Governor Proposes 2017 Bonus for Virginia Teachers, State Workers

Teachers and state workers may see a bonus next year, proposed by Virginia Gov. Terry McAuliffe, he announced Tuesday. The Governor says he added the 1.5 percent bonus to the FY 2017-18 budget that would go into paychecks in December 2017 if passed.

The proposal goes before the General Assembly next month with a price tag of more than $130 million.

“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,” McAuliffe said in a news release announcing his proposal. “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 said Tuesday.

The Governor said one of those sources for funding the bonuses would be in the form of 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, the Governor's office pointed out.

PHOTO of Gov. Terry McAuliffe courtesy of Governor's Office