Posted on 08/28/2016 5:46:17 AM PDT by 11th_VA
WASHINGTON — Gov. Terry McAuliffe broke the bad news to the General Assembly’s money committees Friday morning in Richmond that the state’s budget is in the hole by about $1.5 billion over two years, and he warned state lawmakers to brace for “tough decisions ahead.”
The projected shortfall for the current two-year budget is $1.2 billion. But that’s in addition to shortfall of about $280 million carried over from the budget year that ended June 30.
The governor told state lawmakers the budget problems are being driven by lower income and sales tax revenue collections than what was anticipated.
As for plans for filling the gap, McAuliffe said he’s planning to take up $125 million that would have been used to give pay raises to teachers, state workers, deputies and other state-supported workers in 2017. Instead it will now go to pay down the budget shortfall.
Also the governor is hoping to use part of the state’s $630 million rainy day fund — officially known as the Revenue Stabilization Fund) — to help close the gap. But that will have to be approved by the general assembly during its upcoming session in January.
Sen. Tommy Norment, a Republican who represents Virginia’s third district and who co-chairs the Senate Finance Committee, said the money committees will start immediately to work to find cuts.
“This is not something that will be put off and procrastinated on,” he said.
Norment warned the rainy day fund is not going to be a panacea to continue fixing the budget shortfalls, especially if the U.S. Congress fails to come to a budget deal and another round of across-the-board federal budget cuts, known as sequestration, goes into effect.
If Virginia lawmakers keep drawing down money from the fund, it will be very difficult to replenish it in the future, Norment said. He said he sees 2018 as being more financially problematic.
As Virginia goes Blue so does its budget. Welcome to the Blue State Club, Virginia.
Oops, Dem cannot bring home the bacon? He’s toast.
I wonder if all the students get laptops and ipads for school. We do in SC and I think it is a oral waste of money. My son was watching WWE on a laptop. How much money does that come to?
Trump and Pence should immediately go to VA and hammer this point. Then follow up with ads of the governor.
Good. 90% of them probably aren’t even necessary.
There are a lot of red states with the same problem - Louisiana, Kansas, Oklahoma. I'm just surprised McAuliffe is letting it affect his key voting blocks.
“There are a lot of red states with the same problem - Louisiana, Kansas, Oklahoma.”
So true. It speaks to our great underlying vulnerability that most states and the federal government operate on credit.
Terry McAuliffe, November 2015: “When I became governor, I inherited a large deficit. You know what? We just turned that into the largest surplus in Virginia history.”
2016: We’re broke.
How does this help him help Hillary win Virginia?
In Virginia, our governors cannot serve consecutive terms.
That Illinois model isn’t working out?
“Budget Shortfall”: 1) Bloated list of spending increases meets available revenue. 2) Artificial crisis created on paper to justify tax increases, and play politics with those who want to reduce spending.
Since MacAuliffe is thick as thieves with the Clinton Foundation, why doesn’t he ask them for an education grant? After all, it’s for the teac..., er children.
Prepare for the onslaught of usual complaints:
* Haven’t had a pay raise in X years
* Overworked and underpaid
* Would make more in private industry
Where’s my hankie?
I wonder if all the students get laptops and ipads for school.
Yes definitely Chromebook 11 drop proof with baby sit lights for teachers to see if student is ‘ off task’.
I bet the is statewide. I wonder if the haves are required to kick in the customary fair share seconds at the schoolhouse level as with other Democratic hope the people programs?
Why should teachers and state employees get a raise? Every time the get a raise, everyone else in the state gets a pay cut to pay for it.
TAXPAYERS TAKE NOTE: if education bonds were sold to investors (voted on at the ballot box) based on the premise of giving pay raises for teachers, but is being used for another purpose....that could be considered govt fraud.....the govt cannot raise money for one purpose then use it for another purpose.
Law enforcement and financial oversight agencies would be interested in McAuliffe's participation in govt fraud.
CONTACT enforcement@SEC.gov
But, at least the felons can vote.
Apparently, that is what is MOST important according to the Governor.
Public schools are little more than indoctrination centers anyway. They should be cut off completely.
I’m not sure how Kansas’ plan failed, but the oil market upended budgets in LA and OK.
Excellent idea. Good comment.
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