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Stimulus should assist in solving some budget problems Date published: 2/17/2009
By Chelyen Davis RICHMOND-- State officials finally have the latest numbers for state tax collections and the federal stimulus package, and say they should be able to finish rewriting the state budget within the next two weeks.The key news for budget-writing legislators is that they shouldn't have to make further cuts to the two-year state budget, which was written to accommodate a $2.9 billion shortfall over the next two years. The revenue numbers for January did show a steep decline--$800 million, which would put the state's budget shortfall around $3.7 billion. But Gov. Tim Kaine says federal money from the stimulus package will more than offset that, and he doesn't believe the budget needs to be cut further. While not all the details of the federal stimulus bill are clear--a lot of the money is earmarked for certain programs, like public education, and rules for how it will flow to the states have yet to be determined--Kaine said the state can count on about $1 billion, mostly for Medicaid spending and some for a more open-ended stabilization fund the state can use to soften cuts in other areas. As a result, he wants to reverse two budget cuts he proposed last December--the postponement of 200 new mental retardation waiver slots, and a cap on certain Medicaid enrollments. Overall, Virginia is expecting about $4.5 billion from the federal stimulus, over the next two years. Kaine said yesterday he still thinks he and the legislators were wise to cut $2.9 billion out of the budget, because while the federal money is helpful, "we still have a challenged economy." Kaine cautioned that state revenues could dip further as the year progresses, and the state should maintain a financial cushion in its budget. "The best thing to do is not count on any of that" federal money, he said. As a result of the news of the stimulus money and the state's own tax collections, Kaine said he thinks that the legislators who write their version of the state budget "have what they need to go ahead and do the budget." The House of Delegates passed its own version of the budget last week; the Senate postponed action until this Wednesday, waiting for these new revenue numbers. Kaine explained the numbers to the budget writers yesterday morning in a private meeting.
that reference? And let's hope people wake up soon.
This from an idiot governor who said the Republicans refusal to vote on this porkulus bill were like the Taliban in Afghanistan. Now Virginia is on board with Fed handouts, great...
When will people wake up?
President Obama said no earmarks?? Change? The only
change is the name signing the damn bill. And why was
this billed passed so quickly and then he runs off with the
family only to sign it days later? Change? I thought the
public was going to have a chance to read it? Change?
Don't be distracted by the dangle carrot of good will. Watch
the other hand change.
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