Small-business advocates also decried the governor’s decision to propose Medicaid expansion, as well as his proposal to expand the acceleration of year-end sales tax collections to an additional 4,300 retailers to save more than $39 million this year and $18.6 million in the next year.

“Governor McAuliffe is trying to nickel-and-dime small business to death,” said Nicole Riley, state director of the National Federation of Independent Business, in a statement.

“Proposals such as the governor’s call for small businesses to submit sales-tax collections to the state sooner, and to increase numerous fees on small retailers may sound small by themselves, but they would add up quickly and squeeze the very businesses the governor needs to create jobs,” Riley said.

The governor’s proposed fee increases include a higher restaurant inspection fee that he estimated would produce $3.8 million in savings for the state and $3.1 million for local governments in the next fiscal year. Local health districts conduct the inspections for the state health department.

The proposed fee increase may not fare well in the House, Cox said. “We have not been very predisposed to that.”

Day care providers