Gov. James S. Gilmore III (R) assured university presidents in a letter sent yesterday that he will work with them to minimize the impact of the freeze on Virginia's budget.
"I ask that you and your staffs work with my administration to help set priorities within the constraints of available resources," Gilmore said.
In Executive Order 74, capital outlay projects have been stopped and operating expenditures will be cut by 15 percent because the 2001 budget did not pass the General Assembly.
The effects of these cuts, coupled with yesterday's announcement to freeze hiring and discretionary spending temporarily, will affect five projects at the University directly.
The most costly effects of the budge freeze will fall upon the $9 million studio art building project and $10 million of state provided funds for the Special Collections Library, said Nancy Rivers, director of state and government relations.
The University "has to submit a reduction in spending plan on Friday," Rivers said.
University President John T. Casteen III said he is hoping for a resolution soon, but the University will work to minimize the effects of the freeze and maintain momentum.
The impacts of the budget freeze on the University are not known fully, Rivers said.
The result of the budget freeze is due to a lack of agreement between the Virginia House of Delegates and the Senate over reducing the car tax, Virginia Republican Party Chairman Ed Matricardi said.
Gilmore and the House want a 70 percent reduction in the car tax while the Senate wants only a 50 percent.
"Governor Gilmore made a commitment that he would abolish the hated [car] tax," Matricardi said.
There will be a special session for the General Assembly in March to try to pass a budget. But if a budget is not passed, Gilmore will have to renew the old budget because of a Virginia state constitutional requirement for a balanced budget.
Mary Broz, spokeswoman for the Democratic Party of Virginia, said she blames Gilmore for the budget crisis. "It's a fiscally irresponsible budget," Broz said. "The money is simply not there."
Gilmore also sent a letter to state employees assuring them that "one of my objectives during the special session will be to work diligently with the General Assembly to ensure state employees receive well deserved pay increases."
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