Saying the state of Virginia was in a "strong" position during his commonwealth address Wednesday night, Democratic Gov. Ralph Northam outlined new spending proposals and asked Republican to support his budget, which utilizes hundreds of millions of dollars in new revenue from an unintended tax hike on state workers.

“I’m here tonight to tell you that the state of the commonwealth is strong, and we are poised to make it even stronger,” Northam said before outlining various spending proposals.

The unintended tax hike is the result of federal tax reform and a quirk in state law, which requires workers who take the standard deduction on their federal taxes to also do so on their state taxes. Republicans want to give the money back to taxpayers, but Northam has proposed using it to increase funding on education.

“We have a world-class education system – but we need to make long-term investments to sustain that quality for our students and to ensure we remain competitive in a 21st-century economy,” he said, adding that he will work with teachers to get the largest single-year pay raise in the past 15 years. Northam said that this is not just about increasing pay, but also ensuring that the commonwealth attracts the “best and brightest educators.”

In discussing his budget, Northam said that he proposed more tuition assistance to address student debt and he has created a plan to speed up efforts to reach universal broadband. Additionally, he said tax cuts should help all Virginians, not just the wealthiest. He urged Republicans to back his budget plan, which uses money from an unintended state tax hike on Virginians as a result of federal tax reform.

“In Virginia, we can work together to restore balance and fairness on the state level,” he said. “I’ve put a proposal on the table to respond to the federal tax changes by making our existing Earned Income Tax Credit refundable. This credit already exists in our law, and it benefits middle-class workers – our teachers and law enforcement officers, our veterans, the folks working at restaurants and department stores and small businesses. Republicans and Democrats alike have supported this credit, because it works.”

Toward the beginning of the speech, Northam praised lower unemployment, a growing economy, an increase in health care access to 400,000 Virginians as a result of Medicaid expansion, and investments in public schools and environmental protection.

Northam praised the appointment of Eileen Filler-Corn, D-Fairfax, as the new House Minority Leader – the first woman to hold that position – and thanked David Toscano, D-Charlottesville, for his time in the role. He also discussed many issues, ranging from education, student debt and taxes, among other things.

Republican Delegate Bob Thomas, R-Stafford, and Sen. Steve Newman, R-Bedford released a short response to the governor’s speech.

Newman said that Republicans will give Northam’s proposals a “full and fair hearing” and will consider more than 2,000 bills and resolutions between now and February. He said that senators will seek to provide tax relief to Virginians and expand health care quality and costs through increased choice and competition.

They will also push policies to create jobs, ensure school safety and increase fiscal responsibility, he said.