Warner paints bleak state economic picture at VCU Roundtable

By Mike Frontiero
VCU School of Education

Gov.-elect Mark R. Warner called Tuesday for a "top-to-bottom review" of state government operations to help ease Virginia's multibillion-dollar budget crisis, suggesting consolidation of some agencies and more efficient managerial practices in others.

Warner also discussed possible solutions to the estimated $1.2 billion revenue shortfall at a conference with business executives at Virginia Commonwealth University.

He was welcomed to a packed Meeting Center by VCU President Eugene P. Trani, who said he looked forward to working with Warner to help put the state's fiscal house in order.

"First and foremost, let us do no more harm," said Warner to a group of about 75 CEOs, local government officials and media from around Virginia. "We need to make sure for the current General Assembly session we don't look at tax credits or new deductions."

Warner, who takes office Jan. 12, also warned against new spending commitments with delayed effective dates and proposed that the state adopt a six-year budget plan to replace the current two-year forecast. "This is a problem that goes beyond the next 30 months," he said.

One of the featured speakers at Warner's fiscal roundtable was Paul W. Timmreck, VCU senior vice president for finance and administration. "I agree with him wholeheartedly," he said. "The issue of structural balance, while difficult to understand, is a very, very important one, and I think he's getting off to a tremendous start."

Other speakers included: J. Alfred Broaddus, Jr., president of the Federal Reserve Bank of Richmond; Christine Chmura, president of Chmura Economics and Analytics, and Scott Pattison, executive director of the National Association of State Budget Officers.