Virginia Democrats skeptical as Republican governor delivers state address 

RICHMOND, Va. (CN) — Virginia Governor Glenn Youngkin emphasized cutting red tape, embracing an all-of-the-above energy policy and tax relief in his State of the Commonwealth address Monday.

“What we are doing works, and I strongly have encouraged our general assembly to keep doing the things that work, and we can propel Virginia to even greater heights,” the Republican governor told reporters following his speech.

But Virginia Democrats, who control the state’s legislature, seemed less than impressed with Youngkin’s address, which addressed several thorny subjects between the parties.

“I think we’ve done a good job continuing to move the Commonwealth forward, in spite of the Republican’s worst instincts,” Don Scott, Speaker of the House of Delegates, said about his Democratic colleagues.

Youngkin used the address to tout Virginia’s economy — general fund revenues for 2024 exceeded the state’s forecasted amount by $1.72 billion, leaving Virginia with $155 million in surplus funds. According to the Bureau of Labor Statistics, Virginia has gained 86,800 jobs in the past year, an annual growth rate of 2.1%.

Youngkin credited his administration’s work to cut regulations he claims have prevented businesses from investing in Virginia in the past. Democrats felt Youngkin took credit for accomplishments stemming from legislation passed under the Democratic majority.

“I was a little disappointed with the partisan tone of the governor’s speech,” Senate Majority Leader Scott Surovell said.

Youngkin received rowdy applause from Republican lawmakers when he renewed calls to create a car tax credit that would provide permanent, refundable income tax credits up to $150 for individuals earning under $50,000 a year and up to $300 for joint filers earning under $100,000 a year.

Youngkin had eliminated the state’s tax on groceries in 2022, and now hopes to provide tax relief by eliminating taxes on service industry employee tips.

“Let’s stand together on the steps of this capitol to celebrate bills and a budget that allows hard-working Virginians to keep more of their hard-earned money by extending the standard deduction, removing taxes on tips and providing relief on the most hated tax in America, the car tax,” Youngkin said.

But Democrats sounded skeptical about Youngkin’s proposed tax relief initiatives. Scott said the call to eliminate taxes on tips was a good tagline. Surovell called Youngkin out for a visit he and other Republican governors made to President-elect Donald Trump’s Mar-a-Lago estate on January 9.

“I was disappointed he also didn’t talk about any of the risks that our state faces because of some of the things he’s doing,” Surovell said. “For example, he just went down to Mar-a-Lago last week and signed a letter with a bunch of governors basically praising the elimination of hundreds of 1000s of federal jobs in the Commonwealth of Virginia, which would be an existential threat to our economy.”

Youngkin also attacked the Virginia Clean Economy Act, a Democrat-introduced measure passed in 2020 that sets energy efficiency standards and mandates that the two utilities in the state, Dominion Energy Virginia and Appalachian Electric Power, produce 100% renewable electricity by 2045 and 2050, respectively.

“It is driving up rates, driving down reliability and constricting our economic growth,” Youngkin said. “We need to nearly double our power generation in the next 10 years, and wind and solar aren’t going to get it done.”

According to Youngkin, the state now imports 40% of its energy, up from 18% before the act.

“This is all-American and all-of-the-above,” Youngkin said. “This is embracing innovation over regulation.”

But education was one area of pride for both Youngkin and the Democrats.

“We can both invest record amounts to support an extraordinary public school system and provide students and parents with pathways that work best for their families,” Youngkin said.

Youngkin proposed a budget amendment to provide $50 million for low-income students for private school scholarships. Youngkin and Democrats differ in their support for lab schools that offer specialized education opportunities for select public school students. Democrats have criticized the program as a scheme to take money from public education and give it to private institutions.

One area in which the governor will have no say in this legislative session is three proposed amendments to the state constitution. The amendments introduced by Democrats would guarantee Virginians’ right to abortion care, automatically restore voting rights to disenfranchised felons, and remove an antiquated law banning same-sex marriage. Any proposed budget amendments from the governor will need bipartisan support to pass through both chambers.

The General Assembly was slated to begin its work on January 8 but had to postpone due to a water crisis in Richmond, which left residents without potable water for six days.