Sunday Summary

A weekly summary of important Virginia news from the Jefferson Forum – June 7, 2026

Attention Southwest Virginia readers, the Jefferson Forum is pleased to invite you to a special 1607 Roundtable Cocktail Reception at the Roanoke Country Club on Thursday, June 25th at 6pm. Click here for the invitation.

JEFFERSON FORUM MENTIONS

1.) Virginia heading towards its first Government Shutdown! According to Jefferson Forum’s Ali Ahmad in the Jefferson Journal, Virginia is on the brink of its first-ever government shutdown due to a budget standoff ahead of the June 30 fiscal deadline. Despite a $1.5 billion revenue reforecast that could fund core services, Senate Finance Chair L. Louise Lucas insists on raising taxes on the data center industry. Governor Abigail Spanberger (whom Lucas called “Data Center Diva”) and Speaker Don Scott (whom Lucas called “Amazon Don”) oppose breaking promises to these businesses. This impasse leaves the state’s AAA fiscal rating at risk. Jefferson Forum’s Steve Haner has warned about the risk of breaking promises with Virginia’s businesses.

2.) Found money is not a blank check. Jefferson Forum’s Derrick Max argues that a recent $1.5 billion increase in Virginia’s projected revenue should not be viewed as a “blank check” for new government spending. Max cautions that much of this revenue stems from volatile nonwithholding income tax collections rather than broad-based economic growth. Highlighting ongoing economic challenges like inflation and federal employment pressures, Max warns against using these projections to fund permanent, large-scale spending commitments as was done in the last General Assembly session. Instead, Max urges policymakers to maintain fiscal restraint, suggesting that such forecasts are projections — not guarantees — that rely heavily on a vibrant, stable economy.

3.) Veto of public sector collective bargaining praised. The 74million publication quoted Jefferson Forum’s Derrick Max’s praise of Governor Spanberger’s veto of public sector collective bargaining. Virginia Governor Abigail Spanberger’s recent veto of legislation expanding statewide collective bargaining rights for public school teachers represents a necessary check on government overreach and was a crucial step that protects local control over public services. Max highlighted that forcing local jurisdictions into mandatory bargaining would strip them of decision-making authority and drive-up taxpayer costs. This decision underscores the fiscal risks of compulsory unionization at a time when local affordability remains a critical priority.

VETO/BUDGET

4.) Insights into the Senator seeking to shut down the Government. Below are screenshots of the last three X (Tweets) from Senator Louise Lucas. Despite $1.5 billion in “found revenue,” — enough to fund almost all of the priorities in both budgets passed by the General Assembly — Sen. Lucas is demanding the end of the tax provisions used to lure the data centers to Virginia. These musings provide an interesting insight into the mindset of the key budget negotiator holding up a budget compromise.

5.) Weeding out weed from the Budget. Key Virginia lawmakers are pushing to include language in the upcoming state budget to establish a legal recreational cannabis market. This move follows Governor Abigail Spanberger’s May veto of a retail marijuana bill, which she claimed had a “rushed time frame.” The bill’s sponsors view the issue as an urgent public safety matter. On the other side of the debate, the Richmond Times-Dispatch ran an article by Kevin A. Sabet with the White House Office of National Drug Control Policy arguing that it is a myth that commercial legalization of weed can ever by “safe.” He argues that critical public health, child safety, and law enforcement concerns need to be placed over corporate profits, and predatory operators need to be kept at bay to prevent the commercialized normalization of drug use in Virginia communities. Governor Spanberger supports a well-regulated market but opposes using the budget to legislate. Governor Spanberger has said she opposes adding back vetoed bills (skill games, casinoes, weed) into the budget. One wonders if Sen. Lucas is holding out for a cannabis market to be added in budget, as she famously owns the Cannabis Outlet which was recently raided by the FBI, along with the rest of her business interests.

6.) No more Dirty Dancing. According to the Joint Legislative Audit and Review Commission (JLARC), Virginia squandered $128.6 million of taxpayer money on film industry incentives over a decade, only to net a measly 1,700 jobs. Hoping to recreate the windfalls from the filming of the iconic movie Dirty Dancing in Virgina. It’s ironic that progressives in the General Assembly support this massive failed payout to Hollywood elites, but want to kill what is easily the most successful business development effort in Virginia, if not the country, in support of the data centers.

7.) Bad news for Gov. Youngkin’s Petersburg project. The Sycamore Grove development project in Petersburg, originally unveiled in 2023 as part of former Governor Glenn Youngkin’s initiative to revitalize the city, has been officially canceled. Announced by Mayor Samuel Parham, the over 500,000-square-foot project aimed to combat local food scarcity in a USDA-designated food desert by building an anchored grocery store, over 340 homes, and commercial spaces. Despite previous assurances that the project was on track after developer changes, the city pulled the plug. Instead, a $3.5 million state grant originally allocated for the development will be redirected toward other local improvements, including historic renovations, demolitions, and landscaping. Personally, I hope the Governor and General Assembly take up Governor Youngkin’s efforts on behalf of Petersburg!

