| • |
| Adjust appropriation for centrally funded salary increases for state employees |
Base Budget Adjustment |
|
| |
Adjusts appropriation for the salary increases for state employees budgeted in Central Appropriations, Item 469 R. of Chapter 725, 2025 Acts of Assembly. |
| |
| |
FY 2027 |
FY 2028 |
| General Fund |
($275,290,398) |
($275,290,398) |
|
| • |
| Provide salary increases for state and state-supported local employees |
Decision Package |
|
| |
Provides funding for two salary increases for state employees and state-supported local employees. State employees will receive a two percent salary increase effective July 10, 2026, and an additional two percent salary increase effective June 10, 2027. State-supported local employees will also receive a two percent raise on July 1, 2026, and an additional two percent raise on July 1, 2027. |
| |
| |
FY 2027 |
FY 2028 |
| General Fund |
$126,650,794 |
$276,221,941 |
|
| • |
| Adjust funding for agency health insurance premium costs |
Decision Package |
|
| |
Provides general fund support for the employer share of health insurance premiums. Increases in the first year are partially offset by plan design changes. These plan design changes include a new $150 pharmacy deductible, a requirement for certain prescriptions to use available biosimilars, and a reduction in the cost paid for certain diabetic and weight loss medications. The budget assumes the rates for the state's self-insured plans will increase an additional 5.0 percent the second year. The rates for the state's two fully insured plans, Kaiser Permanente and Sentara Health, are funded at the estimated contractually determined rates. |
| |
| |
FY 2027 |
FY 2028 |
| General Fund |
$99,423,507 |
$144,095,199 |
|
| • |
| Adjust appropriation for centrally funded salary increase for state-supported local employees |
Base Budget Adjustment |
|
| |
Adjusts appropriation for the salary increase for state-supported local employees budgeted in Central Appropriations, Item 469 S. of Chapter 725, 2025 Acts of Assembly. |
| |
| |
FY 2027 |
FY 2028 |
| General Fund |
($80,663,893) |
($80,663,893) |
|
| • |
| Adjust appropriation for centrally funded changes to state health insurance premiums |
Base Budget Adjustment |
|
| |
Adjusts appropriation for the employer’s share of health insurance premiums budgeted in Central Appropriations, Item 469 G. of Chapter 725, 2025 Acts of Assembly. |
| |
| |
FY 2027 |
FY 2028 |
| General Fund |
($80,484,610) |
($80,484,610) |
|
| • |
| Adjust funding for state employee retirement costs |
Decision Package |
|
| |
Adjusts general fund support for the changes in employer contribution rates for state employee retirement. Funding is provided for the full defined benefit contribution rates certified by the Virginia Retirement System Board based on the June 30, 2025, Virginia Retirement System valuation for 2027 and 2028. The funding provided takes into account the estimated employer contributions for the hybrid retirement program's defined contribution component. |
| |
| |
FY 2027 |
FY 2028 |
| General Fund |
($46,743,356) |
($48,775,666) |
|
| • |
| Adjust funding for other post-employment benefit programs |
Decision Package |
|
| |
Adjusts general fund support for the changes in employer contribution rates for other post-employment benefit programs for state and state-supported local employees. Funding is provided for the full contribution rates certified by the Virginia Retirement System Board for the state employee sickness and disability, group life insurance, and retiree health insurance credit programs and the state supported employee retiree health insurance credit program based on the June 30, 2025, Virginia Retirement System valuation for 2027 and 2028. |
| |
| |
FY 2027 |
FY 2028 |
| General Fund |
($24,350,438) |
($25,360,292) |
|
| • |
| Adjust appropriation for higher education credit card rebates and interest earnings |
Decision Package |
|
| |
