The Washington Examiner reports that Virginia is going to have a budget surplus, due to increased tax revenue and spending cuts. The extra revenue is due to strong performance of the economy (Northern Virginia leading the pack, I'm guessing). That at least is a good sign.
But the spending cuts are obviously troubling - this is nothing to celebrate. Another source of the surplus is the deferment of some pension contributions:
"The commonwealth also will defer $620 million in payments toward the Virginia Retirement System, the state's $50 billion employee retirement fund, in fiscal 2011 and 2012 -- a deferment to be paid back over 10 years at a 7.5 percent interest rate. The state deferred nearly $140 million in VRS payments in the fourth quarter of 2010."