Earlier this month, outgoing Governor Glenn Youngkin presented his final two-year budget to the General Assembly’s joint money committees, and it was loaded with good financial news. The gloom and doom predicted by some earlier this year has not only failed to materialize but also has given way to yet another budget surplus.
Virginia has been – and remains – flush with cash. The Commonwealth has more than enough money to fund K-12 re-benchmarking and the required increases in Medicaid spending. In fact, Virginia is running $500 million ahead of projected revenue as of November 2025. Said simply, despite dour forecasts made earlier this year, there is no need for the General Assembly to raise taxes. Of course, the new Democratic majority and incoming Governor Abigail Spanberger will have the final say on that.
Solid financial performance means that the budget can sustain conformity with Federal tax relief included in the so-called “One Big Beautiful Bill Act.” Governor Youngkin’s proposed budget includes an end to taxes on tips, taxes on overtime, and deductions for interest on car loans made for American-assembled vehicles.
Those cuts will put an estimated $270 million back into the packets of those who need it the most. Other tax relief included in the budget brings tax relief up to $730 million over two years. While providing this much-needed relief, the proposed budget contains more money for teachers, sheriffs, state employees, and state police – a total of $1 billion in investment over the biennium. This includes a two percent bonus and two percent raises in this and the next fiscal year. Total new spending includes $6.4 billion in the General Fund – $544 million which goes to K-12 re-benchmarking while preserving the staffing ratios approved in the last legislative session.
All in all, this budget proves that the fiscal alarmism made by some earlier this year was completely unfounded. Democrats on the money committees appeared almost angry at the good news, arguing that the numbers presented could not possibly reflect reality. But as Governor Youngkin’s team pointed out, they are working with hard data, and the numbers indeed add up. There is no need for the Commonwealth to raise taxes this year, and Virginia is in great fiscal shape. The ball is in the court of General Assembly Democrats and Governor-Elect Spanberger this year, and if they want to keep the good news going, they must not continue their efforts to turn Virginia into California.
As the Delegate representing the 42nd House District in the Virginia General Assembly, your concerns are my greatest priority. If ever I may be of assistance to you and your family, please do not hesitate to reach out to me at DelJBallard@House.Virginia.Gov. You can also follow me on Twitter @JasonBallardVA or like my Facebook page, Jason Ballard for Delegate, to keep up to date with what I am doing in Richmond and in our community on your behalf.
