The Senate Finance committee advanced it’s version of the Budget Bill Monday afternoon, marking the earliest lawmakers could recall the document being approved in committee.
Senate Bill 250 entails a $5.381 billion general revenue budget, which is a two percent decrease from the $5.493 billion budget presented to lawmakers by by Governor Patrick Morrisey during his State of the State address on Jan. 14.
The Senate’s version of the budget includes just over $270 million in cuts following general revenue adjustments, as well as nearly $160 million in enhancements. One major change involves lowering the investment in the Hope scholarship program from the Governor’s proposed $338 million to $300 million.
The bill also adjusts how Medicaid funding through the Bureau of Medical Services works. Morrisey’s budget funds Medicaid at just under $140 million in the general revenue budget and $170 million through the surplus section of the budget. The Senate version increases the Medicaid general revenue funding to just over $260 million, with roughly $5.5 million coming from sweeps of special revenue accounts, and $46 million in current fiscal year funding of Medicaid.
The Senate’s budget also incorporates Senate Bill 392 (also approved Monday), which would cut personal income tax rates by approximately 10 percent retroactive to Jan. 1, returning $250 million to taxpayers when fully implemented.
A portion of the tax cut would be paid for with increased taxes on vape and e-cigarette products, raising a projected $22 million in tax revenue.
Senate Bill 392 modifies the current excise tax of 7.5 cents per milliliter to a tiered system based on the type of vaping device. Closed system vapes, such as cartridge or pods, would be taxed at $1.20 per cartridge. Open system, or refillable vapes would be taxed at 25 cents per milliliter.
Senators acknowledged during discussion that their version of the budget will almost certainly change, and that the current document is simply a starting point for negotiations with the House of Delegates.
As of this writing, 26 days remain in the 2026 Regular Session.
