"Virginia will tighten its budget over the next four years but will not have to raise taxes to combat a multi-billion dollar deficit, the transition chairman for Gov.-elect Mark R. Warner said Wednesday.

L.F. Payne, a former member of the U.S. House of Representatives and the recently appointed head of Warner's 'Transition Leadership Team,' made those and other predictions at a breakfast sponsored by the Virginia Piedmont Technology Council.

Over one hundred people attended the VPTC Speaker's Luncheon to hear L.F., including four out of five members of Charlottesville's City Council. Charlottesville City Councilor David Toscano with L.F. Payne Payne quipped that when he first mentioned the transition some people thought he was talking about a sex change operation. He went on to clarify that as chair of the Transition Leadership Team he is responsible for activities between the time of the election and Mark Warner's inauguration, noting that Virginia is the only state in the union were a governor can only serve one term. And, he added, the most important matter facing the governor-elect right now is to produce a fiscally sound budget.

Payne prefaced his remarks by saying that the combination of wintry economic conditions and the four-year limitation on Warner's term has forced his team 'to hit the ground running.' The most pressing item on the new governor's agenda, Payne said will be finding a way to reduce the estimated $3.2 billion deficit facing Virginia.

"It's actually more difficult and worse than has been reported in the press,' Payne said, adding that the deficit may be 'closer to $5 or $6 billion.'

Payne said the shortfall was caused at least partially by changing economic conditions and the Sept. 11 terrorist attacks on New York and Washington. But the problem is 'more acute than it might have been,' he said, because the General Assembly failed to pass a budget last year and continued to spend without adjusting for decreased revenue.

To fill the hole in the budget, Payne said the new administration may dip into the state's $1.2 billion 'rainy day fund,' take advantage of a one-time Medicaid payment of roughly $250 million and examine the $600 million in tax breaks given to individuals and entities each year.

He stressed, however, that the government plans to produce the rest of the money by trimming spending rather than raising taxes, saying that 'there's no appetitite on either side' to do so.

As far the Cabinet that Warner has assembled, Payne praised it as diverse, professional and 'driven by what's best for Virginia.'

Payne also said that the new administration will focus on information technology, using it to make government more efficient, stimulate the economy and improve education.

Payne added that he is looking forward to returning to private life once the transition team's job is done.

'I thought [that after Election Day] I would be free to go back to work,' Payne joked. 'I've said to people, 'When he's inaugurated on Saturday, I'll be the happiest person in the audience'" (Austin Graham, The Daily Progress, January 10, 2002).

In the question and answer period, L.F. Payne was asked,

Question: "Will we have to roll back tax cuts in order to balance the budget?"

Answer: "No, we can balance the budget with current revenues."

Question: "What will be cut?"

Answer: "One-half of the rainy day fund will be applied to the deficit; a one time Medicaid payment can be applied to the deficit; and that the governor-elect is also looking closely at scaling back tax credits."

Former Charlottesville City Councilor and Mayor Kay Slaughter asked where the additional funds will come from to improve K-12 and the other educational initiatives which Payne had mentioned. Payne responded that education may be funded at a higher rate while other areas may be funded at a lower rate, adding that they may be able to utilize current monies more efficiently and that some increased revenues may come from competing better for private and federal monies.

Question: "What is the governor-elect's position on the bond referendum being mentioned to fund colleges and universities?"

Answer: "He thinks its a little premature. At the same time, he recognizes that capital needs of colleges and universities need to be addressed. Should the proposed referendum pass, the governor[-elect] would be interested in letting people know why it is important."