Summary
Virginia, like many states, was hit by a budget crunch as a result of the recession, and Gov. Bob McDonnell and the General Assembly had to make tough decisions about where to make cuts. Fortunately, Virginia has one of the lowest unemployment rates in the country due to federal government jobs and the military and, as a result, Virginia is in better financial shape than many states.
Some, including the governor, gave the new administration good marks on its handling of the budget crisis. Taxes were not raised, with millions from the federal stimulus package easing the amount of cuts. $620 million was taken from the Virginia retirement system with an IOU to pay it back later with 7.5 percent interest, and funding cuts were made in many essential areas.See the full content of this document
Extract
How Is the State Doing?
Unfortunately, the result was local governments struggling to cope with declining revenues by laying off teachers and other government employees, freezing salaries and raising taxes. Soci...
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