Republicans offer state budget compromise

BY SARAH RANKIN

RICHMOND, Va. (AP) — The top budget negotiator for Virginia House Republicans said Monday he offered a major compromise nearly two weeks ago that would end his party’s push this year for a reduction in the top individual tax rate, but he’s still waiting for a response from Democratic leaders.

“It’s a tremendous compromise,” Del. Barry Knight said of his offer to the Democratic senators with whom he’s been working for months to try to reach a resolution on the state’s budget stalemate.

Though Democrats were scheduled to meet later this week to discuss Knight’s offer, it wasn’t clear Monday whether the concession would be enough to end the gridlock.

“They want to do one thing, we want to do something else,” Senate Democratic Leader Dick Saslaw said.

Knight’s proposal would modify an earlier GOP plan by spending more of the state’s multi-billion-dollar surplus on one-time tax rebates while dedicating a smaller amount to ongoing tax relief, according to an outline of the offer obtained by The Associated Press.

Knight’s proposal does not include a corporate tax cut sought by Republican Gov. Glenn Youngkin, who had also advocated for the now-abandoned cut to the top individual tax rate. Knight, of Virginia Beach, had previously declined to discuss the July 19 counterproposal in detail but granted an interview Monday after AP obtained a copy of the letter.

Knight, who chairs the House Appropriations Committee, has been involved with slow-moving talks with Senate Finance and Appropriations Committee co-chairs Janet Howell and George Barker since the regular session ended earlier this this year without an agreement on a full spending plan.

Though Virginia is flush with cash — running a surplus north of $3 billion, with the exact amount in dispute — the politically divided General Assembly has so far been unable to reach a compromise on how much of it should be spent or returned to taxpayers.