Reflects estimated appropriation needed for higher education credit card rebates and interest earnings. Credit card rebates and interest earnings are being level funded at the 2025 actual levels. |
| |
| |
FY 2027 |
FY 2028 |
| General Fund |
$12,409,514 |
$12,409,514 |
| Nongeneral Fund |
$5,970,896 |
$5,970,896 |
|
| • |
| Adjust funding for changes in agency information technology costs |
Decision Package |
|
| |
Adjusts funding for changes in information technology and telecommunications usage by state agencies. The funding reflects the latest utilization estimates provided by the Virginia Information Technologies Agency and proposed rates for 2027 and 2028. |
| |
| |
FY 2027 |
FY 2028 |
| General Fund |
$14,555,864 |
$14,555,864 |
|
| • |
| Adjust appropriation for centrally funded property insurance premium charges |
Base Budget Adjustment |
|
| |
Adjusts appropriation for property insurance premiums billed by the Department of the Treasury’s Division of Risk Management budgeted in Central Appropriations, Item 470 M. of Chapter 725, 2025 Acts of Assembly. |
| |
| |
FY 2027 |
FY 2028 |
| General Fund |
($10,105,034) |
($10,105,034) |
|
| • |
| Adjust appropriation for centrally funded salary increase for adjunct faculty |
Base Budget Adjustment |
|
| |
Adjusts appropriation for the salary increase for adjunct faculty budgeted in Central Appropriations, Item 469 T. of Chapter 725, 2025 Acts of Assembly. |
| |
| |
FY 2027 |
FY 2028 |
| General Fund |
($9,044,194) |
($9,044,194) |
|
| • |
| Adjust appropriation for centrally funded other post-employment benefit rate changes |
Base Budget Adjustment |
|
| |
Adjusts appropriation for changes to state employee other post-employment benefit rates budgeted in Central Appropriations, Item 469 J. of Chapter 725, 2025 Acts of Assembly. |
| |
| |
FY 2027 |
FY 2028 |
| General Fund |
$8,553,709 |
$8,553,709 |
|
| • |
| Adjust appropriation for centrally funded retirement rate changes |
Base Budget Adjustment |
|
| |
Adjusts appropriation for changes to contribution rates for state employee retirement plans budgeted in Central Appropriations, Item 469 H. of Chapter 725, 2025 Acts of Assembly. |
| |
| |
FY 2027 |
FY 2028 |
| General Fund |
$6,938,318 |
$6,938,318 |
|
| • |
| Adjust appropriation for centrally funded changes to agency information technology costs |
Base Budget Adjustment |
|
| |
Adjusts appropriation for changes to information technology and telecommunications usage budgeted in Central Appropriations, Item 470 C. of Chapter 725, 2025 Acts of Assembly. |
| |
| |
FY 2027 |
FY 2028 |
| General Fund |
($6,904,948) |
($6,904,948) |
|
| • |
| Adjust appropriation for centrally funded changes to agency rental costs |
Base Budget Adjustment |
|
| |
Adjusts appropriation for changes to agency rental costs at the seat of government budgeted in Central Appropriations, Item 470 D. of Chapter 725, 2025 Acts of Assembly. |
| |
| |
FY 2027 |
FY 2028 |
| General Fund |
($6,636,572) |
($6,636,572) |
|
| • |
| Adjust funding for state workers' compensation premiums |
Decision Package |
|
| |
Adjusts funding for the workers' compensation premiums based on the latest actuarial report. Premiums include the scheduled payback of the working capital advance used to settle workers' compensation claims. |
| |
| |
FY 2027 |
FY 2028 |
| General Fund |
$4,603,610 |
$4,841,599 |
|
| • |
| Adjust funding for Line of Duty Act premiums |
Decision Package |
|
| |
Adjusts funding to reflect the estimated Line of Duty Act premiums charged to agencies based on the latest employee enrollment data provided by the Virginia Retirement System and the new per eligible employee rate certified by the Board of Trustees. |
| |
| |
FY 2027 |
FY 2028 |
| General Fund |
$4,133,277 |
$4,133,277 |
|
| • |
| Adjust appropriation for centrally funded salary increase for graduate teaching assistants |
Base Budget Adjustment |
|
| |
Adjusts appropriation for the salary increase for graduate teaching assistants budgeted in Central Appropriations, Item 469 U. of Chapter 725, 2025 Acts of Assembly. |
| |
| |
FY 2027 |
FY 2028 |
| General Fund |