ENERGY &

DATA CENTERS

8.) True energy price increase being hidden. According to Cardinal News, Appalachian Power is seeking regulatory approval for a base rate increase that would raise their average Virginia residential customer’s monthly bill by $9.10 (about 5.3%) as early as March 2027. This increase would be much higher but for the utility bundling $1.34 billion in coal plant and storm recovery costs into investor bonds via securitization (delaying the impact, but adding costs). Without this process, bills would have jumped an additional $8.38. Separately, the company requested a $3.99 monthly increase to comply with state renewable energy mandates, which state regulators will review alongside the base rate.

9.) Union’s defend data centers. Labor unions are partnering with the tech industry to fight state-level regulations on data centers. As lawmakers propose restrictions or bans due to environmental and grid concerns, unions are pushing back to protect high-paying construction jobs. This alliance has helped stall regulatory bills in states like Colorado, Illinois, and Pennsylvania. The booming data center sector now represents nearly 30% of all construction value, creating significant economic leverage. One wonders if the unions are helping to keep the data center tax incentives being debated in Richmond right now.

10.) Ashburn man seeks $500 million data center payout. After claiming to experience persistent noise pollution and a loss of greenery from four data centers near his property, Mital Gandhi, a 47-year-old resident and former HOA president of a 143-home community called The Regency is proposing a collective buyout of the entire 130-acre neighborhood to the data centers. This equates to roughly $4.4 million per acre, about four times the market value of the average home in the neighborhood. Interesting market based approach — although, clearly an opening, unrealistic price. 

11.) Not a representative example of data center pollution. According to this Fredericksburg Free Press article, Amazon Data Services was fined $72,067.80 by the Virginia DEQ for 2025 air pollution violations at its unfinished Spotsylvania data center campus. Crucially, this was a self-reported incident that occurred during temporary testing before normal operations began or occupancy was taken. The emissions exceeded limits due to an unusual combination of events: a power outage triggered backup generators, which subsequently suffered equipment malfunctions during their commissioning phase. The facility has since resolved the corrective actions and returned to full environmental compliance. Be prepared to see this unusual case in the battle to kill data centers. 

EDUCATION

12.) UVA Ryan’s Golden Parachute. Bacon’s Rebellion highlights the controversy surrounding the financial terms of former University of Virginia (UVA) President Jim Ryan’s sabbatical. Following his 2025 resignation amid federal civil rights investigations into the university’s DEI practices, Ryan entered a sabbatical period while retaining his full presidential salary of approximately $1.1 million. Author Scott Douglas Gerber argues that this compensation, combined with a $50,000 research and travel budget, is excessive for a sabbatical intended for scholarship, particularly as Ryan boasts of his leisure activities. The piece further critiques UVA’s Board of Visitors, suggesting that allowing such “golden parachute” benefits—despite Ryan’s alleged disregard for board and federal directives—constitutes a failure of governance. Gerber contends these financials warrant scrutiny regarding compliance with federal tax laws prohibiting the unreasonable enrichment of insiders at tax-exempt institutions.

13.) Rector Rocovich not resigning, but not attending meeting.  As noted last week, Governor Spanberger abruptly removed Virginia Tech’s rector, John G. Rocovich Jr., a conservative appointed by former Governor Glenn Youngkin. Defying the governor’s partisan pressure, Rocovich firmly declined to resign, defending his faithful service. This week, Rocovich stated he will not attend the upcoming board meeting. 

14.) New Virginia Tech Rector unanimously elected. The Virginia Tech Board of Visitors unanimously elected Jim Miller as its new rector for a one-year term starting July 1. Miller, an alumnus and CEO of Quantum Leap Research, replaces John Rocovich, who was recently removed by Governor Abigail Spanberger. Nancy Dye was appointed vice rector and will head what is becoming a controversial presidential search.

15.) Bipartisan push to support playing outdoors. Utah Republican Representative Blake Moore and Virginia Democratic Representative Jennifer McClellan joined forces to advocate for protecting childhood independence by defending the right of children to engage in unsupervised play outdoorss. I agree (from how most of my generation was raised) that unsupervised outdoor play is crucial for building resilience, self-reliance, and stronger life skills, rather than being a sign of parental neglect. Let’s keep the government out of letting children roam and explore! Schools also need to do more to get children away from screens and out in nature!

ECONOMY

16.) Job losses show Virginia’s economy is struggling. Cardinal News highlights how Virginia’s economy is struggling, projecting a second consecutive year of job losses. While mainstream analysis heavily blames federal workforce reductions implemented by the Trump administration, the data reveals a deeper structural crisis. Significant declines in the private sector — particularly a 3.9% drop in manufacturing and steep losses in professional services — demonstrate that government overregulation, high energy costs threatening data centers, and global market pressures are the true culprits. It is scary that the only sectors showing robust growth are state and local governments, a troubling trend of public-sector bloat outpacing (and smothering) private enterprise. Governor Spanberger, take note!  

17.) Secretary Rubio makes light of all the jobs he holds — this is government efficiency…enjoy!