Sunday, April 14, 2024

Thomas Jefferson Institute for Public Policy: Common Ground Budget, Budget Amendments, Shutdowns, Vetoes, Child Marriage, Slots, Predator Towing


1.) On Monday, Governor Youngkin took action on the Democrat's passed budget, submitting 233 amendments. The Governor is calling on Democrats to accept his "common ground" proposal, which according to Thomas Jefferson Institute's Steve Haner gives Democrats most of their spending priorities, significantly reduces his own spending priorities, removes his proposed tax reductions, and eliminates any tax increases (here). This is possible because of healthy reserves that have been retained by the Commonwealth, the stronger-than-expected job growth, and various other unspent funds that are available to fund future spending.


2.) Despite the Governor's reasonable good-faith budget offer, written in a way that recognizes that compromise is key in a divided government, there is a reasonable chance that Democrats will try to push through greater taxes to fund greater spending (even though the budget has already grown by 45 percent over the last four years). This could result in a veto of the entire budget, and risk an unprecedented government shutdown if a compromise can't be reached by July 1st. Shamefully, Democrats are wrongly claiming that the Governor's proposal "slashes" spending, when in fact, spending increases significantly in almost every category (especially education) over previous budgets.


3.) Just before midnight on Monday, the Governor acted on the remaining bills of the 1,046 bills he had been sent this legislative session. The final tally is that he signed 777, proposed amendments for 116, and vetoed 153. The Thomas Jefferson Institute applauded Governor Youngkin's actions on its 8 veto recommendations -- all of which were either vetoed, favorably amended, or subjected to reenactment clauses (here). Most significantly, the Governor vetoed the digital business-to-business sales tax, the minimum wage, the paid family and medical leave bill, the class action lawsuits bill, and the attempt to return Virginia to the carbon tax regime known as the Regional Greenhouse Gas Initiative. Overall a positive result for our efforts!


4.) Governor Youngkin significantly amended SB212 -- the slot machine…err…skills game legislation by banning the games within a 35-mile radius of any existing casino, racetrack, or "satellite facility" (here). Because of the strategic placement of such facilities, skills games would be banned in large swaths of populated communities around the Commonwealth.  


5.) Governor Youngkin vetoed HB570 which would have set up a Prescription Drug Affordability Board (here). This bill would have limited innovation and interfered with the complex market forces that determine drug prices.  


6.) Governor Youngkin signed HB959 -- a bill to combat predatory towing by requiring a second property owner signature before towing and allows localities to monitor tow companies more closely (here). The bill also imposes penalties on towing violations with funds given to the wrongly towed.


7.) WMATA's board of directors delayed their vote on a budget for next fiscal year, as Governor Youngkin amended Virginia's share of metro funding by shifting the added funds being sought onto the Virginia localities that are served by Metro (here and here). This may change in the final budget being negotiated on Wednesday (although, we hope not).


8.) In a vote that didn't get enough attention, Governor Youngkin signed HB994 -- a bill that ends child marriage in Virginia, something still allowed in 12 other states (here).