In the next week, the General Assembly will start finalizing the state budget, in hopes of having it complete March 13th.

Despite billions in cuts, the governor says the state is on track to turn around the financial situation and possibly have a budget surplus next year.

"Tens of thousands of members of our family, our neighbors have lost their jobs. Thousands more worry they could be next," said McDonnell in his January Inaugural address.

Bob McDonnell is realistic, but also optimistic about the state's financial forecast.

"I'm really bullish about the future," says McDonnell.

McDonnell says Virginia is already on track to grow revenue three to five percent in the next year.

"I really do believe with most economists believeing that there's going to be a slow uptick now in the global economy," says McDonnell. "We're seeing it in housing, in real estate and some of the revenue numbers are starting to give us some positive news now about what may happen."

The conservative-Republican governor is bringing Reagan-style politics to Richmond and it's all about one word: jobs.

"My job is to finalize this tough session with cuts with the General Assembly and lay the footing for significant job creation so as the global economy returns, which we predict it will be this year, that Virginia is the top state position to get the new jobs and if we do that, we'll be in a lot better shape next year," says McDonnell.

A jobs package introduced last month includes 20 pieces of legislation to give tax breaks and other incentives to businesses that create jobs. It's expected to raise $311 million for Virginia in five years.

"I don't believe government creates the jobs themselves but between incentives and creating good economic climate, we help the private sector grow the free enterprise system and create wealth and opportunity for citizens and that's what, that's how it works," says McDonnell.