RICHMOND, Va. — State lawmakers were unable to reach a deal on the budget after talks on Wednesday, but remained optimistic a deal would be reached with 13 days to go before a government shutdown.
"Today went well, will continue working tomorrow," lead House negotiator Del. Luke Torian (D-Prince William) told CBS 6 Wednesday evening after he was seen leaving an hours-long meeting with lead Senate negotiators Senator Louise Lucas (D-Portsmouth) and Senator Mamie Locke (D-Hampton).
"This was a good day — we’re making progress," added Lucas.
Virginia's current budget expires on June 30. The Senate and House have been trying to reach an agreement on a new two-year spending plan.
The central dispute for the last few months had been over a sales tax exemption for computer equipment purchased by data centers. The Senate had wanted to do away with the exemption next year, ahead of the current expiration date of 2035, while the House and Gov. Abigail Spanberger opposed the idea, saying it would hurt the state's business reputation.
On Friday, the House proposed a budget supported by Spanberger that kept the exemption in place but called for a commission to study the industry and propose future changes.
"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," Speaker Don Scott (D-Portsmouth) said last Friday.
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 on Tuesday.
The two sides met Tuesday after that presentation but did not reach a deal, which led to the planned Thursday special session for the House of Delegates to be canceled.
Earlier Wednesday, leadership said they were confident a deal would be reached and a shutdown avoided.
"We are 13 days away. We have to have a budget and I am — I remain confident that we will," said Spanberger at an event in Occoquan.
"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 told WTKR after one of her data center listening tour events.
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.
If/when a deal is reached, the House of Delegates requires 48 hours' notice to be brought back to Richmond before voting. The Senate is currently scheduled to come back to Richmond on June 22.
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