RICHMOND, Va., Dec. 19 (UPI) -- Virginia Gov. Jim Gilmore presented his final budget to the General Assembly money committees Wednesday that proposed to solve the state's financial problems by using half of a $900 million rainy day fund and $600 million from a transportation fund.
Gilmore's budget also calls for borrowing $1 billion for higher education and for allowing colleges to lift a tuition freeze. The state faces a $1.3 billion shortfall for the 2002 fiscal year that ends June 30.
Gilmore's proposals are expected to be changed by Democratic Gov.-elect Mark Warner, who will become governor on Jan. 12. Two days later, Warner will give the legislature his budget priorities.
The Republican governor presented his spending plan for the 2002-2004 budget, as well as some of his proposed amendments for the last six months of the current fiscal year to House and Senate budget writers.
Budget analysts said they expect the state to face a $2 billion shortfall in the 2002-2004 budget.
Gilmore also included the final elimination of the state's car tax in 2004; the roll back would stay at a 70 percent reduction until then. The delay in implementing the last phase of car tax will save the state an estimated $46 million.
