With the COVID-19 virus putting a hold on some economic activity, Virginia Senate Republicans are urging Gov. Ralph Northam to request a revenue reforecast and convene a special session out of concern that the commonwealth will not bring in enough money to fund proposed spending increases in the state budget.
“The economic assumptions and revenue forecasts upon which this budget is based may no longer be operative,” Senate Majority Leader Tommy Norment, R-James City, said in a statement. “I have heard estimates that the school closings alone will cost $444 million. Those additional, unanticipated expenses, as well as revenue projections that may now be too robust necessitate a fresh look at our finances.”
Norment said that the simplest way to readdress these situations is through a special session.
In the letter, Norment said that the General Assembly should also enact legislation that would limit employer liabilities if that employer has employees that have COVID-19 and legislation that would give greater latitude to local governments and regional commissions to conduct businesses during the state of emergency.
“With the duration of the current circumstance uncertain and its effects unpredictable, Virginia ‘s leaders must do all in their power to mitigate the current displacement and position the Commonwealth for an ultimately prosperous future,” Norment told the governor in his letter.
The biennial budget that passed both chambers the General Assembly last week spends about $135 billion, which is an increase of more than 20 percent compared to last year’s budget. It includes more education and healthcare spending, among other initiatives, and increases taxes by nearly $2 billion.
Northam has not yet signed the budget plan.
The spread of COVID-19 has caused some businesses to lose funding. Northan has ordered all public schools to be temporally closed. Some states have ordered bars, restaurants and/or non-essential businesses to temporally shut down to stop its spread, although Virginia has not yet enacted such a policy.
