RICHMOND
Virginia faces a budget shortfall of as much as $2.7 billion over the next two fiscal years, a deficit that could trigger deep and lasting cuts to state programs, lawmakers learned Tuesday.
Lawmakers also face the prospect of cutting $300 million from the budget that expires June 30, as tax collections continue to fall short of projections.
About $6 billion has been cut from the budget that took effect in July 2008. Slow revenue growth also won't be sufficient to meet spending needs and offset the expiration of federal stimulus funds during the two-year period that begins July 1, the House Appropriations Committee was told. The prospect of further shortfalls had lawmakers talking Tuesday about the possibility of cuts to public schools and considering the elimination of some state programs.
Gov. Timothy M. Kaine will deliver a two-year budget to lawmakers in December, less than a month before his term expires.
"You can't look at a budget and not realize that Medicaid is an issue and the education budget is an issue and everything is being looked at," Kaine spokesman Gordon Hickey said.
Bob McDonnell will become governor in January and confront the task of managing Virginia's finances and working with lawmakers to balance the budget.
"I think we should figure out what we can live without and permanently cut that," said House Majority Leader Morgan Griffith, R-Salem, who attended Tuesday's meeting.
Del. Clarence "Bud" Phillips, D-Dickenson County, said lawmakers could do their part by shortening the upcoming legislative session to 45 days from 60. The budget gap that the state faces as federal economic recovery funds for Medicaid expire in the next biennium.
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Budge shortfall
I know where Virginia can get $900,000,00. Yes, that's .9 billion dollars. Simlpy rescind the Personal Property Tax Relief Act.
The money used to pay for the tax relief comes directly out of the general fund. Every year, before we spend a penny on any other program, the money is transferred to the counties and cities as it has always been done. We are not paying less in property taxes. We are paying the same amount in a more round-about way.
It won't be a tax increase, because the tax has always been collected and distributed as before.
Name any other state that levies a tax on it's citizens and then pays that tax for them. It's beyond ludicious.
Think about this: if you don't own a car, a motorcycle, a trailer, or an RV you subsidize everyone else who does, because the revenue we use to pay the tax relief comes out of taxes you pay to Virginia through other means. Not fair.
The General Assembly has two options, as far as I can see. Rescind the tax relief. I write a check every June to the City Treasurer to pay for 30% of my property taxes. Next year I pay 100%. Or, change the state constitution to allow the cities and counties to levy their own taxes to cover the expenses of
McDonnell Will Become the Bad Guy
He is stepping into a landmine just like Pres. Obama did. He will soon realize he can't fulfil his 'jobs' campaign promise and will instead have to make cuts all over the place...then people will start questioning his policies and tactics. The problem of our Corporate, State, and Federal economies is a systematic problem that will continue to rear its ugly head no matter who is in office. And the people will keep switching from Democratic to Republican and vice versa hoping someone will fix the systematic problems.