‘This is a major step’: Gov. McAuliffe speaks out against Georgia’s state budget crisis

Richmond, Va.

— Virginia Gov.

Terry McAuliffe on Monday said the state has “a serious crisis of confidence” and warned of “massive financial costs” if lawmakers don’t act soon.

“We are facing a crisis of faith and confidence in our state,” McAuliffe told a news conference on Monday after a state House committee voted to pass a $500 million budget shortfall that will require a statewide extension of the state’s two-year borrowing limit.

McAuliffe said he was confident that the governor would be able to find a bipartisan way to raise $500-million in additional revenue.

“This is not a one-off crisis.

This is a long-term problem.

We’re going to have to have a long conversation about how to fix it,” McAuliffe said.

The budget shortfall, which is $250 million higher than anticipated, will require the governor to sign a state budget into law before the end of the fiscal year.

House Speaker Tim Moore said the measure is meant to give the governor time to find funding to keep Virginia afloat.

Republicans, led by Senate President Thomas V. Mike Miller, a former congressman, have said they are open to negotiating a temporary spending measure that could include a new tax on corporate profits.

But Democrats, including McAuliffe, have accused Miller and House Majority Leader Tim Moore of not doing enough to avert a disaster.

After the vote, Miller told reporters the House GOP has “got to find some money for our people.”

Miller also criticized the Senate GOP, which passed a budget resolution this week without a deal to shore up funding, saying that Senate Republicans should not be in charge of a state’s finances.

“The Senate has not even been given a chance to take that first step,” Miller said.

“We’re going into the summer session, and we have no idea what we’re going be getting from the Senate.”

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