The Richmond Times-Dispatch is reporting that Gov. Tim Kaine will meet with the money committees of the General Assembly today to report the current year’s revenue shortfall, as well as revenue estimates for the next bienneum. The article says that the amount could reach $400 million. Money committee reports are made each August and December by the Secretary of Finance.
Prior reports have indicated that this year’s revenues could be as much as $300 million less than anticipated, as reflected in the May report from the Secretary’s office. I queried Secretary Jody Wagner on this yesterday and she was unwilling to give me an exact figure on the revenue shortfall but indicated that the next budget will certainly be impacted by declining revenues. We have already seen the report by The Commonwealth Institute for Fiscal Analysis as well as the one from GAO, both of which predict falling revenues at the state level.
With revenues on the decline, there will be a tremendous challenge to provide for the core services of government as well as those to pay for those items for which the Commonwealth has already committed, most notably transportation. The next session of the General Assembly will have to make some difficult choices when prioritizing spending over the next biennium.
What we already know is that it’s not going to be pretty.
VIVIAN J. PAIGE | All Politics is Local 
I agree, Vivian. Local governments better get ready for the slowing revenue wave. Live by real estate revenue…well, you know the rest.
When we gonna grow up and really reinvent state-local tax structure?
“When we gonna grow up and really reinvent state-local tax structure?
When we boot out the “no tax” Republicans and get control of the House and Senate, we can rework the tax system. Until then, citizens will get what they pay for.
Right — when the Democrats take control, the citizens WON’T get what they pay for.
This is exactly why local Board of Supervisor elections are critical when it comes to raising proffers and getting developers to committ to setting aside land for schools and roads. Yeah I know that the pro-developers will cry that proffers will raise the price of homes and potentially price people out of the market…so here in Chesterfield people we have to go for the 400K and not the 500K subdivisions..I weep. Schools overcrowded, roads a mess and most likely little money coming from the State down the road..and the Board reduces proerty tax rates of course during an election year.Its time people realize that pro-growth shouldn’t mean stick it to the residents and give business a pass. There should be some accountibility in that the business community needs to pay its share of the burden as well. I applaud Prince William for trying to rasie its proffers and hopefully Chesterfield will try again after the election flips the Board. I certainly could handle a bit slower growth for awhile. Yeah I know they will just opt for another bond program to pay for it all…problem is we have tried that and we still are not apply to keep up with our growth.
No, J, the houses would still cost the same (the developer would have to pay for the extra land for schools and roads), but would be smaller. Being smaller than other houses that cost the same to make, they would not sell for the same price. (Do not confuse cost and price — price is cost plus profit.) In fact, they may even sell below cost. If the developers expect that to be the case, they will not build until the lack of housing drives the prices up to the point that they can make a profit again.
You seem to think that the business community is not made up of residents. Certainly the laborers who build the houses are residents (if not citizens). Most of the contractors (roofers, electricians, plumbers, etc.) are residents, too, and part of the business community. Artificially increasing the cost of building a house could result in houses’ not being built at all until the resulting shortage causes the prices to go up more. Meanwhile, you’ve put the carpenters, electricians, plumbers, and illegals out of work. Thanks.
Slower growth means higher housing costs. Most people who own a house already love it. They have theirs, and want to shut out those who do not, driving up the resale values in the process. I thought liberals were supposed to be looking out for the little guys.
Again money is needed, and it’s going to be taken from or do harm to the less fortunate people. If the Governor and the people on the boards, the city managers, ect, are so upset, let them return some of their yearly wage or either some of their play money they continue to receive for JOB RELATED SITUATIONS. I’m sure alot of money could be saved there. The white class workers are getting tired of always having to pay for the trouble the government get us in. you guys dug your own hole, it was only a matter of time before all these problems started up again. THINK BEFORE YOU SPEND!!!!!