Sun August 17, 2014
Dismal State Financial Report
"Not surprised—but still disappointing." That statement from one of Virginia’s budget-writing committee leaders is the consensus of the others who heard a dismal financial report from Governor McAuliffe. They nevertheless applaud the Governor for his leadership… and have already begun figuring out ways to address the projected shortfall.
Factoring in an $882-million shortfall for fiscal years 20-15 and 16 and prior revenue gaps, the governor says state leaders have a lot of digging out to do.
In short, yes, state cuts are coming and will be announced in the coming months. The governor says more Department of Defense cuts are inevitable and will greatly impact Virginia. Thus, the state must diversify, find alternative revenues, reduce its dependence on the federal government, and—expand Medicaid.
The governor wasn’t all gloomy. He touted recent strides, including the lifting of the Chinese ban on Virginia poultry and a Chinese company’s $2- billion investment in the state. He says similar progress will help mitigate the negative hits to the budget.