Va. lawmakers brace for possible $1 billion deficit
The lawmakers are reviewing potential spending cuts in light of new, lower-than expected tax revenue forecasts, the Richmond Times-Dispatch reported.
Leaders of the Senate Finance Committee met Thursday to discuss making sure the state can use up to $675 million from a rainy day fund to offset the revenue shortfall.
Senate Finance Co-Chairman Walter A. Stosch, R-Henrico, said lawmakers will meet again June 9 for more budget discussion. He said the state needs to pass a budget before July 1 so it can access the state's Revenue Stabilization Fund, or rainy day fund. Without an enacted budget, lawmakers might not be able to access rainy-day money.
Democrats and Republicans have been deadlocked on passing a budget for the next two years because of disagreement over whether the budget should include Medicaid expansion.
The budget shortfalls have increased the urgency for a budget solution.
Democratic Gov. Terry McAuliffe's administration announced last week that lower-than-expected tax collections, particularly from capital gains, could leave a $300 million to $350 million budget hole for the current fiscal year that ends in June.
House Appropriations Committee Chairman S. Chris Jones, R-Suffolk, sent a letter to local governments Wednesday informing them that the shortfall for the coming two years could be $1 billion.
"While we will not know the final revenue numbers until the end of June, it appears very likely that the commonwealth could face a significant revenue shortfall for the current and next fiscal years," Jones said in his letter.
He added that the state's rainy day funds "could mitigate the impact of these reductions on local governments."
Senate Finance Committee member Sen. John Watkins, R-Powhatan, estimated the shortfall could be as high as $1.4 billion.
Post a commentCommenting is not available in this channel entry.
Comments express only the views of the author and do not necessarily reflect the views of this website or any associated person or entity. Any user who believes a message is objectionable can contact us at [email protected].
- Commentary: In Loudoun, a mismatch between need and affluence
- Leesburg attorney challenging waitress’ claim of racist message on receipt
- Loudoun supervisors approve Lidl-anchored commercial development in Broadlands
- Lawmakers say new state budget is bad news for Loudoun County judiciary
- Loudoun Sheriff’s Office charges Maryland man in connection with rural burglaries
|The Loudoun Times-Mirror
is an interactive, digital replica
of the printed newspaper.Click here for all e-editions.