State Budget Problems

By: Elizabeth Donatelli
By: Elizabeth Donatelli

March 13, 2006

Days after the traditional end of the General Assembly lawmakers still can't agree on a budget. This is the the third time in five years Virginia legislators closed their regular session without a budget.

The assembly and governor agree on money for education and public safety, but the major dispute is over transportation and its funding. The House expects a major surplus without a tax increase, while the Senate is calling to raise taxes by more than $1 billion a year.

"It really does impact local government, school boards trying to make decisions, city managers trying to make decisions about their police budgets. So I'm going to keep working. Bring everybody back in two weeks and we'll nail this thing. We'll knock it out," said Gov. Tim Kaine.

The Senate's new taxes would be on gasoline, home, and car sales.

Kaine set a date of March 27th to have legislators reconvene.

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