PORTSMOUTH -- Virginia lawmakers learned today that they have a $3.5 billion hole to fill in the next two-year budget as well an estimated $209 million shortfall in the current spending plan.
The next two-year budget is expected to fall approximately $600 million short in revenues and include about $2.9 billion in additional spending, according to analysts for the Senate Finance Committee.
The increased spending is primarily for the Medicaid program for the poor, which would require an additional $1.8 billion to replace federal stimulus money used in the current state budget to run the program as well anticipated growth and demand for services.
However, the spending pressure outlined by the finance staff did not include replacement of about $365 million for public education that was covered by temporary stimulus dollars.
The finance committee opened a two-day meeting in Portsmouth to review the budget outlook in what is called the longest and deepest economic downturn since the Depression.
"We had hoped the economy would begin to turn around," said Sen.Charles J. Colgan, D-Prince William. "We know now that this is unlikely so we must deal with holes in the budget."
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