A projected shortfall of $1.35 billion in state revenues over the next biennium is presenting additional budget challenges to local governments.

“The shortfall will result in further cuts to local funding, but the impact is unknown in absence of a state budget,” said Mathews County Administrator Mindy Moran. “The county anticipates having to amend its budget in order to address the reduced funding.”

Mathews has also made contingency plans in the event that the General Assembly fails to adopt a budget by July 1. State and federal money, which is channeled through the state, funds a significant portion for the budget for schools, social services, courts, and Constitutional offices.

The board of supervisors has appointed an ad hoc committee, including school officials, to consider the available options and make recommendations. The committee, Moran said, has spent considerable time and effort working on a contingency plan that imposes the least hardship on Mathe...