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Virginia House, Senate and Gov. Youngkin to spar over state budget

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Virginia House, Senate and Gov. Youngkin to spar over state budget


The Democratic-controlled Virginia Senate and House of Delegates on Thursday each passed their own proposed version of the next two-year state budget, documents lawmakers will start to work from to fashion a compromise spending plan to send to Republican Gov. Glenn Youngkin.

Both chambers signed off on amendments to the 2024-2026 budget Youngkin first proposed in December, overhauling the governor’s vision and stripping out all but one component of his proposed tax policy changes.

The House and Senate both opted to keep Youngkin’s pitch to expand the sales tax to cover digital services including streaming subscriptions, closing what he calls the “Big Tech” loophole, but they ditched his call to lower income tax rates and raise the state’s sales tax. Instead, they’re proposing a higher level of general fund spending, including larger pay raises for teachers and other public workers, and K-12 education allocations above what Youngkin envisioned.

PROTECTION OF CONTRACEPTION ACCESS ADVANCES IN VIRGINIA LEGISLATURE

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Democratic leaders from both chambers said their proposals were structurally balanced and citizen-focused.

Both bills passed on a bipartisan basis but only after Republicans voiced objections to dozens of individual provisions, including a signature Democratic proposal to increase the minimum wage to $15 an hour by 2026.

Each chamber will now take up the other’s plan and reject it, sending the bills to a conference committee, a small delegation of lawmakers who meet behind closed doors to hash out a compromise.

In recent years, that process dragged on well past the close of the part-time Legislature’s session, with lawmakers struggling to reach agreement. This year’s session is scheduled to end in just over two weeks.

Virginia Gov. Glenn Youngkin, bottom center, arrives in the Virginia House chambers to give his State of the Commonwealth address at the state Capitol in Richmond, Va., on Jan. 10, 2024. The Democratic-controlled Virginia Senate and House of Delegates on Feb. 22 each passed their own proposals for the next two-year state budget, which lawmakers will use to create a compromise spending plan to send to Youngkin. (AP Photo/Steve Helber, file)

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Republican Del. Barry Knight of Virginia Beach, who was recently removed from the committee that oversees the budget process without explanation, criticized the House plan in a speech, warning it overspends and focuses too heavily on Democratic priorities.

“In a negotiation, everyone needs a little something. If we want to avoid an impasse and not be here in June still fighting over this, this pie should have three slices: one for the Senate, one for the House and one for the executive branch because all are equal partners,” he said.

Democrats called his criticisms unfounded, and Del. Luke Torian, chairman of the House Appropriations Committee, said he is optimistic lawmakers are on track to finish the budget work on time this year.

With lawmakers set to take up the work of finding compromise, here are points of agreement, differences and items of interest in the two chambers’ bills:

TAXES

Youngkin campaigned on a promise to lower taxes and in his first two years in office succeeded in signing approximately $5 billion in tax relief — some in the form of one-time rebates — into law.

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In December, he announced he was pushing for a cut to the income tax rate, something he said would draw more people and jobs to the state, while seeking to offset that revenue reduction by increasing the sales tax rate and adding the tax on digital services.

Democratic lawmakers and liberal advocacy groups criticized Youngkin’s proposed tax plan as a regressive handout to the wealthy. Republicans weren’t universally on board either.

Democratic Sen. L. Louise Lucas of Portsmouth, who chairs her chamber’s Finance & Appropriations Committee, said in a hearing Sunday that the governor’s proposal was “not sustainable,” especially in light of recent findings by the state’s legislative watchdog that raised concerns about the current funding formula for public schools.

House Republican Leader Todd Gilbert has said Democrats “hijacked” Youngkin’s plan, dumping the cuts but keeping part of the increase, which he said would harm families struggling with the aftermath of steep inflation. He sought unsuccessfully Thursday to remove that provision.

“What you’re doing with this new tax is making it so that now people have to Netflix, pay another tax, and then chill,” he said.

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NORTHERN VIRGINIA SPORTS ARENA

The future is murky for a Youngkin-backed proposal to move the NHL’s Washington Capitals and NBA’s Washington Wizards to Alexandria from the nation’s capital, and the competing budget proposals did nothing to make it clearer.

While the House included language enabling the proposal in its version of legislation that makes updates to the budget for the current fiscal year — a separate bill that passed Thursday — the Senate did not.

Lucas, who also did not allow a standalone bill to be heard in her committee, has said repeatedly that she has concerns about the financing structure for what she has taken to calling the “GlennDome.”

