Commonwealth of Virginia

Office of Governor Bob McDonnell

 

 

FOR IMMEDIATE RELEASE

February 17, 2010

 

 

Contact: Stacey Johnson

Phone: (804) 225-4260

E-mail: Stacey.Johnson@Governor.Virginia.Gov

 

 

Governor McDonnell Updates State Revenue Projections; Sends Letter to Legislators Formally Outlining Comprehensive Cost Saving Options for Budget

**Governor’s Budget Letter, Revenue Projections, and Cost Savings Breakdown Attached**

 

RICHMOND- Governor Bob McDonnell held a morning press conference today to discuss the latest revenue projections for the Commonwealth, and formally present comprehensive cost-saving options for the biennial budget. The Governor shared the strategies with the budget conferees and members of the General Assembly in a letter sent earlier in the morning. The letter captured the ideas given informally to budget committee leaders and staff over the past several weeks through numerous meetings and briefings.

 

At the press conference the Governor remarked, “We face an historic budget shortfall in the Commonwealth. I served in the House of Delegates for 14 years and as Attorney General, and these budget decisions are among the toughest I have had to make in public service.  I know that state services to my fellow Virginians will be adversely affected in the short term. I have witnessed several budget sessions run long, devolving into unproductive fighting that leads to wasted taxpayer dollars and gridlock. And these budgets had issues that pale in comparison to the $4 billion deficit we must make up.  We cannot allow that to happen this year. That is why for the past month I, along with my Secretary of Finance Ric Brown and other senior staff members, have been meeting with budget leaders from both parties to identify common ground in our shared goal of passing a balanced budget on time that does not include a tax increase. As this process has moved forward, I have awaited the release of today’s revenue projections prior to making public the cost savings strategies our Administration is advancing. Now, I am committed to helping the legislature finalize adjustments to the budget.”

 

            McDonnell noted, “The proposed biennial budget, introduced by the previous Administration, unfortunately only addressed half of the shortfall facing the Commonwealth. The plan to close the remaining $2 billion through the imposition of a massive new tax increase on Virginians in the middle of a recession is one that was unanimously rejected by the House of Delegates. Now,  the legislature must identity the spending reductions that will enable us to balance the budget, while respecting the wallets of our hard-working citizens. In today’s letter I formally laid out a number of proposals to get the budget balanced. Many of these will not be easy. Most of them will require sacrifice. But by coming together to make these tough decisions today, we will position the Commonwealth to be stronger as the economy recovers.”

 

McDonnell further commented, “I am pleased to report that the updated revenue numbers from the Department of Taxation project a slight increase in incoming revenue for the year ahead. I have made a conservative estimate of increased revenue based on the new information. I will encourage the General Assembly to put this additional revenue towards K-12 public education, employee compensation or other core services. Finally, in the cost saving strategies recommended to the legislature, I am calling for a restoration of some of the proposed cuts to public safety and no further cuts to higher education. Tough times call for setting priorities. Public safety and higher education have been cut significantly in recent years and cannot sustain further reductions.”

 

He concluded, “This is a time that requires strong leadership from the public and private sector to endure these difficult reductions. In the coming months, I will continue to focus great attention on creating jobs and economic opportunity and strategically reorganizing state government, to generate more revenue and reduce spending.  This will put Virginia in a stronger position in the years ahead.”

 

            The Governor’s letter, latest state revenue projections, and a breakdown of the Governor’s proposed cost saving strategies are all attached to this press release.

 

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