Members of Virginia's Senate Finance Committee are in Charlottesville this week for their annual retreat.
Lawmakers will spend Wednesday and Thursday discussing financial issues facing Virginia, including transportation funding and Medicaid.
The looming fiscal cliff is also top of mind, as cuts to the defense industry threaten to cripple the state's economy. To help cushion against federal cuts, lawmakers are setting aside $50 million into a contingency fund.
"In all likelihood will get us through this first session, but what happens after that and the impact is really up to the federal government," said Virginia Senate Finance Committee Chair Walter Stosch.
In the meantime, the state's revenue performance is slowly returning to pre-recession levels. With more people entering the workforce, the state says increased tax revenue will help bolster and stabilize Virginia's budget.
