Sen. Todd Pillion, R-Washington County, and Del. Terry Austin, R-Botetourt County, are among the conferees tasked with hashing out the differences in the House of Delegates and state Senate biennial budget bills.
They will join Senate Finance chair Louise Lucas, D-Portsmouth, Sen. Creigh Deeds, D-Charlottesville, Sen. Mamie Locke, D-Hampton, Sen. Richard Stuart, R-Westmoreland County, and House Appropriations chair Luke Torian, D-Prince William County, Del. Betsy Carr, D-Richmond, Del. Delores McQuinn, D-Henrico County, Del. Paul Krizek, D-Fairfax County, and Del. Rob Bloxom, R-Accomack County.
The group of lawmakers has been tasked with negotiating differences in the two chamber budget proposals, which were introduced last week.
Those proposals, presented by each money committee in February, differed widely — the House proposal outlines $71.5 billion in appropriations over the biennium while the Senate proposed spending roughly $74 billion. But both chambers found common ground in efforts to increase pay for educators and state workers, as well as the need to counter federal funding cuts. Neither budget proposal sought to increase taxes.
Once the conferees finish negotiations, the amended spending bill will be voted on by the General Assembly and sent to Democratic Gov. Abigail Spanberger for a signature or line-item veto. If Spanberger opts to do nothing with the spending bill, it will become law after 30 days.
Both House and Senate appropriations committees, controlled by Democrats, discarded much of former Republican Gov. Glenn Youngkin’s final proposed spending bill, which was introduced in December before he left office. Among those initiatives on the cutting-room floor were the former governor’s efforts to eliminate taxes on tips for service workers and other tax reduction efforts. The dismissal of those tax initiatives could increase state revenue by more than $600 million between 2026 and 2028, according to the Senate money committee.
Some differences between the House and Senate budget proposals
Wrinkles that will need to be smoothed over by the conference committee include a question about data center tax incentives and their expiration date. Those incentives are currently set to expire in 2035, but the Senate proposal moves that sunset up to 2027. Proponents of the effort argue that data centers need to “pay their fair share” in taxes, while opponents have argued that the earlier expiration will make Virginia less attractive for companies seeking to build the high-energy load facilities.
That early expiration could lead to nearly $1 billion in additional revenue over the biennium, according to the Senate money committee.
The House proposal included a forecast of $265 million in tax revenue over the biennium should so-called “skill games” be legalized.
Both committees proposed salary increases for educators and state employees, though the House proposed a 2% annual increase while the Senate proposed a 3% annual increase.
The House and Senate both included premium assistance for health insurance plans bought through the Marketplace, where costs for many are increasing following federal funding cuts. The House proposal provides $79.1 million in assistance over the biennium, targeted toward people with income between 138% and 200% of the federal poverty level, while the Senate provides $200 million in the first year of the biennium for health care coverage.
The House and Senate committees included money in their budget proposals for the construction of an inland port in Washington County, but both proposals may be underfunding the cost to build such a port. The House earmarked $2 million for a study, while the Senate maintained Youngkin’s initial $35 million proposal for the project.
