UPDATE: Virginia Gov. Terry McAuliffe is announcing a series of budget measures that includes canceling pay raises, trimming the state’s payroll, and using the state’s rainy day fund. Read more here.
WASHINGTON — Virginia Gov. Terry McAuliffe plans to announce on Thursday spending cuts designed to help close a budget shortfall of $1.5 billion.
Largely due to lower-than-expected revenue from payroll and sales taxes, the shortfall for the current two-year budget is $1.2 billion, added to a shortfall of about $280 million that was carried over from the previous budget year that ended June 30.
In the two-year, $109 billion budget, McAuliffe said, “You can always find things to cut.”
The governor scheduled a news conference for Thursday morning in Richmond to discuss some of the possible cuts, although he has already said there are certain items he will not consider.
“I’ve told everybody, we’re not going to touch education,” said the governor.
Economic development initiatives are off the table, McAuliffe said.
“Any of the things that will help grow and diversify the economy, we have to keep in our budget.”
The governor is hoping to use part of the state’s rainy-day fund — officially known as the Revenue Stabilization Fund — to help close the gap. That would require approval from the General Assembly when it convenes in January for a 45-day session.
