Governor Spanberger Outlines Fiscal Guardrails and Targeted Education Allocations for 2027

RICHMOND, VA — Governor Abigail Spanberger delivered her annual interim fiscal briefing Thursday to the joint House Appropriations and Senate Finance and Appropriations Committees, outlining strategic budgetary guardrails ahead of the 2027 biennial budget development.

Fiscal Performance and Surplus Allocations

Addressing legislative leaders at the State Capitol, Governor Spanberger reported that the commonwealth closed fiscal year 2026 with a certified general fund surplus of $1.15 billion, driven by resilient corporate tax collections and disciplined operational management. The Governor proposed directing $450 million of the unreserved balance into the state's Revenue Stabilization Fund (Rainy Day Fund), lifting total cash reserves to a record $3.8 billion.

The fiscal plan allocates $380 million in direct supplemental grants for public school divisions to raise average teacher compensation to the national median by 2028.

Infrastructure and Clean Energy Transition

The executive framework sets aside $220 million for regional bridge repair and flood mitigation projects across Hampton Roads and Southwest Virginia, alongside dedicated matching funds for federal clean energy grid enhancements.

Legislative money committee chairs praised the administration's fiscal discipline, emphasizing that maintaining Virginia’s AAA bond rating is essential to minimizing long-term borrowing costs.

Budget Preparation Schedule

Executive branch agencies must submit formal biennial funding requests by October 1, 2026, with the Governor’s comprehensive budget bill scheduled for introduction in December.