Lawmakers Pass Budget

The Virginia General Assembly on Sunday approved a two-year budget that eliminates a $4.2 billion shortfall and preserves bond-financed projects.

The budget cuts about $2.3 billion in spending, including more than $1 billion in public education spending, and doesn’t raise taxes.

Gov. Robert F. McDonnell praised lawmakers for their cooperation in approving the biggest spending cuts for a budget in the state’s history.

The budget includes $1.2 billion of projects that will be supported with general funds and debt issued by the ­Virginia Public Building Authority and the ­Virginia College Building Authority. It includes $206.9 million of additional bonds that would be supported with non-general fund revenue.

Projects that would require bond financing remained substantially intact in the approved versions, said Evelyn ­Whitley, director of debt management.

The state in April plans to issue $59 million of debt for public school technology improvements along with a pooled financing deal.

Additionally, the state expects to issue its second tranche of qualified school construction bonds. Virginia, like other states, is waiting for federal legislation that would allow the tax-credit bonds to be issued as taxable bonds with a federal subsidy, like Build America Bonds.

The state in May expects to issue  transportation bonds that were allocated in 2007.

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