McAuliffe expected to propose raises for state employees
RICHMOND — Gov. Terry McAuliffe plans to propose a 2 percent pay raise for state employees and teachers in the second year of the biennial budget he will introduce Monday, according to a source in the administration.
McAuliffe, preparing to submit his final budget proposal before leaving office on Jan. 13, also will propose a major boost to the state’s new cash reserve fund to create a balance equal to 2 percent of the general fund budget at $427 million by the end of the biennium in mid-2020, the source said.
The proposals would allow the departing governor to address concerns about the state’s ability to recruit and retain talented employees, as well as a negative outlook on Virginia’s finances by a national bond rating agency early this year because of overreliance on the state’s rainy day fund to balance the budget in the face of revenue shortfalls twice in the last four years.
McAuliffe is counting on projected increases in collections of major state revenue sources, such as taxes on individual income, sales and corporations to pay for the proposed increases, the source said.
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