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Governor signs Virginia state budget with pay raises for state employees

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RICHMOND, Virginia — Virginia Gov. Terry McAuliffe has signed a new state budget that includes a pay increases for state employees, boosts cash benefits for welfare recipients and has more money for the governor to spend on economic development.

The Democratic governor signed the budget Thursday at the Capitol while touting his good working relationship with Republican leaders on the state's spending plan.

McAuliffe did not try and amend the budget that state lawmakers approved last month.

The GOP-controlled General Assembly did not include expanding Medicaid in its budget, a top priority for state Democrats.

Virginia's budget situation has brightened in recent months due to higher-than-projected revenues and other factors, which gave lawmakers more money to spend this year's legislative session.

The new budget raises state employees' pay by 2 percent.

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