RICHMOND, Va. -- On a gorgeous, sunny Monday in the River City, Teresa Fenn was one of the hundreds of people down by Brown’s Island taking in the weather.
“It’s a beautiful day! I’m actually up here with my parents and my boyfriend over there, and we’re just out for a walk,” Fenn said.
She was kind enough to talk about something that feels miles away from the scene by the river: budgets.
“More recently with inflation and rent prices are really going up, so I’m really having to take a closer look at that,” she said.
The beautiful day comes as Virginia lawmakers are negotiating the state budget for the next two years.
On Sunday afternoon, the Virginia House of Delegates and State Senate released competing plans for the upcoming two-year state budget. They differ greatly on certain tax policies central to Governor Youngkin’s tax-cutting agenda.
And yet, both plans do include a one-time tax rebate for families. The numbers are slightly different, with the Senate number at $250 for individuals and $500 for joint filers. The House budget sets the levels at $300 and $600 respectively.
Both plans call for cutting the grocery tax, but the GOP-controlled House is focused on a full repeal while Senate Democrats keep the ability for localities to charge a one percent grocery tax.
The biggest gap in taxes is centered around the standard deduction for personal income taxes and rolling back the gasoline tax. The House plan and Governor Youngkin want to double the standard decoction and reduce the gas tax. To this point, Senate Democrats have signaled they will not pursue either.
The Richmond-Times Dispatch reports this difference means the two proposals are about $3 billion apart at this point.
Both plans call for raises for both teachers and state workers. The Republican House plan includes a four percent raise and a one percent bonus for workers and teachers each of the next two years. The Senate Democrats included a five percent raise both years and a $1,000 bonus.
Another huge issue both budgets approach differently is aging school buildings. The House plan would create a $2 billion loan rebate program to help local districts pay off construction debt. Meanwhile, the Senate plan includes $500 million for school modernization.
Both chambers must come to an agreement on the budget by March 12, when the General Assembly session is set to end. Whatever product they agree upon would then go to Governor Youngkin for amendments, and then back to the General Assembly for final approval later this year.
Back at Brown’s Island, Fenn said experienced what appeared to be lacking government resources in the real world when she called 911 about an incident.
“I was on hold for three or four minutes, watching a fight unfold, as I’m trying to call someone,” Fenn said.
It’s why she hopes promises made at the state Capitol actually result in real-world investments.
“We have that baseline there so that we, the consumer, can have the peace of mind and security to know we can get to our jobs, call emergency services if we need it. And then, we can manage our own finances from there with that baseline,” she said.
Both chambers of the General Assembly are set to vote on their own proposals on Thursday.
