This week it was announced that further budget cuts may be in Virginia's future, according to the Washington Post.

An additional $2.9 million will need to be cut by 2012. After making nearly $7 billion in reductitons, most of the "fat" is gone and now services to residents may be cut or reduceds.

Gov. Timothy M. Kaine will introduce his proposed two-year budget in December, a month before he leaves office. The General Assembly and the incoming governor, Robert F. McDonnell, will use that as a blueprint but will make changes based on their priorities and the economic forecast.

This is important news for homeowners because the cuts may reduce services currently being provided, which could place a higher burden on homeowners.

"State agencies might need to cut up to $2.9 billion more from core services, such as education, law enforcement and health care, by mid-2012 to accommodate Virginia's financial crisis.

The bleak forecast announced Tuesday at a House Appropriations Committee retreat comes on top of nearly $7 billion in reductions to the state's current two-year budget since last year.

'These budget numbers are scary, and they're stark,' Del. Clarence E. "Bud" Phillips (D-Dickenson) said. 'They're going to have a grave impact on the citizens of the commonwealth.'

The forecast reflects a $300 million shortfall in this fiscal year and a $2.6 billion shortfall over the next two fiscal years. The numbers are based on the state receiving less tax revenue than it had anticipated and being required to spend additional money on certain mandatory programs, such as Medicaid."

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