($3,720,598) |
($3,720,598) |
|
| • |
| Adjust funding to agencies for changes in Division of Risk Management premiums |
Decision Package |
|
| |
Adjusts the general fund support to state agencies for changes to insurance premiums billed by the Division of Risk Management for its property, automobile liability, general liability, medical malpractice, and Constitutional Officers programs. |
| |
| |
FY 2027 |
FY 2028 |
| General Fund |
$2,962,807 |
$3,438,655 |
|
| • |
| Adjust appropriation for centrally funded minimum wage increases |
Base Budget Adjustment |
|
| |
Adjusts appropriation to reflect the assumed increase in the Virginia minimum wage effective January 1, 2026, and budgeted in Central Appropriations, Item 469 Q. of Chapter 725, 2025 Acts of Assembly. The amounts provided support the annualized general fund cost of increasing the Virginia minimum wage from $12.00 per hour to $12.89 per hour or the equivalent annual salary of $26,811. The actual minimum wage for January 1, 2026 will be communicated by the Commissioner of the Department of Labor and Industry by October 1, 2025. |
| |
| |
FY 2027 |
FY 2028 |
| General Fund |
($3,069,713) |
($3,069,713) |
|
| • |
| Adjust appropriation for centrally funded workers’ compensation premium changes |
Base Budget Adjustment |
|
| |
Adjusts appropriation for workers’ compensation premiums budgeted in Central Appropriations, Item 469 O. of Chapter 725, 2025 Acts of Assembly. |
| |
| |
FY 2027 |
FY 2028 |
| General Fund |
$2,750,900 |
$2,750,900 |
|
| • |
| Adjust funding for state agency rent costs |
Decision Package |
|
| |
Adjusts funding for state agency rent costs in facilities operated by the Department of General Services. This adjustment reflects the latest agency square footage occupancy forecast, including movements of tenants leaving the James Monroe Building, as provided by the Department of General Services. The rent rate is assumed to remain at its existing 2026 level in 2027 and 2028. |
| |
| |
FY 2027 |
FY 2028 |
| General Fund |
$2,367,806 |
$2,367,806 |
|
| • |
| Adjust appropriation for centrally funded changes to Cardinal Financials System charges |
Base Budget Adjustment |
|
| |
Adjusts appropriation for changes to Cardinal Financials System internal service fund charges budgeted in Central Appropriations, Item 470 E. of Chapter 725, 2025 Acts of Assembly. |
| |
| |
FY 2027 |
FY 2028 |
| General Fund |
$1,992,046 |
$1,992,046 |
|
| • |
| Remove one-time funding for the cost of transition and inauguration |
Base Budget Adjustment |
|
| |
Removes one-time funding provided in Paragraphs N and O of Item 471 of Chapter 725, 2025 Acts of Assembly, for the support of the transition offices established as a result of the 2025 elections for Governor, Lieutenant Governor, and Attorney General and for the cost of the January 2026 inauguration. |
| |
| |
FY 2027 |
FY 2028 |
| General Fund |
($1,965,382) |
($1,965,382) |
|
| • |
| Adjust appropriation for centrally funded changes to Line of Duty Act premiums and enrollment |
Base Budget Adjustment |
|
| |
Adjusts appropriation for Line of Duty Act premiums and enrollment changes budgeted in Central Appropriations, Item 469 N. of Chapter 725, 2025 Acts of Assembly. |
| |
| |
FY 2027 |
FY 2028 |
| General Fund |
($1,964,846) |
($1,964,846) |
|
| • |
| Adjust funding for changes in Cardinal Financials System charges |
Decision Package |
|
| |
Adjusts funding for changes in the general fund share of Cardinal Financials system charges. |
| |
| |
FY 2027 |
FY 2028 |
| General Fund |
($1,535,506) |
($1,199,944) |
|
| • |
| Adjust appropriation for centrally funded changes to Cardinal Human Capital Management System charges |
Base Budget Adjustment |
|
| |
Adjusts appropriation for changes to Cardinal Human Capital Management System internal service fund charges budgeted in Central Appropriations, Item 470 F. of Chapter 725, 2025 Acts of Assembly. |
| |
| |
FY 2027 |
FY 2028 |
| General Fund |
$1,037,146 |
$1,037,146 |
|
| • |
