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Virginia Governor Faces Another Round of Cuts Before Term Ends

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By Rebecca Blatt

Virginia's Governor Tim Kaine will present his biennial budget next month. And he is warning it will include some unpopular adjustments.

As Kaine faces a projected budget shortfall of nearly $3 billion for the next two years, he says all options are on the table -- including tax increases and cuts to education and Medicaid.

"I think people are going to see an awful lot in this budget that they don't like," he says. "But look, people are doing it in their families and they're doing it in their businesses. We haven't shrinked from them, and we're not going to shrink from them this next round."

Economic conditions have forced more than $5.5 billion in state budget reductions in a little more than a year. But the governor points to some signs of strength.

"We have the lowest unemployment rate of any large state in this country, and we have a AAA bond rating," he says. "I'm going to give them a budget that will maintain our business friendliness, our financial credentials and our strategic positioning."

The General Assembly and Governor-Elect Bob McDonnell will take up the proposal in January.

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