Gov. James S. Gilmore III recently announced that the Commonwealth of Virginia officially is in a recession. Gilmore attributed the recession to the Sept. 11 terrorist attacks and to the economic setbacks now plaguing the nation.
Gilmore has said a tax increase does not appear likely, but he did shelve decreasing the car tax any further for the remainder of this year. In a recent press release, Gilmore said he will ask "selected agencies to reduce their spending by 2 percent this year."
Two percent "doesn't sound like much, but it can be the difference between excellence," Government and Foreign Affairs Professor Larry J. Sabato said.
Although there is no list of the agencies selected to reduce spending, the goal is to try to reduce costs without affecting services, said Chris Freund, assistant press secretary for Gilmore.
Virginia last experienced a recession from 1990 to 1993. It lasted longer than the national recession during that time.
Although the University has not received any specific instructions from the governor to reduce spending, many of the University's schools have created contingency plans in case they are asked to cut back, said Nancy Rivers, director of state government relations at the University.
Gilmore has been working with Democratic Gov.-elect Mark R. Warner to ensure the transition allows for smooth budget handling. Gilmore will propose his biannual budget Dec. 19.
When he takes office, Warner will have the opportunity to make changes to the budget. Following recent trends, 95 percent of the budget most likely will remain intact after Warner's changes, Sabato said.
Warner will make small changes and focus on his priorities when changing the budget, he added.
Although Gilmore's Chief of Staff Boyd Marcus is heading the transition team, Gilmore's Secretary of Finance John W. Forbes also has met with Warner regarding the budget situation.
"We're in contact with Mark Warner on a pretty regular basis," Freund said.
Gilmore said in the press release that he learned of the bleak economic forecasts of his economic advisory board two weeks before he made the announcement.
Read More
Winsome Earle-Sears talks higher education in first U.Va. event of the campaign
By Ford McCracken | 13 hours agoA Jamaican immigrant and a U.S. Marine Corps veteran, Earle-Sears is the first female lieutenant governor of Virginia,
U.Va.'s Earth Day Eco-Fair 2025 spotlights sustainability advocacy
By Leigh Bailey | 14 hours agoStudents from Contracted Independent Organizations and University Office of Sustainability leadership programs each shared their unique perspectives about sustainability advocacy on Grounds.
Student Council votes to relocate Hereford orchard and basketball hoop
By Lauren Seeliger | YesterdayStudent Council passed a resolution Tuesday to relocate the orchard and basketball hoop of Hereford Residential College due to construction in the surrounding area.
