In response to a budget impasse in the General Assembly, Gov. James S. Gilmore III (R) yesterday ordered all state agencies to freeze hiring and discretionary spending temporarily.
The executive order stalls several University capital projects, including the new $9 million studio arts building project and the $10 million special collections library construction, said Nancy Rivers, University director of state governmental relations.
Gilmore also directed each state agency to submit a spending-reduction plan to the Department of Planning and Budget by Friday.
Saturday night, Gilmore issued executive order No. 74, which calls for up to 15 percent cuts in operating expenditures and an immediate stoppage on capital outlay projects not under contract, Rivers said.
University President John T. Casteen III said he does not yet know exactly how the orders will affect the University's operations directly.
Casteen will meet today with officials in Richmond today to learn more about the impacts.
"We have taken the necessary steps to ensure that the University does not enter, renew or extend any contract for work on any aspect of a capital project funded by the general fund of the Commonwealth until further notice," Rivers said.
No appropriations will be withheld from direct aid to public K-12 education and essential services, such as aid to the elderly.
Gilmore's actions stem from the General Assembly's inability to pass a new budget before it ended its session last week.
Del. Mitch Van Yahres (D-Charlottesville) said reducing the controversial car tax prevented the General Assembly from approving a new budget. The two-year budget adopted by the 2000 General Assembly remains in effect until Gilmore calls a special session of the legislature sometime next month.
The House agreed to support Gilmore's call for a 70 percent car tax reduction, but the Senate refused to go any further than 50 percent, Van Yahres said.
In a letter sent to the House and Senate appropriations committees Saturday, Gilmore said he firmly believes "the people of Virginia would have been better served had both chambers of the General Assembly reached agreement on needed budget amendments."
Van Yahres said many agencies in Charlottesville and Albemarle County, as well as throughout Virginia, will face problems because of the actions.
"A lot of higher education is going to be concerned," Van Yahres said.
University Rector John P. Ackerly III and Colette Sheehy, vice president for management and budget, will meet with the Secretary of Education today to receive the University's new budget targets.
Gilmore's press office could not be reached for comment.
Read More
Board of Visitors Finance Committee hears presentation on budget process
By Cecilia Mould | 17 hours agoThe Committee will review and vote on the budget for the 2024-25 fiscal year when the full Board reconvenes for its June meeting.
Police forcefully clear encampment near University Chapel, detain protesters
By Thomas Baxter and Finn Trainer | 2 days agoThe University declared the encampment an unlawful assembly at 2:44 p.m.
Student Council passes appointment bill, approves new CIOs at final meeting of semester
By Arshiya Pant | 3 days agoMendoza Gonzalez also said she will be meeting with Kenyon R. Bonner, vice president and chief student affairs officer, to discuss further strategies for the Student Council Endowment Fund.
