More Bad Financial News

Gov. Tim Kaine (D) is reporting more bad financial news for the Commonwealth tonight.

The governor says revenue collections for the month of May dropped 16 percent from this time last year. Revenue collections are dowm $100 million from last month. The state’s hole is now $300 million deeper than it was when the legislature passed a budget in February.

In order to balance the budget for the fiscal year, Kaine has directed state departments and agencies to spend as little cash as possible between now and the end of the month. The governor says budget reductions are almost a certainty for 2010. 

“We’re going to have to be really dilligent and creative,” Kaine said.

He has decided to accelerate a revenue re-forecast for 2010, so that experts can have a better picture of how bad the state’s finances will be for next year. Kaine hopes to have an idea of the severity of the upcoming budget situation by the time he addresses the legislature’s joint money committees in August.

State Finance Secretary Ric Brown will address the House Appropriations Committee tomorrow and he’ll go before the Senate Finance Committee on Thursday.

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