From Gov. Kaine’s office: ~ State agency spending reductions total $49 million. Governor Timothy M. Kaine today announced state agency spending reductions for fiscal years 2008, 2009, and 2010 totaling $49 million. The General Assembly this year passed a biennial budget that required the Governor to make $35 million in spending reductions for fiscal years 2009 and 2010.

The Governor made $17 million in reductions in fiscal year 2008. These savings will carry forward into fiscal year 2009 and will contribute to meeting the reductions required by the General Assembly. Today, he announced the details of $17 million in reductions for fiscal year 2009 and $15 million in fiscal year 2010. Together with the fiscal year 2008 reductions, these actions exceed the $35 million target by $14 million.

“When the General Assembly approved the budget, legislators left it to my office to find $17.5 million per year in spending reductions,” Governor Kaine said. “With the help of my cabinet secretaries, we have again found ways to reduce state spending while minimizing the impact on our citizens.”

Governor Kaine has approved reductions of about $9 million in discretionary spending. These cuts include actions to reduce travel, training and the purchase of supplies and equipment across state government.

More than $7 million of the cuts come from reducing personnel costs. These savings will be realized through deferred hiring, not filling vacancies, and elimination of approximately 18 full time equivalent positions that are currently filled. State government employs about 100,000 people.

In addition, the Governor directed agency leaders to design ways to provide the same level of service to citizens in a more cost-effective way. These savings from improved business practices and efficiencies total more than $3 million.

Governor Kaine will address the Senate and House Finance Committees and the House Appropriations Committee on Monday where he will report the final revenue numbers for fiscal year 2008 and discuss the possibility of reforecasting the fiscal year 2009-2010 revenue projections.

A detailed report of the reductions can be found here:

Here is a summary of budget actions by category: