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near $400 million, said Dickinson. Currently, there are five suits against the state addressing this issue.
While the state had been averaging a 9.4 percent economic growth rate, recent statistics show that the rate of growth has slowed considerably, said Dickinson.
“The Virginia economy is beginning to show signs of a slowing national economy,” said a Dec. 1 statement from the Governor’s office. However, several other factors are expected to influence the Commonwealth’s financial situation.
Changes in Medicaid at the federal level have shifted more burden to the states. To provide the same health care for indigent Virginians in the next biennium as they are currently receiving, the state will need to pay at least $250,000,000 more than it is now paying. Medicaid is fastly approaching a one-billion dollar expense and is one of a growing number of “nonjputable” budget items, said Howell.
In addition, possible defense cuts nationally could significantly affect the economic status of the Northern Virginia area, which is heavily dependent on Pentagon employment, as well as the large naval bases in the Tidewater area.
Prison construction is becoming a growing budget item and is expected to cut a deep slice out of the budget for the next biennium. During the four years of the Baliles administration over 5,000 new prison beds were created at a cost to the state of a quarter of a billion dollars. The state prison population is expected to double by the year 2000, according to Vivian E. Watts, secretary of transportation and public safety. To keep up with the forcasted 13 percent growth, Virginia will need to build 2,000 prison beds per year.
Though Baliles sets the agenda for the next two years, Virginia’s fiscal situation leaves little breathing space for Governor-elect L. Douglas Wilder, who will take office on Jan. 13.
Wilder promised Virginia voters that he would seek to repeal the state tax on food and non-prescription drugs.
“That’s a $30 million budget item,” explained Emick. “That’s achievable, but it’s much more difficult than it would have been [if the budget for the next biennium was not so limited].
Also, Wilder discussed plans for construction of a new Northern Virginia state university.
“With the fiscal situation the way it is, I do not believe we are going to be starting a four-year college,” said Del. Raymond R. “Andy” Guest, R-31st Dist., House minority leader.
Wilder officials declined to comment on the budget for the next two years until after the inauguration.
“We’re monitoring the situation, and we’re being briefed on the budget,” said Laura Dillard, spokesman for the Wilder administration. /—"
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