McAuliffe says proposed budget amendments will include 1.5 percent bonus for state employees

Gov. Terry McAuliffe said Tuesday his proposed budget amendments will include a 1.5 percent bonus for Virginia state employees in December of next year.

The proposal also includes money for the state’s share of a 1.5 percent bonus for teachers and state-supported local employees.

McAuliffe also said he will recommend funding to address salary compression at the Virginia State Police and support career development programs.

The cost of the proposed budget amendments is $130.6 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 statement. “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.”

McAuliffe said the funding comes from several sources of one-time funding he and his administration have identified. 

One of those new sources is a new state tax amnesty program, McAuliffe said. The program will create a grace period for individuals and businesses to 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, according to McAuliffe.