Virginia lawmakers approve budget, but governor warns that changes will be needed

RICHMOND, Va. (AP) — Virginia lawmakers wrapped up their 60-day legislative session Saturday by approving a two-year budget that includes pay raises for teachers and state employees, increases education funding and extends the state sales tax to cover digital services.

Notably missing from the budget was language that would have helped Republican Gov. Glenn Youngkin achieve one of his top priorities: a $2 billion development district with a new arena to lure the NBA’s Washington Wizards and the NHL’s Washington Capitals to Alexandria and give Virginia its first major pro sports teams.

The Democratic-led General Assembly rejected the proposal through two standalone bills, then refused to approve language in the state budget that would have paved the way for the project.

Youngkin, who touted the arena project as a major economic boom for Virginia, could still revive it by calling a special legislation session to start over with a new bill.

Democratic Sen. L. Louise Lucas of Portsmouth, who used her position as chair of the Senate Finance and Appropriations Committee to keep the deal out of the budget, said she opposed the project largely because of its reliance on bonds backed by the state and city governments.

<bsp-list-loadmore data-module="" class=«PageListStandardB» data-gtm-region=«READ MORE» data-gtm-topic=«No Value» data-show-loadmore=«true» data-gtm-modulestyle=«List B»> <bsp-custom-headline custom-headline=«div»> READ MORE </bsp-custom-headline> <bsp-custom-headline custom-headline=«div»> Virginia governor signs 64 bills into law, vetoes 8 others as legislative session winds down </bsp-custom-headline> <bsp-custom-headline custom-headline=«div»> Virginia budget bill leaves out governor’s $2 billion deal to lure NBA