Virginia avoids government shutdown as budget amendments are approved
Virginia’s House of Delegates and Senate approved all 14 budget amendments proposed by Democratic Representative Abigail Spanberger just before teh state’s fiscal deadline to avoid a goverment shutdown. spanberger submitted the amendments, which include proposals on data center water conservation, firefighter cancer screenings, and funding for statewide referendums, aiming to address priorities like reducing costs for Virginians, investing in education and communities.With both chambers passing these amendments, the final budget is set without needing further approval. However, Republican Minority Leader Terry Kilgore criticized the delay and expressed concerns about certain provisions that could increase costs for residents, though he acknowledged some benefits like teacher pay raises.
The budget agreement follows weeks of debate that nearly led to a legislative impasse, with both chambers voting in favor of the approved budget. The amendments will add $62 million in costs, funded from the state’s surplus, reducing it from $179 million to $117 million. Notably, the budget includes a $0.011 per-kilowatt-hour tax on data center electricity, capped at $600 million annually, with refunds provided once the cap is reached. Tensions surrounding data center regulation, including disputes over proposed taxes, played a notable role in the legislative process.
Virginia’s House of Delegates and Senate approved all 14 budget amendments proposed by Gov. Abigail Spanberger (D-VA) one day ahead of the state’s fiscal cliff.
Spanberger sent the amendments to the state legislature Monday, and the chambers had to pass the proposals ahead of 11:59 p.m. on Tuesday to avoid what would have been the state’s first-ever government shutdown. The House of Delegates convened at noon on Monday to vote on the proposed amendments, and the state Senate met afterward.
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“The House of Delegates and Senate of Virginia sent me a budget that addresses our shared priorities to lower costs for Virginians, invest in our schools and communities, and address the devastating impacts of the so-called ‘One Big Beautiful Bill.’ To further deliver for Virginia families, I am returning this budget with a request that the attached 14 amendments be adopted,” Spanberger wrote in a statement.
Spanberger’s 14 amendments introduce a range of proposals, including provisions on data center water conservation, cancer screenings for firefighters, and additional funding for statewide referendums. With both chambers approving all of Spanberger’s proposed amendments during the special session, the budget with the amendments will be final and doesn’t need to head back to Spanberger’s desk.
Virginia’s House Minority Leader GOP State Rep. Terry Kilgore slammed the chambers for not being able to move forward on the budget sooner, saying they were 100 days late on their action because of gridlock.
“There’s a lot in a budget that we don’t like,” Kilgore said in an interview with Virginia Scope, pointing generally to provisions that raise costs for Virginians. “But also, there are some things that we do like: teacher pay raises and things of that nature. But this isn’t a way we need to do the budget from now on. We just need to come together, we don’t want to be like Washington.”
WHY VIRGINIA LAWMAKERS ARE FIGHTING OVER DATA CENTERS
The governor’s proposed amendments come after the legislature finally agreed on a state budget after weeks of debate that hinted toward an impasse, passing the agreed-upon budget in the Senate by a vote of 23-16 and in the House 71-22. Both chambers are controlled by a Democratic majority, which has sparred mainly over a proposed tax on data centers in the state as advocates seek to regulate the state’s massive industry. Those against the tax did not want to impede the industry’s growth and success.
Spanberger’s amendments approved by the assembly will cost $62 million more to fund. That money will be taken from the state’s surplus, decreasing the surplus balance from $179 million to $117 million.
The budget imposes a $0.011-per-kilowatt-hour tax on data center electricity use per month, with a cap of $600 million per year and a subsequent refund once the cap is reached.
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