Democrats, who control both houses of Congress, have shown no interest in Youngkin's plan to significantly rewrite the budget passed on March 9, and Youngkin is the first Virginia governor to veto an entire budget. It looked like they were leaning towards a showdown. .
As a result, if a budget compromise is not reached by the end of the current fiscal year on June 30, Virginia faces the possibility of an unprecedented state government shutdown.
In Wednesday morning's agreement, lawmakers and the governor agree to avoid a governance breakdown that could jeopardize Virginia's coveted AAA bond rating and damage the state's reputation for fiscal soundness. I can see that we are united.
Yonkin and a bipartisan group of leaders from the House and state Senate met in the General Assembly building and agreed to find a way out, the two people said. That includes the seemingly drastic step of rejecting all 233 budget amendments proposed by Mr. Youngkin and then procedurally destroying the underlying documents, the two people said.
But that would appear to put the state in an even worse predicament, as lawmakers and the governor agreed to develop a new two-year spending plan based on the General Assembly's budget, despite Yonkin's opposition to the extension proposal. also admitted. Apply state sales tax to digital products, applying the new tax to businesses as well as consumers.
There is no agreement to permanently scrap the plan, but it is understood some compromise will have to be made, the people said. Yonkin himself originally proposed this tax change, but Congress rejected it due to the conflict with other tax cuts. Yonkin's administration announced Tuesday that the state is running a surplus of about $1 billion, providing potential funding for legislative priorities like teacher raises and higher education.
Yonkin and General Assembly leaders agreed to hold a special session, likely in mid-May, to finalize the budget process well in advance of the June 30 deadline.
Delegates addressed the pending agreement in early speeches on the House floor Wednesday, calling for “détente” and cooling temperatures.
“I hope we're finally at a point where everyone can sit down and the governor, the budget committee leaders and the chair can figure this out,” said House Minority Leader Todd Gilbert (R-Shenandoah). Ta. .
This story is in development and will be updated.