The government is now funded through September, but another deadline is hanging over Congress that imperils the economy of Virginia.
The last time Congress wrangled over the debt ceiling the federal government lost its triple A credit rating. Credit rating agencies say Virginia could also lose its pristine credit rating if the federal government gets locked in partisan warfare once again.
That could make borrowing more expensive for cash strapped locales, according to Virginia Democrat Gerry Connolly.
Over the last few weeks, Governor McDonnell has been scrutinizing 812 bills sent to him by the General Assembly. Among them is a package of legislation to penalize “possession with the intent to distribute” a legal product. Its goal is to stop the traffickers of contraband cigarettes, who’ve made millions of dollars while the Commonwealth loses revenue.
Officials in Virginia are bracing for the impact of the federal budget cuts that start trickling down. Lawmakers in the commonwealth disagree about what should be done with the sequestration.
So now they’re dealing with the fallout: cuts to education, housing, healthcare, conservation programs – the list is seemingly endless. Virginia Democratic Senator Tim Kaine says many federal workers and contractors in the commonwealth will feel those cuts directly.
President Obama was in Newport News, Virginia today highlighting the impact of pending budget cuts on the state's defense industry. Virginia Republicans are glad the president is highlighting the state's robust defense industry. But Virginia Congressman Randy Forbes says the president's time would have been better spent in Washington negotiating with congressional leaders.