RICHMOND, Va. (CN) — The Democrat-controlled Virginia Legislature released its proposed budget compromise on Thursday, but one key priority for Republican Governor Glenn Youngkin is missing: a new arena.
"I believe the Senate is about to make a colossal mistake," a disappointed Youngkin said in a press conference. "The Senate refused to give the single largest economic development deal in Virginia's history any serious, meaningful consideration, breaking their own longstanding tradition in the process and avoiding the broad bipartisan support in both houses."
The owners of the Washington Wizards and Washington Capitals announced a tentative agreement with Youngkin in December to build a new arena, partially with public funds, in Alexandria.
The proposed budget lacks any language for an arena after a top Senate budget negotiator called it a bad deal.
"I do not believe we ought to put the full faith and credit of the commonwealth behind a project that's going to further enrich billionaires," Senate President Pro Tempore Louise Lucas, a Democrat, said. "If they want this project, [they can] pay for it themselves and not put it on the backs of the commonwealth's taxpayers."
In his address to the media, Youngkin described Lucas as a roadblock. Lucas watched from atop the state Capitol steps as Youngkin spoke to reporters.
The House of Delegates version of the proposed budget did include the arena, but Lucas used her authority to prevent the Senate from voting on it. "If it had gotten to the floor, it would have passed," Youngkin said. "It's just not right."
Delegate Luke Torian, a Democrat who chairs the House Appropriations Committee and led budget negotiations in the House, said he was a little disappointed with the language not making it in.
Youngkin said the arena would have a $12 billion economic impact for the state.
"Billions in direct cash flow that flows right back into important priorities like transportation — transportation for WMATA [the Washington Metropolitan Area Transit Authority], our metro system, transportation like I-81, education, toll relief — priorities that benefit the entire commonwealth of Virginia," Youngkin said, rattling off some of the benefits that he said a new arena would bring.
Lucas and other opponents of the arena cited the public cost, lack of labor protections for the 30,000 or so construction workers and the risk of using bonds backed by state and city governments as reasons for opposing the stadium.
"He wants 30,000 new jobs but doesn't want to sign a bill for minimum wage," Lucas — who, along with other Democrats, passed a bill increasing Virginia's minimum wage — said. "What are we talking about here?"
State Senator Mamie Locke told reporters that Lucas isn't the only Democrat opposing the arena.
Locke, also a Democrat, said Governor Youngkin rushed the process and failed to give legislators the details they needed to make a decision.
"What was the rush?" Locke asked. "I think that from the very beginning, this project was meant to have the outcome it has today."
If included in a budget, the proposed $2 billion public-private partnership between Virginia and Monumental Sports would bring a state-of-the-art arena, a media studio for Monumental Sports Network, a practice facility for the Wizards, a performing arts venue and an expanded esports facility to the city of Alexandria's Potomac Yard neighborhood. That's in addition to hotels, restaurants and retail stores.
The Coalition to Stop the Arena at Potomac Yard, comprised of Arlington and Alexandria residents, celebrated the arena's omission from the budget.
"There are still many hurdles to overcome before Governor Youngkin's vanity project is consigned to the dustbin of history," the group wrote in a statement. "The momentum is clearly against him and his billionaire enablers."
Virginia operates under a two-year or biennial budget cycle. Each year, the governor prepares the proposed budget bill before it is introduced by the General Assembly. Those bills are adopted in even-numbered years and amended in odd-numbered years.
With control of both chambers, Democrats have passed numerous progressive bills, including establishing a retail cannabis market, increasing gun control and requiring paid family and medical leave for workers. Youngkin, who has veto power, said giving Democrats what they wanted hinged on them putting the arena in the budget.
"There have been a lot of things that have been discussed that have been part of an overall broad discussion with regards to not just the Monumental deal but a lot of other things," Youngkin said. "I think this really sets us meaningfully back."
The agreed-upon budget includes 3% annual raises for teachers and increased funding for at-risk and ESL students. Investments in toll relief, violence prevention and state and local government employee raises also made the final cut.
"We made education and pay raises a priority in the budget," Torian said, "which is very important."
Legislators will meet on Saturday to vote on the budget, which is expected to pass. The agreed-upon budget has yet to be uploaded.
Subscribe to Closing Arguments
Sign up for new weekly newsletter Closing Arguments to get the latest about ongoing trials, major litigation and hot cases and rulings in courthouses around the U.S. and the world.
