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Absent Federal Aid, How Bad Are State Budgets? [Governing]

Absent Federal Aid, How Bad Are State Budgets? [Governing] Dec. 22 Last week, Virginia Gov. Ralph Northam revealed a two-year budget package that included no tax increases and substantial new spending. It would restore nearly half the nearly $3 billion in spending that Northam froze earlier this year, while increasing education spending by $500 million, mostly to help schools retrofit for the coronavirus pandemic. Northam’s budget even allows for more savings, devoting $650 million to Virginia’s rainy-day fund. Most of the new spending is set for the second year of the proposed two-year budget. “By then, we hope most Virginians will be vaccinated, and our society and economy will have begun returning to more normal activities,” Northam said.

Absent Federal Aid, How Bad Are State Budgets?

Absent Federal Aid, How Bad Are State Budgets? The new congressional stimulus package does not include direct aid for states and localities. Only a few states have seen revenues increase from last year, meaning cutbacks are coming due to COVID spending pressures. Alan Greenblatt, Senior Staff Writer   |   December 22, 2020   |  Analysis Last week, Virginia Gov. Ralph Northam revealed a two-year budget package that included no tax increases and substantial new spending. It would restore nearly half the nearly $3 billion in spending that Northam froze earlier this year, while increasing education spending by $500 million, mostly to help schools retrofit for the coronavirus pandemic. Northam’s budget even allows for more savings, devoting $650 million to Virginia’s rainy-day fund.

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