Gov. Tim Kaine has announced that he plans to cut $2.3 billion from state programs.
According to the proposed 2010-2012 budget, Kaine is proposing an additional 664 layoffs for state employees. These would impact the Virginia Department of Transportation, Juvenile Justice, Behavioral Health and UVA.
Kaine also announced that 1,879 vacant positions will be eliminated and there will be no pay increase in the fiscal period.
State employees will also be required, starting in 2011, to pay a 1-percent-of-salary share of their retirement benefits. It will increase to 2 percent of employee salary in FY 2012.
Further, retirement age for state and local employees who were recently hired will go from 50 to 55.
For higher education, Kaine said that for fiscal year 2012, the general fund would be less than in 2006. In that time, enrollment has risen 11 percent. Tuition will inevitably go up.
Kaine, who spoke to reporters shortly after his address to the General Assembly, said that while these cuts are not what he would have liked, “it’s what we have to do.”
In regards to controversial car tax, Kaine proposes to eliminate the tax and in exchange to increase income tax by 1 percent.
