The Virginia Senate and House of Delegates passed two sets of budget amendments with relatively small differences between them Thursday, creating a counter proposal to the spending changes sought by Republican Gov. Glenn Youngkin.
In December, Youngkin proposed that legislators create a car tax credit for Virginians making $50,000 or less ($100,000 or less for joint filers); eliminate taxes on tips; fund vouchers and charter schools; and allocate additional money to direct aid for public schools and school construction.
Legislators voted on budgets that had a slightly smaller amount of tax relief, but spread it to taxpayers of all incomes, with additional cuts for those making less.
Many of the proposals’ provisions are nearly sure to be eliminated, since they fund legislation Youngkin vetoed last year — such as a regulated recreational marijuana market and increased minimum wage — and other legislation that he is unlikely to sign, like those expanding collective bargaining for public employees.
“I would like to help provide Virginians with more certainty and stability. Virginia will have to remain able to shift based on changing federal policy to ensure the stability and prosperity of our commonwealth,” said Sen. Louise Lucas (D–Portsmouth), the chair of the Senate Finance and Appropriations Committee.
“In these uncertain times, the Senate of Virginia is different. We work together. Is that correct, Sen. McDougle?” said Lucas, referring to the Senate’s Republican leader from Hanover County. After debate that focused on a handful of amendments, the Senate voted 38–2 to pass the budget.
Before a similarly bipartisan vote in the House of Delegates, which voted 79–18 to pass the budget, Republicans raised objections to budget amendments that spent money in specific localities.
“What is so unique about the city of Fredericksburg housing shortage that necessitates they get $25,000 apart, and separate and above from any other locality in the commonwealth?” said Del. Bobby Orrock (R–Caroline), about a housing counseling program.
“Not sure what other delegates are doing in their district, but I'm looking out for my district,” said Del. Joshua Cole (D–Stafford).
What’s in legislators’ budget and not in the governor’s
- a $200 rebate per filer, to be sent in October (replacing Youngkin’s proposal to eliminate the car tax)
- no changes to earned sentence credits (Youngkin requested new limits on earned sentence credits that would have barred sentences for nonviolent offenses from earned sentence credits if they also committed a violent felony)
- no requirement to withhold funding from local police departments that don’t cooperate with federal immigration enforcement orders
- removing a limit on how many school support staff the state funds and allocating an additional $222.9 million in direct aid to districts to fill the roles
- a provision that makes 20% of the federal Earned Income Tax Credit fully refundable (a similar tax cut per year as the governor’s proposal to eliminate taxes on tips)
- more money to implement sealing of criminal records
- higher per-pupil spending (roughly $350 more over FY25 and FY26, according to the Commonwealth Institute for Fiscal Analysis)
What’s in the Senate budget and not in the House’s
- permission for localities to impose a 1% sales tax to fund school construction
- an additional $25 million in funding for Hurricane Helene victims ($50 million, vs. $25 million in the House)
- an amendment that allows legislative leadership to intervene in constitutional cases and sue the governor over how the executive branch spends money
- $20 million for VEDP’s business ready sites program (both Youngkin and the House proposed $50 million)
What’s in the House’s budget and not in the Senate’s
- $50 million in funding proposed by Youngkin for Richmond’s Combined Sewer Overflow system
- $16.7 million for community service boards
