Virginia lawmakers still at odds over state budget after brief special session

CHARLOTTESVILLE, Va. (WVIR) - Virginia lawmakers have once again left Richmond without a budget.

While this week’s special session was called to finalize the budget, the General Assembly is still at odds over whether to eliminate the sales and use tax exemption for data centers.

While Senate Democrats are seeking to do away with the exemption, which they estimate would bring in about $1.9 billion in revenue, the House of Delegates’ budget keeps the tax break.

29News asked State Senator Creigh Deeds on Friday if any progress has been made.

“There has been progress over the weeks, but the reality is, it wasn’t going to be done in one day’s time,” Deeds said. “The hope was that we’d be able to come up with an agreement between the end of the regular session and yesterday, but that didn’t happen.”

The current budget expires on June 30, meaning lawmakers have just a little more than two months to come to an agreement.

Deeds says what’s complicating the situation further is waiting for Governor Abigail Spanberger to act on legislation that has been sent back to her desk, after Democrats in the General Assembly rejected some of her amendments.

“Once we know what the revenue picture will look like, I’m confident that we will have those real negotiations,” Deeds said. “The Governor now has 30 days to act on those amendments. I’m not certain that we’re going to produce a budget before that 30 days is up.”

Spanberger has also expressed her aversion to repealing the tax break, cautioning against “going back on the agreements Virginia has signed with companies that have created tens of thousands of jobs and brought significant investment to Virginia communities.”

Deeds expects that a budget will be finalized by late May or early June.

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