Even though the Virginia General Assembly’s regular session is over, lawmakers still have work to do.
A committee of House of Delegates members met on Saturday to learn more about the potential impact of federal budget cuts, including the terminations of thousands of federal workers, will have on state and local budgets. It will hold several more meetings in the coming months.
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“I think it’s important to continue to see the live numbers of who this impacts,” said Del. Ellen Campbell, R-Rockbridge County. “I think that the fact that we are all here and trying to get ahead of this is really important as well. Again, I think it’s really critical that we get live data, very quickly, so we know where we need to put the most effort forward.”
The House Emergency Committee on the Impacts of Federal Workforce and Funding Reductions heard presentations from groups representing local governments and from state agencies.
Estimates vary, but there are anywhere from 315,000 to 475,000 Virginia residents work for the federal government. That higher number from the Weldon Cooper Center for Public Service at the University of Virginia includes remote employees and people who live in Virginia but work at government offices in other states.
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Census estimates show that close to 6,000 people across the Blacksburg-Christiansburg-Radford, Lynchburg and Roanoke metropolitan areas work for the federal government.
A report to the committee from the Metropolitan Washington Council of Governments estimated that under a scenario where the federal workforce is reduced by 75%, unemployment in the Roanoke metro area would go from 2.4% to 3.9%. In the Washington, D.C. metro, it would climb to 9.6%.
There are other concerns, including the impact of the budget cuts on local governments. The Virginia Municipal League said numerous localities, including four in the 10 News viewing area, received more than 20% of their revenue from federal sources in Fiscal Year 2023. Those governments are the Town of Bedford, Galax, Martinsville and the Town of Pulaski.
“That makes them more vulnerable as decisions are made about reducing or eliminating federal grants,” said Joe Flores, director of fiscal policy for the Virginia Municipal League.
Bedford Town Manager Bart Warner told 10 News that “most of the 20% figure includes one-time or targeted programs” through ARPA and Community Development Block Grants.
The only recurring funding in the town’s budget comes from enforcement grants from the Department of Transportation to the police department, he said.
Committee members vowed to hold some of their update meetings in different areas of the commonwealth to get a closer look at potential impacts.
