Lawmakers are looking over Governor McAuliffe’s budget for the next two years -- a spending plan that would mean raises for some and spending cuts for others. Sandy Hausman has details.
When Terry McAuliffe was introduced to members of the Virginia House and Senate Appropriations and Finance Committees, he won nearly three minutes of applause, but time will tell how popular his proposed budget really is. The Governor said he expects revenues to be down in Virginia, because of federal cuts to defense spending and lower payroll tax revenues. Even so, he offered a 1.5% raise to state employees.
“I’ve included another $55.5 million for the state’s share of a 1.5% bonus for public school teachers with no requirement for a local match,” he said.
Many agencies will face budget cuts, and state universities will get five percent less money in 2018. Those who were spared include state police, prisons, juvenile justice, mental health and public schools.
Noting that the Affordable Care Act may be repealed, McAuliffe said his budget did not count on any federal dollars from the expansion of Medicaid.
" Some have argued that the ACA will be repealed outright and that 20 million people will lose their coverage overnight," McAuliffe explained. " I maintain that when the partisan rhetoric subsides, we will still have some form of enhanced Medicaid coverage, even if it’s wrapped in a new package."
If that happens, McAuliffe is asking lawmakers to let him expand the program, but Republcan State Senator Tommy Norment scoffed at the idea.
“I think the House Appropriations and the Senate Committee are going to work more collaboratively than perhaps we have historically done , accepting those positive proposals that he’s making and perhaps not embracing some of them that we’re not so enthusiastic about – especially Medicaid expansion. He just can’t seem to get over it,” Norment said.
McAuliffe reminded lawmakers that the state has lost nearly $8 billion in federal aid because it refuses to expand Medicaid.
To raise additional revenue, the governor proposed a tax amnesty for qualifying businesses – waiving penalties and cutting interest by half for those who owe money. He also suggests a sales tax on Internet merchants with warehouses or fulfillment centers in Virginia.