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half of the recordation tax revenue pledged to localities.
The governor also said that he could not avoid cuts in state funding to local government. Nearly half of all state funds go to localities to assist public education, law enforcement, public health facilities and other services.
“Although this administration has gone to great lengths in recent months to spare localities from reductions in state funding,” said Wilder, ‘It is simply not possible to exempt local aid at this time.”
However, local reductions are targeted for the second year of the biennium, as local officials requested, so that the cuts will have minimal impact on the local 1990-91 budgets, said Wilder.
In addition, a total of $153 million in state funding to localities to help them to meet the Standard of Quality (SOQ) education mandates will be deferred.
Lottery profits, totalling $364 million, will be diverted from building projects at state college and other public works.
The governor acknowledged that some layoffs are inevitable, but he maintains that he will not raise taxes.
The governor will review and approve the final plans for reductions Sept. 4-14, and will introduce budget amendments on Jan. 4.
“It looks bleak and it’s not looking any better as time passes,” said Sen. Charles L. Waddell (DLoudoun/Fairfax).
91.8%