Virginia Budget Debate Turns Public Amid Data Center Dispute

The Center Square—Virginia budget negotiations spilled into public view last week as top Democratic leaders publicly clashed over data center policy ahead of the June 30 budget deadline.

Senate Finance and Appropriations Chairwoman Louise Lucas, D-Portsmouth, publicly criticized Democratic Gov. Abigail Spanberger and House of Representative leaders Friday as negotiations continued without a final agreement.

“Just when I thought Chairman Torian and I were getting close to agreeing on a budget, we had a meeting with Data Center Diva this morning and she agrees with Amazon Don who doesn’t want to impact the richest corporations in the country,” Lucas wrote on social media, referring to Spanberger and House Speaker Don Scott, D-Portsmouth.

In a separate statement released on Senate letterhead, Lucas said the governor and House leaders “did not want to alter the freeloading policy for data centers” and said the facilities should “pay their fair share to provide services to the people of the commonwealth for the next two years.”

Lucas also pushed back on suggestions she was unwilling to compromise.

“I know the governor and House’s narrative will be that I wasn’t willing to compromise or to meet. This is simply not true,” Lucas wrote. “We attempted to move forward multiple times. With the support of the Senate conferees, I have offered multiple compromise options that would have provided revenue from data centers. Under these compromises, neither side got everything.”

Spanberger later released a statement saying she remained confident lawmakers would reach a budget agreement before July 1.

“I have also been clear that data centers in Virginia need to pay their fair share for energy consumption,” Spanberger said. “I have brought proposals to the table that would make data centers pay more for the energy they use and address environmental concerns, including their air pollution, water and energy use, and noise.

“I am confident that General Assembly leadership will get a bill on my desk that I can sign on time. Because there is no other option – those responsible for funding our government have an obligation to deliver.”

Senate Majority Leader Scott Surovell, D-Fairfax, also criticized the possibility of what he described as “DC-style continuing resolutions” instead of a full budget agreement.

“Virginia has never done that in our history, we’ve always passed a full budget by July 1 and this year should be no different,” Surovell wrote on social media.

Lawmakers failed to finalize a budget during the regular General Assembly session or a subsequent special session earlier this year.

The House of Delegates is scheduled to reconvene its special session June 18, followed by the Senate on June 22, as negotiators continue work on the state’s next two-year spending plan.