The Virginia House of Delegates’ money committee met Monday morning. While representatives from the governor painted a rosy picture of the Commonwealth’s financial future, uncertainty continues to plague economic forecasts.
“If you want to have two engines running full speed those are the two you want to have,” said Governor Glenn Youngkin’s Secretary of Finance Stephen Cummings at Monday morning's House Appropriations Committee.
He was describing the strength of Virginia’s payroll and sales and use tax. Those two income sources, Cummings said, made up much of the $561 million the Commonwealth took in in September, 7.9% over what they had forecast. The surplus has led to over $2.2 billion in what Youngkin has called the “Trump cushion” to help with spending needs in the wake of federal cuts.
Republican Delegate Terry Austin said it was Youngkin’s focus on new work-ready sites, including in and around his Botetourt County district, and the legislature’s careful budgeting that was keeping Virginia in the black.
“We’re creating jobs, we’re giving people employment, they have paychecks," Austin said. "All of that is a really good indicator and I compliment Appropriation's staff, the Senate and the Governor for prioritizing work-ready sites.”
But Fairfax Democratic Delegate David Bulova was more cautious.
“We’re looking at permanent changes with respect between the federal government and the state economy," Bulova told Radio IQ after the meeting. "I think we need to be mindful of those permanent cuts as we go into the session.”
Among uncertainties mentioned by Cummings was President Donald Trump’s tariff back and forth with China. He also spoke to an increase in Virginia’s unemployment rate, which could spike following the exit of many federal employees who received their last check at the end of September. Still, Cummings noted Virginia’s most recent monthly rate was below the national average of 4%.
As for committee Chair Luke Torian, he offered little on the future of budgeting outside of his promise to maintain funding that would best serve those living in the Commonwealth.
"We'll have to wait and see what the Governor presents to us in December," Torian told Radio IQ. "Once it's time for us to do our work we'll take a close examination of everything."
This report, provided by Virginia Public Radio, was made possible with support from the Virginia Education Association.
