RICHMOND, Va. — Virginia political leaders say a budget deal to avoid a government shutdown could be reached Wednesday, 13 days before the June 30 deadline.
The House of Delegates canceled a special session scheduled for Thursday because there is no deal yet to vote on. Whenever a deal is reached, the House will need 48 hours notice before returning to vote on it. The Senate is currently scheduled to return to Richmond on June 22.
The House and Gov. Abigail Spanberger have been at a standoff with the Senate over the state budget for months. The central dispute involves a sales tax exemption for data centers. Sen. Louise Lucas first proposed eliminating the exemption entirely ahead of its scheduled 2035 expiration, saying it has cost more in lost revenue than expected. The House and Spanberger opposed that approach, arguing it would hurt Virginia's business reputation. On Friday, they proposed a budget that kept the exemption in place but called for a commission to study the industry and propose future changes.
On Tuesday, Lucas unveiled a new Senate proposal that also keeps the exemption but calls for a tiered impact fee on data centers based on the number and type of generators they have.
"This is a way for us to get to getting the funds back from the data center without violating the MOU," Lucas said.
The two sides met Tuesday after that presentation but did not reach a deal.
Spanberger said Wednesday she had proposed other ways to address data center concerns but remained open to continued conversations with the Senate.
"My understanding is their plan is to have a bill today," Spanberger said.
"We are 13 days away. We have to have a budget and I am — I remain confident that we will," Spanberger said.
House Minority Leader Terry Kilgore, a Republican, said the lack of a deal represented "unnecessary uncertainty" and called on Democratic leadership to "put politics aside, finish their work, and deliver a responsible budget for the people of Virginia."
House Speaker Don Scott addressed the data center dispute during a June 12 appearance.
"We're not in a position to demonize any industry that's been good partners with us, but we are in a position to make sure that we hold them accountable," Scott said.
When asked whether she was preparing for a possible shutdown, Spanberger said the prospect was unacceptable.
"Though I am a contingency planner and continue to plan for every potential outcome, but one that is wholly unacceptable is for legislators to not send me a budget before the end of the month," Spanberger said.
Lucas was equally direct.
"There is not going to be a government shutdown as soon as I can get in the car. I'm on my way back to Richmond. We will have a budget," Lucas said.
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