Virginia Gov. Terry McAuliffe is announcing a series of budget measures that includes canceling pay raises, trimming the state's payroll, and using the state's rainy day fund.
McAuliffe announced the measures Thursday at the Capitol and says there may me more difficult decisions to come.
The state is facing a potential $1.5 billion budget shortfall due to lower-than-expected income and sales tax collections. To address the shortfall, McAuliffe is making cuts throughout state government, including delaying grant payments and new hires and eliminating 26 current positions.
McAuliffe, a Democrat, has also indicated he'll try to convince the GOP-led General Assembly to approve expanding Medicaid, which he said would help alleviate budget problems. Republicans are unlikely to approve such a proposal.