Fiscal Gloom Spurs Talk of Tax Increases; Wilder Says Recovery Will Be Slow in Va.
Gov. L. Douglas Wilder told legislative leaders today that Virginia is coming out of the recession slower than the rest of the nation, and as evidence said that tax collections for the current budget year are projected to be $151 million less than expected just six months ago.</br></br>The governor said one member of his Advisory Council on Revenue Estimates called it a "stealth recovery - so slow it would be difficult to see."</br></br>Because of a previous agreement with the legislature, Wilder told the legislature's three money committees that he would use most of his $200 million rainy-day fund to make up for the shortfall, rather than further cutting programs and jobs.</br></br>The one bit of good news that Wilder offered today was that he would support an additional $15 million for local school aid.</br></br>Wilder said his economic advisers predict that the state "will continue to under-perform the national economy in housing construction, consumer spending and employment growth" during the next 11 months. The state has lost about 49,000 jobs in the last year, more than half in Northern Virginia, Wilder said.