McDonnell signs caboose budget
- May 25, 2012
Gov. Bob McDonnell signed the final caboose budget for Fiscal Year 2012 on Friday and plans to sign the Fiscal Year 2013-2014 budget in the next few days.
McDonnell’s passage of the current budget, which ends June 30, did not include any vetoes.
The caboose bill will allocate $67.2 million in surplus money from last year’s budget to transportation and restores $10 million in budget cuts to higher education.
The bill also sets up the Federal Action Contingency Fundy, or FACT Fund, which will be used as a reserve to protect against negative effects of changes in federal fiscal policy. Much of Virginia’s economy in Northern Virginia and Hampton Roads is affected by military spending, which is scheduled to be cut back over the next 10 years.
The budget also includes $50 million to proceed with the roll back of the accelerated sales tax collection program, which was put in place during the weak economy, requiring retailers to make two sales tax payments in June. The new funds will mean that 96 percent of retailers will not be required to make the double payment in June.