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Like a number of other
states, Virginia is largely papering over its current budget deficits through the use of temporary federal stimulus dollars, largely avoiding politically unpopular cuts in state services and programs. But with revenue declines and budget deficits projected to continue for several years, state policymakers need to get serious about reducing the price of government and ensuring fiscal sustainability, as the stimulus gravy train won’t last forever.
Virginia's ongoing budget woes really serve to highlight a systemic failure in the state's fiscal management. But at the same time, crisis breeds the opportunity for a state budget makeover. To that end, there are three important first steps state policymakers should be taking.
First, at a June news conference announcing the most recent $300 million deficit, Gov. Tim Kaine told reporters that his administration is “working hard to ... assess both the prioritization and performance of each state pro
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