Repost from The Virginia Star.

Governor Glenn Youngkin is directing $397 million in excess funds to be set aside for unspecified tax relief in 2023, as Virginia has $3.2 billion in excess cash — $2 billion in unplanned revenues plus Fiscal Year 2022 spending that was $1.2 billion less than planned.

“Today I formally report to the General Assembly that Virginia ended the fiscal year with a record general fund balance,” Youngkin said at a Friday morning joint meeting of the House of Delegates Finance and Appropriations Committees and the Senate Finance Committee.

Youngkin included two caveats: that the FY 2023-2024 budget already planned for some of those funds, and that “[I]t is not the government’s money. It belongs to the taxpayers.”

Much of the $3.2 billion is already spoken for, including $1 billion for tax rebates; and $905 million for Virginia’s Revenue Stabilization fund, commonly called the rainy day fund.

“Our balance sheet is in a strong position, and our substantial reserve funds have grown sharply from their pre-pandemic levels,” Youngkin said.

Youngkin said he’d include the $397 million in his budget proposal at the end of the year.

After the passage of the budget earlier this year, Youngkin transitioned from his campaign list of priorities called the “Day One Game Plan.” Looking ahead to the 2023 General Assembly session, he’s talking about “Day Two.” In his speech Friday, Youngkin highlighted three priorities: addressing violent crime and mental health; addressing housing costs; and meeting 2025 clean water goals in the Chesapeake Bay.