August 20, 2009
Just like most states around the country, Virginia’s state and local government finances are under great strain. Governor Tim Kaine says the states revenue shortfall is worse than originally expected. The state is $1.2 billion short of budgeted general fund spending plus a $300 million shortfall for the fiscal year than ended last June.
In this weeks UVa Today segment Professor of Business of Economics, John Knapp, talks about Virginia's state and local finances.
According to Knapp, Virginia is unlikely to make major adjustments in the three major sources of tax revenue—the state income tax, the state and local general sales tax, and the local real property tax. In the future pressures on the local real property tax are likely to result in renewed calls for local access to the state income tax.
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