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Politics : Impeach George W. Bush -- Ignore unavailable to you. Want to Upgrade?

To: Neocon who wrote (8240)	12/6/2001 6:57:51 AM
From: jttmab	Read Replies (1) \| Respond to of 93284

Your post reminded me of a story that I forgot to share. A feather in the cap of Republican Leadership! He thought he might discuss the budget on his way out the door. Gilmore Estimates $1 Billion Shortfall By R.H. Melton Washington Post Staff Writer Tuesday, December 4, 2001; Page B01 RICHMOND, Dec. 3 -- Virginia Gov. James S. Gilmore III (R) issued a more pessimistic fiscal forecast for state government today, estimating a $1 billion shortfall that he said could be an omen of a worse recession than he first feared. Gilmore said he was relying on the "most conservative" numbers available to revise the forecast he made Nov. 15, when he announced that Virginia was in a full-fledged recession and faced an $890 million shortfall. Gilmore said he had been persuaded by an advisory panel of business leaders to adopt essentially a worst-case scenario of a nearly year-long recession, which he plans to incorporate into the final state budget he presents to the General Assembly on Dec. 19. The governor's latest and gloomiest forecast of state revenue widened the projected budget hole by $112 million, probably setting the stage for a round of potentially deep cuts in state spending, which is now about $25 billion annually, Gilmore and lawmakers said. "By taking this fiscally responsible approach . . . I will have to make the difficult decisions to bring this budget into balance," as required by law, Gilmore told reporters at a state Capitol news conference. "We're making the tough decisions today so that things will be better for the people of Virginia tomorrow." Gov.-elect Mark R. Warner (D) takes office Jan. 12. After that, he and the Republican-led General Assembly will grapple with the spending plan that Gilmore leaves behind. "He's laying the groundwork for the budget cuts that are going to be necessary," said Del. Brian J. Moran, of Alexandria, who was elected by fellow Democrats over the weekend to lead the party caucus in the House of Delegates. "In the interests of honesty, he should disclose the financial mess that Mark is assuming." Warner, who has been assessing the state's fiscal situation since winning the governor's race a month ago, said Gilmore is right to revise his estimate if faltering revenue warrants the change. "A fiscally conservative approach is the only way to lead the commonwealth and get our fiscal house back in order," Warner said in a statement. At his news conference, Gilmore gave his strongest indication to date that he would dip into the state's nearly $1 billion "rainy day" fund to help balance the budget. He also all but ruled out finding enough money to provide retroactive pay raises to state government workers and thousands of other public employees, including teachers in many school districts. Gilmore added that it was unlikely that Virginia would receive much -- if any -- of the $3.2 billion it asked the Bush administration to provide in the aftermath of the Sept. 11 terrorist attacks, one of which struck the Pentagon in Arlington County. "The door has not been totally shut, but . . . I don't at this point expect to see a big block of cash coming in to help us with our budget situation," Gilmore said. By estimating the budget shortfall at slightly more than $1 billion, Gilmore is in near agreement with legislators, whose own analysts predict a $1.2 billion gap between budgeted spending and available resources. That is a vast change from a year ago, when lawmakers and Gilmore disagreed sharply in their forecasts for the Virginia economy. Gilmore said that state government could afford to move to the next stage of car-tax relief, while the state Senate said the economy was too fragile to absorb the tax cut's cost. Warner, whose only Cabinet choice so far has been his finance secretary, has said he wants both major branches of state government to be in general agreement about the scope of the fiscal problems. "The revised revenue numbers released by Governor Gilmore today underscore the challenging times the commonwealth faces during this economic downturn," Warner said. © 2001 The Washington Post Company