HARRISONBURG, Va. (WHSV) -- Money problems for the commonwealth of Virginia seem to be only getting worse.
Last month, Governor Terry McAuliffe signed a budget anticipating a short-fall of $350 million; however, on Thursday, the governor's team said the shortfall will be closer to $438.5 million.
The shortfall is largely a result of lower-than-expected tax revenues from capital gains. It's a drop of 1.6 percent from last year's budget.
Even though state leaders have known for weeks there would be a shortfall, the sum is nearly $90 million more than they expected.
The McAuliffe administration attributes the low revenues to a change in federal tax policy and to cuts in federal spending.
In the Valley, Delegate Ben Cline said the shortfall is the impact of what he calls the "Obama economy," which he said is hurting businesses and families.
Cline said having such a large shortfall makes it difficult to look beyond the necessities, "We will fund our schools to the degree necessary, we will make sure that the roads are getting built, but beyond that to areas that are not core functions of government, we're going to see a scaling back," said Cline.
Cline said that means areas like tourism because it's not a "core function." He said that'll still hurt because it helps bring people to the commonwealth, which helps boost tax revenue.
So really what we're looking at is a tough situation possibly getting even tougher.
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