Kaine announces layoffs, budget cuts

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  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.

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