For Immediate Release: December 13, 2016
Contacts: Office of the Governor: Brian Coy, Brian.Coy@governor.virginia.gov

Governor McAuliffe Announces His Upcoming Budget will Include 1.5% Bonus for State Employees in 2017

~Budget will also include new Tax Amnesty Program designed to generate additional revenue~

 

RICHMOND – Governor Terry McAuliffe today announced that his amendments to the FY 2017-18 budget will include a 1.5% bonus for Virginia state employees and the state’s share of a 1.5% bonus for teachers and state-supported local employees effective December 1, 2017. The Governor will also recommend funding to address salary compression at the Virginia State Police, Sheriff’s Offices and Regional Jails and support career development programs. In total, the Governor’s proposed amendments include $130.6 million for compensation.

“Virginia is home to the finest state workforce anywhere in the nation, and we have an obligation to continue to ensure they are compensated for their great work,” said Governor McAuliffe. “While current conditions do not allow for a permanent salary increase in the upcoming budget, this one-time bonus should send a clear message to our employees that we value their hard work and recognize the need to continue to increase their compensation.”

While Virginia’s revenue shortfall prevents a permanent salary increase in the current budget, the Governor and his team have identified several sources of one-time funding in order to pay for the bonuses he announced today.

The Governor announced one of those sources today in the form a new state tax amnesty program, which will create a special grace period during which individuals and businesses can pay back taxes while avoiding fines and only paying half of the interest due.  This program is expected to generate $59.4 million for the general fund. The program will be administered in fiscal year 2018. Since 1990, three amnesty programs have been administered, with the last being held in 2009.

 

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