Virginia Gov. McAuliffe Outlines Plan to Close $1.2B Budget
Virginia would force Amazon and some other out-of-state internet retailers to collect sales taxes, and cut state funding for public universities and colleges by 5 percent to help balance the budget under a proposal outlined Friday by Gov. Terry McAuliffe.
Recent improvements in Virginia's economy have brought the budget gap down from an estimated $1.5 billion this summer to about $1.26 billion, the Democrat told a joint session of the General Assembly's money committees. But lawmakers will have to find additional revenue and approve more spending cuts when they return to Richmond in January.
"The spending plan I am submitting for your consideration is balanced, fiscally conservative and in-keeping with our Commonwealth's long tradition of financial prudence,'' McAuliffe said. "It closes our revenue shortfall while investing in strategic priorities that will contribute to our ongoing economic growth.''
Here's a look at the governor's plan and what's next:
GENERATING REVENUE: McAuliffe wants to require out-of-state retailers with facilities in the state, such as Amazon, to collect taxes from Virginia residents _ a move he says will put $12.56 million into the state's general fund beginning in fiscal year 2018. McAuliffe also is proposing to slow the rollback of a budget-balancing gimmick that requires some merchants to pay early estimated sales taxes and recommending a "tax amnesty program'' during fiscal year 2018 that would waive penalties and some interest for individuals and businesses that owe back taxes. McAuliffe says those two proposals will bring in more than $107 million.
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