State passes 2-year budget proposal
General Assembly adjourns; Youngkin says work remains
RICHMOND — The General Assembly adopted a two-year budget plan Saturday before it adjourned, closing out a 60-day legislative session that sent more than a thousand bills to Gov. Glenn
Youngkin’s desk.
“We just adopted the first budget in a long time that was on time,” said Senate Majority Leader Scott Surovell, speaking at a news conference inside the capitol. “It was balanced, it was structured and it was consistent with Virginia’s traditions.”
Democrats narrowly control both chambers, but Surovell said the legislature crafted a budget that “almost entirely” rejected the Republican governor’s priorities.
“I think we have shown that we can govern as a Democratic majority and stand as a counter to what Gov. Youngkin has been proposing,” he said.
But Republicans have hinted that much work may now be done by veto.
“The General Assembly sent me more than a thousand bills plus backward budgets that need a lot of work. We’re going to have a busy 30 days going into the reconvene session,” Youngkin said in a statement after the legislature adjourned.
Surovell cautioned the governor against going on a veto frenzy.
“He needs to be really careful about what he chooses to veto,” Surovell said. “If he’s going to veto anything that comes over to him that happens to be a priority of ours, he’s going to have a long last 18 months (of his term).”
Youngkin’s original spending plan sought significant changes to the state’s tax structure. It would have cut income taxes by 12% across all income brackets, while simultaneously raising the state sales tax from 4.3% to 5.2%. Both those provisions were nixed by the Democratic majority in the Senate and House of Delegates.
Legislators did opt to keep one Youngkin-backed tax proposal, a digital sales tax that will apply to streaming subscriptions, cloud storage and online downloads is estimated to generate over $1 billion in revenue.
Additionally, the governor pushed for the budget to include
a pathway for the state to build a sports stadium complex in Alexandria. Youngkin reached a tentative deal in December with the parent company of the NBA’s Washington Wizards and NHL’s Washington Capitals to move those teams from the nation’s capital to Northern Virginia. But the plan needed funding to develop a $2 billion sports and entertainment complex.
The governor said it would ultimately create jobs and bring in revenue for the state. But Sen. Louise Lucas, a Portsmouth Democrat who chairs the Senate Fiancé and Appropriations Committee, used her powerful position to halt any plans for a stadium.
“The reason why it’s necessary is because I do not believe we ought to put the full faith and credit of the commonwealth behind a project that’s going to further enrich billionaires,” Lucas said last week. “If they want this project, (they can) pay for it themselves.”
Lucas also secured additional toll relief in the spending plan. The budget allocates $101 million over two years to provide toll relief to Hampton Roads drivers who make less than $50,000. When combined with the existing toll relief program, the budget says eligible drivers could get up to a 100% rebate on up to 14 trips per week through the Elizabeth River Tunnels. Budget language also requires an evaluation this year of the cost and feasibility of permitting free HOV access at all times through the Downtown and Midtown tunnels.
In a news release, Senate Republican Caucus Chair Sen. Mark Obenshain said the budget addresses many core functions of government that had broad agreement.
“We strongly support a lot in the budget: funding for education, transportation, mental health, and public safety,” he said. “What many Republican senators cannot support, however, are the parts that raise taxes on businesses and families, and will bring Virginia back in the regional greenhouse gas initiative, which will increase utility bills for every Virginia.”
Obenshain added that the budget now heads to the governor for further negotiations.
“This is just another step in the process, and I am optimistic we can arrive at a responsible budget we can all support,” he said.
The governor typically has 30 days to act on legislation and the General Assembly will reconvene April 17 to take up Youngkin’s amendments and vetoes. Youngkin already has acted on 84 bills submitted early, signing the majority of them, but amending some and vetoing eight others. A two-thirds vote is required to override any veto.
Among other provisions, the budget includes:
■ $100 million for the Community Flood Preparedness Fund
■ $400 million to help with the Chesapeake Bay improvement goals
■ $2.5 billion in additional funding for K-12 public education
■ $25 million for Norfolk’s Coastal Risk Storm Management Project, reducing funding for the project by $49 million
■ $30 million to combat opioid addiction
■ $79.5 million to increase the state’s minimum wage
■ $175 million for affordable housing
■ $75.1 million over the biennium for community violence intervention initiatives
■ 3% salary increase each year of the biennium for state-supported employees
It further contains language directing the state to renter the Regional Greenhouse Gas Initiative.