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The clipping this text was read from
The clipping this text was read from

compounding the problem is the possibility of further reductions in federal aid to the states. Virginia receives between 25 and 30 percent of its total budget funding from the federal government, making these grants-in-aid the Commonwealth’s principal source of revenue.

But pressure is mounting on the Reagan administration to do something about its gargantuan deficits, and state aid money is a convenient target for early budget slashes at the federal level.

These slashes will almost certainly be coming down the pike.

The upshot of all this is that instead of $55 million, the state could face a staggering shortfall in the $200 million range. If this should happen it would have a devastating impact on scores of state services including education, corrections, health care and

87.6%