RICHMOND, Va. (WRIC) – Virginia lawmakers in state budget talks met with Gov. Glenn Youngkin on Tuesday to discuss each other’s priorities as they try to reach a deal by the time the General Assembly is set to vote on it next week.
Divisions between state Democrats who control both chambers of the legislature and the Republican governor, particularly over proposed tax policy changes, drove both sides to agree to extend negotiations and rework a new spending plan for the next two fiscal years.
Both sides hope to have a compromise when lawmakers meet for a special session on May 13 and are expected to vote on a deal on May 15 as they face the prospect of an unprecedented government shutdown in Virginia.
Gov. Youngkin and one of the Democrats leading the budget talks say they are optimistic about how things stand, but acknowledge more work is needed.
House Appropriations Chairman Luke Torian (D-Prince William), the Virginia House’s top budget negotiator, told 8News that lawmakers leading the talks, known as budget conferees, met with Youngkin and sat in on presentations with the governor on Tuesday.
Budget negotiators and the administration went over their priorities and Youngkin’s concerns, Del. Torian said, and lawmakers shared their “budget spreadsheet” with the governor.
“We are awaiting his feedback, and it is our hope that if all things go well, we certainly would have something to present in the General Assembly on Monday the 13th,” Torian said in an interview Tuesday.
Gov. Youngkin’s press office did not make anyone available for an interview or say whether other meetings were planned, referring 8News to the governor’s comments during a gaggle with reporters Tuesday after a Fentanyl Awareness Day event in Richmond.
“We’re still in process and I am encouraged, we’ve still got work to do,” Youngkin said. “We committed ourselves back at reconvene to do the work and I’m very grateful because the members of the General Assembly and leadership along with all the conferees have been doing the work.”
Torian laid out the Democrat-controlled General Assembly’s spending priorities that he believes will be addressed in the budget, saying they center around pay raises for state employees, teachers and educational support staff.
“Our K-12 spending is a priority for us,” Torian told 8News. “Our spending on higher ed, dealing with health care. And transportation.”
During Tuesday’s gaggle, Youngkin said that both sides “still have an aspiration to present a budget that meets the multiple objectives of the General Assembly and the governor’s office by next week.”
“That’s what we’re working towards this week,” the governor added. “As I said, we still got work to do but I’m optimistic.”
Torian agreed, telling 8News, “I think things looking very promising,” and that he’s looking forward to having “a very good day” on May 13 when the special session will begin.
One factor in the optimism could be better than expected revenue projections. The state’s March revenue report says, “year-to-date revenues are ahead of projections by $1.06 billion” compared to the forecast assumed in the budget bill and “accounting for monthly variations in tax collections.”
The Richmond Times-Dispatch reported that Torian and Senate Finance and Appropriations Chair L. Louise Lucas (D-Portsmouth), the Senate’s budget leader, said they are willing not to expand Virginia’s sales tax to include digital services and goods like streaming services if the state revenues are enough to fund their priorities.
The expansion of the tax, initially proposed by Youngkin but with tax cuts that the administration said would end up with $1 billion in tax decreases, was a sticking point in budget talks as Youngkin expressed strong opposition to the proposal over his concerns that it would raise taxes. Youngkin vowed not to sign any budget that increases taxes.
When asked about the status of the General Assembly’s proposal for the digital sales tax, which also included business-business transactions, Torian didn’t say if he felt it would make the plan presented to state lawmakers.
“The new digital economy is something that the governor had some concerns with, and we anticipate that we’ll be having some conversations with him about that,” Torian said.
State Sen. Lucas’ office did not respond to an email seeking an interview.
Virginia has a two-year budget cycle, with new spending plans introduced by the governor and passed on even-numbered years. The new state budget will run for the next two fiscal years – starting July 1 until June 30, 2026.
If a deal on a new budget isn’t reached by July, Virginia’s government will shut down, cutting off pay for state employees and vital funding for public school districts and localities.