Torian, who’s carrying the House standalone version of the bill, told reporters the conference committee would give members a chance to “reason together” over a possible path forward.

Monica Dixon, a top executive at the teams’ parent company, Monumental Sports & Entertainment, said the bipartisan vote to pass the budget bill with the enabling language was an encouraging step forward.

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POLLUTION REDUCTION PROGRAM FIGHT

The House spending plan, but not the Senate’s, contains language directing the state to rejoin the Regional Greenhouse Gas Initiative, a carbon cap-and-trade program Youngkin has pulled Virginia from in a move that’s being challenged in court.

The language in the House bill essentially makes Virginia’s participation in the program, which Democrats and other advocates say will help combat climate change, a condition of the budget.

House Republicans, who along with Youngkin say the program is functionally an ineffective tax on ratepayers, raised questions Thursday about whether that approach was constitutional.



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Drought emergency declared for parts of Virginia; governor warns of water restrictions

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Drought emergency declared for parts of Virginia; governor warns of water restrictions


Extreme drought conditions in parts of Virginia have prompted an emergency drought warning for a wide swath of the region, including Bedford, Campbell, Charlotte, Franklin, Halifax, Henry, Mecklenburg, Patrick, Pittsylvania and Roanoke counties, along with the cities of Danville, Roanoke, Salem and Martinsville.

The governor has warned that if conditions worsen, she will activate mandatory nonessential water-use restrictions.

In Martinsville, city leaders have issued a voluntary water conservation notice and are urging residents and businesses to cut back where they can. The request comes as local businesses that rely heavily on water say the drought is already affecting day-to-day operations.

SEE ALSO: Botetourt County residents adjust daily routines as voluntary water restriction continues

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John Hughes, owner of John’s Car Wash, said the dry conditions have hit his business hard in recent weeks. “For the last 3 weeks, it’s been hitting pretty hard. We done three yesterday and haven’t done anything today with the drought and hot weather. Yeah, I’m really concerned about it,” Hughes said.

Restaurants are also feeling the strain. David Kitzmiller, an owner of Be Wiched, said water is essential for routine tasks such as washing dishes and preparing some menu items.

“We use a lot of water for washing dishes and some of our recipes if they limit us in anyway defiently can’t produce and its a scary aspect,” Kitzmiller said.

Kitzmiller added that cutting back is not always realistic for businesses that must meet sanitation needs. “Not really feasible for a business that depends solely relies on water to wash their dishes, so that can’t definitely be an impact there,” he said.

City leaders emphasized that the conservation request is voluntary for now, but they are encouraging everyone to do their part by taking shorter showers, turning off the faucet when it is not in use, washing only full loads of laundry, and limiting outdoor watering whenever possible.

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Five charged after Virginia Beach Police conduct human trafficking operation

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Five charged after Virginia Beach Police conduct human trafficking operation


VIRGINIA BEACH, Va. (WAVY) — Five people were charged after Virginia Beach Police conducted a two-day human trafficking and vice operation on July 3, according to the Virginia Beach Police Department.

The department’s Special Investigations Bureau conducted the operation, which was aimed at identifiying human trafficking victims, reducing the demand for commercial sex and targeting individuals seeking to exploit or recruit children for prostitution.

Detectives used many investigative techniques to proactively identify individuals involved in criminal activity related to prostitution, human trafficking and offenses against children. The operation was conducted in Virginia Beach, involving personnel from all of the bureau’s squads.

As a result of the operation, five people were identified and charged with offenses ranging from solicitation of prostitution to sex trafficking and crimes involving minors. Two vehicles and U.S. currency were seized during the operation. Other people were connected to victim services through Samaritan House.

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The operation led to the following people being charged:

  • Shane Carter, 28, of Norfolk, was charged with solicitation of prostitution.
  • Robert Harris, 64, of Virginia Beach, was charged with solicitation of prostitution and assault and battery.
  • Larry Pittman, 53, of Portsmouth, was charged with sex trafficking and use of electronic devices to facilitaate certain offenses involving minors.
  • Kenric Frazier, 46, of Portsmouth, was charged with sex trafficking, use of electronic devices to facilitate certain offenses involving minors and solicitation of child pornography.
  • Cameron Lewis, 24, of Norfolk, was charged with solicitation of prostitution.

Investigators also developed leads about people who are suspected of trafficking and exploiting others for commercial sex. Those are now active and ongoing investigations. There may be more charges and arrests pending further investigation and consultation with the Virginia Beach Commonwealth’s Attorney’s Office.

