RICHMOND, Va. (WRIC) — In the introduction for a new spending bill, the Virginia House of delegates emphasized tax cuts, education spending and economic investment for billions in surplus money left over from last year.

Anne Oman, director of the House Appropriations Committee, painted a positive picture of the upcoming year but warned that conditions could cool quickly if a recession hits later.

“Things continue to look quite good,” she said. “But it’s also a little bit more complicated than usual.”

That’s because much of last year’s surplus will now go towards funding tax relief, a major priority of the Youngkin administration.

The two biggest proposals in HB 1400, the current appropriations bill, are a cut to the top tax rate for Virginians, totaling $333 million in lost revenue, and a cut to the corporate tax rate, totaling $362 million.

That proposal contradicts the findings of a recent report to the General Assembly that suggested new tax brackets — including a higher tax bracket for Virginia’s wealthiest residents — would be needed to make the system fair to middle- and lower-income Virginians.

Those tax breaks account for about $1 billion of the $4.5 billion surplus. Other priorities included new spending on public education and massive investments in purchasing land for future economic development.

According to a list of priorities endorsed by the committee’s chair, the proposal aimed to “Maintain historic increases adopted last year in K-12, higher education, and health and human resources.”

But in the event of a recession reducing future tax revenues, the plan also marks some of those priorities as disposable. If the year’s tax forecasts aren’t met, the first thing to go would be the tax cut for Virginia’s top bracket, then the second half of the proposed economic development fund.

The proposed corporate tax cuts, however, are protected from any adverse economic winds under the plan.