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$3.6 billion of Virginia's budget still on hold due to political stalemate

There is still no word on whether state lawmakers will be called back to Richmond to hammer out a budget deal after talks fell apart.

RICHMOND, Va. — There is still no word on whether Virginia state lawmakers will be called back to Richmond to hammer out a budget deal after talks fell apart last week.

A spokesperson for Gov. Glenn Youngkin told 13News Now that he is still evaluating the next steps when asked if he would call lawmakers back to Richmond for a special legislative session.

Hanging in the balance is a $3.6 billion surplus.

RELATED: Virginia budget negotiations break down, leaving billions in funding in limbo

Democrats are pushing for that money to go towards teacher pay raises and mental health, while Republicans want tax cuts.

Retired TCC Professor Emeritus of Business Administration Peter Shaw believes the uncertainty is troubling. 

“$3.6 billion is a lot of money to be infused into the economy to help trickle down and make things happen," Shaw said. "Now it’s just sitting on the table.”

The stalemate leaves public school teachers unsure of what to expect in terms of pay raises. 

“They’re going to curtail their spending. Remember, we’re getting ready to go back into back-to-school spending, Halloween spending, and holiday spending. Depending on what comes out of this thing, it will have a direct effect on spending,” Shaw explained.

The chair of the House Appropriations Committee, Republican Barry Knight, noted that school divisions can count on raises from budget figures already in place. 

In a statement to 13News Now, Knight wrote, "Teachers will get a 5% raise in addition to the 5% they got last year. Everything is always on the table in a negotiation. If the Senate gives a little, then the House will give some." 

For now, the state operates on the two-year budget passed last year, while the $3.6 billion surplus remains on hold.

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