Richmond, VA – Reduce state services and lay off government employees, or keep things churning? Higher taxes, or lower? Those questions and competing ideas will play out when the Virginia General Assembly tackles the huge budget deficit upon its return to Richmond next week.

Facing a deficit of more than $970 million for 2009, the temptation is strong for state lawmakers to accept Governor Tim Kaine's proposal to lay off 1,500 state workers and cut multiple programs and services. However, some experts argue a better way to keep a sinking economy afloat, is to keep money flowing - according to Dave Shreve, an economist with the Virginia Organizing Project.

"One ought to look at the money that the state spends on its employees as a net positive in general, any time you're in a recession like this."

In Shreve's opinion, the budget "fix" that would be the most fair is the one that affects the fewest number of people. Instead of cutting jobs, Shreve's group believes the state should adopt a progressive income tax. This that would increase taxes on those in the state's highest tax brackets, he explains.

"We argue that, if you do things in a progressive manner as we suggest, it's really the only way you can have the lowest possible rates for the greatest number of people."

Others counter with a starkly opposite view: that lowering income taxes for all is the best way to keep money flowing. The last time Virginia's state tax bracket structure was changed was in 1919. Whether it's an option 90 years later will be among the topics of discussion starting January 14, when the legislature convenes.



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Mississippi is embracing the future of artificial intelligence with Gov. Tate Reeves' executive order establishing a framework for its responsible use across state agencies.

The order tasks the Department of Information Technology Services with inventorying AI technologies and working with stakeholders to develop ethical policies. While seen as a step forward, it raises questions about implementation and oversight.

Kollin Napier, director of the Mississippi Artificial Intelligence Network, said his organization is helping to boost the state's role in AI education and innovation.

"We're already leading on that forefront and with involvement from the governor, with involvement from ITS and bringing even more people into the fold," Napier explained. "We're just continuing that momentum and even amplifying it on a greater scale."

Mississippi joins other states in adopting AI policies following previous failed legislative efforts, including Senate Bill 2062, which aimed to create a task force to explore AI's role in government. Attempts to regulate AI in political advertising also stalled last year, raising concerns about the pace of progress.

Napier emphasizes AI is hardly a new concept but it is now taking center stage and he encourages viewing it as an opportunity for job creation and economic growth, rather than a threat to employment.

"I like to say AI, in and of itself, will not displace you, but the people who are taking the time to learn and integrate that into their day-to-day lives -- their professional lives -- can and will take your job," Napier emphasized. "Because as we're seeing, that's where the future going."

Reeves' executive order has ignited discussions about balancing innovation with regulation, as advocates express hope the initiative will drive economic growth while mitigating potential risks.



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Gov. Brian Kemp delivered his 2025 State of the State address Thursday, emphasizing tax cuts and tort reform as key priorities for Georgia.

Kemp also highlighted the state's resilience following Hurricane Helene and praised its economic strength. He is convinced one of the best ways to continue growing Georgia's economy is by "putting more money in the pockets of Georgians." He announced plans to reduce the state income tax rate by 20 basis points, bringing it down to 5.19%.

"Because at the end of the day, that's your money, not the government's," Kemp stated. "And here in Georgia, we believe you should keep more of it."

The governor said his proposed tax cut would save residents about $7.5 billion over the next decade. During the last legislative session, the state income tax rate was already reduced to 5.39%, a total decrease of 36 basis points since 2022.

Another major priority outlined by Kemp is tort reform, which are changes to the judicial system to discourage what some see as "frivolous" lawsuits or large settlements. He noted while Georgia has maintained its title as the "best state to do business," many industries struggle with high business insurance premiums and the cost of legal actions. Kemp argued the challenges hinder their ability to operate, hire employees and expand. He mentioned the effects on health care around the state.

"We heard firsthand the challenges our legal environment poses to critical services, our health care workforce and the ability for hospitals and clinics to operate," Kemp outlined.

Kemp also addressed expanding funding for law enforcement units to prosecute gangs and human traffickers, and to increase access to health care. And he promoted state programs like Georgia Access and Georgia Pathways as alternatives to traditional Medicaid expansion, saying they provide better health coverage for more than 200,000 Georgians.


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Congressional Republicans are taking a hard look at Medicaid as they pursue spending cuts and a new report shows how the public health program is preventing care access from further eroding in rural North Dakota and elsewhere.

A House GOP proposal floats a nearly $2.5 trillion Medicaid reduction. Findings from Georgetown University's Center for Children and Families showed people in rural areas are more likely than metro populations to receive health coverage through Medicaid.

Katy Kozhimannil, professor of health and policy management at the University of Minnesota School of Public Health, said the program is a key contributor to pregnancy care in these settings.

"Offering obstetric care is a financial challenge for hospitals as revenues may not cover the costs of providing that care," Kozhimannil pointed out. "Medicaid covers nearly half of all births nationally and plays a substantially larger role in paying for births in rural areas."

The report said in 2022, 52% of rural hospitals no longer had maternity wards, compared with 36% of urban hospitals. There is concern the gap would widen with Medicaid cuts and North Dakota almost leads the nation for lack of rural OB/GYN services. Some House Republicans insist the programs need reform to avoid a fiscal collapse. But skeptics said drastic changes are a way to offset a planned extension of federal tax cuts.

The report also pointed out residents in rural areas have worse health outcomes.

Joan Alker, executive director of the Georgetown University Center for Children and Families, said it demonstrates why Medicaid is so important, adding it serves as a lifeline to a range of populations living in these communities.

"It is serving children. It is serving seniors in nursing homes, people with disabilities," Alker outlined.

Alker noted Medicaid helps recipients get ahead of health challenges through preventive care, as
opposed to letting conditions worsen.

"People wind up sicker and then they're in the emergency room and children can't get their asthma inhalers and they miss school," Alker explained.