RICHMOND, Va. (WRIC) — A budget battle is brewing in the Virginia General Assembly.
On Sunday, the Democratic-controlled House of Delegates and Senate each unveiled similar, but separate proposed budgets for the two fiscal years beginning on July 1, 2024.
Both of these budgets differ in several ways from Gov. Glenn Youngkin’s proposed budget, which he submitted last December.
“Anytime there is an opportunity to increase funding for education, naturally we are going to do that,” said Sen. Louise Lucas (D-Portsmouth), who chairs the Senate Finance and Appropriations Committee, on Monday.
Both proposals include a minimum 3% raise for teachers — 3% in the Senate, 3.38% in the House — in each year of the biennium. Youngkin proposed a 1% bonus in fiscal year 2025 and a 2% raise in fiscal year 2026.
Both versions also include larger raises — 2.5% in the Senate per year, 3% in the House per year — for state employees when compared to what Youngkin proposed. He proposed a 1% bonus in fiscal year 2025 and a 1% raise in fiscal year 2026.
“We felt that that was not sufficient enough, so we’re offering a 6% increase in state employee salary over the next biennium,” said Del. Luke Torian (D-Prince William), who chairs the House Appropriations Committee.
One notable absence from both the House and Senate budgets is key pieces of Governor Youngkin’s proposed tax plan.
“It looks like Democrats got rid of everything except a tax increase, which they were happy to keep in there,” said House Minority Leader Del. Todd Gilbert (R- Shenandoah).
Youngkin proposed reducing the personal income tax while raising the state sales tax. To make up for a portion of the revenue shortfall, Youngkin recommended modernizing the state’s tax code to charge sales tax on digital goods, such as streaming services.
Democrats largely disagreed, removing most of Youngkin’s tax plan from their budgets while keeping the proposed sales tax on digital goods.
“Government is insatiable and our colleagues on the other side are never at a loss for trying to spend money, so going out and finding extra money certainly seemed like the way to do it and they didn’t waste any time,” Gilbert said.
Democrats did not deny that it’s a tax increase, but said the money is needed to fund public education and other priorities.
“In order for us to pay for our priorities, we have got to have the money coming from somewhere to pay for them,” Lucas said. “This is what is required for us to do what we need to do for the citizens of the Commonwealth.”
Youngkin released the following statement on the budget proposals.
“When I presented our budget in December, it was a bold, necessary plan forward with the goal of ‘Unleashing Opportunity’ for all Virginians‘. As I begin my review of today’s proposals from the House and Senate it will be through the lens that structural balance matters, that Virginians can’t afford another tax increase and, in fact, need additional tax relief, and that we need to build on the work we’ve done investing in education, law enforcement, economic and workforce development, and behavioral health in the Commonwealth. Today is just the start, and I am confident that working together with the General Assembly we can continue the progress we’ve made in our first two years and move the Commonwealth forward together.”
