By WMAL.com
As Virginia lawmakers are scheduled to return to Richmond next week, negotiations for a budget proposal to fund the state for the next two years have been working overtime to reach a deal. On Thursday, a deal was reached that would cut taxes by $4 billion over the next three years, increase state and teacher pay by 10% over the next two years and allocate funds for sustainable investments into highway construction projects and affordable housing.
While the agreement was finally reached more than 3-months after the General Assembly adjourned in March, legislators have remained focused on generating the best deal rather than one done in a timely fashion. “We wanted to convey a message here that we’ve taken our time getting it right and we think we’ve gotten it right,” said House Appropriations Chairman Barry Knight (R-Virginia Beach) in a joint presser alongside Senate Finance Chair Janet Howell (D-Fairfax).
Howell added in the press conference, ““We had really major differences and we’re in uncertain times,” she said. “The threat of inflation looms and a possible recession looms, so we’re very cautious in how we spend the money.”
The package will now be sent to the desk of Governor Youngkin to be signed into law and go into effect on July 1. “The governor was briefed and looks forward to seeing the final language, but I’ll decline to comment further,” said Youngkin’s spokesperson Macaulay Porter.
Budget highlights include:
- $3.3 billion for capital projects
- $340 million to colleges and universities
- $159 million to the Virginia Business Ready Sites program to ensure the state is competitive for future economic development projects
- $1.6 billion in deposits to the state reserves.
- $568 million allocated to water quality improvements
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