Virginia Gov. Terry McAuliffe, gestures after signing a proclamation for a special session in the Governors conference room at the Capitol in Richmond, Va., Saturday, March 8, 2014.
A possible $300 million gap is adding a new wrinkle to Virginia's budget impasse that threatens a possible state government shutdown.
Gov. Terry McAuliffe met with key lawmakers at the Capitol to tell them about lower-than-expected tax revenues that could leave a $300 million budget hole for the current fiscal year.
McAuliffe says he told lawmakers that the gap shows the need for compromise on passing a state budget for the next two years.
Republican and Democrats have not been able to pass a roughly $96 billion biennial budget for several weeks because of disagreements over whether to expand Medicaid eligibility to as many as 400,000 low income residents.
Republicans say the new revenue numbers bolster their case for passing a budget without Medicaid expansion.