“Let’s keep Virginia winning” — Gov. Youngkin proposes amendments to 2024-2026 budget

By Sophia Clifton

 On Dec. 18, 2024, Gov. Glenn Youngkin addressed the General Assembly’s Joint Money Committee to present his proposed amendments to the 2024-2026 biennial budget bill.

“Virginia is roaring. Our collective bold actions are working,” Youngkin began. “And as a result of our work together, Virginia is growing, Virginia is leading, and Virginia is winning.”

“Let’s keep going. Let’s keep Virginia winning,” Youngkin said, reminding the committee how far the state has come. “When we started all of this in 2021, Virginia was bottom third in the nation in job growth. More businesses were leaving than coming. Over 23,000 small businesses were shuttered in 2021. 

“Today, everything is different. This year, Virginia was named the Top State in America for Business by CNBC, and just this week, we were named by Business Facilities state of the year, the best place to locate a business.  

Businesses have committed nearly $90 billion in capital to build factories, expand facilities, develop supply chains,” Youngkin said. “And last year, for the first time in 10 years, we saw more people move to the Commonwealth than away from the Commonwealth to the other 49 states. Together, we can all be proud that Virginia is a place where people want to live and work and raise a family.”

“I’m presenting this morning a reforecast for 2025 and 2026 that incorporates $3.2 billion of incremental revenue over the biennium … This new December forecast reflects a 4.1% growth over 2024, followed by a 2.5% growth in 2026. This 4.1% growth rate compares to the 7.3% growth rate that we have already realized year-to-date, which means that as we stand here today, we are already $152 million ahead of this new December forecast,” said Youngkin.

“We have provided Virginia families over $5 billion of tax relief—and yet, government tax receipts continue to grow. Therefore, let’s give Virginia families relief on the most hated tax in America since the tax on tea—the local car tax,” Youngkin said. 

“Under my amendment, a family of four will be fully reimbursed with the Middle Class Car Tax Credit—a permanent, refundable, income tax credit, with a refundable income tax credit of up to $150 for individuals earning under $50,000 a year and up to $300 for joint filers with under $100,000 in annual income. The cost of the middle-class Car Tax Credit will be covered for the first 3 years with a $1.1 billion deposit into a car tax relief fund.”

He continued discussing his plans for tax relief. “Virginia has an incredible hospitality, restaurant and service industry. Hardworking Virginians should keep every penny of the tips they earn through their exceptional service. My proposal is very simple, no more taxes on tips. You earn it, you keep it. This reduces taxes on Virginians by $70 million a year.”

Youngkin then advocated for making the current Virginia standard deduction permanent. “Currently, the existing standard deduction of $8,500 for single individuals and $17,000 for joint filers, is set to expire on Jan. 1, 2026. Failure to make the standard deduction permanent prior to that would result in tax increases of $557 million in fiscal year 2026, and $1.2 billion in fiscal year 2027. My friends, there is no reason to raise taxes on Virginians. “

“These steps will make our Commonwealth even more business-friendly, give hard working Virginians relief from the sting of inflation from these past few years and demonstrate clearly what is possible when we work together,” Youngkin said.

“To keep Virginia winning for families, we must continue to press forward on what has been the most aggressive education-funding agenda in the history of the Commonwealth,” the governor continued. “With the amendments I am offering today, which total to an additional $1 billion—our shared commitment to K-12 public education will exceed $22 billion over the biennium.”

Youngkin then elaborated on each area of education that would be receiving funding under his amendments, including $290 million for school construction and modernization, $550 million in direct aid, $6.8 million for school resource officers and school security officers, $50 million for schools that need help per the state’s school performance framework, and $110 million for English language learners.

Youngkin also explained his proposition for a new $50 million Virginia Opportunity Scholarship Program that will support 10,000 students “from families at or below twice the federal limit to qualify for free school meals, will be eligible to apply for a $5,000 grant each year to support their educational needs—tuition, uniform, books, supplies, fees and transportation—for an education at any private school in the Commonwealth of Virginia. 

Youngkin additionally reinforced his commitment to restore the Virginia Military Survivors and Dependents Education Program. “I am proposing an additional $120 million, $60 million each year, to allow our heroes and their families to pursue their educational dreams at Virginia schools.”

Youngkin then turned to the topic of higher education. “Virginia is internationally recognized for our great universities and colleges. The cost of attending those institutions has grown too much, too quickly for Virginians,” Youngkin said. 

“Together, we have increased funding for higher education to levels not seen since the Great Recession. And while we have included nearly $500 million in capital funds for higher ed, my amendments include no new operating funding for our colleges and universities and include a 2.5% cap on tuition increases.” 

Youngkin also acknowledged the $25 million of incremental lab school partnership funding set aside for use by Historically Black Colleges and Universities.

“To keep Virginia winning, we must continue to strengthen Virginia’s economy. To attract and train the best talent, my budget proposals this morning include an additional $13.9 million in funding for nursing and nursing recruitment and training programs; an additional $35 million to fund high school dual enrollment and career and technical education. 

“We must continue to back our law enforcement and drive safe communities. In the last few years, every state has become a border state, and violent crime has impacted Virginia families,” Youngkin continued. “That’s why I’m proposing that if any locality adopts a sanctuary practice … they should lose their funding. I would ask us all to put our constituents ahead of those who commit violent crimes and are subject to an ICE Detainer Order.”

Youngkin then turned to the topic of mental health. “We will keep Virginia winning as we deliver for Virginians the need for behavioral health care. To date, we’ve invested $1.4 billion in Right Help, Right Now, and it has transformed the way we are serving Virginians. They are getting the right help when they need it,” he said. “After a successful pilot in Southwest Virginia, we are now proposing to add $35 million in funding to employ Special Conservators of the Peace, across the Commonwealth to transfer custody while individuals are awaiting placement for care, and this will immediately put law enforcement officers back to work.” 

“At the heart of a winning Virginia, is a healthy Virginia.” Before concluding his address, Youngkin also spoke about his proposals for women’s health and Medicaid, environmental health, and government health. “My budget amendments this morning fully funds the official Medicaid and associated rate forecasts with over $687 million and also include $105 million for the Children’s Services Act,” the governor said.

“To keep protecting Virginia’s natural resources, I’m proposing an incremental $50 million for the Richmond Combined Sewer Overflow Project, $17.4 million for additional wastewater, and $26.3 million for Ag BMPs. And each time I have repeated my commitment to our Chesapeake Bay goals.”

“Finally, to keep Virginians working for Virginians, we must continue to drive efficiency and effectiveness in our state government,” Youngkin added. “We’re including over $227 million in our budget to address Virginia’s technology debt by advancing critical projects, including the Integrated Revenue Management System at TAX—Folks, we need to make sure we collect our taxes efficiently and effectively—and The Department of Education’s Student Testing system, which needs a material overhaul. And we have also included $20 million of IT security to protect Virginia’s data.”

Youngkin began wrapping up his speech by touching on the aftermath of Hurricane Helene in Southwest Virginia. “In my amendments, I’ve included $25 million from the general fund and $100 million from non-general funds to establish a permanent Disaster Assistance Fund, a fund that would be administered by the Department of Housing and Community Development.”   

Youngkin concluded his speech in the same vein he began. “What we are doing is working. Virginia is soaring, so let’s keep Virginia winning. We are now among the top states competing for jobs and opportunities. These budget amendments build on that success,” he said. “We can collectively get this done.”