State Budgets: Virginia Makes Modest Cuts, Proposes Cigarette Tax Hike December 26, 2008 Joseph Bishop-Henchman Joseph Bishop-Henchman Although Gov. Tim Kaine (D) played Santa Claus in giving state workers the day off on Christmas Eve, he warns of a $2.9 billion budget shortfall over the next two years out of a $73 billion budget. His budget proposes layoffs and cuts to education (primarily state-funded K-12 administrators, leaving local districts discretion for where to make other cuts), law enforcement, and transportation, while hiking the cigarette tax by 100% and increasing grants to charities. More on Virginia here. Stay informed on the tax policies impacting you. Subscribe to get insights from our trusted experts delivered straight to your inbox. Subscribe Share Tweet Share Email Topics Virginia Cigarette and Tobacco Taxes Excise Taxes Individual and Consumption Taxes Tags State Tax and Spending Policy