Governor Ralph S. Northam presented his outline of the
2022-2024 biennium budget recommendations at a meeting of the Joint Money
Committees (Senate Finance and Appropriations, House Appropriations, and House
Finance) of the Virginia General Assembly. Northam’s two-year spending plan of
roughly $158 billion dollars draws heavily on the budget surplus of $2.6
billion for Fiscal Year 2021 with key investments in public education, the
state retirement system, and deposits into the state’s reserve funds.
Northam announced an overall investment of $2.3 billion in
direct aid to public education, including $268 million in funding to support at-risk
students in high poverty school divisions. This marks an increase of over $128
million dollars from the 2020-2022 biennium budget. Northam also proposed $500
million in funding to assist localities with school construction and
renovation.
Additionally, the Governor’s proposed budget calls for a 5
percent pay raise for public school teachers in each of the budget’s two years.
The 10 percent total raise over the biennium has an estimated cost of nearly
$750 million. To view in-depth analysis of the Governor’s education budget from
the Virginia Department of Planning and Budget, click
here.
Other Highlights of the Governor's Proposed Budget include:
- A set aside of $1.7 billion for the Commonwealth’s revenue reserves, including a $564 million voluntary deposit beyond the constitutional requirement bringing the Commonwealth’s reserves to more than $3.8 billion or 16.8% of state revenues.
- $900 million deposit to the Virginia Retirement System to reduce unfunded liabilities.
- Expanded access to the Virginia Preschool Initiative for three-year-olds and an increase in the Child Care Development Fund by more than $73 million each year.
- A proposed total of nearly $2.1 billion in tax cuts.
- One-time rebates of $250 per individual taxpayer or $500 for married couples filing jointly.
- Eliminates the state’s 1.5 percent tax on groceries, but leaves the 1 percent local add-on tax unchanged.
- Allowing working families who meet certain criteria to get money back for the earned income tax credit.
- $42.5 million in each year for payments expected to Amazon—payments that are contingent on Amazon meeting their obligations for investments and job creation.
- Spending $1 million to study Virginia’s need for more capacity in behavioral health facilities in Fiscal Year 23, with an additional $100 million in the second year for increasing capacity in Fiscal Year 24.
- $60 million for cybersecurity upgrades across state government.
The proposed 2022-2024 biennium budget will be considered
by members of the General Assembly when the 2022 session convenes on January 12th.
The VSBA Government Relations team will continue to monitor the budget and
legislative developments as session approaches. If you have any questions,
please contact VSBA Government Relations Specialist, J.T. Kessler, at
jason@vsba.org.
