Virginia Negotiators Strike $207 Billion Budget With $1.2 Billion Data Center Tax and 4% Teacher Raises
Updated
Updated · VPM News · Jun 20
Virginia Negotiators Strike $207 Billion Budget With $1.2 Billion Data Center Tax and 4% Teacher Raises
3 articles · Updated · VPM News · Jun 20
Summary
$207 billion is the size of the two-year budget deal Virginia negotiators reached, ending a three-month impasse ahead of a July 1 shutdown deadline.
$1.2 billion in new energy taxes on data centers would flow to the General Fund over two years, while the industry's lucrative equipment tax exemption remains in place until its 2035 sunset.
$1.5 billion would fund 4% raises for public school teachers and 3.5% raises for state employees, alongside a permanent increase in the standard deduction and $137.6 million for more child-care subsidy slots.
$925 million is set aside as a hedge against federal and economic uncertainty, including $350 million for Medicaid changes, $200 million for the state health plan, $150 million for ACA subsidy losses and $225 million for agency relief.
Monday's legislative vote and Gov. Abigail Spanberger's signature are still required; the temporary data center tax also leaves Virginia needing to replace that revenue in the next budget cycle.