| Adjust funding for changes in Cardinal Human Capital Management internal service fund charges |
Decision Package |
|
| |
Adjusts funding for changes in the general fund share of Cardinal Human Capital Management system charges. |
| |
| |
FY 2027 |
FY 2028 |
| General Fund |
$620,338 |
$1,453,680 |
|
| • |
| Adjust Virginia Tobacco Settlement Fund appropriation to reflect anticipated revenue |
Decision Package |
|
| |
Adjusts Virginia Tobacco Settlement Fund appropriation to reflect declining revenue from the Master Settlement Agreement with tobacco product manufacturers. This funding is used by the Virginia Foundation for Healthy Youth for program activities. |
| |
| |
FY 2027 |
FY 2028 |
| Nongeneral Fund |
($915,060) |
($915,060) |
|
| • |
| Provide funding to support increase in minimum wage |
Decision Package |
|
| |
Provides funding to support the increases in the Virginia minimum wage scheduled for January 1, 2027, and January 1, 2028. The amounts provided assume a 3.84 percent annual increase in the Virginia minimum wage. Under current law, the actual Virginia minimum wage will be established by the Commissioner of the Department of Labor and Industry by October 1 each year. |
| |
| |
FY 2027 |
FY 2028 |
| General Fund |
$392,803 |
$1,357,202 |
|
| • |
| Adjust appropriation for centrally funded liability insurance premium charges |
Base Budget Adjustment |
|
| |
Adjusts appropriation for liability insurance premiums billed by the Department of the Treasury’s Division of Risk Management budgeted in Central Appropriations, Item 470 J. of Chapter 725, 2025 Acts of Assembly. |
| |
| |
FY 2027 |
FY 2028 |
| General Fund |
$356,395 |
$356,395 |
|
| • |
| Adjust appropriation for centrally funded changes to agency leased space costs |
Base Budget Adjustment |
|
| |
Adjusts appropriation for reduced charges to customer agencies for the Department of General Services to perform lease administration services budgeted in Central Appropriations, Item 470 I. of Chapter 725, 2025 Acts of Assembly. |
| |
| |
FY 2027 |
FY 2028 |
| General Fund |
$217,089 |
$217,089 |
|
| • |
| Adjust appropriation for centrally funded changes to agency vehicle fleet charges |
Base Budget Adjustment |
|
| |
Adjusts appropriation for reduced fleet vehicle operational rate charges billed by the Department of General Services budgeted in Central Appropriations, Item 470 H. of Chapter 725, 2025 Acts of Assembly. |
| |
| |
FY 2027 |
FY 2028 |
| General Fund |
$180,062 |
$180,062 |
|
| • |
| Adjust appropriation for centrally funded changes to Performance Budgeting system charges |
Base Budget Adjustment |
|
| |
Adjusts appropriation for changes to Performance Budgeting system internal service fund charges budgeted in Central Appropriations, Item 470 G. of Chapter 725, 2025 Acts of Assembly. |
| |
| |
FY 2027 |
FY 2028 |
| General Fund |
($135,054) |
($135,054) |
|
| • |
| Adjust funding for changes in Performance Budgeting System charges |
Decision Package |
|
| |
Adjusts funding for changes in the general fund share of charges for the Performance Budgeting System internal service fund. |
| |
| |
FY 2027 |
FY 2028 |
| General Fund |
($93,637) |
($93,637) |
|
| • |
| Make technical changes to Workforce Transition Act language |
Decision Package |
|
| |
Makes technical changes to language pertaining to the payment of Workforce Transition Act retirement benefits. Under existing law, agencies are not required to pay these benefits if the Director of the Department of Planning and Budget certifies that the action results from one of four specific criteria. This language also adds a requirement that agencies demonstrate that no other funds are available to pay the benefit before receiving approval for the waiver. |
| • |
| Include Division of Risk Management in annual internal service fund reviews |
Decision Package |
|
| |
Amends existing language under the General Provisions to include the Division of Risk Management at the Virginia Department of the Treasury in the annual internal service fund review reporting process. |
