Governor Kaine Authorizes Additional Interim Budget Actions
– Approves funding for state employee payroll, social service reimbursements –

RICHMOND – Governor Timothy M. Kaine today announced additional budgetary actions necessary to fund the efficient delivery of state government services in the absence of a legislative agreement on a new, two-year state budget for the fiscal year beginning July 1, 2006.

The Governor has authorized up to $122,333,615 to cover the estimated cost of the state employee payroll for time worked between June 10 and June 24, 2006.  The Governor also moved the payroll date from the regularly scheduled July 3 to June 30, 2006, since no budget exists for these payments in the new fiscal year. 

“Typically, the transition from one fiscal year to the next is accomplished without difficulty, but the budget impasse is creating concern among many of our state workers,” Governor Kaine said. “These actions will allow us to pay our employees without the fear of furloughs or other inconveniences.”

In addition, Governor Kaine has authorized a $19 million appropriation that will enable the Virginia Department of Social Services to reimburse local governments for various activities in the month of June, including child care, foster care, adoptions, auxiliary grants, child and adult protective services investigations, eligibility determination, and Temporary Assistance for Needy Families (TANF) employment services.

“Local social service agencies close their fiscal year on May 31, and state reimbursements for local social service expenses for the month of June are paid in the next fiscal year,” Governor Kaine said. “Because of the budget impasse, some local governments have indicated a reluctance to incur June expenditures, but this action provides an iron-clad assurance that the state will meet its responsibility to make the required reimbursements for these critical services.”

Today’s actions by the Governor are similar to those announced earlier this month (see news release), designed to ease growing concerns about the potential impacts of the legislature’s budgetary disagreement. On May 11, 2006 the Governor authorized loans to cover other local social service activities, and also authorized the use of contingency funds to meet the Commonwealth’s commitments to men and women serving in the Virginia Army and Air National Guard.

“I remain optimistic that there is still time for lawmakers, acting in good faith, to resolve their fiscal disagreements. But legislative leaders must recognize that any further delay will create additional uncertainty and potential hardship for our citizens, families, localities, and state workers,” Governor Kaine said.

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