Gov. McAuliffe to announce action on budget shortfall

RICHMOND, Va. (AP) – Gov. Terry McAuliffe is expected to announce actions to close a state budget shortfall.

The governor is set to make an announcement Thursday at 9:30 a.m. at Capitol Square.

McAuliffe announced a $1.5 billion budget shortfall in August, which has threatened planned raises for state employees and required state agency heads to come up with proposals for cutting their budgets by 5 percent.

The governor has previously warned Virginia lawmakers to brace for “tough decisions ahead” to address the shortfall, which is driven largely by lower-than-expected income and sales tax collections.

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