Virginia surplus grows to nearly $400 million

Credit: EVA RUSSO/TIMES-DISPATCH

Gov. Bob McDonnell is to make a presentation Thursday to the General Assembly money committees.

By: Jeff Schapiro | Richmond Times-Dispatch
Published: August 17, 2010
Updated: August 17, 2010 - 1:32 PM

The McDonnell administration is expected to tell legislators later this week that Virginia -- despite the recession and its aftershocks -- is finishing the spending year with even more money that expected.

An additional $174 million -- largely money not spent by agencies -- would be added to a projected surplus of at least $220 million, pushing the total on extra cash to about $400 million, according to budget officials.

However, some of this extra money could be spoken for, required by law to be rolled forward to specific programs. This might include, for example, financial aid for college students or environmental programs.

Gov. Bob McDonnell is scheduled to provide an update Thursday on state spending to the General Assembly money committees. There was no immediate comment this afternoon from McDonnell's office on the revised figures.

McDonnell, a Republican, took office in January, facing a $4.2 billion revenue shortfall. McDonnell and the legislature refused to raise taxes, closing the hole, instead, with spending cuts and federal economic-stimulus dollars.

McDonnell has already pledged some surplus funds to a one-time bonus for state employees, who have not received an raise since November 2007. The bonus will cost about $82 million.

Because of the surplus, school divisions will get a total of $18 million in additional funding; $22 million will go to the Water Quality Fund; and $20 million will go to the Transportation Trust Fund.

Virginia surplus grows to nearly $400 million

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