Intergovernmental affairs manager Jerry Wilson outlines state budget uncertainty, new work groups for Newport News

Jerry Wilson, Newport News’ Intergovernmental Affairs Manager, told the City Council at a June 9 work session that lawmakers in Richmond remain uncertain about a final state budget and that an updated revenue forecast of roughly $922,000,000 narrowed—but did not close—the shortfall.

“We’re sort of in a weird place with the General Assembly right now because of the budget, or should I say the lack thereof,” Wilson said, describing a situation in which the House and Senate were preparing separate proposals that still must reach the governor’s desk.

Wilson said timing will matter if certain revenue sources or tax authorities are folded into a budget. She identified possible inclusions—retail cannabis revenue and gaming receipts—and noted that a Senate draft had included a 1% local taxation authority. “The question now is what of those things, if any of them, will be included in the final budget proposal?” she said, adding that some provisions would require changes in statutory timing to be actionable before next year.

The manager and Wilson also briefed the council on about 14 new state work groups created by recent legislation. Wilson listed topics that include subdivision plats and site-plan rules, emergency management needs, workforce impacts of autonomous vehicles, parental/prenatal substance-use responses, distribution formulas for fire program aid, safety rules for electric bicycles and scooters, PFAS reduction in biosolids used for land application, court-payment modernization, and screening processes for child-protective-services complaints. She noted most work groups have reporting deadlines in October or November and that their recommendations could become bills in the next legislative session.

Council members asked about specific items during a question-and-answer period. The mayor asked about a 100% disabled-veteran real-estate tax relief request; Wilson said the proposal had been carried over from prior work and may appear in future budget language. A council member asked whether data centers being taxed would close revenue gaps; Wilson estimated the foregone taxes from data-center exemptions at “anywhere from 1.6 to $2,200,000,000” and cautioned that co-location rules (for example, banks occupying space with data centers) can complicate how tax exemptions apply.

Wilson also confirmed that the Virginia Municipal League (VML) has a legislative committee meeting scheduled for June 24 and that priority-session scheduling typically occurs in July. She urged early coordination with bill patrons for housing-related proposals that are likely to return in the next short session.

Why it matters: many of the work groups and budget choices Wilson described could change local responsibilities or funding streams for Newport News. Council members asked for follow-up on specific items and dates; Wilson said staff will continue to monitor developments and to coordinate with General Assembly patrons where possible.

The update closed without formal action; council members later moved to other business and votes on local grants.