Budget Fail for Virginians

Written By Guest Contributor

On Monday, the General Assembly finally approved a biennium budget. Despite a handful of Republican legislators voting for the budget, the Democrat majority and Governor Spanberger (D) are completely responsible for the misguided spending priorities. Senator Ryan McDougle (R-Hanover) had this to say: “We see in the budget that there’s over $1.5 billion of additional revenue, that is from regular taxes raised, and then there’s additional revenue that will be spent, making it a multiple billions of dollars in additional spending.”  

This budget affects every Virginia family with increased spending, higher energy costs, and hidden fees. There are provisions to provide a 4% teacher pay raise and increase in the standard deduction from $17,500 to $18,600 for married couples.  Here’s a few of the eye-catching provisions:

  • 183% Legislator Pay Increase (Not a typo)

  • Authorized Sales Tax Increase Referenda across Virginia

  • $15 million for the destruction of the Richmond Coliseum

  • Legalized Marijuana Retail Market (more below)

  • Preservation of the Unlimited Data Center Sales Tax Exemption for massive corporations (estimated $1.8 billion tax benefit for those corporations)

  • Creation of a Data Center Electricity Consumption Fee (capped at $600 million)

  • Funding for TEN new positions in the Governor's office

The budget was also used to establish major policies, including a marijuana retail market in Virginia, which governs the sale, advertising, and distribution of retail marijuana. Here are some of the details:

  • The retail market starts on July 1, 2027

  • No Opt-Out for localities

  • Allows marijuana retail stores within 1,000 feet hospitals, schools, and playgrounds.

  • Significant authority is granted to the Cannabis Control Authority, a five-member board appointed by the Governor.

  • Up to 350 retail stores statewide (for now!)

This budget conflicts with the “affordability” motto we heard all session long.  As families continue to face rising grocery and energy costs, this budget funnels money to various projects like helping the City of Richmond destroy the Coliseum which the city has been unable to do because of gross mismanagement and push dangerous high potency marijuana products into our communities.

 The budget now goes to the Governor to either make amendments, sign or reject.  (Note: the General Assembly and the Governor has until June 30 to finalize the budget in order to avoid a government shutdown.)

Key takeaways

  • The General Assembly passed a budget and awaits action by the Governor.

  • Legislators approved a 183% increase in legislative compensation.

  • The budget preserves the data center sales tax exemption while creating a new electricity consumption fee.

  • The budget authorizes a commercial retail marijuana market that could allow up to 350 stores statewide.

Guest Contributor
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