Kaine Administration Says State Layoffs Likely

September 17, 2007

Governor Kaine's administration says that state layoffs are likely because of a budget shortfall. Finance Secretary Jody Wagner told the House Appropriations Committee the number of layoffs could be greater if the government isn't allowed to use the rainy day cash reserves.

The administration estimates revenues for the current budget will fall $641 million below forecasts on which state spending through June was based.

In an address to the Republican-dominated panel, Wagner said the job cuts could be part of 5% cuts agencies have been ordered to recommend to Democratic Governor Tim Kaine.

House Republicans oppose using the reserves and called the prospect of layoffs scare tactics.


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