No quick fix for Virginia
budget deficit facing Virginia, estimated to be as high as $1.3
billion, is not a passing condition, and addressing it will require
action on many levels including a possible tax increase,
U.Va. economist John L. Knapp told a coalition of nonpartisan
business groups recently.
programs that account for about two-thirds of state spending include
transportation, higher education, K-12 education and Medicaid.
To deal with these needs, several possibilities should be considered,
including tax restructuring, greater efficiency measures and a
major bond issue, said Knapp, a research director at the Weldon
Cooper Center for Public Service. The overall tax burden in
Virginia is low compared to other states and it is unrealistic
to take this major source off the table, he said.