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Virginia State Revenues Worse Than Last Year

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In Virginia, state revenues aren't keeping pace with the budget. Tax collections continued to lag in September compared to the same month last year when there were meltdowns in the stock markets.

The state's monthly revenue report says major sources of general fund money, except for taxes withheld from paychecks, declined 7.5 percent from September 2008 levels. Governor Tim Kaine has already cut the budget four times since July 2008.

The budget already is based on projections that general revenues to pay for services like education, health care, and public safety would decline by 1.6 percent for the year. But the first quarter decline was more than 4 and a half times that rate.

Natalie Neumann reports...

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