RICHMOND — Gov. Glenn Youngkin signed an $188 billion state budget proposal Monday, moments after it was passed by the General Assembly.
The two-year spending plan nixes a potential new tax on digital goods — a priority for Youngkin, who initially suggested the idea before reversing course — but still manages to fund most of the projects prioritized by Democrats, including massive investments in education.
Senate Finance and Appropriations Committee Chair Louise Lucas, who sat beside the governor as he signed the proposal into law, called the plan a “big win” for Virginia.
“This budget has over $2 billion for K-12 and has 3% per year pay raises for teachers and state-supported local employees,” said Lucas, D-Portsmouth. “It expands behavioral health services and crisis support for some of our most vulnerable citizens.”
The Republican governor and Democrats, who hold majorities in both chambers, clashed in recent months, causing budget negotiations to go into overtime. While improved communication may have helped the impasse, there was another factor at play — legislators ended up having more money than expected due to higher than expected state revenue collections. Some of the governor’s vetoed legislation also freed up about $116 million.
Democrats and Republicans largely came together in support of the compromise, the details of which were first made public on Saturday. The Senate approved the spending bill 39-1 while the House of Delegates voted 94-6 in favor. The budget funds state government operations from July 1 through June 30, 2026.
Youngkin thanked legislators for their work and acknowledged finding common ground can be difficult.
“I think it’s a big day for a lot of reasons but one of most important is to demonstrate to Virginians that their elected officials who sometimes find themselves very far apart on policy can come together and deliver,” he said. “We in fact listened to one another and we understood each other’s priorities and perspectives.”
Virginia has a budget #virginia #GeneralAssembly@virginianpilot pic.twitter.com/Fmu9yagOhW
— Katie King (@KatieKingCST) May 13, 2024
House Speaker Don Scott, D-Portsmouth, said on social media that the budget invested in the environment, education, health care, economic growth and public safety and thanked House lawmakers for their work.
Among the items with ties to Hampton Roads: $101 million for toll relief efforts, $25 million for the Norfolk Coastal Risk Storm Management Project, and $100 million for the Community Flood Preparedness Fund, which awards grants to help localities impacted by flooding and climate change.
It also provides an interest-free $40 million treasury loan to Newport News to help the city create housing for Navy sailors.
The budget does not address skill games, which are controversial slot-machine-like devices that have popped up at bars, convenience stores and truck stops across the state. But Youngkin said that doesn’t mean the matter is finished.
“One of the recommendations that was made during the negotiations was that we could in fact work on skill games going forward,” Youngkin said, alluding the possibility legislators could return for another special session this summer. “What we decided was that we would pick that up another day.”
The governor massively amended a bill that would tax and legalize the games, altering it to the point it would actually ban the devices across much of the state. Advocates of the games pushed back and urged the governor to reverse course in the budget, which can sometimes be used to resurrect legislation that has otherwise been killed off or changed.
Another item missing from the budget? A Democrat-backed provision directing the state to rejoin the Regional Greenhouse Gas Initiative, a multistate effort that pushes a shift to renewable energy by requiring energy producers to buy allowances for each metric ton of carbon they produce. At the behest of Youngkin, a state board voted in June to withdraw from the program.
Youngkin dodged a question from a reporter about whether he had threatened to shoot down the entire budget unless the provision about RGGI was omitted.
“We had a robust discussion around all aspects of the budget,” Youngkin said.
In a Monday news release, leaders with eight environmental organizations in Virginia, including Wetlands Watch and the Virginia League of Conservation Voters, slammed the governor for pulling the state out of program — and criticized legislators for not fighting back.
“(RGGI) has been one of our best tools in Virginia to combat climate change while returning investment to the communities across the Commonwealth that need it most,” the joint statement said. “This governor deserves to be held accountable for attempting to unilaterally override Virginia law, and this capitulation by the General Assembly unfortunately sets us back.”
Katie King, katie.king@virginiamedia.com
