RICHMOND, Va. (WRIC) — Virginia’s budget surplus has ballooned to more than $5.1 billion, according to preliminary data collected on fiscal year 2023, which ended on June 30.
Governor Glenn Youngkin said the increasing budget proof tax cuts work.
“Four billion dollars of tax relief last year and then earlier this week we announced a five billion surplus in the same year,” Youngkin said.
Given the numbers, Youngkin said lawmakers need to come to an agreement on amending the 2024 fiscal year budget to include money for both education and $1 billion dollars in tax cuts.
“When we have growth, then we have growth in receipts into the state government which allow us to continue to reduce taxes and increase record investments in these key priorities,” said Youngkin.
However, Democrats like State Senator Ghazala Hashmi disagreed, arguing cutting taxes could put Virginia in a hole in the future.
“That’s not a one time deal,” said Hashmi. “These will be corporate tax breaks that will be put into place for upcoming years and decades.”
Plus, Hashmi said that given a recent report showing Virginia underfunds K-12 schools, the money spent on tax cuts should go to classrooms across the commonwealth.
“School divisions are struggling with outdated and crumbling infrastructure,” said Hashmi. “We have a serious need to improve the technology capabilities that our students must have access to.”
It’s important to note that Virginia is currently in the second year of a two-year budget meaning lawmakers don’t have to pass a budget and the surplus funds would roll over until next year.