Negotiators reached tentative agreement last week to provide one-time rebates to taxpayers and boost funding for teachers and mental health.
to adopt budgets for the fiscal year that began July 1 because they didn’t know how much extra funding to expect.
Democrats in the Senate — joined by one Republican — had passed a budget that eschewed the tax cuts in favor of more money for priorities including raises for teachers and big increases in mental health services. Republicans from the House eventually gave ground on some of Youngkin’s demands, abandoning his request for a cut in the corporate tax rate and a reduction in the top marginal tax rate for individuals and married couples.But Democrats refused to go along with recurring tax cuts that would decrease state revenue for years.
The deal also features a reinstatement of the sales tax holiday for back-to-school items — something all parties simply forgot to authorize this year — and greater spending increases for education and mental health.Lawmakers will take up the components as amendments to the budget when they return to Richmond next week.
“To make Virginia more affordable for families and local businesses, we must deliver on our shared goals for more jobs, safer and healthier communities, greater workforce and educational opportunities and much needed tax relief for Virginians,” Youngkin said in a written statement announcing the special session. “Together, we can get the job done.”
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