Governor Warns of Necessary Changes to Approved Virginia Budget by Lawmakers

The 60-day legislative session in Virginia concluded with lawmakers approving a two-year budget that includes pay raises for teachers and state employees, increased education funding, and extends the state sales tax to cover digital services.

A key omission was the exclusion of language to support Republican Gov. Glenn Youngkin’s proposal for a $2 billion development district with a new arena to attract the NBA’s Washington Wizards and the NHL’s Washington Capitals to Alexandria.

Despite Youngkin’s efforts, the Democratic-led General Assembly rejected the proposal, refusing to include it in the state budget.

Youngkin still has the option to revive the project by calling a special session and introducing a new bill.

Democratic Sen. L. Louise Lucas expressed opposition to the project due to concerns about reliance on state and city government-backed bonds.

This legislative session marked the first time Youngkin had to work with a Democrat-controlled Senate and House of Delegates.

While some Democrats criticized Youngkin for being unwilling to compromise, Senate Majority Leader Scott Surovell emphasized the need for mutual respect and negotiation.

Youngkin expressed dissatisfaction with the approved budget, describing it as “backward” and in need of significant revisions.

The budget includes 3% raises for teachers and state employees over the next two years, but excludes several of Youngkin’s proposed priorities such as income tax rate reductions and sales tax increases.

Lawmakers also passed legislation related to marijuana legalization, skill games regulation, and minimum wage increases.

Youngkin signed some bills into law while vetoing others, including a firearms transfer restriction bill.