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Virginia’s governor signs state’s two-year budget including $4 billion in tax cuts

One-time tax rebates to start July 1
Gov. Glenn Youngkin celebrated the new state budget at Tom Leonard’s Farmer’s Market in Glen...
Gov. Glenn Youngkin celebrated the new state budget at Tom Leonard’s Farmer’s Market in Glen Allen on Tuesday, June 21, 2022.(WWBT)
Published: Jun. 21, 2022 at 12:18 PM EDT|Updated: Jun. 21, 2022 at 4:04 PM EDT
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GLEN ALLEN, Va. (WWBT) - Tuesday afternoon, Virginia’s governor held a ceremonial signing of the state’s two-year budget totaling $165 billion at Tom Leonard’s Farmer’s Market in Henrico County.

“It’s not enough. We know that. It’s not enough. This economy, this Joe Biden created economy, it requires us to do more,” said Governor Glenn Youngkin, (R) Virginia.

Supporters and several lawmakers packed the store and applauded as Youngkin put pen to paper.

His biggest win overall is about $4 billion in cuts to state income and sales taxes. The state will give out one-time rebates of $250 for individual taxpayers and $500 for couples.

We’re still trying to get the fine print, but the administration says for taxpayers filing a return before July 1, 2022, refunds due pursuant to this enactment shall be issued on or after July 1, 2022, but before October 17, 2022.

For taxpayers filing a return on or after July 1, 2022, refunds due pursuant to this enactment shall be issued on or after July 1, 2022, but no later than four months after such return is filed. In no case shall any interest be paid on any refund due pursuant to this enactment.

“Inflation is running away, and we’re watching it steal the hard-working paychecks from Virginians,” said Gov. Youngkin.

The governor did not get his three-month gas tax holiday, which would have shaved about 26 cents of the cost of a gallon of gas.

“Senate Democrats in Virginia don’t want to do what’s right for Virginians. Every time a Virginian goes to the gas pump and pays nearly $5 a gallon for a gallon a gas, they should think about Senate Democrats who kept prices high,” said Gov. Youngkin.

State employees including teachers will see a 10% raise over two years along with a $1,000 bonus.

This was a ceremonial signing because the actual budget documents aren’t fully prepared. The budget goes into effect July 1.

“We’re going to continue to push to bring the overall cost of government and efficiency in government more in line with where I think it should be,” said Gov. Youngkin.

The governor is promising another billion in tax cuts in the future.

Meanwhile, The Democratic Party of Virginia released the following statement from spokesperson Gianni Snidle:

“Through this budget, Virginia Democrats have reaffirmed their commitment to fighting for Virginia families, children, and communities across the Commonwealth. We are proud of House and Senate Democrats’ tireless work to deliver vital funds for our schools, our police, healthcare facilities, and lower-income communities.

Big wins from Democrat initiatives are:

- $1.25 billion for local school divisions to replace or repair outdated public school buildings.

- Teacher and state worker pay raises of 10% over two years, plus $1,000 bonuses.

- Pay raises for state and local law enforcement, correctional officers, local sheriff’s deputies

- Millions of dollars for mental health facilities, supportive housing, Home and Community Based-Services, and pay raises for direct-care staff at state behavioral health facilities.

- Targeted tax cuts for lower-income families and communities, including a refundable tax credit for low-income working families allowing them to collect up to 15% of the federal Earned Income Tax Credit.

- Eliminating the 1.5% state portion of the grocery tax.

- One-time rebates of $250 for individual taxpayers and $500 for families.

While there is still much work to be done, this is a very good start to creating a more inclusive, supportive, and better Virginia.”

YOUNGKIN’S FULL SPEECH:

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