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Article History WASHINGTON (Map, News) - Gov. Tim Kaine said Thursday he expects to recommend fresh budget cuts due to increasingly grim state revenues, a drop legislators tentatively say could add more than $200 million to this year’s existing shortfall.
Kaine delivered the bad news on Richmond’s WRVA radio, confirming predictions that the lagging revenue would shrink both current spending and the governor’s proposed $78 billion two-year budget.
“It looks pretty likely I’m going to come back to the House within the next two weeks and recommend an additional downward reduction,” he said.
Del. Jeff Frederick, R-Woodbridge, who sits on the House Finance Committee, and Del. Phil Hamilton, R-Newport News, an Appropriations Committee member, said they have been told the downturn will cut revenues by $200 million to $250 million, though those figures remain unofficial. It also could bring a combined $800 million to $1 billion shortfall over the next two years, Hamilton said.
Kaine already had trimmed $300 million from state spending in October after revelations of a $641 million shortfall and has proposed to tap the state’s “rainy day” reserve fund to help close the remaining balance.
The worsened revenue picture could prompt to governor to dig deeper into that fund and threatens to force him to scrap some highly touted proposals, like expanded prekindergarten to more low-income children.
Kaine spokesman Gordon Hickey said “there is nothing off the table at this point” on potential cuts. He said the administration is waiting to see January tax receipts before it releases final numbers.
The economic downturn hit state coffers in three key areas, budget planners said earlier this month: Non-withholding individual income, corporate taxes and the recordation tax, all of which dropped about 20 percent in December from the same time the year before.
Republicans accuse Kaine of delivering bad original forecasts and withholding needed budget data, which Hickey rejected as “disingenuous.”
“We rely on the governor for revenue numbers ... he gave us those numbers, we took those at face value, enacted a budget last year based on those numbers, and now those numbers aren’t coming to fruition,” Frederick said.
The Associated Press contributed to this article.
wflook@dcexaminer.com
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Comments from Examiner Readers
10:45 AM MST on Mon., May. 12, 2008 re: "House nixes plan to cut teacher raises, leaving 2009 pay increases in danger"
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7:42 AM MST on Fri., Mar. 14, 2008
re: "Dulles rail re-bidding stripped from budget"
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7:41 AM MST on Fri., Mar. 14, 2008
re: "Dulles rail re-bidding stripped from budget"
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10:55 AM MST on Fri., Mar. 7, 2008
re: "Saslaw pushes tax increase to fill transportation gap after ruling"
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2:22 PM MST on Mon., Feb. 18, 2008
re: "Governor’s plan to cut state aid puts squeeze on local budgets"
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max power said:
we do not need to make a big deal we can easily solve this by raising taxes we can make more profit from events and use it in schools that don't even have enough afterschool programs
2 agree | 2 disagree
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Lisa Green said:
I've read the State contract with Bechtel for Dulles Rail and I don't see how bidding out this project would be a "breach of Contract" as Sen. Colgan and Governor Kaine assert. This is hogwash that Governor Kaine has put out to stifle real competition. We've got to get him out of Bechtel's pocket already.
6 agree | 5 disagree
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Examiner Reader said:
Someone should look into Governor Kaine's connections with Bechtel. Something isn't quite right there. Maybe we'll get lucky and find that Kaine was Bechtel's "Client #10"?
6 agree | 4 disagree
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Examiner Reader said:
i agree with the person below no excuse for va being so broke oh yea they left one out to va is one of the few states were u have to buy county stickers to just think of all those thousands of people that have to buy them here in va at twenty bucks apeace most other states dont have to buy, them so my question is were is all that money going to would really like to no the answer to that one,so the person below is exactly right theres no excuse for va being so broke,do your job kaine and quit getting off the wall bills passed that waste tax payers money,thats not the job we the people voted you in to do.
10 agree | 4 disagree
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Examiner Reader said:
Get rid of the illegal people in N.Virginia, and the drain they have us and get busy taking care of the Americans. There is no excuse for Virginia to be so broke. One of the few states that have total controll of the liguor,beer and wine, one of the few states that you have to pay personal property taxes on your car every year,one of the few states that is a commonwealth. So Mr.Kaine, do your job, get your priorities straight and find out where all the money went.
48 agree | 32 disagree
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