In a briefing in Richmond Monday, Virginia’s Secretary of Finance Aubrey Layne told state lawmakers that revenues aren’t keeping pace with expenditures.
Layne was giving a presentation to members of Virginia’s House and Senate money committees. He told them that although tax collections are rising, they aren’t rising as quickly as costs.
The state raises most of its money through personal income tax and sales tax, and more than of the state’s budget is on public education and healthcare.
Constitutionally, Virginia has to have a balanced budget, leaving lawmakers with two options: cut spending or raise taxes.
“And that’s my reason for all this caution,” Layne told lawmakers. “I’m bullish on Virginia, but as the Secretary of Finance I’m cautious as we go into this new spending cycle.”
Lawmakers will be drawing up the state’s next two-year budget during the legislative session in January, but first all of them face an election.