State budget cuts to avert layoffs

Gov. Jim Gilmore's plans to make up the $421 million state budget shortfall, as of March 6, includes using the funds that were earmarked for capital projects, more than two-thirds of which were slated for Virginia's colleges and universities. These recent moves make it unlikely that the governor will call a special session of the legislature.

The governor has stated that layoffs will be avoided, as he finds savings elsewhere. Along with savings of more than $72 million from the Virginia Retirement System — without having an impact on retirement benefits — the governor said that $405 million could be saved from planned building projects. He halted construction and maintenance projects not yet under contract after the General Assembly's budget impasse over phasing out the car tax last month, and froze hiring and discretionary spending.

U.Va. was among state agencies who submitted budget-cutting plans to the state March 2. The plans, designated as governor's working papers, can not be publicly disclosed. Mandated budget cuts for the University were $2.4 million from this year's budget and almost $6.7 million from next year's budget.

The Medical Center is not subject to the budget reductions or the hiring freeze.