Governor Tim Kaine released his plan for addressing the $2.5 billion shortfall in Virginia’s budget.

Major actions in the Governor’s announced fiscal year 2009 reduction plan include:

• About 570 layoffs, the elimination of more than 800 additional positions that are currently unfilled, holding about one-third of all at-will positions vacant, and the imposition of a continued freeze on new hiring.
• The delay of a previously planned 2% salary increase for state employees, to July 2009 from November 2008.
• Reductions of 5 or 7 percent to institutions of higher education.
• Administrative efficiencies in Medicaid, the Department of Aging, and Community Service Boards that will prevent deeper cuts in direct service delivery.
• Restructuring Department of Corrections facilities, closing several older facilities.
• Previously announced reductions in the Governor’s office and mansion budget, including a continued reduction in the Governor’s own salary.

The plan cuts Virginia’s Community Colleges by $20 million dollars (5%) for fiscal year 2009.  Here are the plan’s details.  The community college cuts are on page 21.

Posted by Jeff Kraus