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Virginia budget proposals

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The Senate has proposed a budget that restores funding for education, free medical services and law enforcement by contributing less than expected into the state employee and teacher retirement fund.

The Senate Finance Committee's spending plan announced Sunday borrows several revenue generating ideas from Gov. Bob McDonnell's plan to cut $2 billion from the budget, but it restores many of the cuts he proposed.

The Senate would cut public education $133 million, instead of the more than $730 million McDonnell suggested. It also restores funding to free clinics, community health centers and dental services for the poor.

State employees would have three furlough days in each of the next years, instead of five, and would receive a 3 percent bonus in December 2011.

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The House of Delegates proposes a dire new state budget that will cut Medicaid funding and eligibility, increase school class sizes and cut public school funding.

The Appropriations Committee's spending blueprint through 2012 made public Sunday reflects many of the $2 billion in unprecedented cuts Republican Gov. Bob McDonnell suggested last week.

But it rejects his proposals for five annual employee furlough days, spares further cuts to colleges, kills a proposed out-of-pocket employee retirement contribution and provides a 2011 Christmas bonus.

The Senate Finance committee was expected to unveil a budget later Sunday that would cut less to public schools and to health care safety net programs.

The state faces a $4 billion revenue shortfall.

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