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Wednesday, January 06, 2010

McDonnell vows to cut his own pay

The governor-elect said his Cabinet and some staffers would make pay sacrifices as well.

The Capitol building in Richmond, Virginia

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RICHMOND -- Governor-elect Bob McDonnell won't spare his own office when it comes to balancing Virginia's budget, pledging to cut his own pay and the salaries of his Cabinet officers and senior staff members while the state struggles with revenue shortfalls.

McDonnell, who will take office Jan. 16, said Tuesday that he would cut pay for those positions by about 5 percent for at least six months. He said he will finalize the details after he has filled the top jobs in his administration.

The pay cuts will be part of a broader plan to reduce costs and staff in the governor's office at a time when the state faces a two-year revenue shortfall that exceeds $4 billion, a deficit that will trigger deep cuts to state programs.

"My goal for every Cabinet member is to look for ways to improve the efficiency of their secretariat and to deliver better government service for less money," McDonnell said during a news conference.

McDonnell said his choice for secretary of commerce and trade, Richmond businessman Robert Sledd, offered to work for no salary. McDonnell also has said that Sledd can remain on three corporate boards while serving in the Cabinet without having inherent conflicts of interest. Sledd donates earnings from those boards to a charitable foundation, according to McDonnell's transition team.

McDonnell had said during his election campaign that he would take a voluntary pay cut as governor. Outgoing Gov. Tim Kaine also cut his $175,000 salary by 5 percent and curbed other expenses in his office while dealing with budget shortfalls.

In November 2007, Cabinet officers and governor's staffers with salaries greater than $100,000 voluntarily gave up 4 percent pay raises that were in the state budget. Cabinet officers earn nearly $153,000 annually.

While serving as attorney general from 2006 to 2009, McDonnell cut the budget in his office by 14 percent and gave up a state car to hold down costs.

McDonnell said in an interview Tuesday that he also will pursue "strategic reforms" that could make state government less costly and more efficient.

"The fundamental question is: What is government supposed to do, and do well, and what are the things that are sort of nice to have that we can't afford in tough times?" McDonnell said. "That's exactly the same question that businesses and families are asking themselves right now. ... Government ought to be in the same boat."

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