>>Click here for the report (pdf)
December 21, 2009
Cuts Alone No Longer Enough
Governor's Budget Proposal Balances Cuts and Revenue
RICHMOND -- Governor Tim Kaine’s final budget proposal released Friday, Dec. 17, 2009, reflects the problems facing Virginia in the current economy: As the needs of Virginians have grown during the recession, the state has fewer resources to address these needs. Revenues are down more than $4 billion in the biennium, and when coupled with required spending increases in core services, the total budget shortfall for the 2010-2012 biennium grows to about $4.5 billion.
In a new report, Bridging the Gap, The Commonwealth Institute examines key revenue components of the outgoing Governor's proposal including:
- Use of the Rainy Day Fund
- Elimination of the Dealer Discount Program
- Decoupling from the federal Domestic Production Deduction provision
- Eliminating the Car Tax Reimbursement to Localities
- Income tax rate increase
The report also analyzes the impact of key spending cuts proposed by Kaine including cuts to:
- Education
- Health Care
- Temporary Assistance to Needy Families (TANF)
>>Click here for the report (pdf)