The state Senate and House of Delegates budget conferees announced on Friday that they had achieved an agreement to revise the state’s biennial budget following a deadlock that lasted nearly six months. Gov. Glenn Youngkin’s request for legislation providing an additional $1 billion in tax relief was the main sticking point in the standoff.
Reinstates the well-liked sales tax holiday for school supplies
In an article from Cardinal News, the deal amendment eliminates the age restriction for the military retiree deduction, raises the standard deduction to $17,000 for joint filers and individuals ($8,500 for single filers), and reinstates the well-liked sales tax holiday for school supplies, which expired this year because lawmakers forgot to renew it.
The compromise, according to the heads of the money committees, offers Virginians further tax relief and unprecedented investments in education, the environment, and mental health. For Virginia’s inhabitants, it’s a win-win situation.
The additional $1 billion in business and individual tax cuts that Youngkin has been advocating since he unveiled his plan in December are not included in the updated budget, either. The House of Delegates and the state Senate each enacted their own budget proposals after the money committees of the legislature presented their suggested budget modifications on February 5.
Democrats had rejected Youngkin’s call for additional tax relief, arguing that the historic $4 billion in savings and rebates from the previous year was more than sufficient. Additionally, they demanded that the state’s public school system receive more support.
The chief budget negotiators also stated in their statement that they gave investments in education at all levels a high priority in order to guarantee that our students recover from pandemic learning loss and are prepared for the workforce.
According to the statement, the budget agreement includes increased financial aid and more operations support for higher education to guarantee that access is not restricted by family income and to maintain college affordability.
Youngkin did not receive all of his demands, but his spokeswoman, Macaulay Porter, said on Friday that Virginians were pleased to hear that the conferees had reached an agreement on a framework that builds on the governor’s efforts to make historic investments in education and mental health while also offering significant tax relief that will lower the cost of living in the Commonwealth.
Porter noted that Youngkin will study the specifics once they are made public.
Sen. Newman: The enormous tax relief this budget offers is what makes him most proud
Sen. Steve Newman, R-Bedford County, a budget conferee, declared that the enormous tax relief this budget offers is what makes him most proud. According to Newman, this indicates that the General Assembly and Governor Youngkin have reduced taxes more during the last two years than at any other point in the commonwealth’s history.
While the budget negotiations have been among the longest I’ve been a part of as a lawmaker, Newman stated, he feels that the end result benefits all Virginians and puts us on a course for ongoing fiscal prosperity.
Del. The House Democratic Caucus Leader, Don Scott, a Democrat from Portsmouth, claimed that on Friday, the proper decision was made.
Before the whole General Assembly meets again in Richmond to vote on the proposed budget revisions, lawmakers and the public have 48 hours to evaluate the changes.
Every second year, the Virginia legislature adopts a two-year budget, and unlike the federal government, the commonwealth must continue to be funded to prevent negative effects on both the state government and cities that depend on state funding. In even-numbered years, the biennial budget is passed into law; in odd-numbered years, it is amended.
However, there was no budget agreement in place when the General Assembly adjourned its regular 2023 session at the end of February. Instead, the legislature approved a four-page stopgap legislation to update spending for some crucial government operations while budget talks persisted.
Del. The Botetourt County Republican Terry Austin stated that more information will be released the following week, reports from Philly Voice.