Bold Step Forward: Governor Youngkin Inks Historic Virginia Budget

Unprecedented Tax Relief and Strong Commitments to Education, Safety, and Economic Growth.

In an era where political division often seems the norm, Virginia Governor Glenn Youngkin struck a chord of unity and progress on Thursday, September 14, 2023. Standing on the Capitol steps, Youngkin put pen to paper and sealed his promise of change, officially signing the Virginia State Budget.

Pledging his commitment to all Virginians, Governor Youngkin’s new budget has been touted as a beacon of conservative commonsense, prioritizing lower living costs, strengthened education, and unwavering support for law enforcement.

The highlight? A whopping $1 billion in tax relief, supplementing last year’s significant $4 billion cut. This initiative will notably return up to $200 to single taxpayers and double that for married couples. Moreover, small businesses will benefit from a tax relief that promises to save them an estimated $10.3 million annually by 2024.

In the realm of education, Youngkin and his team have earmarked $653.3 million for K-12 education and schools. The fund will combat learning losses, bolster support staff, and further extend the Virginia Literacy Act. In addition, the budget allocates a well-deserved 2% raise for teachers and school staff from January 1, 2024, enhancing their previous 10% raise proposal.

Our communities’ safety isn’t overlooked either. The budget presents a thoughtful $155.6 million new allocation targeting a gamut of mental health services, from crisis centers to psychiatric programs in hospitals. This initiative acknowledges the urgent need to address mental health challenges, especially in today’s complex societal landscape.

Economic growth remains a centerpiece of Youngkin’s vision. Investments in infrastructure, such as the $150 million set aside for the Interstate 64 expansion between Richmond and Williamsburg, coupled with the establishment of the Virginia Power Innovation Fund, signal a forward-looking strategy. The budget also earmarks funds for flood victims, stormwater management, and more, underscoring the administration’s commitment to a resilient and sustainable future.

Delegate Barry Knight and Senators Janet Howell and George Barker lauded the budget, emphasizing its bipartisan nature and its robust support for public schools, law enforcement, and mental healthcare.

Governor Glenn Youngkin’s signing of the Virginia State Budget sets a promising precedent for the future. While the budget’s figures are impressive, it’s the underlying message that resonates the most: a pledge to work across divides, prioritize citizens, and create a thriving Commonwealth for all.

Highlights:

Cutting Costs For Virginians

• $1 billion in tax cuts. On top of last year’s cuts, which totaled $4 billion, Governor Youngkin has signed over $5 billion in tax relief.

• Reinstates the state-wide sales tax holiday for school supplies, clothing, and footwear.

• Sends taxpayers back their money, up to $200 for single filers and $400 for married couples filing jointly.

• Increases the standard deduction to $8,500 for single filers and $17,000 for married filers.

• Provides tax relief to more veterans by eliminating the age restriction on military retirement income tax relief.

• Increases the business interest deduction from 30% to 50%, which will save small businesses and employers $10.3 million annually in tax year 2024.

Restoring Excellence In Education

• $653.3 million in aid for K-12 education and schools divisions.

• $418.3 million of that is one-time General Funds targeted to fight learning loss and chronic absenteeism.

• $152.3 million is to hire more support staff for students and teachers.

• $6.7 million in federal Elementary and Secondary School Emergency Relief Fund dollars devoted to expanding the Virginia Literacy Act to grades 4 through 8.

• $54.6 million from the General Fund to give teachers and other school staff a 2% raise starting on January 1, 2024. This is on top of the 10% raise for teachers that the Governor proposed last year.

Keeping Our Communities Safe

• $155.6 million in new spending for mental health services, including:

• $58.0 million to create crisis receiving centers and crisis stabilization units

• $34.0 million for permanent supportive housing and housing for individuals with serious mental illness

• $18.0 million for a targeted pay raise of an average of 5% for all Community Service Board staff

• $11.7 million for school and community-based children’s mental health services

• $10.0 million for 15 additional mobile crisis teams

• $10.0 million to contract for psychiatric emergency programs in hospitals

• $4.4 million to increase funding for the first three steps of STEP-VA

• $4.0 million for the Virginia Mental Health Access Program

• $15.0 million to increase support for the Operation Ceasefire Grant Program

• $9.5 million for healthcare workforce initiatives to close the nursing and behavioral health workforce shortage.

• $10.0 million to establish the Safer Communities Program.

• $5.1 million to support TDO/ECO transportation activities and local law enforcement agencies.

• $1.2 million for the Internet Crimes Against Children Task Force to backfill reduced fine and fee revenue receipts.

Reinvigorating Economic Growth And Making Government Work for You

• $150 million devoted to widening Interstate 64 between Richmond and Williamsburg.

• $125 million devoted to the Virginia Business Ready Sites Fund, plus $75 million to empower the Commonwealth to procure sites and make them ready for large employers.

• $18 million devoted to the victims of the Southwest Virginia floods that occurred in 2022.

• $17.0 million for managing stormwater encroachment in the City of Virginia Beach.

• $12.3 million devoted to closing the remainder of the unemployment insurance appeal backlog.

• $10 million devoted toward developing an inland port in Southwest Virginia.

• $4 million will go toward launching the Virginia Power Innovation Fund to make Virginia the landing ground for future energy technologies and supply chains.

• $6 million devoted toward economic development activities related to the Partnership for Petersburg.

• $700,000 for the Dairy Producer Margin Coverage Premium Assistance to support Virginia’s dairy farmers.