Federal Deficit Reduction Threatens Virginia

Though we usually talk about state budget and tax matters, in Virginia, where our state economy is highly dependent on the federal government, we can’t ignore the outsized impact of federal spending. Federal spending has been key to our seeming resilience – relative to other states – in the face of the recession. But with sequestration approaching on October 1, Virginia is poised for some new economic tremors. TCI’s President and CEO, Michael Cassidy, recently wrote a guest blog post for The Daily Wrag about some of the ways Virginia would be impacted by federal budget reduction proposals, and how everyday Virginians may feel the pressure. Be sure to also check out Bob Greenstein’s post in the same series about the 2016 federal budget and a more recent update from the Center on Budget and Policy Priorities on the congressional budget plan.

Michael
(at right) speaks at the Loudoun County Philanthropy Conference about Loudoun’s
economy and that of Northern Virginia in the context of a slowly growing
national economy and continued federal budget uncertainty. Loudoun County has
experienced rapid population growth in recent years driven by rising federal
employment and contracting, creating challenges in the provision of the sort of
basic services one would expect in the highest income county in the country, like
full-day kindergarten. Also pictured, from left: Julie Grandfield, Assistant
County Administrator with Loudoun County Government, Jennifer Montgomery,
Executive Director, Loudoun Interfaith Relief and Lynn Tadlock.

–By Laura Goren, Senior Policy Analyst