There’s good news from the Governor and the heads of the General Assembly’s money committees. Despite dealing earlier with a significant revenue shortfall, the state is now seeing a $338-million revenue bump from withholding through corporate income tax and insurance premiums.
It amounts to $162 million more over the biennium after a $176 million deposit into the Rainy Day Fund. Governor McAuliffe says it provides a little extra money to spend as the budget is crafted.
"I think we all want to look at doing something for our state employees who haven't seen their state take home pay go up since 2007."
He says it also helps budget writers keep a promise made to parents and educators.
"No cuts to k-thru-12. We're still negotiating on some of the economic development issues."
McAuliffe says although it’s a sign the Virginia economy is improving, sequestration still remains a challenge and the state must still proceed with caution.
