Virginia Headlines
Commonwealth’s Budget Picture Worsens
The bad news continues to roll in regarding Virginia’s biennial budget. Fiscal year 2009 sales tax collections have lagged behind projections by more than four percent. At the same time, income tax withholding is nearly five percent behind budget forecasts. This means more targeted budget cuts are on the way. The Governor is authorized to make line item cuts of up to 15 percent without the approval of the General Assembly. Accordingly, Governor Kaine has instructed state agencies to prepare revised budget proposals reflecting cuts of 5 percent, 10 percent and 15 percent to be reviewed by the administration. Revised revenue projections are due in October and will dictate the scope of impending budget cuts.
