Governor Tim Kaine announced yesterday that funding cuts to the state’s public schools will be delayed until next year. The Richmond Times-Dispatch reports that Kaine wants to give local governments time to make adjustments in view of the cuts that will most likely be put into effect in 2010.
He says that because the school year is already underway, it would be extremely difficult for the cuts to be absorbed.
The Commonwealth faces a revenue shortfall of at least $2 billion that could grow to $2.9 billion to its fiscal 2009-2010 budget of $77 billion, according to figures released last week from the governor’s office. The gap, almost triple the amount of what legislators predicted last month, is the product of sagging income tax and sales tax collection. Kaine links the revenue woes to the current financial crisis brought on by the collapse of the housing market and the panic on Wall Street.
The Times-Dispatch article reports that Kaine’s comments came only few hours before the deadline for state agencies to submit a revised two-year spending plan that will reflect moderate to aggressive cuts, from 5 to 15 percent.
Before making any cuts, Kaine says he wants to see first-quarter financial data from this fiscal year. The data is expected to be available in early October.
Governor Tim Kaine announced he wants to give ample time for local governments to plan for the cuts. The deadline to submit the two-year revised spending plan is today.
