Virginia State Budget Update

Governor McAuliffe addressed the “Money” committees of the General Assembly on August 15th informing them that the updated revenue estimate for the Commonwealth indicated an additional budgetary shortfall.  As reported back in June, lagging revenue collections forced budgetary cuts prior to passage of the two year budget for State fiscal years 2015 and 2016.  With the new revenue estimate, the Governor and General Assembly will need to address further revenue shortfalls beyond what the adopted budget had already reflected.

Late last week, the Governor provided instructions to the State agencies to prepare plans to cut their operating budgets by five percent for 2015 and seven percent for 2016.  While it appears that these “across the board” cuts are limited to administrative expenses at the agencies, the Governor also announced that he would be proposing targeted reductions that may be more programmatic in nature.  VHCA continues to monitor the budget situation and engage as necessary and appropriate in such deliberations.