Extent of Fiscal Woes In Va. Startles Warner
Gov.-elect Mark R. Warner (D) expressed surprise today at the severity of state government's fiscal problems but also confidence that the Virginia economy will "rebound strongly" from an economic recession expected to last at least until summer.</br></br>Warner, speaking with reporters after a budget briefing by aides to Gov. James S. Gilmore III, said the nearly $1 billion projected budget shortfall disclosed by the Republican administration this week was larger than he expected before he won the governorship 10 days ago. Warner succeeds Gilmore on Jan. 12.</br></br>"This is clearly more challenging than, I think, any of us would have anticipated a few weeks ago," Warner said. But he added: "We're going to get through this. . . . Virginia will come out of this process stronger."</br></br>Warner offered no immediate or specific recommendations for closing the budget gap, leaving much of that preliminary work to Gilmore, who will present a final spending plan to the General Assembly shortly.</br></br>However, the Democrat said he would consider using a Gilmore- endorsed arrangement to win nearly $260 million in Medicaid funds from the federal government. Warner said he would insist on all that money being used for health care, rather than overall budget- balancing.