(The Center Square) — The Center Square covered the events of this week’s General Assembly special session finalizing the budget deal reached by the House and Senate finance committees, but here’s a look at some key items in the passed budget (though the bill still awaits signing by the governor).
Education
The 2022-2024 budget passed last year included $19.2 billion for education – the largest-ever education budget passed in the state. This year’s budget amendments added another approximately $650 million after back-and-forth over whether to devote additional funds to education or more tax breaks for the commonwealth.
Conservation
This year’s budget included the largest amount dedicated to conservation – $671 million – including $151 million for wastewater treatment plant upgrades, $100 million for the Resilient Virginia Revolving Loan Fund (which assists Virginians in flood resilience projects), $30 million for the Stormwater Local Assistance Fund and $25 million for the repair of high-hazard dams.
Tax Relief
Last year’s biennial budget included $4 billion in tax cuts. For this year’s budget bill, Gov. Glenn Youngkin initially set out to establish nearly $1 billion in recurring tax breaks, adjust tax brackets, increase the standard deduction to $9,000 for individual filers and $18,000 and lower the corporate income tax rate from 6% to 5%.
Democrats negotiated that to approximately $1 billion in one-time rebates of $200 and $400 for individuals and families and a standard deduction of $8,500 and $17,000, up from $8,000 and $16,000, respectively. The corporate tax rate remains the same.
The bill increases the business interest deduction from 30% to 50%.
Health Services
This package focuses on mental health, substance abuse, long-term care and the health care workforce shortage. It provides $103 million to expand crisis services and facilities, $47 million to fill gaps in Virginia’s health care workforce and $74 million “to incentivize nursing homes by linking payments to quality of care,” according to Del. Barry Knight, chair of the house appropriations committee; it provides for 500 more developmental disability waiver slots – waivers enable those with developmental disabilities to receive specialized care and services – in addition to the 600 that were approved last year.
Teachers
The budget facilitates a 2% raise for teachers, effective in January, and $420 million to local school districts to spend as needed.
Sales Tax Holiday
The amendments reinstate the annual sales tax holiday, which didn’t happen this August due to budget delays. This year’s will be the third weekend in October, but future sales tax holidays will be in August, right before the school year.
