Yesterday, Governor Glenn Youngkin unveiled his 2024-2026
Biennial Budget proposal at a meeting of the Senate and House Joint Money
Committees in Richmond. In the 2024-2026 proposal by the Governor, is a plan
for a 12% cut in income taxes across the board that would drop tax rates from
2% to 1.75% for the lowest bracket and from 5.75% to 5.1% for the
highest. To offset that loss in revenue from the income tax rate cut, the
governor is proposing to increase the state’s sales and use tax from 4.3% to
5.2%, while expanding the base of goods and services that tax applies to.
Additionally, the governor encouraged lawmakers to eliminate
the car tax local governments are currently allowed to levy and instead have
localities rely on further increases in sales tax.
Over the next biennium, Youngkin proposed an additional $764
million for Virginia’s K-12 schools, including $160 million for re-benchmarking.
$122 million to cover another 2% raise for teachers in fiscal year 2026 and $53
million for a 1% bonus in fiscal year 2025.
Youngkin also proposed investing $61 million to expand the
hiring of reading specialists, $40 million to support students seeking
industry-recognized credentials through “Diploma Plus” grants and $40 million
to develop a new state assessment system.
To review an itemized list of the Governor’s proposed
education spending, click
here.
The budget legislation HB 30 (Torian)/ SB 30 (Lucas), will be a topic of much debate once the general assembly convenes in January. We expect significant changes to the Governor’s proposed budget as it moves through the appropriations process. VSBA’s Government Relations Team will be working with legislators on key budget priorities and will continue to keep you informed on the budget during the legislative session.
