Youngkin cuts $900 million from amended Virginia budget ahead of economic uncertainty

RICHMOND, Va. (AP) — Republican Gov. Glenn Youngkin said on Friday that he would trim Virginia's budget by $900 million in light of next year's tax revenue projections, which could decrease as the White House's reshaping of federal spending spurs economic uncertainty in the state.

At a news conference, Youngkin announced he had signed the bipartisan budget bill adopted in February by the Virginia General Assembly but vetoed 37 line items, winnowing state spending to create a rainy day cushion.

Youngkin said that while he still supported President Donald Trump’s culling of federal spending and dramatic reshaping of global trade through tariffs, he also acknowledged that the changes could hurt Virginia in the short term.

“The President’s actions to reset fiscal spending and reset unbalanced trade relationships are expected to have some impact in the near term on not only the Virginia workforce, but also the revenues that we collect,” he said. “Therefore, this ($900 million trim) is prudent, sound budgeting, putting the Commonwealth in a strong, dynamic position.”

The cuts mainly sever funds allotted for 10 capital projects for higher education institutions, Youngkin said, adding that he also cut funding for long-term investment projects that could be funded under existing appropriations.

The budget vetoes also scrap funds for a public-private partnership for child care, Youngkin said. The governor described the amendment as an innovative idea but “not ready for prime time yet.” He said he hoped the legislature would take up the amendment again next year.

Youngkin's announcement comes after he proposed in late March more than 200 amendments to the Virginia House budget bill that would have cut the proposed state spending provisions by $300 million.

Youngkin’s edits, however, were largely ignored by Democrats who have majorities in both chambers. After they returned to Richmond for a one-day session, lawmakers accepted about 30 of Youngkin’s proposed budget revisions and scrapped the remaining amendments.

According to Virginia law, Youngkin can outright veto the budget or line-item veto parts of the legislation after lawmakers reconvene, though his ability to scrupulously edit the text becomes limited. In light of this constraint, Youngkin opted to veto capital projects and ultimately sliced the state's spending plan by triple the amount he had initially proposed.

“The line-item veto authority for a governor, unfortunately, is a blunt instrument,” Youngkin said, adding: “Oftentimes, when you use a line-item veto in the context of a budget, it takes away lots of other things, and it has unintended consequences.”

House of Delegates Minority Leader Todd Gilbert said in a statement that he wished Democrats had cooperated with Youngkin's $300 million worth of cuts, but he was ultimately pleased with the governor's actions Friday.

“Thanks to the Governor’s conservative leadership, Virginia is better positioned to weather what comes next,” Gilbert said in a statement. “I encourage my Democratic colleagues to join us in putting the Commonwealth’s fiscal health ahead of political games.”

Democrat Luke Torian, who chairs the House Appropriations Committee, said: “While today’s budget signed by Governor Youngkin does not include every priority we fought for, it reflects the determined efforts of House and Senate Democrats to deliver meaningful progress for Virginians.”

The budget bill is one of 91 remaining bills that Youngkin said he has until the end of the day Friday to either sign, veto or allow to become law without his action. Those bills landed on his desk after lawmakers rejected his amendments to the legislation in April.

“There are bills that I have vetoed before that we’re vetoing again,” Youngkin said on the remaining legislation he is taking up. "There are a lot of bills that I think are very interesting, that I hadn’t seen before, and that we tried to make a little better. Didn’t get the amendments passed, but I’m still going to sign them."

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Olivia Diaz is a corps member for The Associated Press/Report for America Statehouse News Initiative. Report for America is a nonprofit national service program that places journalists in local newsrooms to report on undercovered issues.