Nervous Virginians across the Commonwealth watched last night as Gov. Mark R. Warner made a statewide, televised address outlining the "painful" funding cuts he sees as necessary for meeting this year's forecasted $1.5 billion shortfall in state revenue.
"A budget shortfall of this magnitude cannot be solved by sound bytes of cutting the fat," Warner said. "These budget reductions will affect vital services that Virginians count on, and there should be no attempt to disguise that fact."
Facing what he said is "the largest decline in state revenues in the 40 years" that records have been kept, Warner said he would implement cuts that will save $858 million over the next two years, while making no mention of tax increases.
The Office of the Governor, Warner said, would receive cuts of 17 percent, while his own salary, he said, would be cut by 20 percent.
All other state agencies will receive cuts from 11 percent to 15 percent -- the limit set by law that the Governor may make without seeking the approval of the General Assembly.
State colleges and universities, he said, should expect cuts of 9 percent to 13 percent, depending on individual schools' current tuition levels and percentages of out-of-state students.
"The result will be larger classes, fewer course offerings, and for some students, perhaps additional time in order to graduate," Warner said.
State employee layoffs, he expected, will number 1,837, in addition to estimated college and university employee layoffs of 4,500, though that number may be offset by tuition increases or other cuts based on the decisions of the boards of visitors at each school.
For students attending private colleges, state assistance will be reduced by 13 percent.
Many of the reductions will force government offices and facilities to cut back business hours, and in some cases, open for one less day per week.
This includes the Department of Motor Vehicles offices, libraries, museums and ABC liquor stores.
Funding for state employee salary increases in 2004 also will be eliminated, though Warner promised to restore the raises as the economy rights itself.
As he moved on to discuss the budget, Warner offered a brief explanation of how the state's fiscal policies of the last decade led to the current crisis.
"In the late 1990s, state spending grew significantly, and simultaneously more than 50 new tax breaks were enacted," he said. "In short, the state increased spending and cut revenues at the same time."
The recession and the Sept. 11 attacks, he said, revealed this "structural imbalance" in the state budget.
House speaker-elect William J. Howell, R-Stafford, credited Warner for meeting with him and other Republicans before announcing his cuts.
"He's been very deliberate in coming up with the cuts," Howell said. "And I think everyone's going to feel them."
Political analysts reiterated the gravity of this second round of devastating budget cuts, not only for residents and state employees, but for Warner's legacy as well.
"The governor is doing what he has to do under the [Virginia] Constitution -- Virginia must have a balanced budget," Politics Prof. Larry J. Sabato said. "But I'm sure it's unpleasant for someone who had big plans for his four-year term."
Warner seemed to anticipate the political backlash that could follow last night's announcements.
"For those who are quick to criticize this situation solely for political gain, I have a simple challenge," he said. "If there is a better way -- show us. For every budget reduction you disagree with, tell us where you would make an offsetting cut."
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