Virginia Lawmakers Send Youngkin Compromise State Budget - WSET

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Virginia lawmakers send Youngkin compromise state budget

by SARAH RANKIN Associated Press/WCYB Staff

Wed, June 1, 2022 at 3:52 PMUpdated Wed, June 1, 2022 at 4:07 PMFILE - Workers begin digging a tunnel to connect the new General Assembly building to the Capitol, March 2, 2022, in Richmond, Va. Dena Potter, a spokeswoman for the state agency overseeing the project, said the Capitol was briefly evacuated on March 14, 2022, after a contractor working on the $25 million tunnel “inadvertently” poked through the ceiling of a subterranean Capitol extension causing debris to fall into the visitors center cafe. (AP Photo/Steve Helber, File)Comment on this story0CommentShare storyShare

topics:

• Barry Knight
• Bristol
• Dick Saslaw
• Don Scott
• Israel O'Quinn
• Maryland,United States
• Mendota
• Mendota,Virginia,United States

RICHMOND, Va. (AP) — Virginia's divided General Assembly passed a compromise state budget Wednesday that would offer nearly $4 billion in tax relief, increase pay for teachers and other public employees, boost K-12 education spending and fund a wide range of projects from roadwork to school construction.

Budget negotiators crafted the measure at a time when Virginia's tax collections have been soaring far beyond projections. That allowed for making long-term investments in core government services while also boosting the state's reserves and enacting tax cuts that are expected to save a family of four an estimated $1,108 a year, Republican House Appropriations Chairman Barry Knight said.

“We found a bipartisan budget we can all be proud of,” he said.

The proposed spending plan, which covers two fiscal years and would take effect July 1, passed with broad bipartisan support and relatively subdued debate. Lawmakers also passed a bill making adjustments to the current budget.

The legislation now goes to GOP Gov. Glenn Youngkin, who can sign it or seek changes. He said in a statement earlier this week that the compromise offered a “good framework” and that he would be reviewing it closely in the days to come.

Lawmakers had to return to the Capitol in a special session to finish the budget because they deadlocked over the spending plan as their regular calendar drew to a close in March. They opted then to extend talks, which have been happening privately among a handful of negotiators. Some lawmakers criticized the opacity of the process on Wednesday.

Youngkin, who campaigned on a promise to enact a broad slate of tax cuts, had been calling on lawmakers for weeks to act with urgency. A deal was announced last Thursday.

The two-year budget includes many, but not all, of the tax cuts the governor pushed for.

It directs about $1 billion in tax relief toward one-time rebates of $250 for individuals and $500 for families, which would be distributed later this year. About $1.6 billion would go toward increasing the standard deduction — but not quite doubling it as Youngkin sought.

About $372 million in tax relief would eliminate the state portion of sales tax on groceries and essential personal hygiene products; $301 million would provide phased-in income tax relief for military retirees 55 or older; and $315 million would make the Virginia Earned Income Tax Credit partially refundable.

The plan does not include a gas tax holiday, another priority of the governor's.

The budget would boost pay for teachers, state employees and state-supported local employees. It would allocate $100 million for a Youngkin-backed initiative to partner colleges with K-12 systems to create lab schools, and would direct hundreds of millions toward school construction and modernization. According to appropriations committee documents, it marks the largest-ever K-12 education budget, spending $19.2B over the biennium, a 20% increase from the previous budget cycle.

The spending plan would also allocate hundreds of millions to support the widening of Interstate 64 between Hampton Roads and Richmond and create a new intermediate misdemeanor penalty for possession of more than 4 ounces but not more than 1 pound of marijuana.

The General Assembly did not take up one of the year's most controversial issues Wednesday — a bill that would offer lucrative tax incentives to the NFL's Washington Commanders in an effort to lure the team to Virginia. Senate Majority Leader Dick Saslaw, one of the measure's sponsors, said Tuesday that a compromise version had not been finalized yet.

The team is in the midst of a long-running search for a new stadium site, and Maryland, Virginia and the District of Columbia have all been under consideration. The stadium bill initially passed with broad, bipartisan support, but some members have since raised concerns about the size of the incentives and the various controversies swirling around the Commanders.

Virginia’s attorney general announced in April that his office had launched an inquiry into the team following allegations of financial improprieties raised by a congressional committee. The team has denied any wrongdoing.

Lawmakers elected two judicial candidates for general district court positions Wednesday. But they still have not scheduled a vote on two state Supreme Court vacancies or an opening on the powerful State Corporation Commission. House Republicans and Senate Democrats remain at odds over how much sway each should have in the picks and any subsequent vacancy that might be created in a lower court if a judge were promoted.

Also Wednesday, House Democrats elected a new caucus leader, selecting attorney and two-term member Don Scott from Portsmouth. The decision came after the 48-member group ousted minority leader Eileen Filler-Corn in April over simmering dissent about an unsuccessful election cycle that saw the party lose full control of the state government.

Scott told reporters it was an honor to be chosen by his peers and vowed to be a collaborative leader who would push back against Youngkin's agenda and help Democrats retake control of the chamber in the next election cycle. All House and Senate seats are scheduled to be on the ballot in 2023, although a pending lawsuit seeks to force House elections again this year. That's because the last cycle was held under old legislative boundaries as a result of delays in the redistricting process.

Virginia Sen. Todd Pillion sent News 5 the following statement:

Deputy Majority Leader Israel O'Quinn and Del. William Wampler sent News 5 the following statement:

One of the primary responsibilities of the Virginia General Assembly is to negotiate and produce a state budget every two years. This two-year biennial budget funds our local governments across Virginia, state agencies, and other regional and statewide initiatives. Unlike the federal government, which can print currency and engage in deficit spending, Virginia is constitutionally bound to produce a balanced budget. This means the Commonwealth cannot appropriate funds beyond what it is projected to take in from Virginia taxpayers and other revenue generating sources. In total, projected revenues for the 2022-2024 budget are just over 165 billion dollars.

