Despite Surplus, Virginia Democrats Provide No Tax Relief In Budget, But Do Increase Their Pay by over 150%
This week, Virginia Democrats announced an agreement on the data center tax credits which paved the way for Democrats to pass their version of the budget, which Republicans largely opposed. Notably, the Data Center coalition warned that increased taxes on data centers threatens 74,000 jobs and $9.1 billion in GDP for Virginia’s economy.
This budget comes as Virginia Democrats work overtime to avoid a government shutdown at the end of June if a budget does not pass. Governor Spanberger said she largely supports the budget but will likely offer several amendments. This last-minute scramble by Virginia Democrats is poor governing practices that cause unnecessary confusion for the Commonwealth.
Republican State Senator Glen Sturtevant highlighted several problems with the budget saying, “After this 11th-hour budget deal was released on Friday at 7 PM, I spent the entire weekend going through it. It’s 600 pages long. Three major problems with the budget:
This is a data center-approved compromise. Data centers are not required to pay the full cost of the infrastructure that is currently passed on to everyday Virginians through their electric bills.
A 150% pay raise for members of the General Assembly. We’ve barely been able to produce a budget on time this year. What’s been done to earn that?
The retail marijuana market proposal was a separate 250-page document. This should be a standalone bill we can vote on, not in an 11th-hour special session stunt.
Bottom line: Virginia needs a budget – no one wants a government shutdown. But we need a budget that lowers costs, respects taxpayers, and protects families who are paying higher electric bills. I’ll be voting NO.
Republicans respond to the rushed budget process:
Republican Delegate Karen Hamilton said, “Virginia Democrats gave teachers an 8% raise over the next two years. They gave themselves a 184% pay raise. WOW.”
House Republican Leader Terry Kilgore said, “For 250 years, Virginias have led the nation in self-government, responsible stewardship and public service. Yet today, with one party controlling the Governor’s Office, the House of Delegates, and the Senate, the most basic responsibility of government remains unfinished. Passing a budget is not option. It is a fundamental duty of the General Assembly and the Governor. Our schools, local governments, law enforcement agencies, state employees, and taxpayers all depend on the centrality and stability that a budget provides. At a time when we should be showcasing Virginia’s leadership and preparing to commemorate our role in the founding of this nation, we are instead facing unnecessary uncertainty because Democratic leadership has failed to reach an agreement.”
Kilgore continued, “Virginians deserve better. They deserve a government that can fulfill its most basic responsibly and honor the legacy of those who built this Commonwealth over the last 250 years. As we approach this historic milestone, I urge the Governor and legislative leaders to put politics aside, finish their work, and deliver a responsible budget for the people of Virginia.”
Republican State Senator Mark Obenshain said, “I cannot vote for a budget that forces Virginia back into the Regional Greenhouse Gas Initiative (RGGI). Furthermore, at a time when Virginia taxpayers are struggling with inflation, this budget increases state spending by approximately 15%, implementing massive tax hikes and, funds a pay raise nearly tripling legislative salaries. We should be putting money back into the pockets of hardworking Virginians, not growing government and raising our own salaries. While I applaud the funding for education and public safety and other important investments, I cannot vote for a budget that pairs those priorities with a regressive energy tax and politician pay hikes.”
Former Attorney General Jason Miyares said, “So NO tax relief for Virginians despite Governor Glenn Youngkin leaving Governor Spanberger a billion plus surplus, yet there is money to TRIPLE the salaries of politicians in Richmond. I get it, “affordability” was for themselves not for Virginians!”
