RICHMOND, Va. (WSET) — On Wednesday, Gov. Glenn Youngkin shared his budget changes with the Joint Money Committees at the General Assembly Building.

The current budget is based on a sales forecast from December 2023.

Youngkin said 2024 results exceeded that forecast with a surplus of $3 billion.

With this multi-billion dollar surplus, more funding will be available for things that matter to Virginia families.

“Reducing the tax burden so Virginians have more money in their pockets is not a Republican or Democrat issue, but a common sense issue,” said Governor Youngkin.

In education, Youngkin proposes $290 million for school construction, $25 million for laboratory schools and a $517.6 million increase for direct aid for K-12 and higher education.

One of the proposed amendments deals with what he calls a terrible tax: the car tax.

“The average car tax for a family of four on their only car today is about $290 if they have one car, and so this tax break is structured to target exactly that,” Youngkin said.

His amendment would provide a $150 credit for households with annual incomes under $50,000 and a $300 credit for households with annual incomes under $100,000.

Youngkin also wants to eliminate the state tax on tips.

“No more taxes on tips. You earn it, you keep it. “This cuts taxes for Virginians by $70 million a year,” Youngkin said.

Republican Rep. Wendell Walker said this budget should encourage us.

“With the budget that the governor is proposing and with what the legislature is going to put forward, I think it will be a win-win for everyone in the commonwealth,” Del said. Walker.

House Budget Committee Chairman Luke Torian, a Democrat, says working with Gov. is what will lead them to success

“He recognized that putting together the budget is a collective effort and so we will move forward with that intent,” Del said. Torian.

As we go through this budget, some things may be adjusted.

“We need to make sure at the end of our session that we have a balanced budget that we can give to the governor for his signature,” Walker said.

The General Assembly will meet again on January 8th.

State lawmakers have about two months to work through the governor’s budget changes.