The 2011 session is coming to a close and we were scheduled to adjourn “sine die” on Saturday, February 26. While we are scheduled to adjourn on Saturday, the actual end date for the session is in question due to the ongoing negotiations over the amendments to our biennial budget.
The House and Senate budget conferees having been working on a compromise to the final budget.
In the House budget, we sought to ensure that our state budget is structurally balanced moving forward. It reduces the state’s debt, puts one-time surpluses toward non-recurring expenditures, and sets aside more money for our retirement system. Simply put, we believe it is unwise to budget based on the assumption that the recent growth in revenue will continue. In light of the recent turmoil in the Middle East and the rise in gas prices, we cannot take for granted any potential growth in this uncertain economy.
The Senate budget is different from the House because they chose to put forward a structurally imbalanced budget that puts one-time surpluses towards recurring expenses.
The House and the Senate has yet to reach an agreement at this time.
If the budget negotiators are unable to come to an agreement, then Virginia will simply operate under the second year of the previously approved biennial budget.
Please let me know if you have any questions or concerns.