Three months after the legislature adjourned, the Virginia General Assembly is prepared to pass its two-year state budget plan Thursday, narrowly avoiding a potential government shutdown.
The budget will address a revenue shortfall projected at $1.55 billion over the next two years. The projected revenue shortfall increased from $1.35 billion due to lower estimations of income tax collection over the next two fiscal years, expected to reduce projected revenue by $100 million each year.
The Assembly hopes to combat the projected shortfall with close to $900 million in budget cuts and $705 million tapped from the state’s Rainy Day Fund.
Despite Democratic Gov. Terry McAuliffe's hopes, the budget is not expected to include any legislation regarding Medicaid expansion.
In February, three Senate Republicans proposed the Marketplace Virginia plan, an alternative to expanding the state’s Medical program under the Affordable Care Act. Conflict over the marketplace plan left the Assembly without an adopted budget when it adjourned March 8. Public services would shut down if no budget was passed by the end of the fiscal year, June 30.
The Senate Finance Committee will review the 2014-16 Budget bill Thursday at 3 p.m. and pass it to the full Senate and House this evening. If approved, the bill would then be sent to McAuliffe by Wednesday, June 18 for review.