The size and scope of Virginia’s budget problem

In just a few minutes, Governor Tim Kaine will speak to a joint meeting of the General Assembly budget committees.  He is expected to announce cuts to both the state budget and state workforce.

We will blog about the details we learn today with regard to their impact on Virginia’s Community Colleges.

In the press clips this morning, we are learning about the size and scope of the budget challenge.  This was part of the report from Bob Lewis at the Associated Press: 

In his Wednesday morning address to the General Assembly’s money committees, Mr. Kaine will increase the official estimate of the projected budget shortfall through June 2010 to nearly $3 billion, said two Democratic legislative leaders who spoke anonymously because the governor had not made his plans public.

 

In his fourth round of cuts in barely a year, Mr. Kaine will propose about $1.7 billion in cuts on top of nearly $2 billion in earlier reductions spanning two state budgets, the legislators said in separate interviews with the Associated Press.

 

Jeff Shapiro with the Richmond Times-Dispatchis reporting that a cigarette tax hike that is part of Kaine’s plan is almost certain to lead to a fight with the Republican leaders of the House of Delegates:

Gov. Timothy M. Kaine’s proposal for balancing Virginia’s recession-ravaged budget includes doubling the cigarette tax, delaying an environmental tax break, drawing nearly $500 million from the “rainy-day fund” and pruning 1,500 state jobs, including 530 new layoffs.

 

The package Kaine will detail today, in which he would again go back on a promise not to raise taxes, is drawing criticism from tobacco-industry allies — among them, senior Republicans.

We’ll have more here as the day unfolds.

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