Article: Kaine Orders Agency Spending Cuts, Has Eye on Rainy-Day Fund

Virginia Gov. Timothy M. Kaine has ordered state agencies to cut spending by 5 percent and will consider asking the General Assembly to tap the "rainy day" fund because of a $641 million budget shortfall.

In a speech to state legislators Monday, Kaine (D) said the state must slow its rate of spending because the housing market is weakening and some past budget decisions were made on assumptions that have not panned out.

"We must look closely at what our state government does to identify opportunities for efficiency and savings," Kaine said. "As we move forward, I ask that we again work together to make hard choices necessary to preserve our quality of life."

State revenue grew by 4.9 percent ...

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