The second full week of the 2025 Session of the Virginia General Assembly is complete. Like the first week, the time just flew by. We continue to strive to make up for the lost days when the lack of running water shut down business. The halls are crowded as people visit and the work goes on.
This past week we observed Martin Luther King, Jr. Day, which was also the same day a new president was inaugurated. Even though it is a federal and state holiday, it was just another day for the General Assembly and the halls were full of advocates and visitors. Every day is filled with long committee and subcommittee meetings, and the daily floor session. The busy days make the hours pass quickly. It is hard to believe, but we have some significant deadlines in a little over a week. The Senate Finance and Appropriations Committee will present their budgets on Sunday, February 2, and each chamber must finish work on their respective bills by Tuesday, February 4. These and other dates are on the legislative calendar.
There are several big issues before this session.
Medicaid
When it comes to the budget, Medicaid continues to be the most significant challenge. We are dealing with the largest mid-budget reforecast we have ever seen. The budget reforecast called for a $632 million shortfall in funding, nearly $200 million more than the highest mid-term reforecast that anyone can remember. On top of that, Medicaid managed care companies report they are losing money and need over $200 million to break even. We have serious work to do. The best way to follow the work relating to the budget is by monitoring the Senate Finance and Appropriations Committee and the House Appropriations Committee and the work of their respective subcommittees.
 This past week, I met with a group of advocates for reproductive freedom and had a wonderful discussion with a school group from Charlottesville. Please reach out if you want more information about visiting the Capitol! Data Centers
Another big issue before the General Assembly is data centers. Data centers are huge facilities that house computers that essentially manage internet traffic and information stored in cloud-based technology. At present, data centers are the largest source of capital investment in Virginia and, wherever they are located, data centers are a huge source of real estate tax revenue for local governments. Data centers are also an employer. Like most buildings, the largest boost in employment is during the construction process, but the projects do create a modest number of jobs to keep the data centers running.
The concern is that data centers occupy large amounts of land. In some areas their placement has changed the character of neighborhoods and has threatened historic or scenic areas. In addition, a recently completed JLARC report confirmed what we have known for some time – that data centers are a driving force behind the huge increases in demand for electric power. In fact, data centers are not just the driver in the increase for the demand, they are the primary source. Last year, Dominion Power released an integrated resource plan that indicated their demand for electricity would double over the next 15 years. Most of that demand is driven by data centers. According to the report, the demand over the next few decades will triple.
There are several bills that are being considered, including some I have introduced, to ensure that data center growth, in part spurred by a sales tax exemption they enjoy, could be tempered in some way by a requirement that they do more to achieve energy efficiency and create their own electric power. Those bills are nearly all pending. For a comprehensive list of related bills see here. |
