Northam addresses committee ahead of 2022 Virginia budget negotiations

(The Center Square) – In a meeting with three legislative committees, Virginia Gov. Ralph Northam discussed the state of the economy and the outlook going into 2022-2023 budget negotiations.

Lawmakers pass a budget biennially, which covers two years of state operations. Although the governor will be leaving office in January, he will provide lawmakers with a proposed budget by the end of the year, which will need to be considered by the 2022 General Assembly and whoever succeeds him as governor.

“My administration will be working with you to craft a new two-year budget to leave in your hands,” Northam said in his address at a joint meeting of the Senate Finance and Appropriations, House Appropriations and House Finance committees. “It will be one that continues prioritizing investments for the long term and supporting people as they recover from the pandemic.”

Virginia ended the 2021 fiscal year with a $2.6 billion surplus, which was caused by a variety of factors. Every major source of tax revenue was higher than 2020 as the state continued to ease pandemic-era restrictions throughout the year and reopen its economy. The state also received funding from the American Rescue Plan, which let the state use federal funds to address certain COVID-19 recovery policies.

Uncertainty from the COVID-19 pandemic also caused lower-than-usual estimates.

“[We had a surplus] while advancing policies that treat people equally and with dignity, recognize and celebrate diversity, tell our full and true history, and promote democracy,” Northam said. “And as a result of all this, our economy is roaring. We see that in these revenue numbers. We know that we are taking the right steps to keep this momentum going. At the same time, we don’t know what the future holds. If you’d asked me about the pandemic in June, I would have said we could have a fall that looked almost normal. But now we know that won’t be the case, thanks to the delta variant.”

With concerns over the COVID-19 delta variant, which is more contagious than the previous strain of the virus, the governor said his budget proposal will be cautious and prudent. He said the state needs to be ready for any potential roadblocks caused by COVID-19.

The governor noted that 74% of adult Virginians have received at least one dose of the vaccine and 66% are fully vaccinated. He said the state needs to keep working to get people vaccinated as the delta variant continues to spread.

Northam said the state has already committed to investments to overcome salary compression for the state police and other public officials and in improvements to the behavioral health system and staff. He said the budget proposal will continue to prioritize “putting resources into supporting Virginians who need it.”

“We can all be proud of Virginia’s position today,” Northam said. “We have a strong economy, thanks to cooperative leadership, and we are well-positioned to continue seeing robust revenues and hiring going forward, if we keep steering the ship along the same course.”

In the last budget, the state provided funding for free community college for students in certain fields, invested in broadband, education and infrastructure.

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