Senate Budget Proposal Recognizes Need for New Revenue to Invest in Virginia

Today, Ashley Kenneth, President and CEO of The Commonwealth Institute for Fiscal Analysis (TCI), released the following statement on the budget proposal presented by the Senate Finance and Appropriations Committee:

“The Senate Finance and Appropriations Committee continues to recognize that investing in our communities requires new sources of revenue. Senate budget negotiators proposed larger raises for Virginia’s workforce — 3.5% for state and state-supported employees and 4% for teachers — while maintaining their $200 million commitment to help families afford health insurance on the state marketplace.  

“We recognize that this proposal reflects compromise, though we continue to believe that the data center sales and use tax exemption should end. Virginia should not continue costly giveaways to some of the largest corporations in the world. We appreciate that Senate leaders are still trying to hold data centers accountable through a tiered impact fee, which is expected to generate over $1.7 billion over the next two years. New revenue creates opportunities to make lasting investments in affordability and helps maintain many of the priorities the Senate proposed in February, originally supported by eliminating the sales and use tax exemption. 

“We also appreciate the Senate’s cautious approach to the updated revenue forecast, stating that they are using much of it for one-time spending. Pairing one-time resources with new, ongoing revenue means Virginia will have the resources to address immediate needs and be better able to meet future challenges. 

“Addressing affordability and the pressures families are facing across Virginia requires new sustainable revenues. We hope that negotiators reach a final budget on time that ensures massive corporations pay their fair share and makes the lasting investments our communities need to thrive.”