Plans to Offset a Deficit
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Highlights of proposed cuts to cover a projected $1.4 billion shortfall for the two-year state budget that begins July 1:
- No tax increases.
- 3 percent cuts to state agencies, 2 percent to higher education.
- No reductions in K-12 education operations, but school construction funds will be trimmed.
- 5 percent cut in aid to local governments.
- Undetermined number of layoffs, with 1 percent reduction in proposed salary increases for state employees and teachers.
- $423.5 million to be used from state reserves, leaving an $800 million balance.
- Targeted cuts to Gov. Timothy M. Kaine's proposals to expand pre-kindergarten education, increase foster care rates and foster care worker training, and create a health insurance program for low-income workers. No cuts to mental health programs.
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