
by Dick Hall-Sizemore
In my almost 50 years of working around, and following, the General Assembly, I do not think I have ever seen the legislature take apart a governorโs budget bill to the extent that this General Assembly just demolished Gov. Youngkinโs budget.
The change that had the most impact was the jettisoning of the governorโs proposed tax package. Steve Haner has previously described the legislatureโs actions (here and here). To summarize, the legislature rejected the governorโs proposed tax cuts, embraced his proposal to expand the sales tax to digital services, and went one step further by expanding the sales tax to cover digital services between companies.
The Governorโs proposal would have resulted in about $1 billion less in general fund revenue over the biennium. The move by the legislature was projected to increase general fund revenue by $1 billion over the biennium. That is a $2 billion swing in general fund revenue available for appropriation. And the Democrats in the majority on the budget committees of both houses were happy to use that extra money to spend on their priorities, primarily K-12. One only has to peruse the conference report to see a plethora of appropriation increases. (more…)

by Todd Truittย 
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by Joe Fitzgeraldย 
