Today, Ashley Kenneth, President and CEO of The Commonwealth Institute for Fiscal Analysis (TCI), released the following statement on the budget amendments presented by the House Appropriations Committee and Senate Finance and Appropriations Committee:
“In December, Governor Youngkin presented a budget that missed the mark in several key areas, including policy choices that expand economic opportunity and strengthen public education. Today’s budget amendments presented by the legislature’s money committees are an important step in the right direction toward building a commonwealth where everyone can thrive. They are also an example of how policymakers can come together across political parties and chambers to do the real work of helping families, in stark contrast to the troubling chaos and threats to our communities we have seen in the last two weeks from federal officials.
On Tax Policy
“The Earned Income Tax Credit (EITC) is one of the most powerful and proven tools in our country to help families with low incomes put food on the table and, on a broader scale, lift families out of poverty. Today, both money committees proposed increasing the refundable EITC option to 20% of the federal credit. Compared to the current refundable option, this choice will put more than $300 back into the pocket of a married couple making $30,000 a year with two children at tax time. A 2022 report from the Joint Legislative Audit and Review Commission (JLARC) found that creating the refundable EITC option helped make our tax code more progressive and fair. In December, Governor Youngkin’s budget would have allowed for the refundable credit to expire. Thankfully, both chambers protected and improved this credit, marking a historic win for working families across Virginia.
On Public Education
“Both the House and Senate committees took the historic step of fully removing the arbitrary cap on state funding for support staff and created flexible add-ons to help school divisions with meeting the needs of students with disabilities. These improvements are in line with research that tells us money matters for student outcomes, and they are in line with the JLARC report’s findings that the state needs to do more to pay its fair share of school costs.
On Economic Opportunity
“Each chamber also takes critical steps to create greater economic opportunities for working people. The proposed House Appropriations budget includes funding to help put Virginia back on a path to a $15 minimum wage, includes language and funding necessary to start up a state Paid Family and Medical Leave program, and provides funding to expand public collective bargaining rights in Virginia. The proposed Senate Finance and Appropriations budget also adds provisions for energy projects in Virginia that prioritize skills training and prevailing wages while ensuring projects in Virginia can better utilize available federal funds.
On Criminal Legal System
“House Appropriations also took a step toward a more fair and effective justice system by funding ‘counsel at first appearance.’ By making sure people have quality representation the first time they appear in court, this funding will remove a barrier for people to maintain employment, housing, and family connections by decreasing unnecessary detention. This will also improve court efficiency and reduce unnecessary spending for both the state and localities. Additionally, both budgets protect current eligibility for earned sentence credits and protect funding to localities that do not engage in costly and burdensome detentions to assist Immigration and Customs Enforcement.
Looking Forward
“We know that even more historic investments are possible if lawmakers raise new, sustainable revenues and ask the wealthiest Virginians to pitch in their fair share. A Fair Share Tax, a new state income tax on taxable incomes over $1 million a year, would have generated over $3 billion in its first two years of implementation. By protecting and raising our shared resources, we could remove barriers to accessing and keeping affordable and comprehensive health coverage through programs like Cover All Kids and make sure our youngest Virginians are able to maintain coverage. We can fully and fairly fund our schools, invest further in high-quality jobs, and more.
“The Commonwealth Institute will continue to review each budget proposal and work with advocates and lawmakers to advance the best choices in today’s budget proposals and further our progress in the future.”
