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Virginia lawmakers have again approved legislation that would let every locality impose a 1% sales tax to fund school construction, setting up another clash with Gov. Glenn Youngkin after his previous vetoes of similar proposals.
The measure, Senate Bill 1307, would require local voter approval through a referendum before a local government could levy the tax. Sen. Jeremy McPike, D-Prince William, sponsored the bill and said existing state support cannot cover Virginia’s growing backlog of school construction projects.
“It’s simply not enough money statewide to deal with the large backlog that’s faced by so many different school divisions,” McPike told the Senate Finance and Appropriations Committee last month.
McPike said more than a dozen localities are actively seeking the authority, while others have expressed interest.
Since 2019, Virginia has granted that option to nine localities: Charlotte, Gloucester, Halifax, Henry, Mecklenburg, Northampton, Patrick and Pittsylvania counties, along with Danville. Supporters say the same authority should now be available across the commonwealth.
“If we are going to do anything on school construction, it needs to be the same authority throughout the commonwealth,” Del. Vivian Watts, D-Fairfax, said Thursday. She argued against selecting only a few financially strained localities for the option.
Pulaski County is among the communities pressing lawmakers to act. County officials say inflation, high interest rates and escalating construction costs have left them with few ways to finance needed projects.
County Administrator Jonathan Sweet said Pulaski has reached the limit of what it can raise through real estate taxes and cannot assume more debt using traditional referendums.
“The price tag of school construction projects now far exceeds the growth rate of county revenues and our borrowing capacity,” Sweet said. “This 1% sales tax option is simply an additional tool in our proverbial toolbox to utilize if we may need it.”
Senate Bill 874, sponsored by Sen. Travis Hackworth, R-Tazewell, was incorporated into McPike’s broader proposal last month. Hackworth’s measure would have added Pulaski County to the list of localities permitted to use the tax for school construction and renovation.
Opponents contend that school construction should remain primarily a state responsibility. Del. Bobby Orrock, R-Spotsylvania, also warned that participating localities could lose some state support because of Virginia’s local composite index, which determines how education expenses are divided between state and local governments.
Orrock said the tax could create additional financial pressure for smaller rural communities.
“I have consistently supported increased funding from the state to our school divisions,” Orrock said Thursday. “I think this is a state responsibility.”
Youngkin previously rejected the statewide tax authority, pointing to existing state investments in school construction and the potential burden on taxpayers.
Even another veto may not settle the dispute. The Senate placed key parts of the legislation into its proposed budget amendments, positioning the issue for negotiations between lawmakers and the Youngkin administration.