Northam’s final budget includes pay raises and tax cuts

RICHMOND, Va. (AP)- Outgoing Democratic Virginia Gov. Ralph Northam is proposing a $158 billion two-year state budget that would boost the state’s reserves, give teachers and other state workers pay raises, and institute a variety of tax cuts.

While Northam will leave office in January, his proposal for fiscal years 2022-2024 could serve as a starting point for negotiations at the General Assembly, which will be under split party control come January. But there’s virtually no chance the version lawmakers will send to Republican Gov.-elect Glenn Youngkin will hew exactly to what Northam is putting in. Northam’s budget could very well be completely discarded by Republicans.

The spending blueprint Northam outlined to lawmakers Thursday is possible thanks to record revenue growth that’s projected to continue growing.

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