The Governor's Budget Proposals

Last week our Governor, Ralph Northam, presented his proposed amendments to the state’s 2018-2020 biennial budget in an address to the Joint Money Committees of the state General Assembly. You can read the entire speech at this link or the excellent review and summary in the Richmond Virginian Pilot.

The bottom line is that it appears that Virginia could have an extra $2.2 billion in revenue in the next two years. Changes to federal tax law will result in additional $1.2 billion from taxpayers forced to take the Virginia standard deduction because they took the new higher federal standard deduction and the remainder from Virginians’ higher incomes, higher sales taxes, rising business taxes- the booming economy in addition to a larger-than-expected surplus from last year. There is some question of the anticipated sales tax increase will be as large as projected; however, the fight during the next session of the General Assembly will be how to allocate it or return it to tax payers- increase the standard deduction in Virginia or earned income tax credit for the poor.

From the Virginian-Pilot I picked up this excellent summary:”Northam’s budget proposes one-time spending of:

• $180 million in water quality, clean energy and environmental protection; 
• $75 million for transportation projects; 
• $80 million to free up funds for school construction loans; 
• $46 million for expanded broadband services; 
• $40 million for a 1 percent bonus for state employees and local officials whose salaries are supported by the state; and 
• $20 million to acquire sites for economic development projects. 

The biggest jump in recurring expenses is a more than $200 million a year increase in the Medicaid budget, needed because the state underestimated the cost of the Medicaid program last year when it was approved.

Other proposed additions to recurring spending include:

• $87.6 million over the next two years for the teacher salary increase 
• $36 million to increase the number of school counselors, a recommendation of the House of Delegates’ special committee on school safety; 
• $24 million for programs to cut overcrowding at state mental hospitals; 
• $18.9 million for medical care at state prisons; 
• $15.5 million for financial aid for students at state colleges and universities; and 
• $9.7 million more for state efforts to expand access to preschools.” 

The plan Northam presented included money for Natural Resources with the following impacts for soil and water conservation districts :

• Maintains current levels of essential operational funding for the 47 Soil and Water Conservation Districts. 
• The Governor’s budget includes an additional $20 million; $7 million to finish the remaining SL-6 (stream exclusion fencing) backlog and $11 million to jump start Watershed Implementation Plane III (WIP3) to achieve the 2025 pollution reduction goals for the Chesapeake Bay, $1.5 million for CREP, and $500,000 for nonpoint source projects such as poultry liter transport and RMPs. 
• The Governor’s budget includes the mandatory deposit to the Water Quality Improvement Fund (WQIF) associated with the FY19 year-end surplus of $73,757,699. 
• The Governor also included an additional $15,031,151 from general funds. These funds would translate into $14,531,151 for Ag BMPs and technical assistance. 
• The Governor additionally designated over $8.2 million from surplus dollars for the WQIF Reserve. 

While the Governor’s proposed budget demonstrates strong support of the agricultural cost share program and Soil and Water Conservation Districts, this is only the Governor’s proposal and the beginning of budget negotiations. Like all members of the Conservation Districts Legislative Committee I will be meeting with local legislators to inform them of the importance of our work in hopes that these funds remain in the budget. You could help by voicing your support of our mission.

Additionally, per our legislative agenda passed by the membership, we are seeking patrons for budget amendments for items not included in the Governor’s budget– additional operational funding, environmental education funding, dam rehabilitation, dam monitoring or a DCR urban nutrient management specialist to support equine nutrient pollution reduction for recreational animals.