No quick fix for Virginia

The 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.

The 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.