On March 9, the Senate Finance and Appropriations Committee voted to continue to 2027, HB 334 (Rasoul), which is legislation that once again seeks to grant additional revenue raising authority if approved by local referendum for school capital needs. Rather than advancing the proposal as a separate bill, the Senate incorporated similar language in its proposed budget through Item 4-14 #1s, reflecting an approach that would allow the policy to move forward as part of the budget conference negotiations. Senate members indicated during committee discussion that they preferred to address the issue through the budget process this year. The House of Delegates preferred to pass standalone legislation (HB 334) and did not include accompanying language in their own budget proposal.
The next step now lies with the budget conference committee, which is tasked with reconciling differences between the House and Senate spending plans. The General Assembly recently appointed conferees to negotiate the final budget, including Delegates Luke Torian, Delores McQuinn, Alfonso Lopez Krizek, Terry Austin, and Barry Bloxom for the House, and Senators L. Louise Lucas, Creigh Deeds, Mamie Locke, Todd Pillion, and Richard Stuart for the Senate.
Because the Senate school construction financing proposal is currently embedded in the budget, the conference committee could play a decisive role in determining whether expanded local financing authority moves forward this year. Both chambers’ actions suggest growing recognition of the scale of school capital needs facing local governments.
As previously reported, localities across Virginia continue to face increasing pressure to modernize aging school facilities, address capacity needs in growing communities, and manage rising construction costs. School infrastructure remains primarily a local responsibility in Virginia, and additional financing tools, particularly those requiring voter approval, have been identified by many local leaders as an important part of addressing long-term capital needs.
VACo will continue to monitor budget conference negotiations closely and provide updates as discussions progress. VACo supports any efforts for additional state resources and additional statewide funding options for localities for capital and school construction costs and has publicly testified this session in favor of these efforts.
VACo Contact: Jeremy R. Bennett