by Dick Hall-Sizemore

Overlooked in all the news around the election was some sobering budget news for the next governor.
As reported by the Richmond Times-Dispatch, the Virginia Dept. of Medical Assistance Services (DMAS) has forecast that Virginiaโs Medicaid costs will increase by $3.2 billion over the next three years.ย That increase consists of an additional $410 million in the current fiscal year and $2.8 billion in the next two-year budget that Governor Youngkin will present next month.
In addition to the big increase in Medicaid costs, the state is projecting an increase of $964 million needed to support local K-12 education programs.ย This is the biennial โre-benchmarkingโ that takes place, which projects what it will cost to continue existing programs at their current levels.
In addition to the additional $3.8 billion that will be needed for the next biennial budget right from the beginning will be the costs and revenue reductions stemming from Trumpโs spending and taxing legislation passed this year.ย Based on past experience, it is safe to say that the analysts in the Dept. of Planning and Budget are working overtime these days to develop the two budget bills, the โcabooseโ for the current fiscal year and the โbig budget billโ for the 2006-2008 biennium, that Youngkin must present to the General Assembly by December 20.
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