Budget crisis at a glance

On Aug. 19, Gov. Mark R. Warner announced a $1.5 billion shortfall in the state’s two-year budget, nearly double what was earlier estimated.

U.Va.’s budget for the current fiscal year already reflected a $23.4 million general fund reduction; that reduction was projected to increase by an additional $33.3 million in 2003-04. Cuts that might result from the August announcement would be on top of those previously ordered.

U.Va. officials already had frozen state-funded hiring and discretionary spending. Now, along with all other state agencies, U.Va. is in the process of preparing three separate budget reduction plans – for 7, 11 and 15 percent – at the governor’s request. Agencies had already been asked to reduce their budgets by 7 and 8 percent this fiscal year and next, respectively, to meet the $50 billion two-year budget. Under the August directive, the total cuts could amount to about 23 percent for some agencies.