Virginia House of Delegates leaders reacted Friday to the $266.3 million budget shortfall announced by Governor Terry McAuliffe.
“The General Assembly adopted a conservative and responsible budget based on unanimous revenue projections presented to the Governor and the General Assembly. Unfortunately, Virginia’s economy is not keeping pace and state tax revenues fell short of those projections,” said House Speaker William J. Howell (R-Stafford). “The economy is significantly weaker than top-line unemployment figures suggest, and the revenue shortfall is ample evidence of that. In the long term, we must redouble our efforts to diversify and strengthen Virginia’s economy. In the short term, Chairman Jones and Vice Chairman Landes will immediately begin working with Secretary Brown and the administration to address the budget shortfall.”
Speaking about the shortfall, House Appropriations Committee Chairman S. Chris Jones (R-Suffolk) said, “The revenue shortfall is the disappointing effect of a still-struggling economy. The payroll withholding data reflects troubling trends in employment. Unfortunately, Virginians are trading high-paying jobs for lower-paying jobs or are working part-time when they should be working full time. We budgeted conservatively, but the revenue just did not come in. Fortunately, we took a pay as you go approach in the budget, and while some planned investments won’t move forward, this is not an unmanageable situation. We will work closely with our colleagues in the Senate and the administration to determine the best path forward for the Commonwealth.”
“The shortfall proves that Virginia’s economy is not booming, despite several suggestions to the contrary,” said House Majority Leader Kirk Cox (R-Colonial Heights). “While the unemployment rate might make for a good press release, the truth is Virginia’s economic outlook is worrisome. The shortfall reveals underlying economic trends that we must be cognizant of as we move forward. Virginia’s economy is still searching for long-term stability, and our budgeting must reflect that. As we’ve done in the past and as our constitution requires, we will sit down and develop a path to balance the budget by setting priorities and making tough decisions.”
“The budget we adopted earlier this year was a conservative and responsible spending blueprint that recognized the need to make strategic investments and the long-term economic uncertainty,” said House Appropriations Committee Vice-Chairman R. Steven Landes (R-Augusta). “Many of our investments were contingent upon meeting the revenue forecast, and unfortunately, the forecast was not met. We will now begin the re-forecasting process and make the appropriate adjustments. The shortfall is also further proof that Virginia cannot afford new long-term fiscal obligations like Medicaid expansion. The wisdom of that decision continues to prevail.”
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