The commonwealth of Virginia may be almost $1 billion short of its expected revenue by June, according to the latest figures released by the governor's office, and that shortfall likely will impact the University.
Revenue projections made last fall originally estimated that the shortfall for the budget year ending June 30 would be about $641 million. This number, however, has now ballooned to include an additional $339 millionof lost revenue, a press release from Gov. Tim Kaine stated.
According to Kaine spokesperson Gordon Hickey, "there is a revenue shortfall, and it's likely to come in below what was earlier expected." Hickey added that the cause of the revenue deficit "is the same as for everyone else in the U.S. There's an economic downturn driven by the housing market ... The jobless rate is going up a little bit."
Although the original deficit projections were accurate, "things change," Hickey explained.
"The economy has taken some hits and because of that, revenue is going to fall," Hickey said. "This isn't about bad projections, but about economic reality."
Hickey also noted that, because of the commonwealth's law requiring a balanced budget, the governor must now "trim the budget" and have the legislature again approve it with deeper spending cuts.
Various agencies in Virginia will be asked to further cut and regulate their spending, Hickey said. He noted, though, that as "the biggest cuts were at universities and institutions of higher learning" last time, Kaine will not ask the universities to cut as much this time around.
Still, the governor's budget proposal for 2009-10 will reduce funding for universities by 2 percent, with other agencies suffering a slightly larger 3 percent cut.
According to University spokesperson Carol Wood, "this current year the University had $9.2 million taken out of the budget," and if Gov. Kaine's proposals for 2009-10 are implemented an "additional $2.9 million each year will be taken out of the [University's] budget."
The last time the commonwealth cut funding to the University by that percentage, Wood said, "all departments [at the University] were asked to reduce their target budgets [and] it affected everything at the University."
Wood added that the state government has not been a dependable source of income to the University in the past because of many outside factors, noting that the University "has seen some extreme highs and lows" in budget cuts.
Specifics of Kaine's modified budget have not been finalized, according to Hickey, and all changes will have to be accepted by the General Assembly later this year before they are implemented.
Read More
What to expect as the University searches for its 10th president
By Nicolas Biernacki | 7 hours agoThe special committee to nominate the 10th president was announced Friday.
U.Va. announces search committee for permanent president
By Ford McCracken | YesterdayThe committee includes most sitting members of the Board of Visitors, other faculty representatives and alumni and just one current undergraduate student, who is also a sitting member of the Board.
A look at Ryan’s presidential employment contract
By Bertie Azqueta | 2 days agoThis contract, originally established in 2018 when Ryan was hired, was renewed in 2022 and outlines the terms of his employment, including salary and benefits.
