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Virginia Faces Shortfalls From Fiscal Cliff, Report Details

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A new report expected tomorrow will detail the financial problems Virginia faces if the federal government goes over the "fiscal cliff."

The non-partisan State Budget Crisis Task Force says Virginia could lose almost 123,000 jobs and $7.3 billion in wages. It points out that Virginia has failed to fund its transportation needs for decades, and education funding has been falling for years.

"Absent increased investment, which either is going to come at the expense of something else or will require additional revenues, Virginia is going to fall behind in the future," says Frank Shafroth, the director of the Center for State and Local Leadership at George Mason University.

The task force was created by former chairman of the Federal Reserve Paul Volcker and former New York Lieutenant Governor Richard Ravitch in 2011.


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