Governor McAuliffe Announces Budget Cuts

On Wednesday Governor McAuliffe announced his plan for budget cuts aimed to remedy the state’s budget shortfall, which includes 565 layoffs, reports The Washington Post. 

The state employees slated to lose their jobs mostly work in the Department of Corrections, where Virginia plans to close a prison, residential facility, a diversion center, and plan to postpone the opening of a women’s prison. These cuts will save Virginia almost $4 million in “operational efficiencies.”

In addition, the state plans on gaining another $2.5 million in revenue when the Virginia Department of Alcoholic Beverage Control increases the mark-up on distilled spirits.

The cuts announced can take effect immediately as they require no approval or action from the General Assembly.

On December 17, the governor will reveal a larger, revised budget plan for how to save money in the 2016 fiscal year, which will require the vote of the Republican controlled General Assembly.

This year was the first year outside of the national recession that the fund revenues in Virginia declined. They fell about $438 million, or 0.9 percent, despite the predicted 1.6 percent growth.

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