Virginia Gov. Ralph Northam is instituting a hiring freeze of state employees and is telling agency heads to look for ways to cut budgets in response to the coronavirus.
Northam chief of staff Clark Mercer told agency heads in a Thursday memo obtained by The Associated Press that a recession is coming and the state revenues will be far below “even our most pessimistic forecast” from last year.
On top of that, Mercer said, the state is having to spend heavily on buying medical supplies, helping vulnerable populations navigate the pandemic, and other virus-related costs.
Northam did not mention the hiring freeze during his Friday afternoon news conference. Northam said state revenue will be "lower than even our most pessimistic forecast." Northam said federal funding will help fill the gap, but will not fully fix the problem.
Northam said he has directed state agencies to eliminate discretionary spending for the rest of the fiscal year the ends June 30th. He said he has also directed agencies to prepare for budget cuts in the budget cycle that starts in July. Budget experts will also reevaluate funding that was planned for new initiatives and avoid any new commitments. "We have to rearrange our priorities now, " Northam said.
