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Virginia

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Virginia


Budget gap (as a % of the total budget): 7.1%
Gap: $1.2 billion

Governor Timothy Kaine, who has already made significant cuts to university and community-college funding, recently said that the state's shortfall in its two-year budget could triple, to about $3 billion, if the economy's rapid decline continues. Kaine has asked state agencies to recommend 5% to 15% in cuts as the state finds ways to make up for an expected drop in tax collections of $2 billion to $3 billion. Tax revenues are down partly because of the falling real estate market and drops in retail sales revenue.