A SW Virginia View of the Budget Impasse

by Scott Dreyer

Virginia’s headline-grabbing elections last fall put Republicans back in the top three statewide offices for the first time in about a decade and a Republican majority back in the House of Delegates. However, since state senators enjoy four-year terms and none were up for election last November, senate Democrats still hold a slender 21-19 majority. Led by Senator Louise Lucas, D-Portsmouth, who, according to the Virginia Mercury, owns a shop that sells illegal and misidentified marijuana products with labeling targeting children, Senate Democrats have promised to be a “stone wall” against GOP-led proposals from Governor Glenn Youngkin and the House of Delegates.

Due to disagreements between the parties, the General Assembly failed to create a budget for 2022-2024 during its normal session, which adjourned earlier this month. Therefore, Governor Glenn Youngkin has called the General Assembly back to a special session in April. Both the Senate and House have sent representatives to a special budget conference committee with the aim of hammering out a compromise.

Despite the recent pandemic, lockdowns, and economic downturns, the Virginia government currently enjoys a $16.7 billion surplus.

One particular sticking point between the two chambers of the General Assembly is the GOP-led proposal to eliminate the tax on groceries. Since groceries make up a larger slice of a personal budget for people on limited incomes, that tax hits working people and those on fixed incomes particularly hard. Delegate Joe McNamara, R-Roanoke County/Salem, spearheaded the legislation to end the tax on groceries. According to his website, McNamara joined the Roanoke County Board of Supervisors and never raised a tax. He is also the only Certified Public Accountant (CPA) in the General Assembly. Former Governor Ralph Northam earlier spoke of ending that tax but despite four years in office and a Democrat majority in the legislature, he never did so.

Del. Joe McNamara (R-Roanoke County/Salem). Photo credit: candidate’s website

Other issues up for debate include doubling the standard deduction on state taxes, reducing the gas tax, and how much of the surplus to return to taxpayers versus spending on other government programs.

According to the Richmond-based Virginia Family Foundation, some of the bigger differences include:

  • The House proposes doubling the standard tax deduction, but the Senate does not.
  • Of the $16.7 billion surplus, the House plans to return $5.1 billion to Virginia taxpayers, while the Senate proposes returning only $2.2 billion to Virginians.

Under either approach, the vast majority of the state surplus is slated to be kept in government coffers for later spending, with only a small percentage to be returned to the workers and taxpayers who generated the funds.

Due to a combination of reduced U.S. domestic energy production, pandemic-related government hand-outs, historic government spending and printing of money, and now the Russian invasion of Ukraine, inflation is at the highest rate since the 1970s. Most Virginians under the age of 50 have never experienced such inflation.

Despite the euphoria that many experienced when they received their pandemic-related relief checks months ago, reports indicate gasoline will cost households $2,000 more per year and groceries $1,000 more. In other words, the average family can expect to have roughly $3,000 less this year to spend on everything else — which also costs more.

For numerous political, economic, religious and cultural reasons, the Democrat party has become increasingly unpopular here in the Southwestern and Central regions of Virginia, as the GOP has been in ascendancy. After the defeat of scandal-plagued Delegate Chris Hurst in the New River Valley last November, Sen. John Edwards, D-Roanoke, who represents the highly gerrymandered 21st District, and Delegate Salam “Sam” Rasoul, D-Roanoke City, are the only remaining Democrats in the General Assembly representing this western one-third of the Commonwealth.

Eyes are on the General Assembly in its special April 4 session to see which versions of the budget and which visions of a future Virginia prevail.

Scott Dreyer lives in Roanoke. A licensed teacher since 1987, he leads a team of educators teaching English and ESL to a global audience. This column is republished with permission from The Roanoke Star.


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10 responses to “A SW Virginia View of the Budget Impasse”

  1. Super Brain Avatar
    Super Brain

    The GA is too rushed on tax reform. They need a special session to do it right-A combination of bracket, standard deduction, and indexing for a VA tax code that adjusts to the future. The present approach will be a one time fix that continues to be regressive and pumps out tax revenue when inflation rages.

    1. Stephen Haner Avatar
      Stephen Haner

      Been hearing that line of bull for 30 years. Heard it when Delegate McDonnell chaired such a commission. Now is perfect. But then all I’ve been pushing is the standard deduction change (which has happened before from time to time) and indexing the brackets, etc. Simple and inflation-related, both of them.

  2. Paul Sweet Avatar
    Paul Sweet

    Why not make the last 1% of the sales tax a local option?

    1. LarrytheG Avatar
      LarrytheG

      Yes. let the local voters decide. That’s the right approach, similar to the meals tax, etc.

      Let local folks decide how they want to pay (and how much) for local services. Why is the state messing in this?

  3. LarrytheG Avatar
    LarrytheG

    We need to make sure how much of that surplus is recurring and how much is not. It’s fiscally irresponsible to not know that.

    In terms of the sales tax – yes it IS regressive but it ALSO pays for schools. Unless one thinks the schools will just absorb that loss, “somehow” or that the locality will make it up another way – what it
    really means is that the funding will be reassigned to the same local taxpayers – perhaps as tax increase to upper income folks?

    The state doing this is undermining the entire concept of local governance which taxes local taxpayers to pay for local services – and is held accountable for that job with local elections.

    This is another idiotic Gilmore stunt IMHO. Let the localities function the way they’re supposed to – local governance and local accountability.

  4. Nancy Naive Avatar
    Nancy Naive

    Ms. Lucas is quite clearly the victim of mislabeling of a product sold by a distributor.

    This calls for an investigation. I’ll drive over this afternoon and give you my findings tomorrow morning. Make that Thursday afternoon.

  5. VaNavVet Avatar

    Doesn’t appear that the eventual budget compromise will reveal much about a future vision for the Commonwealth.

  6. Merchantseamen Avatar
    Merchantseamen

    “Senate Democrats have promised to be a “stone wall” against GOP-led
    proposals from Governor Glenn Youngkin and the House of Delegates.”

    Goes to show you the Democrats are racist raising ole Stonewall from the grave as they try to tear down his statue.

    1. John Martin Avatar
      John Martin

      Thank God for the Democratic Senate majority

      1. Merchantseamen Avatar
        Merchantseamen

        We will throw them all to the curb come 2023.

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