Feb 21, 2012
Settlement money to fill budget gaps
21 Feb 2012
Posted by Andrew Kantor
Virginia’s General Assembly plans to use the state’s $69 million portion of the foreclosure fraud settlement to plug various holes in the budget. The money will help pay for a variety of initiatives including funding community health centers and free clinics, increasing Medicaid reimbursements for hospitals and nursing homes, paying for school maintenance, and reducing K-3 class size.
The Department of Justice had said the banks’ payments to states were intended “to be used to repay public funds lost as a result of servicer misconduct and to fund housing counselors, legal aid and other similar public programs determined by the state attorneys general.”