By Steve Haner
The largest item among Governor Glenn Youngkinโs many proposed changes to the Virginia state budget is his idea to set aside $1.1 billion from last yearโs surplus revenue to cover three years of future car tax rebates. You donโt need to call the California Psychics who run ads on Richmondโs conservative radio station to predict what will to happen to that.

When the Democrats who control the money committees in both the House and the Senate report their list of budget amendments in a few weeks, most or all that dedicated fund to support those rebates is likely to be diverted to their spending priorities. The rebates are also in doubt.
The Republican governor, facing his final of four General Assembly sessions, has been among the most fortunate of governors on financial matters. This is the fourth of four fat years, with no painful lean year during his term.ย
The General Fund revenue of $31.4 billion now predicted for Fiscal Year 2026 (starting next July) is $5 billion (19%) more than the revenue projection four years earlier, for Fiscal Year 2022. Almost another $5 billion in cash is locked up in reserves, $2 billion more than was being held as protection against a downturn at the start of Youngkinโs term.ย ย
Despite that, the budget and tax policy debate coming in the 2025 General Assembly is far more focused on spending than on tax cuts. Youngkin put most of the stateโs General Fund surplus and revenue growth โ $4.4 billion dollars โ on the spending side of his ledger.ย ย













