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Spending Reductions:
Ø K-12 Education
o Reduced funding for administrative and support staff in schools and central offices based on a funding ratio for such positions
o Provides funds to localities for employee health insurance based on the number of employees insured - not the total number of employees as is current practices
o Delays scheduled change in composite index of local ability to pay for one year.
Ø Higher Education
o Further cuts proposed
o Proposes that reductions to two-year schools be smaller than those to four year schools
o No cuts to financial aid
Ø Public Safety
o Local sheriffs' departments with law enforcement responsibility and police departments will face 20% cuts
o Commonwealths' Attorney's and Clerk's offices will face over 16% cuts
o Postpones two new trooper schools in biennium
Ø Health Care
o Medicaid reductions of $419 million that limit Medicaid services to individuals and reimbursements to health care providers
o Temporary freezing of certain waiver programs to include those for intellectual disabilities, developmental disabilities, day support, elderly and disabled, and Alzheimer's
o Reduction or elimination of some Medicaid services in FY 2012 including physical, occupational, and speech therapy and lower caps on the hours of respite care for the needy
o Cuts to non-state partners including free clinics and the Virginia Health Care Foundation
Ø State Employees
o 664 layoffs and elimination of 1,879 vacant positions on top of layoffs and eliminations already announced
o No pay raises in 2011 or 2012; no additional furlough days
o VRS contributions
§ Commonwealth currently pays entire employer and employee share of retirement contributions
§ Propose that all state employees pay 1% of their salary as their share of VRS contributions in FY 2011
§ Increases to 2% of salary in FY 2012 and beyond
§ Retirement age for newly hired state and local employees increases from 50 to 55
Ø Transportation
o Continued cuts at VDOT to reduce staff and streamline
o CTB 6-year plan focused on maintenance - not new construction
Ø Local Government
o In addition to those items already listed above that impact local governments, additional changes included
o Commissioners of Revenue and Treasurers Offices will have funding responsibilities lie completely with local government - save for the salary of the Constitutional Officer
o Language encourages localities to consolidate functions and seek savings
Revenue Enhancements
Ø Car Tax
o Discontinue the allocation of $950 million per year to localities for car tax relief - redirecting that money to other general fund purposes
o Proposes legislation to completely eliminate car tax and impose a 1% "surcharge" on income taxes in Virginia with 100% of the revenue going to local governments in exchange for them agreeing to not impose a personal property tax
Ø Dealer Discount
o Eliminates Dealer Discount for retailers
o Estimated to provide $120 million annually
Ø Public Safety Fund Fee
o Adds a 0.5% fee on property and casualty insurance premiums
o Revenue deposited into Virginia Public Safety Fund - proposed to raise $22 million in FY 2011 and $44 million in FY 2012
o Fund is used to pay for:
§ STARS maintenance and counter terrorism
§ Sheriff's offices for law enforcement and court security
§ 599 funding
Ø Line of Duty Program Fee
o Provides a $0.18 fee increase for each line assessed the E-911 fee
o Revenue to be deposited into the Line of Death and Health Benefits Trust Fund - proposed to raise $18.6 million in FY 2011 and $20.3 million in FY 2012
o Fund used to pay for
§ Death and disability health benefits to beneficiaries and eligible dependents
§ Program's estimated $199.0 million unfunded liability
Ø Recordation Fee
o Provides a $10 fee increase on every deed on which recordation tax is applied
o Revenue deposited in VA Natural Resources Commitment Fund and used for agricultural best management Practices cost-share program | 
