Data centers remain sticking point in budget battle
Virginia's state budget battle is stalled over data centers. The House and Governor Abigail Spanberger propose a commission to study data center impacts, while the Senate, led by Senator Louise Lucas, demands immediate action, including establishing a tiered state impact fee and addressing a sales tax exemption for data centers.
Virginia's state budget is at an impasse, with a looming government shutdown, primarily due to disagreements over data center policy. Governor Abigail Spanberger and the House of Delegates support creating a Data Center Accountability Commission to study the industry's impacts across the Commonwealth, aiming for thoughtful legislative action in the next General Assembly session.
However, top Senate budget negotiator Senator Louise Lucas is not in agreement, stating that Virginians expect immediate action rather than waiting another year. Lucas, who previously sought to eliminate a sales tax exemption data centers currently receive, now advocates for establishing a tiered state impact fee on data centers.
The Governor expressed frustration, noting on June 15th that she has not seen actual legislative text from the Senate's proposal, emphasizing the need for a budget by the end of the month. Despite the tight deadline and high tensions, Lucas remains defiant, asserting that the House and Governor need to cooperate with the Senate.