Budget Crisis Worse

Virginia's budget picture looks gloomier. Gov. Mark Warner says a drop in state tax collection will drive Virginia's new budget to a shortfall of at least $1 billion.

Warner had earlier estimated the shortage at $800 million in the two-year, $50 billion budget, which took effect last month.

The governor told reporters Wednesday that everything is on the budget-cutting table, including proposed raises of 2.75-percent late next year for state workers, teachers and college professors.

He says more layoffs of state employees also are likely. And state agencies should brace for even bigger reductions. Most already face cuts of seven and eight percent in the budget's two fiscal years.

And the car tax elimination plan will stay at 70 percent.

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