December 17, 2008

Governor Announces Budget Revisions to Address Revenue Shortfall
Public Universities Cut 15%; Center for Innovative Technology Loses 8% of Funding
NVTC Will Advocate For Technology Community's priorities

Faced with what he described as the longest recession since World War II, Governor Kaine announced another round of proposed budget cuts this morning, furthering the cuts he initiated in October. Addressing a $2.9 billion shortfall, the cuts touch almost every sector of Virginia government, including education and technology funding. Governor Kaine's budget amendments would cut 15% in state funding from the base budget of all four-year public colleges in Virginia. Community colleges would lose 10% of their base budget funding.

Under the Governor's proposal, the Center for Innovative Technology, which supports entrepreneurial companies in Virginia, would lose approximately 8% of its budget next year, dropping from about $5.3 million to nearly $4.9 million in general fund appropriations.

The outlook was not all negative, however. Kaine proposed a new income tax credit and sales tax exemption designed to attract new green industry jobs to Virginia. The concept of green incentives is consistent with NVTC and its Green Technology and Energy Task Force's stated goals of attracting green technology businesses to the Commonwealth.

The Governor remained optimistic about how Virginia will weather the budget crisis.

"We are well positioned to come out of this recession quicker and better than many other states," Kaine said in prepared remarks. "Our fellow Virginians will thrive in a refreshed economy that will be built on new technologies, green jobs and global trade."

The General Assembly will consider Kaine's budget proposal when the legislative session begins on January 14, 2009. The NVTC public policy team will be in Richmond throughout the session to advocate for the Northern Virginia technology community's priorities and interests.

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