TJPDC: No RGGI in adopted Virginia budget

The 2024 General Assembly session is complete and the legislative liaison has a report on what happened this week with the budget. 

“In essence, money committee staffers indicated that the new biennial budget bill retains most all the appropriations from the budget approved by the legislature in early March, with numerous technical amendments included,” said David Blount, the director of services for the Thomas Jefferson Planning District Commission. 

Governor Glenn Youngkin had sought to expand the state sales tax to digital services and the Commonwealth will take on more debt than anticipated for various capital projects. Revenues are also tracking above estimates. 

The Democratic Party controls both the Virginia House of Delegates as well as the Virginia Senate.

“While Virginians’ elected officials can sometimes be far apart on policy, today demonstrates and reiterates that we can come together to deliver for the Commonwealth,” said Governor Glenn Youngkin in a press release. 

However, one key demand from Democrats is not in the final document. On his first day in office, Youngkin signed an executive order to remove Virginia from the Regional Greenhouse Gas Initiative. That’s an interstate compact intended to reduce emissions by requiring power companies to pay to exceed certain volumes. 

Virginia joined RGGI as part of legislation approved in 2020. When other bills to compel an exit failed, the Youngkin administration took the executive approach. A lawsuit is still pending over the legality of that action in Floyd County Circuit Court but a legislative pathway to Virginia rejoining has stalled until at least 2025. 

“The compromise also eliminates language that directed Virginia to rejoin the Regional Greenhouse Gas Initiative,” Blount said. 

Blount has several other pieces of information in an update sent out this morning. 

• “Budget language directs the Joint Tax Policy Subcommittee to examine modernizing the state sales tax and income tax”
• “The approved budget provides more funding over the biennium for additional positions in Commonwealth Attorneys offices”
• “The plan recognizes an additional $25 million in Lottery proceeds to replace general funds in FY25
• “It uses $200 million in bonds instead of general funds for wastewater treatment plant upgrades in FY25.”

To sign up for legislative reports directly from the TJPDC, visit their website.

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