Obviously, this is not good.Gov. Timothy M. Kaine announced Monday that Virginia's two-year budget shortfall has grown to more than $3.7 billion, up sharply from the previous estimate of $2.9 billion, as the economy continues to worsen.On the other hand, at least there's this:
But Kaine (D) told legislative leaders in a letter that the federal stimulus bill, expected to become law this week with President Obama's signature, will help offset the additional $800 million shortfall for the two-year period that began in July 2008.Just to keep this in perspective, the $3.7 billion shortfall is off of a two-year, $77-billion budget. Still, "Virginia has begun eliminating thousands of jobs, slashing agency spending by 15 percent and trimming almost $1 billion from elementary and secondary education and Medicaid, which helps cover medical needs for the indigent, elderly and disabled." Bad times. The main thing now is to secure crucial programs for the most vulnerable Virginians, to cut wherever it's not crucial, and to pass bills like this one by Chap Petersen which reinstates the highly progressive estate tax on on estates valued over $5 million (farms and "closely held businesses" exempted).
