The budget agreement that Virginia lawmakers are scheduled to vote on soon includes funds for pay hikes for teachers as well as state employees, funds for public schools, one-time tax rebates, including investments in critical programs.
It also includes funding for initiatives to improve state jail control, remediate learning loss, reinstate Virginia’s “sales tax holiday,” and assist in the planning of a possible professional sports club.
Budget negotiators revealed an agreement in late August on suggested modifications to Virginia’s two-year spending plan, months after lawmakers passed a “skinny budget” proposal at the close of the 2023 legislative session.
Pay Increase for Teachers And Other State Employees
The agreement includes about $55 million for the state’s part of a 2% salary raise for teachers, effective Jan. 1, 2024, in addition to the 5% increase granted when the initial two-year budget proposal had been approved.
To be eligible for the funds for the raises, school districts have to match the 2% increase.
It also provides $115 million for 2% salary increases for state employees, including university staff, adjunct faculty, assistant teachers, state-supported local employees, as well as positions financed by the Standards of Quality.
Investments on Education
Virginia’s budget agreement includes $645 million in public education spending, including more than $418 million in flexible one-time payments accessible until the fiscal year 2026.
School districts are urged to use the funds to combat learning loss and aid in the implementation of the Virginia Literacy Act.
In addition, the final agreement proposed $20 million “for targeted flexible grants to support school security” in the state’s public schools.
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Tax Reductions
The majority of the roughly $1.05 billion in planned tax cuts in the budget agreement ($906 million) comes from one-time tax refund checks worth $200 for single people and $400 for joint filers.
The budget proposal plan raises Virginia’s standard deduction, which is a set amount that taxpayers who do not itemize their deductions can use to decrease their taxable income, from $8,000 to $8,500 for single taxpayers as well as from $16,000 to $17,000 for couples who file jointly in the 2024 and 2025 tax years.
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