The General Assembly met on Wednesday to finally consider a robust package of budget amendments to Virginia's current biennium budget. This work should have been done back on February 25. I strongly objected to many problems with the process, but supported the final package because most of the end results are very positive for the Commonwealth's citizens.
Tax Relief for Working Virginians
The budget amendments include $906.8 million in tax relief from excess FY 2023 income tax collections to the 2023 Individual Income Tax Rebate Fund for rebates of $200 to individual taxpayers and $400 for married taxpayers that filed jointly. They also provide $48.1 million in tax relief by slightly increasing the standard deduction in tax year 2024 from $8,000 to $8,500 for single filers and $16,000 to $17,000 for married filers. These are both positive developments but the reason for the excess revenue was because of systemic overtaxation exasperated by inflation being caught by the tax rates, but the standard deduction that 85% of taxpayers use not being adequately increased from its amount set in actual dollars. A wiser approach would have been to structure the tax relief in an enhanced standard deduction for taxpayers to end the recurring systemic overtaxation - this is something that should be done in 2024.
Economic Development Investments
The budget amendments provide $125 million for matching grants for localities to develop business ready sites for economic development projects and $75 million for the Business Ready Sites Acquisition Fund to create and maintain a portfolio of project-ready sites for economic development in the Commonwealth. Also included are $10 million to complete planning, design, and site acquisition work to develop an inland port in the Mount Rogers Planning District, $4 million for research and development of innovative energy technologies and $500,000 to support the recently established Department of Workforce Development and Advancement.
Increased Support for Public Education
The budget amendments provide a supplemental $653.3 million in direct aid to public education and local school divisions. $418.3 million of these funds are one-time flexible funding to support implementation of the Virginia Literacy Act, address learning loss, and provide additional operating and infrastructure support. There is also $20 million provided for school safety and security grants. The amendments fund the state portion for an additional 2% pay raise for public school teachers, bringing the total increase for this year to 7%.
Some of the direct aid to local school divisions in or near the Senate district that I represent include:
Bedford County $5.1 million
Botetourt County $1.9 million
Carroll County $2.5 million
Craig County $279,000
Floyd County $1 million
Franklin County $3.5 million
Montgomery County $3.6 million
Roanoke City $10.6 million
Roanoke County $6.5 million
Salem $1.9 million
Wythe County $2.5 million
Increased Mental Health Support
The budget amendments include $186.8 million for increased mental health supports. Among some of the largest mental health investments are $58 million to expand crisis receiving centers and crisis stabilization units; $30 million to expand Permanent Supportive Housing for the seriously mentally ill; $18 million for increasing compensation at Community Services Boards in 2024; $20 million GF to expand mobile crisis teams and support hospital-based psychiatric alternatives; and $11 million for school-based and children's mental health services.
Increased Support for Law Enforcement
The budget amendments provide $30 million for community violence intervention and prevention initiatives, including: $10 million for a new Safer Communities Program, which includes grants to localities and a new Office of Safer Communities at the Department of Criminal Justice Services; $15 million for the Operation Ceasefire Grant Fund; and $5 million for the Firearm Violence Prevention and Intervention Fund. Also included are $5.1 million to assist local law enforcement officers with the costs of court ordered transportation related to mental health commitments and $2.1 million in one-time "599" funding in Aid to Localities with Police Departments. $7.6 million is provided to address salary compression for deputy sheriffs and regional jail officers and $4 million is provided to local prosecutors offices.
Amendments Package Heads to Governor Youngkin
The passage of the robust budget amendment package in the General Assembly means it will now head to Governor Youngkin who will have a little more than a week to sign it as is, make line-item vetoes, or offer amendments for the General Assembly to consider in the coming weeks. You can view the entire budget document here.
Tax Relief for Working Virginians
The budget amendments include $906.8 million in tax relief from excess FY 2023 income tax collections to the 2023 Individual Income Tax Rebate Fund for rebates of $200 to individual taxpayers and $400 for married taxpayers that filed jointly. They also provide $48.1 million in tax relief by slightly increasing the standard deduction in tax year 2024 from $8,000 to $8,500 for single filers and $16,000 to $17,000 for married filers. These are both positive developments but the reason for the excess revenue was because of systemic overtaxation exasperated by inflation being caught by the tax rates, but the standard deduction that 85% of taxpayers use not being adequately increased from its amount set in actual dollars. A wiser approach would have been to structure the tax relief in an enhanced standard deduction for taxpayers to end the recurring systemic overtaxation - this is something that should be done in 2024.
Economic Development Investments
The budget amendments provide $125 million for matching grants for localities to develop business ready sites for economic development projects and $75 million for the Business Ready Sites Acquisition Fund to create and maintain a portfolio of project-ready sites for economic development in the Commonwealth. Also included are $10 million to complete planning, design, and site acquisition work to develop an inland port in the Mount Rogers Planning District, $4 million for research and development of innovative energy technologies and $500,000 to support the recently established Department of Workforce Development and Advancement.
Increased Support for Public Education
The budget amendments provide a supplemental $653.3 million in direct aid to public education and local school divisions. $418.3 million of these funds are one-time flexible funding to support implementation of the Virginia Literacy Act, address learning loss, and provide additional operating and infrastructure support. There is also $20 million provided for school safety and security grants. The amendments fund the state portion for an additional 2% pay raise for public school teachers, bringing the total increase for this year to 7%.
Some of the direct aid to local school divisions in or near the Senate district that I represent include:
Bedford County $5.1 million
Botetourt County $1.9 million
Carroll County $2.5 million
Craig County $279,000
Floyd County $1 million
Franklin County $3.5 million
Montgomery County $3.6 million
Roanoke City $10.6 million
Roanoke County $6.5 million
Salem $1.9 million
Wythe County $2.5 million
Increased Mental Health Support
The budget amendments include $186.8 million for increased mental health supports. Among some of the largest mental health investments are $58 million to expand crisis receiving centers and crisis stabilization units; $30 million to expand Permanent Supportive Housing for the seriously mentally ill; $18 million for increasing compensation at Community Services Boards in 2024; $20 million GF to expand mobile crisis teams and support hospital-based psychiatric alternatives; and $11 million for school-based and children's mental health services.
Increased Support for Law Enforcement
The budget amendments provide $30 million for community violence intervention and prevention initiatives, including: $10 million for a new Safer Communities Program, which includes grants to localities and a new Office of Safer Communities at the Department of Criminal Justice Services; $15 million for the Operation Ceasefire Grant Fund; and $5 million for the Firearm Violence Prevention and Intervention Fund. Also included are $5.1 million to assist local law enforcement officers with the costs of court ordered transportation related to mental health commitments and $2.1 million in one-time "599" funding in Aid to Localities with Police Departments. $7.6 million is provided to address salary compression for deputy sheriffs and regional jail officers and $4 million is provided to local prosecutors offices.
Amendments Package Heads to Governor Youngkin
The passage of the robust budget amendment package in the General Assembly means it will now head to Governor Youngkin who will have a little more than a week to sign it as is, make line-item vetoes, or offer amendments for the General Assembly to consider in the coming weeks. You can view the entire budget document here.
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