DAVE RESS Richmond Times-Dispatch RICHMOND -- Surveying the state of the state, Gov. Glenn Youngkin on Wednesday hit some familiar themes - people leaving the state, a need to compete with states to the south - and he challenged the General Assembly with something new: a proposal that Virginia government won't do business with firms that boycott Israel. "While Virginia is stronger than ever, she - and we - have major challenges," Youngkin said on the first day of the two-month legislative session. "More people moved away, rather than to Virginia," he said. "We have fewer children in our K-12 public schools than five years ago ... three out of four people leaving Virginia make $100,000 dollars or more. And the taxes they pay are leaving with them," Youngkin said. Youngkin addressed a joint gathering of a new-look General Assembly that has more than 50 newly elected members. Democrats hold a narrow edge of 51-49 in the House of Delegates and 21-19 in the Senate. "As we open this next chapter, we mark yet another trail-blazing moment in the history of our commonwealth in welcoming the new speaker of the House: Speaker Don Scott," Youngkin said, acknowledging the Portsmouth Democrat who earlier Wednesday became the first African American to hold the speakership. Key to growth in jobs and easing the rising cost of living, Youngkin said, is tax reform. "We can do this by cutting taxes across the board 12% and paying for almost 80% of this by modernizing our tax code, which includes closing the tech tax loophole and increasing the sales and use tax by 0.9 percent," he said, referring to his proposal to tax digital services. VSU officer In his remarks Youngkin also saluted Virginia State University police officer Bruce Foster, who was shot while responding to a domestic disturbance on Nov. 12. Foster, now paralyzed from the waist down, attended the speech in the gallery of the House chamber. "When I visited Officer Foster in the hospital, I was moved by your unwavering desire to continue serving," Youngkin said. "Bruce said, 'God has a plan and I want to continue to serve.'" After inviting lawmakers to stand and applaud Foster, Youngkin publicly offered Foster the opportunity to continue his career with the Virginia State Police. Foster responded with a thumbs up. Israel Youngkin has stressed support of Israel since the Oct. 7 attacks. "We must never stand and watch when evil shows itself," he said Wednesday, recalling the words of Holocaust survivor Halina Zimm in May when he signed a bill defining antisemitism and pledging the state to battle it. What she said was: "Hate is wrong, love is right." "Halina, thank you reminding us to define the good," Youngkin said. "I want to thank the entire General Assembly for taking a stand. And I want to challenge us -- I want to challenge all of us: Pass a bill which says the commonwealth of Virginia won't do business with companies that boycott Israel." Taxes On taxes, Youngkin reiterated his call to eliminate the personal property tax - the car tax - saying he wants to work with the General Assembly to figure out how to do this while not hitting local government revenue. "To be clear, this is a package deal and I'm only interested in a plan that reduces taxes for Virginians," he said. Listen now and subscribe: Apple Podcasts | Google Podcasts | Spotify | Stitcher | RSS Feed | Omny Studio But Democrats, now in control of the House and Senate, have said they are not interested in cutting taxes in the way Youngkin proposed, which they argue gives higher-income Virginians a tax break while boosting the burden on low- and moderate-income residents. Earlier in the day, Senate Majority Leader Scott Surovell, D-Fairfax, said the car tax proposal is "dead on arrival," calling it a "campaign move" rather than a serious policy initiative. Schools Surovell said Democrats' top focus is on education, adding that cutting income tax rates in a way that favors better-off Virginians while K-12 school funding lags other states, is a non-starter. A report last year from the Joint Legislative Audit and Review Commission showed that Virginia trails the regional average, and three of Virginia's five bordering states, in K-12 funding per student. Youngkin said Wednesday: "On education I would caution us from drawing strong opinions from out of date facts that precede this great work" of increasing funding and teacher pay. "I know we all agree we can do better than the current SOQ (Standards of Quality) funding formula" he said, adding that he is committed to deliver a plan to replace the current formula -- based on staffing levels -- with one that would put students first. Youngkin called for support for his energy plan, which emphasizes a range of ways of generating electricity, including natural gas, which climate activists say is fueling sea level rise and climate change. He repeated his call to repeal a law that commits the state to California's schedule for phasing out sales of gasoline powered cars and trucks. Arena proposal Youngkin also repeated his promise that bringing the NHL's Washington Capitals and the NBA's Washington Wizards to a new arena in Northern Virginia would generate $12 billion in new economic activity and 30,000 new jobs, with no upfront cash from the state and no new taxes. Later, when asked about Senate Finance Committee chair Louise Lucas' stance that toll relief for her Hampton Roads community has to be on the table if the deal is to move through her committee, Youngkin said he is committed to toll relief. On behavioral health reform, a major push of his administration, Youngkin said "The transformation is working, but we need to do more." He said he is committed to concluding the settlement agreement with the U.S. Department of Justice in which Virginia promised to serve more people with developmental disabilities in the community instead of in institutions. His budget proposal includes funds to eliminate the current 3,544-person waiting list for people who need support services within the next year. Crime, cannabis Youngkin also repeated his call for a bill to make drug dealers subject to a charge of felony homicide if their drugs cause a fatal overdose. He said the General Assembly should enact bills to lengthen the prison time for people who commit crimes with guns. After the speech Youngkin was asked about what he would do if a bill to set a framework for legal retail sales of marijuana came to his desk. Youngkin said only: "I just don't have a lot of interest in moving forward with it." Also of note in Youngkin's address was a topic he did not mention. After campaigning on a measure to bar most abortions after 15 weeks with exceptions for rape, incest and the life of the mother, the governor did not mention the issue Wednesday, a reflection of the new reality with Democrats leading both chambers. Halftime report Youngkin, at the midpoint of a term that ends in January 2026, said: "We're at halftime and we've accomplished a lot on a bipartisan basis, together. But we're just getting started." Acknowledging the divided government -- Democrats holding narrow margins and Republicans holding the governorship, Youngkin said: "Our Founders inscribed in the Constitution a form of government that requires legislation to not only be passed by the General Assembly but to be signed by the governor. We must work together." For Surovell, the new Senate majority leader, the speech "just regurgitated what he said" when Youngkin presented his budget proposal last month. "He needs to get out of campaign mode and into governing mode," Surovell said. But Scott, the new speaker of the House, said he thought Youngkin was trying to be conciliatory. "He talked about things Democrats are interested in, education, economic development behavioral health," Scott said. "There are things we can work on together ... I'm a trial lawyer, if there's a chance to negotiate, I like that." 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