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CHARLOTTESVILLE, Va. (AP) Governor Tim Kaine says tax exemptions are likely to be shaved along with state spending for services and programs in an austere budget he will submit later this month. Kaine has made nearly $7 billion in cuts and other budget-balancing maneuvers because of the worst economic downturn since the Great Depression.

CHARLOTTESVILLE, Va. (AP) Governor Tim Kaine says the restaurant smoking ban that took effect Tuesday is literally a healthy development for tobacco-loving Virginia. In a statewide tour of eateries, the governor took a term-ending victory lap over the compromise smoking restriction the General Assembly enacted last winter.

ROANOKE, Va. (AP) Carilion Clinic will sell two outpatient centers to resolve a complaint that its acquisition of the facilities was eroding competition in the medical field. The Federal Trade Commission approved a settlement with Carilion today.

WAYNESBORO, Va. (AP) A federal study says soil contaminated more than 50 years ago by a textile plant is the source of 96 percent of the mercury in the South River. The report by the U.S. Geological Survey says the plant in Waynesboro discharged mercury waste from 1929 to 1950.

(Copyright 2009 by The Associated Press. All Rights Reserved.)

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