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States Face Hard Choices as Budgets Expected to Tighten

  • Last Sunday, Virginia's General Assembly money committees approved budgets boosting public school funding amid sharp House–Senate divides.
  • The revenue shortfall, with the House operating nearly $3 billion less, explains the scale differences between the House and Senate budget proposals.
  • The Senate deferred a $2.1 billion tax deduction proposal, while the House’s loan-rebate program uses over $500 million in state funds to leverage up to $2 billion in bonds for school modernization, plus $170 million for staffing.
  • Following Thursday’s votes, the conference committee will negotiate budget differences as Gov. Youngkin prepares to propose amendments, shaping Virginia’s fiscal future amid tight revenues.
  • According to a NASBO survey, many states are lowering revenue forecasts and may need midyear adjustments due to upcoming federal tax and spending changes.
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stateline.org broke the news in on Monday, June 30, 2025.
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