We Have a Budget!

Friday, June 3, 2022

Dear Friend,

The special session to act on a 2022-2024 biennium budget concluded Wednesday. The budget we adopted was a bi-partisan compromise that balanced the need to invest in human services with a recognition that tax relief would be a welcome antidote to inflationary pressures. No budget is ever perfect, but this budget is an acceptable compromise.

Tax Cuts—As you are probably aware, Virginia’s economy ebbs and flows much like our national economy and there is a real possibility of an upcoming recession. I am heartened to say that this evidence-based revenue pattern was acknowledged by lawmakers. For example, even though the adopted budget doubles the standard tax deduction (up to $8,000 for single filers and $16,000 for married couples filing jointly), the provision also includes language that sunsets this generous benefit in 2026.

The tax cuts also include one-time rebates of up to $250 for individual taxpayers and up to $500 for families this year, a larger deduction for military retirement income, and a refundable tax credit for low-income working families. The 1.5% state portion of the tax on groceries is repealed but the 1% local tax option on groceries is not repealed. The budget does not include a three-month suspension of the state tax on gasoline that Gov. Glenn Youngkin had wanted.

Noted Below are Highlights of the Budget: 

Critical Workforce Issues—I am proud to say that the budget also addresses some long-standing state employee pay issues, teacher salaries, Medicaid reimbursement rates and the shortage of healthcare professionals, among other needs. Enough dollars were included in the budget to give state employees a 10% increase over the biennium and to pay for the state’s share of a 10% increase in teacher salaries. I certainly hope that localities can contribute their portion of the formula to ensure that every teacher in the Commonwealth receives a 10% raise over the next two years. 

We have demanded an extraordinary effort from our teachers and school communities throughout the COVID crisis. Moreover, just as teachers felt they were “turning the corner,” Governor Youngkin established a tip line to report on teacher behavior and issued an executive order that banned the teaching of critical race theory which was never taught in our schools but led to confusion over how history should be taught. Frankly, we are fortunate that many teachers have decided to stay in the profession. It is long past time to reward these dedicated professionals. 

Gun Violence Prevention—I am heartened to say that the budget negotiators were able to reach a compromise on some gun violence prevention strategies. The budget deal includes $13 million that is earmarked to reduce the number of shootings in Virginia cities that are hardest hit by gun violence. Both Democrats and Republicans had proposed funding for new anti-violence initiatives, but we disagreed on the size, scope and who should oversee the program. The compromise puts the Department of Criminal Justice Services in charge of the money. The goal is to issue grants to local governments, community groups, hospitals and other entities that can implement “evidence-informed” gun violence reduction efforts. 

It is important to note that the funds we approved could also be used to support suicide prevention and firearm removal practices. This language would enable us to remove firearms from people who may be a risk to themselves or others as determined by a judge under Virginia’s Red Flag law. In a recent study conducted by Everytown For Gun Safety, it was found that six out of every 10 gun deaths in the U.S. are suicides, resulting in an average of 65 deaths a day.

Whenever we can achieve bi-partisan support for gun safety initiatives, Virginians win. Creating a sense of safety and the reality of safety in our communities gives each of us the freedom to go about our daily chores without the fear of being a casualty of gunfire. I do want to acknowledge the continued work of Moms Demand Action, the Coalition to Stop Gun Violence and Everytown, among other advocacy groups for the progress we made in the budget on gun safety funding.

Perhaps one day, Virginia will be able to ban high capacity firearms and assault weapons, raise the age to purchase a firearm to 21 and ban ghost guns, among other important measures. I remain hopeful that federal lawmakers will expand universal background checks and pass other helpful gun safety protections.

Investments in Early Childhood Education—I am particularly proud to say that $26.7M in the first year of the biennium and $40M in the second year is allocated to implement several early childhood initiatives, including biennial rebenchmarking for the Virginia Preschool Initiative slots, expanded services for three-year olds, expanded mixed delivery options and early childhood workforce recruitment and retention grants. I am also excited to note that the budget continues child-care subsidies for families up to 85% of the state’s median income. This is an important allocation since the median income is $65,000 for a family of four so supporting families in this income range is providing an important safety-net to Virginia's working families. I was honored on Wednesday by the advocacy group, Virginia Promise in Action with a Childcare Champion award because of my efforts to ensure that these funding allocations were included in the budget. 

K-12 Public Education—The budget provides enough funding to increase the ratio of support positions from 17.75 support positions per 1,000 students to 20 support positions per 1,000 students and in the second year of the biennium, the number of support positions rises to 21. This partially eliminates the funding cap placed on support positions beginning in FY 2010, a universal request from the education community and the state association of school superintendents.

Moreover, one reading specialist for every 550 students in kindergarten through third grade is funded. Additionally, the at-risk add on for schools with high percentages of children on free and reduced lunch was increased from a baseline of 26% to 36%. This is incredibly important because many at-risk schools are in communities with less safety-net systems and more economic vulnerability, so the children in these communities rely on their schools for free meals, trauma informed counseling services, homework aides and other supports. 

The Republicans also insisted on setting aside $100M to support grants to institutions of higher education that want to create and operate Lab schools. Based on conversations with the higher education community, I do not expect many prospective grantees will apply for the money since operating K-12 schools is not their core mission. 

Higher Education—The budget provides $104M over the biennium for increased affordability supports. This funding is intended to increase access to higher education and reduce the debt students frequently acquire to achieve a four-year degree. The combined allocations for student affordability programs nearly triples current spending levels. Of the $104M, Norfolk State University and Virginia State University each receive about $20M over the biennium.

Behavioral Health—The budget provides enough funding to increase the compensation of direct care staff in state facilities to the 50% benchmark for such positions, resulting in salary increases averaging around 37%. The budget also includes $22.2M in ARPA funds in FY 2023 and $28.3M in FY 2024 to fully implement and fund STEP-VA in the respective Community Services Boards. This is an area where more investments are needed and I worry that not enough ongoing money will be available in future years to provide the behavioral health safety-net that Virginians need.

Transportation—The budget includes an additional $110 to widen I-64 to three lanes in between Hampton Roads and Richmond. Some dollars were allocated to support long-distance commuter transit services through the Transit Ridership Incentive Fund. The biggest investment in transportation was directed to improving the operations and connectivity of the Port of Virginia. A total of $1B in capital outlays will be available to the Port over the biennium.

In Summary—There are certainly areas where I would have made different decisions such as increasing the availability of Developmental Disability Waiver slots and reducing the standard deduction benefit, but compromises had to be made. Overall, I believe that the budget comes close enough to supporting the values that you and I cherish, so I cast a vote to pass the budget, along with 31 other Senators. 

Do not hesitate to contact my office if you have any questions. It is a privilege and honor to represent you in Richmond.

Sincerely,