State budget shortfall: Kaine to propose job cuts, cigarette tax hike

WASHINGTON (AP) - Two Democratic legislators say Virginia Gov. Tim Kaine will propose a 30-cent cigarette tax increase and about 1,500 state job cuts.

The lawmakers spoke on the condition of anonymity because Kaine will not make the plans public until Wednesday. They said Kaine will estimate the shortfall in the budget through June 2010 to be about $2.9 billion.

Besides boosting the tobacco tax from 20 cents per pack to 50 cents, Kaine will also propose cuts of about $400 million each in health care and public education.

The legislators said budget amendments Kaine will propose to the General Assembly’s money committees Wednesday also call for drawing about $500 million from the state’s “rainy day” cash reserves.