Dear , I’m an avid detective novel reader. “Follow the money” is always a primary theme.
The same is true in public policy and, I would say, in our lives. What we “say” are our priorities is best reflected in how we budget and spend our money.
On December 15, 2022, Governor Youngkin released his proposed budget proposals (amendments) for the current two-year budget. There are many good proposals in the budget, particularly many new investments in behavioral health. Although VICPP has not worked much in this area, health advocates are “cautiously optimistic” about the new investments if adequate workers can be recruited and trained.
The biggest spending disappointment in his budget is his lack of money for affordable housing. The Governor held a series of roundtables on housing this past fall. He made speeches about the crisis of housing affordability. Despite the talk, there appears to be little new money for building affordable housing, providing rental assistance, or stopping evictions. Although it is possible that some of the economic development funds could be used for workforce housing, the Governor has not highlighted using funds for affordable housing. He is proposing some regulatory reforms, but Virginia can’t regulatory-reform-itself out of the affordable housing crisis. We need more money invested. See VICPP housing priorities HERE.
Virginia has enough money to make significant investments in affordable housing and other programs that would benefit those with the least resources – if we don’t give it all away in tax breaks. The big “follow the money” issue is the Governor’s proposed tax policy changes. His proposals would cut $1 billion from the budget – $1 billion is a lot of money that could be spent on affordable housing, childcare assistance, and other programs to help families who are struggling to make ends meet. Although his proposal to increase the standard deduction would help many families, making the state Earned Income Tax Credit (EITC) fully refundable or creating a state child tax credit would be much more targeted changes in helping families with low incomes. His big tax proposals – the real money – help wealthy families (reduce the top individual tax rate from 5.75 to 5.5 percent) and corporations (reduce corporate income tax from 6 to 5 percent). Governor Youngkin's tax giveaways – largely to wealthy families and corporations – would balloon to $2.9 billion in the next budget cycle, money that again could help level the playing field for poor and working-class Virginians.
Next week, January 11, the General Assembly begins. Given that it is an election year, there will be a lot of floor speeches and a bit too much partisan posturing for my taste. There will also be real decisions made and VICPP will be there lifting priorities for people and families who struggle to make ends meet.
Get ready to help. Register for Day for All People – January 18, just two weeks from today. See the link below in this week's edition of the Weekly Roundup. Prepare to respond quickly to alerts. And plan or participate in a short prayer vigil on January 21 highlighting the need for the budget to invest in affordable housing. See the description below.
Together, let’s follow the money. Let’s make sure that our priorities for creating a thriving Commonwealth that benefits all is reflected in our policies, and especially the budget.
Happy New Year... and away we go...
Kim Bobo,
Executive Director
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