On February 17, Governor Bob McDonnell announced how he plans to balance the current year’s budget and the upcoming 2010-12 biennial budget from the budget prepared by the previous governor.  The announcement was predicated on a communication from Secretary of Finance Ric Brown to the Governor announcing the revised revenue forecast and effect on the budget.  The bottom line is that another $100 million may be available in the current fiscal year and an additional $118 million in the next biennium. 

McDonnell’s recommendations, sent to Senate Finance Chairman Charles Colgan and House Appropriations Chairman Lacey Putney,  will be taken into consideration by both the House and Senate as they prepare their own versions of the budget. 

Governor McDonnell has indicated that he does not recommend any additional cuts for higher education.  The House budget recommendations will be made public at 1:00 p.m. on Sunday, February 21 and the Senate budget recommendations will be made available at 3:00 p.m. on the same date. The recommendations unveiled on Sunday will be broad; details will emerge once both the House and Senate release their line amendments to HB/SB 29 and HB/SB 30.  These line amendments will likely not be available until some time on February 22 or 23. 

Highlights of Governor McDonnell’s recommendations include no new tax increases, the continuation of state funding to localities to reimburse them for the $950 million per year car tax program, asking state workers to take 5 unpaid (furlough) days in FY 2011 and FY 2012, giving workers a 3% bonus in December 2011, and restoring state funding for the full 5% employee contribution to the Virginia Retirement System.  Two bills currently moving through the General Assembly would make changes to VRS benefits for new employees hired after July 1, 2010:  HB 1189 (Putney) and SB 232 (Watkins).

Posted by Ellen Davenport