MICHAEL MARTZ Richmond Times-Dispatch
RICHMOND -- New Senate Majority Leader Scott Surovell, D-Fairfax, had a blunt message for Gov. Glenn Youngkin even before the new General Assembly gaveled into session on Wednesday: Forget about repealing the car tax or cutting income tax rates, and start focusing on putting more state dollars into public education.
Youngkin's proposal for repealing the car tax -- without including a plan in his proposed two-year budget for doing it -- is "dead on arrival," Surovell said at joint news conference held by Senate and House Democrats.
"Putting out a car tax proposal without making the hard decisions to build it into your budget, explaining exactly what you intend to do, is not serious policy-making," he said. "It's a campaign stunt ... The governor needs to get out of campaign mode."
Democrats emerged from a political showdown with the Republican governor in legislative elections last fall with the slimmest possible majorities in both chambers of the General Assembly. So, while Youngkin will have to work with them to accomplish much during the 60-day session that began on Wednesday, they acknowledged the obligation goes both ways.
"I don't think he has much choice, and we don't have much of a choice but to work with him," said Sen. Lamont Bagby, D-Henrico, chairman of the Virginia Legislative Black Caucus, at a separate news conference on Wednesday.
However, Democrats drew the line on tax cuts and funding for K-12 education.
Surovell dismissed Youngkin's proposals for cutting income tax rates and raising the sales tax, which he said would disproportionately benefit the wealthiest Virginia taxpayers at the expense of those of modest means. The proposals, along with a plan to broaden application of the sales tax to digital services that has some support among Democrats, would reduce state revenues by $1 billion over the next two years, which he said ignores the need for billions of dollars of additional state funding for K-12 schools.
"Any of those discussions about cutting taxes are completely unrealistic," he said. "We are not funding ... core education services at the level that Virginians expect."
Democrats are willing to consider proposals to expand the Earned Income Tax Cut for low-income working families, although they want the credit to be refundable so that eligible families can benefit even if their tax liability isn't large enough, and broaden application of the sales tax to digital downloading, streaming and storage.
"Sales tax modernization is something we need to talk about," Surovell said.
The elections gave Democrats control of the money committees that will shape tax policy and the next budget. Del. Vivian Watts, D-Fairfax, who has long pushed to expand the sales tax to some services instead of just goods, will resume leadership of the House Finance Committee, while Del. Luke Torian, D-Prince William, once again will chair the House Appropriations Committee.
Arena proposal
In the Senate, Sen. Louise Lucas, D-Portsmouth, already is making her presence felt as chair of the Finance & Appropriations Committee. Lucas has used social media to make clear that she will not support Youngkin's proposal for the state to issue bonds for a $2 billion sports and entertainment development in Alexandria unless the Hampton Roads region gets relief from high tolls on major water crossings and highways.
Neither Surovell nor Bagby was willing to predict how Democrats will respond to the governor's proposal, which would bring both the Washington Wizards of the NBA and the Washington Capitals of the NHL across the Potomac River to Northern Virginia.
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"We're going to be all over the place," Bagby said of the Black caucus, now at a record 32 members.
But Surovell said support for the proposal clearly will require some action both on toll relief, which he said is "something that all of us worry about," and funding for the financially troubled Washington Metro transit system. The Metro system is likely to need more than $100 million a year for the next two years from Virginia, as well as Maryland and the District of Columbia, to close a projected deficit in its operating budget, but the proposed arena will depend on service by a new Metro stop at Potomac Yard in Alexandria.
"The only reason the stadium is going there is because of Metro," he said.
GOP focus, committees
However,New Senate Minority Leader Ryan McDougle, R-Hanover, said Republicans will focus primarily on public safety issues, such as allowing prosecution of felony homicide charges against fentanyl dealers if their product results in a fatal overdose. "More people are dying from drug overdoses than gun violence and car accidents combined," he said in an interview Tuesday.
McDougle also made clear that Republicans will push to repeal a state law that ties Virginia to California standards for electric vehicles to phase out gas-powered engines, as well as advocate for school, business and workforce issues.
Surovell has been working with McDougle to make party representation on committees more proportional to the number of members each party has in the Senate, in which Democrats have a 21-19 edge. They have agreed informally to make proportional representation reciprocal if control shifts in future elections.
The House of Delegates already requires proportional representation in its rules, as it has done since 1998, but the Senate operates by what McDougle called the "21st Amendment -- the person who has 21 votes makes the rules."
The Senate voted 38-1 on Wednesday to adopt committee assignments that maintain Democrats' large majorities on the two most powerful committees -- Rules, at 11-4, and Finance, at 10-5 -- but give Republicans more representation on the others. On five committees -- Local Government; Agriculture, Conservation and National Resources; Privileges and Elections; Transportation; and Rehabilitation and Social Services -- Democrats hold an 8-7 majority. On four others -- Judiciary; Commerce and Labor; General Laws and Technology; and Education and Health -- the margin is 9-6.
McDougle said the committee assignments "are better and more proportional than they have been," and added that Republicans "are committed to not taking a step backward" if party control flips in the future.
"It's a step forward, but we're not there yet, particularly on the Finance Committee," he said.
Only five incumbent members of the Finance Committee returned this year with no incumbent Republicans. McDougle was one of five Republicans named to the panel, along with Sen. Ghazala Hashmi, D-Chesterfield, and four other Democrats.
But Sen. Bill Stanley, R-Franklin County, objected that none of the new members is from Southside Virginia, which lost influence with the sudden retirement of Sen. Frank Ruff, R-Mecklenburg, this month to undergo treatment for cancer. (Ruff's replacement in the Senate, Tammy Brankley Mulchi, won a special election on Tuesday, but she cannot be seated until the vote is certified.)
"He fought for our region in ways none of us could," Stanley said of Ruff.
Sen. David Suetterlein, R-Roanoke County, cast the only vote against the committee assignments.
"Just because it's better doesn't make it right," Suetterlein said.
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