Governor Glenn Youngkin signed the Virginia State Budget, delivering on promises made to all Virginians to lower the cost of living by providing an additional billion dollars in tax relief, "restoring excellence in education by empowering parents", investing in students and supporting law enforcement on Thursday.
The sections below highlight main points from the budget, listed out by the Office of Governor Glenn Youngkin.
Cutting Costs For Virginians
- $1 billion in tax cuts. On top of last year’s cuts, which totaled $4 billion, Governor Youngkin has signed over $5 billion in tax relief.
- Reinstates the state-wide sales tax holiday for school supplies, clothing and footwear.
- Sends taxpayers back their money, up to $200 for single filers and $400 for married couples filing jointly.
- Increases the standard deduction to $8,500 for single filers and $17,000 for married filers.
- Provides tax relief to more veterans by eliminating the age restriction on military retirement income tax relief.
- Increases the business interest deduction from 30% to 50%, which will save small businesses and employers $10.3 million annually in tax year 2024.
Restoring Excellence In Education
- $653.3 million in aid for K-12 education and schools divisions.
- $418.3 million of that is one-time General Funds targeted to fight learning loss and chronic absenteeism.
- $152.3 million is to hire more support staff for students and teachers.
- $6.7 million in federal Elementary and Secondary School Emergency Relief Fund dollars devoted to expanding the Virginia Literacy Act to grades 4 through 8.
- $54.6 million from the General Fund to give teachers and other school staff a 2% raise starting on January 1, 2024. This is on top of the 10% raise for teachers that the Governor proposed last year.
Keeping Our Communities Safe
$155.6 million in new spending for mental health services, including:
- $58.0 million to create crisis receiving centers and crisis stabilization units
- $34.0 million for permanent supportive housing and housing for individuals with serious mental illness
- $18.0 million for a targeted pay raise of an average of 5% for all Community Service Board staff
- $11.7 million for school and community-based children’s mental health services
- $10.0 million for 15 additional mobile crisis teams
- $10.0 million to contract for psychiatric emergency programs in hospitals
- $4.4 million to increase funding for first three steps of STEP-VA
- $4.0 million for the Virginia Mental Health Access Program
- $15.0 million to increase support for the Operation Ceasefire Grant Program
- $9.5 million for healthcare workforce initiatives to close the nursing and behavioral health workforce shortage.
- $10.0 million to establish the Safer Communities Program.
- $5.1 million to support TDO/ECO transportation activities and local law enforcement agencies.
- $1.2 million for the Internet Crimes Against Children Task Force to backfill reduced fine and fee revenue receipts.
Reinvigorating Economic Growth And Making Government Work for You
- $150 million devoted to widening Interstate 64 between Richmond and Williamsburg.
- $125 million devoted to the Virginia Business Ready Sites Fund, plus $75 million to empower the Commonwealth to procure sites and make them ready for large employers.
- $18 million devoted to the victims of the Southwest Virginia floods that occurred in 2022.
- $17.0 million for managing stormwater encroachment in the City of Virginia Beach.
- $12.3 million devoted to closing the remainder of the unemployment insurance appeal backlog.
- $10 million devoted toward developing an inland port in Southwest Virginia.
- $4 million will go toward launching the Virginia Power Innovation Fund to make Virginia the landing ground for future energy technologies and supply chains.
- $6 million devoted toward economic development activities related to the Partnership for Petersburg.
- $700,000 for the Dairy Producer Margin Coverage Premium Assistance to support Virginia’s dairy farmers.
You can watch Governor Youngkin sign the Virginia State Budget by clicking here.
