Virginia Gov. Bob McDonnell on Thursday ordered agency heads to identify ways to cut their budgets by up to 6 percent next year.
Though there are signs that the state’s budget woes may be bottoming out, McDonnell’s chief of staff, Martin Kent, warned agency heads and cabinet secretaries that economic uncertainty could require additional cuts in the 2012 fiscal year. He asked them to prepare contingency plans for 2 percent, 4 percent and 6 percent cuts.
Kent recommended that agency and department heads look for opportunities to shift state services to the private sector. McDonnell has been lobbying state lawmakers to sell off state-controlled liquor stores to raise money, but met resistance after financial projections showed that such a sale could cost the state $40 million in annual revenues.
“It is important to remember that the extent of the budgetary savings needed is not fully known at this time; therefore, we must anticipate and prepare for the maximum amount of the potential need,” Kent wrote.
McDonnell is scheduled to present his budget plan for the 2012 fiscal year on Dec. 17.
