The Virginia General Assembly’s budget committees unveiled their proposals on Sunday, which differ significantly from the one presented by Governor Glenn Youngkin last month. The lawmakers rejected most of the governor’s tax plan, which would have cut income taxes by 12% and raised sales taxes by 0.5%. Instead, they opted for more modest tax relief and increased investments in education, mental health, and other priorities.
House and Senate plans diverge on sports complex
One of the most contentious issues in the budget debate is the governor’s proposal to fund and develop a $2 billion sports and entertainment complex in Alexandria, which would host the NBA’s Washington Wizards and NHL’s Washington Capitals. The governor has touted the project as a major economic opportunity for Northern Virginia and the state, but some lawmakers have raised concerns about its feasibility, cost, and impact on local communities.
The House budget would create the Virginia Sports and Entertainment Authority, a political subdivision tasked with financing bonds to pay for the construction of the sports complex. It also includes increased funding for the Washington Metropolitan Area Transit Authority (Metro), which operates transit in and around Washington D.C. The House plan aligns with the demands of many legislators from Northern Virginia, who have said they will not support the stadium deal unless Metro receives more money.
The Senate budget, however, would not create the sports authority, or provide any funding for Metro. The Senate Finance and Appropriations Committee chair, Sen. Louise Lucas, D-Portsmouth, has been vocal in her opposition to the governor’s plan, saying it has too many “unanswered questions and potential conflicts of interest”. She also said she will not compromise on the issue, and that she is “unafraid to stand up to anyone” who proposes something that is not in the best interest of the commonwealth.
Both plans increase spending for schools and mental health
Despite their differences on the sports complex, both the House and Senate budgets agree on increasing spending for schools and mental health, two areas that have been severely affected by the COVID-19 pandemic and its aftermath. The lawmakers also rejected the governor’s proposal to eliminate the car tax, which he had campaigned on, saying it would hurt local governments and services.
The House and Senate plans would both provide more than $650 million in additional funding for K-12 education, which would cover inflation, enrollment, and teacher salary increases. They would also allocate more money for special education, early childhood education, and school construction and renovation.
The lawmakers also endorsed the governor’s “Right Help Right Now” plan to overhaul the state’s mental health system, which has been plagued by chronic underfunding, staff shortages, and long wait times. The plan would provide $316 million for new crisis centers, student mental health services, and pay raises for clinical and support roles in state facilities. The lawmakers also added funding for community-based services, substance abuse treatment, and suicide prevention.
Next steps and challenges
The House and Senate budget proposals will now go to the floor for debate and votes, and then to a conference committee to reconcile the differences. The lawmakers will have to work with the governor to reach a final agreement before the end of the session in March.
The budget process will likely be challenging, as the governor and the legislature are from different parties and have different visions for the state’s fiscal policy. The governor has said he wants to cut taxes and reduce the cost of living, while the lawmakers have said they want to invest in the state’s future and address the needs of the people. The governor has also said he wants to deliver a budget on time, while the lawmakers have a history of adjourning without approving budget amendments.
The budget debate will also be influenced by the upcoming elections in November, when all 100 seats in the House of Delegates and the governor’s office will be on the ballot. The governor and the lawmakers will have to balance their political interests and agendas with the public interest and expectations.
