Legislative Newsletter
March 5, 2010

Budget Deadline Looming

With just over a week until adjournment, budget conferees continue their high stakes negotiations with periodic trips across the capitol grounds to confer with the Governor. Before the House and Senate vote on a final version of the 2010-2012 budget, several important differences must be reconciled, including but not limited to the following:

-The House makes deeper cuts to K-12 education and proposes giving localities more discretion on how the money is prioritized. The Senate budget cuts to education are considerably smaller. Provisions are included for schools to spend money on new technology.

-The Senate budget contains more than $300 million in fee increases. House conferees remain concerned about these fee increases but may be willing to accept at least some increases as long as the fee has a close nexus with the service provided. The House and Senate budget also diverge on other revenue actions and assumptions.  

-Pending federal approval, Virginia is slated to receive an additional $350+ million in  Medicaid funding. The Senate budget contains language that would direct this influx of Medicaid funds to mitigate proposed cuts to health care. The House redirects around $300 million of this potential Medicaid money to areas other than health care. 

-The House and Senate also differ substantially on the Governor's proposed $50 million economic development package. The House budget nearly matches McDonnell's request, allocating  funds for the Governor's Opportunity Fund, the Virginia Jobs Investment Program, more tourism marketing, motion picture tax credits, and domestic and international marketing including the opening trade offices in China, India, and Great Britain. The Senate budget allocates only $11 million of McDonnell's recommendations.  

House Budget Conferees

Lacey E. Putney (I-Bedford, chairman of House Appropriations Committee)
Kirk Cox (R-Colonial Heights) 
Beverly Sherwood (R-Frederick County

Steve Landes (R-Augusta County)  
Chris Jones (R-Suffolk)

Johnny Joannou (D-Portsmouth) 

Senate Budget Conferees

Charles Colgan (D-Prince William, Chairman of Senate Finance)
William Wampler (R-Bristol)
Ed Houck (D-Spotsylvania) 
Janet Howell (D-Fairfax County)
Richard Saslaw (D-Fairfax County)
Walter Stosch (R-Henrico County
Tommy Norment (R-James City County maybe added by chairman)

Expansion of Unemployment Insurance Defeated

On Tuesday, a House Commerce and Labor subcommittee tabled SB239, a bill sponsored by Senator John Watkins (R-Midlothian)  that would have permanently expanded the number of individuals who qualify for unemployment compensation in exchange for an additional $125 million in stimulus funding. Watkins' bill would have expanded unemployment benefits to individuals enrolled in job training and would have waived a current requirement that one must be available for and actively looking for full time work. This legislation would also have expanded benefits to individuals who voluntarily leave work for a "compelling reason." VA West testified against this bill and remains opposed to  permanently expanding eligibility criteria for a short term benefit.

Democrats Pick Up House Seat

By a razor- thin margin, the Democrats picked up a House seat in a special election on Tuesday. Eileen Filler-Corn eked out a 37 vote victory over Republican Kerry Bolognese to represent the 41st district, a seat that includes portions of Burke, Fairfax , Fairfax Station and Springfield. Filler-Corn will replace former Delegate Dave Marsden who won a Virginia Senate seat in a January special election. Republicans still hold a sizable majority in the House with 59 members and 2 independents who caucus with the GOP. 

Other Notable Legislation

Cooperative Procurement

On Wednesday, legislation sponsored by House Majority Leader Morgan Griffith squeaked through the Senate General Laws and Technology Committee with chair Senator Mamie Locke casting the deciding vote to send the bill to the Floor. Griffith's legislation would prohibit local governments from piggybacking on another locality's contract for construction projects where the cost of the project(s) is in excess of $200,000 and the other locality is more than 75 miles in straight line distance from the territorial limits of the locality holding the contract. The main goal of this bill is to ensure that local contractors will be made aware of procurement opportunities in their region. This legislation could also save taxpayers' money because it will help prevent a locality from piggybacking on a contract from another region of the Commonwealth where construction costs are more expensive.  

 Transportation Funding 

Because so much of this year's session has been devoted to job creation proposals and mending Virginia's ailing budget, significant measures addressing transportation funding have been few and far between. On Tuesday, a Senate Rules subcommittee tabled HJ68, a joint resolution that would have required the Joint Commission on Transportation Accountability to develop a plan to toll several interstates throughout the state. Both Senator John Edwards (D-Roanoke) and Senator Phil Puckett (D-Tazewell) pointed out that tolls do not provide a comprehensive solution to Virginia's transportation needs and are not  practical in Southwest Virginia. Likewise, Delegate Glenn Oder's bill, HB1158, which would have established regional accounts in each of Virginia's highway construction districts to collect funds from new transportation revenues not previously in existence, was passed by in the Senate Finance Committee. Oder's legislation would have allowed the Salem Transportation District to collect and allocate future revenues  generated by the planned Intermodal Facility in Elliston. While neither of these measures would generate sufficient revenue to solve Virginia's transportation funding problem, a combination of these types of funding proposals could serve as a template for a broader, more comprehensive approach in the future.  

Rumors of a potential special session on transportation continue to circulate with one important caveat: The Governor will not call a special session until there is a consensus between House and Senate leaders on a transportation funding blueprint.

Looking forward, a little gubernatorial pressure could go a long way in helping the House and Senate find common ground on a comprehensive solution to improve Virginia's aging transportation infrastructure. All legislators should remember that Virginia's economic recovery will be bumpy without an adequately funded and modernized transportation network.  

Redistricting Commission - Passed by for Another Decade

As expected, a House Privileges and Elections subcommittee tabled the only remaining piece of legislation that would have created a bi-partisan redistricting committee. Sponsored by Senator Creigh Deeds (D-Bath), SB173 would have set up a seven-member advisory commission, consisting of three Democrats, three Republicans and a seventh member picked by the other six to draw the  General Assembly and congressional districts after the 2010 census. Delegate Chris Jones argued that the Virginia Constitution requires the General Assembly to redraw district lines. Next year's redistricting process could be highly contentious with a Republican controlled House and a Democratic controlled Senate.   

Important Session Dates 

March 13th - Adjourn Sine Die

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This format allows you to check bills and their status at a glance, by category. If you have questions along the way, please feel to contact or Tori Williams at twilliams@roanokechamber.org or 540.983.0700 x 229 or 540.819.7713. 

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