McDonnell set to address budget situation
On the same day that Virginia’s Governor Bob McDonnell, took heat from the Democratic National Committee about his mixed message on stimulus funds, the Republican announced that he will address reporters Wednesday to provide an update on the Commonwealth’s revenue picture.
McDonnell has been quiet publicly about how he plans to deal with Virginia’s growing budget problems. But while he has been quiet in public, multiple reports claim that he has been meeting privately with different groups to propose various and often deep cuts to the spending plan.
According to the media advisory, McDonnell will discuss the latest picture on revenue projections, it does not mention anything specific about the budget itself. (correction: The release does mention that he will discuss the budget). By outlining the latest revenue figures, the Governor will be giving the public a better idea of just how much will need to be cut. In addition, by holding a press event, he will at least be in a position where he will be forced to answer questions about the issue.
We’ll keep a close eye on this developing story and have more tomorrow.
AP’s Bob Lewis has the scoop. State Revenues off by 6.5% in January.
January revenues in Va. take hit
By BOB LEWIS
AP Political Writer
RICHMOND, Va. (AP) – State revenue collections plunged by 6.5
percent in January, leaving lawmakers well behind their targets for
the current year as they make deep cuts in the budget.
Monthly receipts from taxes paid largely on investments and by
the self-employed were down nearly 23 percent last month from
The weak showing was aggravated by corporate income tax refunds
made in January this year but not until February last year.
A small bright spot was a marginal increase in taxes withheld
But a poor January leaves the state 4.7 percent behind where it
was a year ago seven months into the fiscal year.
That’s well below the estimated 2.7 percent decline on which the
current budget is built.
(Copyright 2010 by The Associated Press. All Rights Reserved.)