Virginia legislative negotiators reached a handshake deal on Thursday on a new $85 billion budget that would keep state operations funded for the next two years. The breakthrough deal, which was reached 21 days after the regular session adjourned, sets up a crucial floor vote on April 17, one day prior to a scheduled reconvened session to consider Governor Bob McDonnell’s amendments and vetoes to bills. The budget is also, reportedly, good news to the state’s cities, counties, and towns as they struggled to finalize their own budget plans, guessing at their state funding.
The budget does not address relief for planned tolls on two tunnels that connect Portsmouth and Norfolk beneath the Elizabeth River. The Hampton Roads tunnel agreement between McDonnell and Senate Democrats will be delayed until 2014. However, the new budget could require staggering increases in local government contributions to the underfunded public employee pension fund, increase local taxes on real estate and personal automobiles, and cuts to local government services or a combination or both, as well as other changes.
