels pretty good now.'

In his budget, Warner called for spending hundreds of millions of dollars on restoring the Chesapeake Bay, building mental health facilities, jump-starting academic research and investing in roads and mass transit. He also proposed a small raise for state employees and teachers.

The speech was met with the usual mix of praise and criticism. But it will be Kaine, not Warner, who will shepherd the budget through the Republican-controlled legislature after tweaking it to reflect the promises he made on the campaign trail.

In a statement, Kaine said Warner's budget 'wisely invests in our core priorities and adheres to the principles of accountability and fiscal responsibility.'

Kaine has said that finding solutions to traffic congestion is the state's 'most urgent' need. His aides said Warner's budget proposal to boost transportation spending by $625 million over the two years is a good start. 'I don't think anyone thinks these one-time expenditures are going to solve the transportation challenges,' Kaine spokeswoman Delacey Skinner said.

Also Friday, a state Senate task force made public its broad analysis of the state's transportation needs. The group said the state needs to spend $1 billion a year more on road maintenance, road construction and transit.

The panel said the General Assembly should consider new tolls and increases in the motor vehicle titling tax, motor vehicle registrations, tire and battery taxes, the gas tax and regional income taxes.

But the idea of transportation tax increases has been rejected by House Speaker William J. Howell (R-Stafford). And Kaine has said he will not consider tax increases unless the money is guaranteed to be used only for transportation.

Despite citing transportation solutions as the most urgent need, Kaine has said education spending will be his 'most important' priority. Warner's spending plan contains $1.5 billion to keep pace with a growth rate of 11,000 new students in the schools each year.

Warner revealed his spending plan in a generally upbeat and casual speech to a joint meeting of the three tax and budget committees in the legislature.

He warned lawmakers that the state's leading business executives are predicting a slowdown in the housing market. And he used shame to try to get support for his research proposals by noting that the University of North Carolina -- 'with no medical school' -- performs as much federal research as the University of Virginia and Virginia Tech combined.

He diverted from his prepared remarks frequently and made several lighthearted comments. After mentioning that his homeland security adviser, George Foresman, had been nominated for a top national position, he mocked a comment by President Bush after Hurricane Katrina, saying: 'Heck of a job, Georgie.'

And when a cell phone rang, Warner -- who made millions as a founder of Nextel -- refrained from the joke Richmond audiences have come to know well: 'You hear an annoying sound; I hear cha-ching, cha-ching.' Instead, he merely chuckled and said: 'I tell you, you get out of state, it really works good.'

Several lawmakers said they will reserve judgment on the budget plan until Kaine makes his agenda clear in an inaugural speech Jan. 14 and a State of the Commonwealth address two days later.

'It represents measured investment in the pressing needs of the commonwealth,' said Del. Brian J. Moran (D-Alexandria), who chairs the Democratic Caucus in the House of Delegates.

House Majority Leader H. Morgan Griffith (R-Salem) called it 'a good speech' and said many of Warner's priorities probably will survive because 'Kaine ran as Warner's clone.'

But Griffith questioned the spending on research and development, saying it might create expectations of future spending that the state cannot afford.

Several House Republicans said the budget should make a healthier investment in new roads.

'We worked hard on education in recent years, but now we need to focus on transportation,' said L. Scott Lingamfelter (R-Prince William).

Del. William R. Janis (R-Goochland) criticized Warner for offering lavish spending that the state will not be able to afford once Warner is gone. 'He's clearly more concerned about what primary voters in Iowa think than what taxpayers in Virginia think,' Janis said.

Lobbyists who crowded the committee room Friday said the governor was enjoying the ability to spend as he leaves office. 'I'm wearing my Santa Claus tie just for the occasion,' said Steve Haner, who lobbies on transportation issues.

Princess Moss, president of the Virginia Education Association, said the 3 percent raises in Warner's budget would not bring teacher salaries to the national average.

'We are disappointed,' she said." (Michael D. Shear and Chris L. Jenkins, The Washington Post, December 17, 2005)