Virginia budget negotiations update: Signs of ‘progress’

Senate budget conferees are working on a response to a recent proposal from their counterparts in the House of Delegates.

“We had a very good discussion, and we are going to get together sometime next week or so and hone in on exactly what we want to do in terms of providing a response on it,” Sen. George Barker, D-Fairfax, said Friday.

The General Assembly approved a two-year budget in 2022, but legislators have struggled this year to reach a compromise on a series of budget amendments. The negotiations are headed by House Appropriations Committee Chair Barry Knight and Senate Finance and Appropriations Committee Chair Janet Howell and Barker, the co-chair.

After a stalemate that dragged on for months, Knight said last week that he had given a proposal to Howell, D-Reston, and Barker on July 20. The Virginia Beach Republican said neither senator shared their opinions about it with him.

On Friday, Barker said he considered it to be an improvement from other previous proposals.

“It was progress,” he said. “It’s not perfect in our eyes, but we will work on it and get back with them and try to move this along.”

Meanwhile, Knight said Friday that he had heard “not a word” from the Senate conferees. But the delegate said he expects to see Howell and Barker at a Monday meeting to discuss the governor’s revenue estimates and that they might discuss the budget amendments then.

The three legislators largely work behind closed doors, meaning few updates have been available to the public.

The General Assembly was unable to reach an agreement on budget amendments during the legislative session due to disagreements over Gov. Glenn Youngkin’s proposed tax cut package. The governor is pushing for $1 billion in cuts, including lowering the corporate income tax rate from 6% to 5%, increasing the standard income tax deductions for individuals and joint filers, and expanding tax exemptions on veterans’ pensions by eliminating age requirements.

House Republicans backed the governor’s plan, while the Democrat-held Senate wanted to nix the tax cuts and give about $1 billion to school divisions. The negotiations subsequently went into overtime after a consensus wasn’t reached during the session.

Barker said Friday the corporate tax cuts — which Democrats adamantly opposed — were not included in the most recent proposal.

If the disagreements drag on much longer, Knight said last week that it might be time to shelve negotiations until the next fiscal cycle, as the governor’s next proposed budget will come out in December.

But Sen. Creigh Deeds said he’s confident they can reach a consensus soon.

“We will make a counter proposal shortly,” Deeds, D-Charlottesville, wrote to The Virginian-Pilot and Daily Press Friday. “I am optimistic we will reach an agreement and get this thing done!”

Senate budget conferees include: Howell, Barker, Deeds, Dick Saslaw, Tommy Norment, Emmet Hanger, Louise Lucas, Stephen Newman and Mamie Locke.

House budget conferees include: Knight, Terry Austin, Robert Bloxom, Emily Brewer, Luke Torian and Mark Sickles.

Katie King, katie.king@virginiamedia.com