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State budget shortfall escalates to $2.9 billion
State budget shortfall escalates to $2.9 billion
By Holly Hobbs
Times-Democrat Staff Writer
Gov. Tim Kaine released more bad news on Virginia's budget shortfall Dec. 17.
Instead of the $1.9 billion shortfall that state leaders had projected in October, Virginia's biennial budget, which spans 2009-10, will likely fall about $2.9 billion short.
“These adjustments result in a total general fund revenue reduction in the biennial budget passed last spring of nearly $2.9 billion,” said Kaine, whose term ends at the end of 2009.
Although tough decisions lie ahead for Virginia's General Assembly, which convenes in January, Kaine warned that overly aggressive cuts would hurt Virginians.
He said the budget already contains hundreds of state government layoffs.
“There's no compelling reason to lay off more state and local employees 'just in case,'” the governor said in a released statement. “There's no reason to carve deeper into core services to vulnerable people 'to be on the safe side.'”
Sen. Mark Herring (D-eastern Loudoun) said the governor is taking the right approach to budget cuts.
"If we need to make additional cuts...we'll be in session and able to do that,” he said, adding that the General Assembly will have new budget numbers in late January or early February. "Before we take more drastic steps, let's see where we're at."
State leaders didn't sugar-coat the reality of looming budget cuts, government job cuts and service reductions Virginians will see in 2009-10.
Legislators say the increased shortfall puts a bigger damper on plans for improvements to their districts — including transportation projects.
The problems will get worse,” said Del. Tom Rust (R-Sterling), who served in the General Assembly in 2002, when Gov. Mark Warner announced a $1.5 billion shortfall for the 2003-2004 biennial budget, which meant cuts for higher education and other state services.
Those times were hard, Rust said, but morale is much lower this time because the economy is not going to rebound quickly.
“It's going to be a reduction across the board for K to 12 [schools],” he said, adding that higher education will see tuition increases.
Existing “problems will get worse,” he added, saying much-needed state trooper hires will not be made.
Fellow Del. C. Chuck Caputo (D-Dulles) agreed that the budget forecast is a bleak one.
“My No. 1 priority is education,” he said. “I'm going to do everything I can to protect education.”
Caputo said he didn't know whether the shortfall would increase more in the months to come.
Transportation will suffer heavy casualties because of the shortfall, the governor said.
Losses to transportation funding are estimated to fall to $600 million in the biennial budget, and $2.6 billion spread over the state's six-year plan
But still, Kaine said, “We are well-positioned to come out of this recession quicker and better than many other states. I am confident that better days are ahead for our commonwealth and country.”
Contact the reporter at hhobbs@timespapers.com
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