McDonnell warns of Virginia recession from budget cuts
Gov. Bob McDonnell has written a letter to President Obama urging action to avoid $109 billion in automatic federal budget cuts due to take effect March 1.
McDonnell said that across-the-board cuts, half of which would affect defense spending, could force Virginia into recession.
“These reductions will have a potentially devastating impact in the Commonwealth, with the Northern Virginia and Hampton Roads regions at the greatest risk,” the governor said.
The cuts were mandated by the Budget Control Act of 2011, a deal hatched to end a congressional battle over raising the debt ceiling. A 12-member, bipartisan committee appointed to find budget savings failed to accomplish its task, triggering automatic cuts that originally were due to take effect at the beginning of the year.
“In order to mitigate the negative impacts as effectively and as quickly as possible, and to ensure a continued robust economy in Virginia, it is critical that you lead, Mr. President, and that you work with Congress to come together in the best interests of the nation, and produce the necessary legislation to avoid the disastrous effects of this ill-conceived policy,” McDonnell said in his letter.