If you’re a human trafficking victim or know someone who is, you can report it to the National Human Trafficking Hotline at 1-888-373-7888.

Continue to check WAVY.com for updates.



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Dragas responds to accusations of having unfair advantage in quest to buy VB National

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Dragas responds to accusations of having unfair advantage in quest to buy VB National


VIRGINIA BEACH, Va. (WAVY) — Helen Dragas, CEO of Dragas Companies, said she does not feel her company had an “unfair advantage” in pursing a deal to buy Virginia Beach National Golf Club.

Rather, Dragas said her team took the initiative to put forward the “the “best competitive proposal we could.”

Next month, Virginia Beach City Council could vote to sell the 270-acre 18-hole course to Dragas, who along with Texas-based Century Golf, would redesign and refurbish the course. Dragas would then build nearly 660 housing units on the southern end of the property, and build a new childcare center.

Dragas’ proposal, titled “Princess Anne Landing,” was one of nine total groups who responded to the city’s request for proposals regarding of the future of the course.

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Still, many on both social media and in public comments have accused the longtime housing developer of having the upper hand, given that she had the city sign a non-disclosure agreement in 2024, more than a year before the city’s intentions of possibly selling the course became public.

As part of an interview Tuesday with 10 On Your Side, Dragas was asked about those accusations and other questions. Responses are edited for style and brevity purposes.

REPORTER: You’ve heard some of the criticisms … sitting through the public hearings. … How do you take it when people say that you got an unfair advantage?

DRAGAS: I say that we invested thousands of hours of hard work and due diligence watching public hearings, media council meetings, digging into those engineering studies that I referenced before that showed the deficiencies, … understanding the comprehensive plan, the Historic Overlay District, the ITA situation, all that. There’s a lot of complexity there and we invested a lot of time and energy to develop the best competitive proposal we could. We never knew we would see it, and we still don’t know if we’ll see a single cent of that investment back. And that’s competition and that’s initiative, and we live in a country that’s always rewarded initiative. And we took it. And while others might have been spending their time on other projects or other endeavors, this is what we were doing. So we didn’t receive any nonpublic information. We just did our homework and I think we tried to solve a lot of problems in one proposal: housing, homeownership, childcare, golf course, you know, redesign and refresh and reinvestment and a future tax stream for the course. So we think we come up with something that provides benefit, not just at offers, but to a lot of other constituents in the city as well. We’re really proud of it.

REPORTER: You were telling me that … long before even the auditors report, you had your eye on that that parcel and thought it would be good for houses. Correct?

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DRAGAS: Well, we always knew that there was that section that … could handle some housing, yes. And others did as well. There were other rentals. There was another unsolicited proposal or two. And then I think about half of the respondents to the proposal included housing.

Under the terms that have been negotiated between City Council and economic development staff for months in closed session, Dragas would purchase the roughly 270 acre course for $17.9 million from the city. The city will, in turn, give the $17.9 million back to Dragas, along with $1.8 million from the Virginia Beach Development Authority, to go towards an estimated $38 million golf course redevelopment.

On top of the nearly $20 million the city would give the development team for the golf course work, the city could contribute up to nearly $8 million in public infrastructure along Tournament Drive and Princess Anne Road, to include turn lanes, streetscape improvements, utility relocations, and a sewer extension.

REPORTER: Why does it need to be a public-private partnership?

DRAGAS: So right now the city has millions of dollars in deferred renovation — $7.7 million in identified stormwater deficiencies and remaining clubhouse and facilities repair. That doesn’t cover anything about renovating a 30-year-old course. And … everything needs a renovation, refurbishment at some point in its life, physical life. And so, this course needs that. There’s also public infrastructure that serves the entire area right there. So there’s some Virginia Beach Development Authority parcels that sit there and the first tee … as you probably know, is that land is going to be dedicated to the First Tee. There’s sanitary sanitary sewer infrastructure that serves all those parcels that was originally connected to be temporary, and that was almost 30 years ago. So the city has, I think, some deferred public infrastructure costs as well. What our proposal does is take the city off the hook for future maintenance liabilities. They’re actually going to come out of pocket less than they would if they just did the stormwater and the clubhouse repairs that were made, and in exchange, the city will have a $3.4 million a year tax revenue stream, a completely refreshed and refreshed renovated golf course, a badly needed child care facility and then, of course, the homes, homeownership opportunities for over 600 families.

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