At a high-level, the bulk of these public resources are invested in the following categories: Health and Human Resources, Education, Transportation and Public Safety. Combined, these areas account for over $65 billion of direct spending by the Commonwealth each year in the budget.

“We have passed a budget that is fiscally sound and delivers much needed tax relief for Southwest Virginia families,” said Deputy Majority Leader Israel O’Quinn. “We’ve also made tremendous headway on so many of the issues we need addressed for our region. I’m glad the House, Senate, and Governor could agree on this final document.”

“This was my first session working as a member of the House Appropriations Committee, which is chiefly responsible for Virginia’s budget development. My focus was to make logical forward-looking investments, identify and eliminate wasteful spending, and to find ways to build on our regional strengths. I think this budget accomplishes those goals and am grateful to vote for its passage,” said Delegate Wampler.

Drilling-down a bit, we wanted to profile several specific items that are in the budget that are of significance to our region.

PAY RAISES FOR PUBLIC EMPLOYEES

The 2022-2024 budget invests in our public employees. All state employees, all state supported local employees, and all SOQ funded positions will receive a 5% raise in this budget each year, for a 10% total increase in public employee salaries over the two-year budget. These raises will go into effect on August 1, 2022 and July 1, 2023. In addition to the raises, all state employees will also receive a one-time bonus of $1,000 in December of this year. Our state employees work incredibly hard for our Commonwealth, and the General Assembly wants to make sure their pay is competitive so that we keep and attract the best employees.

TAX RELIEF FOR VIRGINIANS

This year, the General Assembly will put forward almost $4 billion in tax relief for Virginia families. With the current economic situation, we find ourselves with skyrocketing inflation and increased cost-of-living. The General Assembly approved tax relief checks to all Virginians in the amount of $250 for individuals and $500 for couples. The budget almost doubles the standard deduction for individuals and couples filing their taxes: the single filer deduction goes from $4,500 to $8,000 and the amount for married filers goes from $9,000 up to $16,000 going forward. This will help our families and will let them keep a little more in their pockets. Also, we voted to remove the food sales tax except for the last 1% that goes to localities. Taxing a necessity like food should not be a building block of the state budget. During these difficult times, every little bit helps so the General Assembly’s $4 billion in tax relief will hopefully better the lives of Virginians.

SCHOOL CONSTRUCTION AND MODERNIZATION FUNDING

If you travel to just about any school in Southwest Virginia and you will see an older building that could use some updating. Our school systems have done a great job with what they have, but localities are unable to keep up with facilities due to rising costs and shrinking tax bases. This year, we have made tremendous progress in state school construction assistance. Up until now, funding for school construction was treated as a local obligation, but the state is stepping up. This budget includes $1.25 billion which in turn will support $3.15 billion in school construction projects. There are three approaches to this in the budget: 1) Targeted School Construction Assistance Grants will provide $450 million through grants that are 10% to 30% of the project costs based on the school systems’ demonstrated need, financial commitment, and school building conditions; 2) Formula-Based School Construction and Modernization Grants that will provide $400 overall but will guarantee $1 million per school division and then disperse the remaining amount based local need and ability; and 3) Literary Fund Loans for School Construction that will provide $200 million in loans each year with lower interest rates and higher loan amounts than years passed. The facility a student learns in has a direct impact on their ability to learn, so the General Assembly is working to provide a high-quality education to all of Virginia’s students as prescribed in our state constitution.

BRISTOL LANDFILL REMEDIATION FUNDING

The Bristol landfill presents unique environmental and quality of life concerns for the residents of the City of Bristol. It’s a major problem for our community and we are committed to fixing it. Virginia’s Department of Environmental Quality (DEQ) led by new director, Michael Rolband, has been increasingly active in Bristol at the landfill site. In the first three months as head of Virginia’s environmental regulatory agency, Director Rolband conducted site visits to Bristol’s landfill, conducted water and air quality testing, and convened a panel of experts to explore options relating to landfill remediation or closure. As our state regulators continue to work with local partners in Bristol – we are happy to report that Item 377 #2c in the budget included $2,000,000 in additional funding to DEQ to provide financial and technical assistance to the City of Bristol to fix this issue.

INFRASTRUCTURE & ECONOMIC DEVELOPMENT FUNDING

IN SOUTHWESTERN VIRGINIA

When the federal government recently passed the Infrastructure Investment and Jobs Act, it committed roughly $1.6 trillion in infrastructure and economic development spending in the United States over the next fifteen years. Virginia is in competition with every other state to draw down those funds and develop meaningful infrastructure projects and economic activity. In order to make this happen, we recognized that Virginia has to have dedicated resources and aggressive personnel that are focused on maximizing the return of this federal spending in our region. Therefore, Item 125 #8c in Virginia’s budget provides specific funding to Southwestern Virginia to employ professionals at our Planning District Commissions to focus on developing these major projects. This is an effort we believe will bear fruit for current and future generations.

OUTDOOR RECREATION AND PARK FUNDING

Southwestern Virginians have more opportunities for outdoor recreation than most other places in the country and in the Commonwealth. Our lakes, rivers, trails, and parks provide an escape for residents and visitors alike. It is vital that we continue to build up these opportunities, improve access to the outdoors, and grow our region’s outdoor recreation economy.

Item 375 #12c in the budget included $260,000 to improve ADA compliant access to Big Cedar Creek at the Pinnacle Area Nature Preserve in Russell County, VA.

Item 375 #2c in the budget included $466,500 to help finish the Mendota Trail from Bristol to Mendota, Virginia.

The full budget can be found at https://budget.lis.virginia.gov.

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