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Editorial
Virginia finally has a budget, two months after the General Assembly adjourned its regular 2024 session. The General Assembly on Monday adopted a $188 billion biennial budget plan that was hashed out by negotiators from the Democratic-controlled legislature and Republican Gov. Glenn Youngkin’s administration. The governor is expected to sign off on the budget today.
Local governments can breathe a sigh of relief now that they know what state appropriations they will be receiving. The state budget includes funding for the state’s share of 3 percent pay raises for teachers. In the Rockbridge area, teachers are getting at least that – in the county and Buena Vista, teachers are getting 5 percent pay raises.
Because of the uncertainty surrounding the state budget and its impact on local coffers, the deadline for paying Rockbridge County real estate taxes was pushed back from June 5 to June 21. The Board of Supervisors on Monday approved the county budget for the next fiscal year. The budget includes no tax increases, which is the same for Lexington’s budget approved last month and Buena Vista’s budget that is slated to be approved tomorrow (Thursday).
The state budget also includes no tax increases. Governor Youngkin had originally proposed an income tax decrease, a sales tax increase and imposition of a tax on digital goods and services that had previously been exempt from taxes. All of these proposals were scrapped in the compromise budget that ultimately prevailed. We would have liked to have seen the loophole closed that prevents certain digital items to go untaxed. We were certainly glad to see that the regressive sales tax was not raised because it would have hurt those most who could least afford it.
All in all, we believe the compromise reached by budget negotiators is good for the citizens of the commonwealth. Most importantly, the budget provides $2.5 billion in new funding for K-12 public education. This is a good first step in trying to make up what the state has been short-changing the standards of quality in education, as determined by a study completed last year by the Joint Legislative Audit and Review Commission.
There is a provision in the compromise budget that calls for a legislative subcommittee to take a broader look at tax policy that could lead to such things as closing the loophole for the tax exemptions for digital goods and services. This will be an opportunity for the state to develop a more fair tax system that will best serve the interests of all citizens of Virginia.
We have divided government here in Virginia. At times this leads to polarization and gridlock. In this instance, anyway, politicians from both sides of the political spectrum were able to come together and reach a compromise budget. We applaud their efforts.
