Virginia Gov. Bob McDonnell formally outlined his budget amendments for the 2011-2012 biennium before the joint money committees of the General Assembly Friday, listing his top four priorities for the upcoming session as government reform, economic development, transportation, and higher education.
After a bleak session this year in which the state had to close a $4.2 billion shortfall in the current two-year budget, McDonnell is forecasting about $283 million in total net revenue over fiscal 2011 and 2012.
With spending pressures, the amended budget shortfall for 2011-2012 could be less than $200 million, according to a presentation from the Senate Finance Committee’s annual retreat.
“However, because revenue forecasts have gone up slightly, that does not mean our need to find savings and make state government more efficient has ended,” McDonnell said, according to a prepared text. He’s estimating $191 million in cuts, savings, or reallocations as recommended by his government reform commission.
Read the governor’s entire prepared remarks here.
Proposed amendments include:
• $54 million for “Opportunity At Work” economic proposals
• $150 million for transportation
• $50 million for higher education
Cuts/savings/reappropriations include:
• Requiring state employees hired prior to July 1 to pay 5 percent into the state’s retirement system (VRS), netting $300 million in additional contributions in fiscal 2012 and an estimated $4.2 billion over the next 10 years
• $24 million in reduced interest on bonds for college buildings
