The Virginian-Pilot
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RICHMOND
When he delivers the latest batch of bad news about state finances today, Gov. Timothy M. Kaine is expected to tell legislators that revenues will fall about $1.3 billion below anticipated levels in Virginia's budget this fiscal year.
More state government spending cuts will be needed as a result to offset that shortfall in a budget already slashed by billions and balanced through a reliance on federal stimulus funds.
The governor is to brief the General Assembly's joint money committees this morning. He is not expected to give details on proposed cuts and other savings strategies until around Labor Day.
Kaine has already advised state agency heads to prepare expense reduction plans and said that employee layoffs are an option.
He telegraphed today's news earlier this month when he revealed that the revenue shortfall could be as low as $700 million or as high as $1.5 billion for fiscal year 2010, which began July 1.
The governor narrowed that range Monday, telling reporters the revised forecast would not fall on the low side of that balance. A legislative source speaking on the condition of anonymity said the updated figure is roughly $1.3 billion and could exceed that amount.
Kaine's office declined to confirm that number.
The lingering recession has some officials worried the worst may be ahead because stimulus dollars aren't expected to last beyond 2011.
Cuts to the budget adopted earlier this year would have been more dramatic without federal economic aid - legislators overcame a $2.9 billion shortfall in the updated two-year, $77 billion package.
"I'm glad to see the governor is taking an extremely conservative approach because I think we're in for some continued declining revenues," said state Sen. Ken Stolle, R-Virginia Beach.
"It's going to be painful," added House Majority Leader Morgan Griffith, R-Salem. "The governor's going to make the first stab at it. Then we'll come back in January and figure out whether we agree with his cuts or not."
After lawmakers hear the sobering economic news, they will turn their attention to the matters pending before them in the special session starting today.
Kaine reconvened the legislature to adjust state law to fit the standard created by a recent U.S. Supreme Court decision.
The ruling in Melendez-Diaz v. Massachusetts now requires prosecutors to present live courtroom testimony from forensic analysts. Some prosecutors contend that ruling could lead to drug and drunken driving cases being tossed out of court and guilty people going free.
Current law allows prosecutors to use a forensic lab report as evidence at trial in the absence of testimony from a technician who performed the analysis.
Among the short term fixes proposed is giving criminal defendants the right to accept the forensic report as evidence or demand a lab analyst appear in court.
Another option is to adjust state speedy trial rules so hearings can be scheduled to accommodate testimony from a forensic technician.
Julian Walker, (804) 697-1564, julian.walker@pilotonline.com
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Where will the real cuts will be?
These are very tough times that we are in right now. There is never enough money for government to do all it wants to do even in the good times. So priorities must be made. From what I understand, most of the entitlement programs no matter what their real value are normally treated as sacred cows and are usually exempt from any real cuts. Education will take some more cuts from the State Government as well as VDOT but after that, there are few places outside of wages and benefits that they will touch. So, it may be that the two departments of the government (Transportation and Education) that need government support more than most will get the biggest cuts. It may end up that we will mortgage our future to preserve the present entitlement system. The Governor and General Assembly may raise taxes but they know it would only prolong the rescession and be political suicide.
Layoffs
If Kaine really needs to lay some people off he needs to start with the road crews-take one person off each road crew in VA actually (2 or 3) you know the ones on the cell phones and the others leaning on the shovel and the third one telling everyone else what to do. OR just do away completely with VDOT.
get rid of state employee's
get rid of state employee's pensions? k. get rid of all pensions period. outlaw them. including the federal ones. let everyone invest in this market and rely on that.
JUST
print another trillion. It is not like our dollar is backed by anything!
The government has plenty of money they just dont know how to manage the money. In reality it is pretty simple. We need a msaller government and make people earn what they get not give them services for free.
America has become a handout nation!
sewerat101 The govt. and
sewerat101 The govt. and city pension system is one of the problems. It's time govt employees to be treated more like private sector employees. We can't afford the current system. We're paying too many people not to work. As for raising taxes. what we need right now is for consumers to start consuming. Sending more of my money into the govt money pit, isn't going to help me get back into the stores. People aren't buying because they don't have the disposable income. My expenses have gone thru the roof the last five years. Mainly property taxes. What the bleep did they do with it, when it was flying thur the door to them?????
Anthony
You're right, we DO pay too many people not to work---WELFARE BABIES! You want the state to have more money? Quit paying able bodied people to sit on their ever expanding behinds. I've seen the people who live "on the state" they live better than I do and I work for a living. Pensioners earned their pensions---nobody earns welfare.
Hitting home!
As many people in the private sector who have been effected by the stupidity of our Fed, State and local governments moronic stupid self righteous decisions is now hitting home. The sad part is once again the workers will suffer not those responsible. Ford left Virginia, Cooper Vision is closing and both are making money producing the same product elsewhere. The Gov's greed and meddling in the private sector is destroying this country.
An old man told me something 35 years ago that I have seen to be very true 35 years later.
"Without a rich man a poor man has no one to work for"
A combination of tax increases and spending cuts....
is what we did here in D.C. Our mayor/council raised the sales tax from 5.75 to 6%. We raised our gas tax from 20 to 23.5%, and our cigarette tax from $2.00 to $2.50 a pack. The District government also imposed a hiring freeze on non-essential positions, and cut summer school funding drastically in order to balance our budget, and raise revenue to fund vital government functions. It's a shared sacrifice to ameliorate cuts in social services, housing, and other areas. Without raising taxes the cuts to the poor would have been disproportinate and unfair.
how about this
How about the section 8 peeps living off my tax dollars do some public service work? How about they pick up some trash and cut some grass for a change instead of generating trash and weeds in their rented section 8 house I pay for? Is that cruel and unusual?
Say whatever you want, the bottom line is this fiscal model is unsustainable.
How about this one KiethR
Why doesn't the Governor stop the dang Boongoggle called the prekindergarden babysitting service for the poor. This program was started with money Governor Kaine Sto;e from the transportation budget and has been overbudget each and every year of it's existance. End this program and it's staff and return this money back to both the transportation budget and the rest back into the failing public school system. Another suggestion is to get rid of the UNION influeance peddling and pay these people what they are actually worth, If you work for the State you should NOT have the right to be in a dang union driving up the cost of your salary and also recieving the added benefits such as retirement and healthcare provided by the state. So here are a few suggestions to help balance the budget in Va. Most of all we need to FIRE the I---t in richmond called the Liberal Democratic Governor.