Governor Ralph S. Northam presented his budget adjustment recommendations at a meeting of the Joint Money Committees (Senate Finance and Appropriations, House Appropriations, and House Finance) of the Virginia General Assembly this morning. Northam's revised budget includes investments in public education, pandemic vaccine delivery and recovery, and the state's reserve fund.
In his speech, the Governor announced the December revenue report includes an additional forecast of $1.2 billion over the report received by legislators in August prior to the General Assembly's Special Session. "The plan I will present to you today is intended to help Virginians navigate the next phase of the crisis, and perhaps, its final months," Northam stated. "It will position us to recover as quickly as possible as we rebuild our economy in a post-pandemic world. And it’s about advancing the progressive agenda that we all embarked upon together a year ago."
The Governor's budget proposes over $500 million to hold school divisions harmless for enrollment loss in public schools that has occurred due to the COVID-19 pandemic. School division instructional and support staff would receive a one-time 2% bonus. The Governor added he would like to turn this 2% bonus into a permanent raise if revenue forecasts continue to show healthy tax collections in the months ahead. Recognizing the important role school counselors will have as students return to in-person learning, the Governor proposed $21.6 million to fund a school counselor ratio of 1:325.
The Governor is also proposing nearly $100 million to pay off deferred contributions from the 2008 recession into the VRS Teacher Plan and to pay down retired health credit and Other Post Employment Benefit liabilities for teacher and state plans.
Other Highlights of the Governor's Proposed Revisions to the Budget include:
- $650 million toward the state’s revenue reserves
- $90 million toward COVID-19 vaccination preparation and delivery
