Virginia

Abstract

background Nationwide, public and higher education are still recovering from the Great Recession. Virginia is no exception. But over the last few years, its relative position has improved. According to the July 24, 2018 Bureau of Economic Analysis, Virginia’s GDP grew by 2.4%1 – an improvement over last year’s 2.0% growth and 0.6% in 2016.2 Lottery proceeds were projected to increase to $586.7 million in both years of the biennium. Virginia’s 2018 regular legislative session ended without passing a budget mainly due to the Medicaid expansion controversy. Following a special legislative session, Governor Ralph Northam signed the budget into law on June 7, 2018. The 2018-20 budget included an increase of $515.9 million for public education in general fund spending and $352 million for higher education over the FY 2018 base budget. As of late August, one budget surplus issue still remains unresolved – what to do with a $600 million additional revenue from the doubling of the federal standard deduction. The governor wants to make the credit fully refundable to taxpayers, and Republicans see the issue as too divisive and complex to solve without further study.