The start of 2024 brings a new class of legislators to Capitol Square in Richmond. On January 10, the General Assembly will convene to consider policy ideas and vote on their passage. This year offers a new opportunity as Democrats hold a majority in both chambers. This shift in power will require Republicans and Governor Youngkin to seek compromises and find common-ground to be successful.
Headlining the coming session will be the 2024-2026 biennial budget. This budget marks an important milestone for Governor Youngkin, as this will be the final two-year budget he will sign into law. This budget will cement his legacy as governor and will guide the decisions of his remaining two years in office. However, this year will be especially challenging given the Democratic majorities in both chambers.
In December, the Governor released his budget proposal, outlining his vision of more tax cuts from the top down. At the core of his budget is a change to income tax brackets. He has proposed a cut from 2 percent to 1.75 for individuals in the lowest bracket, and a cut from 5.75 percent to 5.1 percent for individuals in the highest bracket. Recognizing these changes would significantly disrupt state revenues, the governor proposed an increase of our sales tax, from 4.3 percent to 5.2 percent, to offset that cost. I have many issues with this approach. First, this top-down tax cut approach provides the biggest benefit to the wealthiest Virginians, not working-class families. Additionally, shifting the tax structure to rely more heavily on sales tax is regressive and further puts the burden on families struggling the most.
Aside from what is included in his budget, it’s important to highlight what has been omitted this year. Notably, his plan calls for no additional funding for Metro, despite the transit system’s current $750 million shortfall. Additionally, as pandemic relief funds from the federal government are drying up, his proposal for public education is lackluster. When state experts say we have severely underfunded our schools for years, thanks to a faulty funding formula, I find it simply disappointing that this budget does not do more to address that deficit. Fortunately, this is just the beginning of the budget process, as both the House Appropriations Committee and Senate Finance and Appropriations Committee will create budgets of their own to be reconciled and offered to Governor Youngkin to sign into law.
Outside of his budget proposal, Governor Youngkin has shared his goal of eliminating the car tax this session. Many years ago, Governor Gilmore proposed the same policy but was unsuccessful. Instead, we agreed for the Commonwealth to subsidize part of the cost, providing relief for individuals and covering the lost revenue for localities. However, the Commonwealth now has a nearly $1 billion obligation for every budget moving forward. This diverts a sizable portion of our revenues and complicates our ability to fund other critical services like education. In fact, prior to the car tax relief, we used to cover two-thirds of the cost of in-state college tuition, leaving families and individuals on the hook for paying the remaining one-third. Today, that is flipped, and our budget can only cover one-third of the cost, burdening families with much greater responsibility. If we plan on eliminating the car tax, we need a solution that doesn’t continue to rip money away from public schools and doesn’t place an unfair burden on localities.
While these issues will be debated heavily in the coming session, for the first time in 48 years, I won’t be there to share my perspective. Instead, I’ll be enjoying the retired life with my wife, daughter, and grandchildren. As my final days in office come to a close, I would like to thank you all for your support over the years. When I first ran for the House of Delegates back in 1976, I could have never imagined that I would spend more than four decades making a difference in my community and Virginia as a whole. I am proud of the work I was able to accomplish over those many years. While we have made great progress, we still have a ways to go to make Virginia a better place for everyone, especially those most vulnerable. I have full faith that the Commonwealth is in good hands with the next generation of legislators.
Once again, thank you all for your support over the years. Here’s to retirement!
