Kaine announces layoffs, budget cuts
- September 8, 2009
Nearly 600 state employees will be laid off and three correctional facilities will be closed as the commonwealth attempts to address a $1.35 billion shortfall in its budget.
Gov. Timothy M. Kaine today announced a series of steps to reduce spending for fiscal year 2010. They include:
- More than $403 million in spending cuts based on recommendations by state agencies in plans to trim their budgets by 5, 10 or 15 percent.
- Another $446 million in savings through targeted strategies to reduce general fund spending, including $104 million in reduced payments to the Virginia Retirement System.
- The elimination of 929 positions, including 593 layoffs.
- The closure of three Department of Corrections facilities, including two older prisons and a one juvenile facility.
- Budget cuts of 13 to 15 percent for institutions of higher education.
- A one-day furlough for all state employees on the Friday before Memorial Day 2010.
The cuts mark the fourth time that the 2008-10 budget has been cut. The total shortfall for the biennium is more than $7 billion.