Launching a budget-balancing proposal on Wednesday, Virginia Gov. Timothy M. Kaine spoke to General Assembly budget committees and described his plan to raise revenue and cut costs to match shrinking revenues.

Analysts say through legislative proposals and electoral defeats, Kaine's strategy aims at forcing Republican lawmakers to accept the state has changed in lasting ways. The Democratic governor had declared "Old Virginny is dead", after he helped President-elect Barack Obama carry the state of Virginia in the November election.

By offering his budget amendments to the House and Senate money committees, Kaine is set to guide the state through an economic crisis that will probably define his four-year term as governor. Virginia governors cannot run for reelection.

Kaine's said: "We try to make cuts that position us better for the future rather than just find savings for today. Wherever possible, we propose real, long-term savings."

Some of the proposals he unveiled, for addressing a $2.9 billion budget shortfall, included doubling the tax on tobacco, reducing prison population by early release to some prisoners doing time for nonviolent offenses, and closing the last state-operated mental health hospital for children.

As regards the job cuts, Kaine proposed leaving more than 750 jobs vacant, and laying off about 1,200 workers over the 2009 and 2010 fiscal years. Most state agencies would face 15 percent cuts, community colleges 10 percent and public safety agencies 7 percent. Furthermore, employees would not receive raises.

Kaine also proposed using $490 million from the state's rainy day fund - the largest withdrawal in its history and the second withdrawal in a row. The state borrowed more than $300 million from the fund last year.