Gov. Terry McAuliffe announced that Virginia’s budget shortfall is about $1.5 billion. The fiscal year 2016 budget shortfall is about $279 million, the fiscal year 2017 budget shortfall is about $564 million and the fiscal year 2018 budget shortfall is about $630 million. This is the result of a lagging economy that generated less tax revenue than expected. Our economy is replacing high paying full time jobs with lower paying part time jobs. However, Virginia’s constitution requires a balanced budget. When the General Assembly returns to Richmond for Session in January, we will balance the budget. We will do this while working to preserve K-12 funding, protect our investments in higher-education, and maintain our commitment to fully-funding the state pension system. This shortfall backs the General Assembly’s decision not to expand Medicaid. It proves that Virginia cannot afford new long-term fiscal obligations like Medicaid expansion. Since 2008, the Republican-led General Assembly has closed three budget shortfalls totaling $8.6 billion without raising taxes. Over the last 15 years, Virginia has seen four budget shortfalls. But each time, we have met our constitutional obligation to balance the budget.
- In 2008 we closed a $665.4 for FY2008 shortfall without raising taxes.
- In 2009 and 2010 we closed a $6.1 billion shortfall for FY09-10 without raising taxes. Governor Tim Kaine’s plan to raise taxes did not receive a single vote in the legislature.
- In 2014 we met in a special session to address an unexpected shortfall of $1.9 billion.
That being said, while budget shortfalls are never good, my fellow legislators and I have seen them before and we will work to balance this one just as efficiently as in previous years.