The budget delivers an additional $1 billion in tax relief for all Virginians, on top of last year’s historic $4 billion
Highlights of the budget bill Governor Youngkin signed into law today.
From his press release:
Cutting Costs For Virginians
- $1 billion in tax cuts. On top of last year’s cuts, which totaled $4 billion, Governor Youngkin has signed over $5 billion in tax relief.
- Reinstates the state-wide sales tax holiday for school supplies, clothing and footwear.
- Sends taxpayers back their money, up to $200 for single filers and $400 for married couples filing jointly.
- Increases the standard deduction to $8,500 for single filers and $17,000 for married filers.
- Provides tax relief to more veterans by eliminating the age restriction on military retirement income tax relief.
- Increases the business interest deduction from 30% to 50%, which will save small businesses and employers $10.3 million annually in tax year 2024.
Restoring Excellence In Education
- $653.3 million in aid for K-12 education and schools divisions.
- $418.3 million of that is one-time General Funds targeted to fight learning loss and chronic absenteeism.
- $152.3 million is to hire more support staff for students and teachers.
- $6.7 million in federal Elementary and Secondary School Emergency Relief Fund dollars devoted to expanding the Virginia Literacy Act to grades 4 through 8.
- $54.6 million from the General Fund to give teachers and other school staff a 2% raise starting on January 1, 2024. This is on top of the 10% raise for teachers that the Governor proposed last year.
Keeping Our Communities Safe
- $155.6 million in new spending for mental health services, including:
- $58.0 million to create crisis receiving centers and crisis stabilization units
- $34.0 million for permanent supportive housing and housing for individuals with serious mental illness
- $18.0 million for a targeted pay raise of an average of 5% for all Community Service Board staff
- $11.7 million for school and community-based children’s mental health services
- $10.0 million for 15 additional mobile crisis teams
- $10.0 million to contract for psychiatric emergency programs in hospitals
- $4.4 million to increase funding for first three steps of STEP-VA
- $4.0 million for the Virginia Mental Health Access Program
- $15.0 million to increase support for the Operation Ceasefire Grant Program
- $9.5 million for healthcare workforce initiatives to close the nursing and behavioral health workforce shortage.
- $10.0 million to establish the Safer Communities Program.
- $5.1 million to support TDO/ECO transportation activities and local law enforcement agencies.
- $1.2 million for the Internet Crimes Against Children Task Force to backfill reduced fine and fee revenue receipts.
Reinvigorating Economic Growth And Making Government Work for You
- $150 million devoted to widening Interstate 64 between Richmond and Williamsburg.
- $125 million devoted to the Virginia Business Ready Sites Fund, plus $75 million to empower the Commonwealth to procure sites and make them ready for large employers.
- $18 million devoted to the victims of the Southwest Virginia floods that occurred in 2022.
- $17.0 million for managing stormwater encroachment in the City of Virginia Beach.
- $12.3 million devoted to closing the remainder of the unemployment insurance appeal backlog.
- $10 million devoted toward developing an inland port in Southwest Virginia.
- $4 million will go toward launching the Virginia Power Innovation Fund to make Virginia the landing ground for future energy technologies and supply chains.
- $6 million devoted toward economic development activities related to the Partnership for Petersburg.
- $700,000 for the Dairy Producer Margin Coverage Premium Assistance to support Virginia’s dairy farmers.