Gov. uses speech to pitch budget initiatives

RICHMOND, Va. (AP) - Virginia Gov. Bob McDonnell outlined his plans to increase funding for key state services but also demanded more accountability in his annual State of the Commonwealth speech.

Speaking on the opening day of the 2012 legislative session Wednesday, McDonnell pitched his proposed $85 billion state budget with increases of $438 million for public schools and $200 million for colleges and universities. But he also wants schools to put teachers on an annual contract rather than a continuing contract, and he's proposing a funding formula for colleges that would reward improved graduation rates.

McDonnell is proposing a record $2.21 billion to shore up the underfunded state pension system, but said state employees also will have to accept some plan adjustments that he will announce later.