Governor Kaine will propose that the state reduce the employee contribution rate to 3%. Last fall he reduced contributions to VRS by $104 million - he helped balance the budget, but weakened the balance sheet of the retirement system with that move.
If the Governor, Governor-elect, and the General Assembly go along, faith will be broken and state employees even more demoralized than they are currently. Trickle down - local school boards and local governments will follow suit, breaking the promise they also made to employees. Most state employees, teachers, and others in VRS understand why they've gotten no recent raises, and won't in the foreseeable future.... but, they won't understand this broken promise to balance the budget.