Gov. Terry McAuliffe

Gov. Terry McAuliffe

RICHMOND, Va. (AP) _ Virginia Gov. Terry McAuliffe is proposing a billion dollar increase in education spending, small tax cuts, and a 2 percent raise for state employees. The Democratic governor is also renewing his long-shot push to convince the GOP-controlled General Assembly to approve an expansion of Medicaid. McAuliffe unveiled his $109 billion two-year budget proposal Thursday at the Capitol. He says he took a conservative approach to spending that will help improve Virginia’s long-term economic outlook. Higher-than-predicted tax revenues have given McAuliffe more leeway in crafting his budget, which will be a starting point for negotiations with Republican legislative leaders. GOP lawmakers have already acted coolly toward some of McAuliffe’s announced proposals, and have repeatedly said they will not vote to expand Medicaid.