Va. Local Governments Face Budget Woes

RICHMOND (AP) – County and municipal governments across Virginia are facing the grim prospect that 2010 might not be much better than 2009.

A survey conducted by the Virginia Association of Counties and the Virginia Municipal League found that nearly 60 percent of local governments instituted hiring freezes or cut funding.

About 45 percent dipped into reserves to close budget gaps, and 70 percent reduced or eliminated capital projects.

Cities and counties hope their budgets will balance come June 30, the end of the fiscal year.

But a crucial piece of the puzzle – whether state funding will be further slashed – is still unknown.

Jim Campbell, executive director of the association of counties, says the strain will likely last for several years.