Virginia Headlines
Commonwealth’s Budget Picture Worsens
State legislators continue to assert that closing the state’s budget deficit will be the defining issue of the 2009 session, since news regarding revenue collections has gone from bad to worse. The latest projections show that the biennial budget may be faced with a shortfall of up to $3 billion. The Governor is authorized to make line item cuts of up to 15% without General Assembly approval. Accordingly, Gov. Kaine has instructed state agencies to prepare revised budget proposals reflecting cuts of up to 15% . The Governor indicated that education funding would not be cut before the 2009 session, however, all areas will face scrutiny by the General Assembly when they return to Richmond in January. Expected decreases in state aid for programs and lower-than-anticipated residential property values will create a difficult budget climate at the local level. Already, Northern Virginia localities have begun examining potential cuts in programs and increases in real estate tax rates.
