Governor McAuliffe Announces Budget Shortfall

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.

 

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One response to “Governor McAuliffe Announces Budget Shortfall

  1. Thank God we have Republicans in control of the House of Delegates, and let’s hope we can maintain control of the State Senate. That is the only way we can balance the budget without raising taxes.

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