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This newsletter is my hardest to write because it reflects heavy-duty decisions that have had to be made by the House of Delegates this week. The choices between raising taxes and setting priorities are never easy. I personally believe that the people in my district do not need any tax increase with the economic downturn and the increase in utility and living costs.
This downturn is partly due to an economic growth rate decline and partly due to the downturn in the real estate market, which includes sub-prime mortgages, foreclosures, fewer sales and declining real estate value. Governor Kaine’s budget reflected reduction recommendations that included an anticipated state budget shortfall totaling nearly $1.4 billion. The House Appropriations Committee sent their amendments to HB 29, the state budget for fiscal year 2008, and HB 30, the state budget for fiscal years 2009-2010, to the floor on Thursday. House Appropriations Committee Chairman Lacey Putney noted that “the House budget contains approximately $570 million less in debt than the budget and capital bond program proposed by the Governor.” The Governor’s budget had cut $220 million from K-12 public education and $180 million from transportation, but it added $300 million in new projects. This budget saved $146.2 million in General Fund monies by eliminating many new initiatives and level funding many programs. The House budget supports K-12 public education by fully re-benchmarking the Standards of Quality, restoring the $220 million in cuts proposed by the Kaine Administration that would harm students and localities, maintaining school construction and making possible a first-year pay raise for teachers. There is also money in reserve for a second-year salary increase; the amount will depend on turns in the economy. The following is a breakdown of the funds for K-12 education and the comparison of the three budgets and their respective funding to the five counties in the Sixth District. · The total adopted budget equals $13.0 billion over the 2008-2010 biennium, which is $1.1 billion more than what is allocated for public education in HB 29 for FY 2008.
· The adopted House Budget provides about $193 million more than the Governor’s revised budget and almost $68 million more than the Senate’s budget to public education over the 2008-2010 biennium.
· The adopted House budget provides $123 million more over the biennium for a first year 2% pay raise for all funded SOQ positions and would be effective December 1, 2008.
· The budget lowers the contribution rates for: VRS from 9.35% to 8.81%, the retiree health care credit rate from 1.12% to 1.08%, and the group life rate from 0.36% to 0.33%. These lower rates will help decrease the school divisions’ share of costs for these three areas. The lower rates will not impact any benefits that active or retired school personnel receive from VRS.
· The House also added $2 million over the biennium to pay those additional teachers who have earned the bonus for the National Certification Board Initiative.
· The House budget also provides about $72 million over the biennium to school divisions for supplemental school construction grants and an additional $5 million for Literary Fund Interest Rate Subsidy grants.
· The House budget restores the current Virginia Preschool Initiative program so that 100% of the free-lunch eligible children can participate and provides an additional $25 million more in the VPI program to school divisions over the amount included in HB 29.
· The adopted House budget revises the current methodology used for calculating prevailing funded base salaries for instructional and support positions.
· This revised methodology would use current prevailing salaries adjusted for pay raises that are only authorized by the General Assembly and would not include local aspiration.
The pay raises that are authorized represent the state’s share of the SOQ positions and costs.
· This revised methodology is consistent with funding currently provided for SOQ basic aid which excludes local prevailing practices.
The state only pays its’ share of SOQ-related expenses based on standards adopted by the General Assembly.
· This revision is consistent with the methodology adopted in 2004 to deduct certain federal revenues that flow to local school divisions that had previously been reimbursed through the benchmarking process.
· This does not restrict the school divisions’ ability to spend dollars in excess of the adopted standards or in excess of pay raises authorized by the General Assembly.
· For example, the General Assembly provides funding for its share of a 3% pay raise for FY 2009 and another 3% in 2010, for a total of 6% over the biennium but a school division chooses to provide a 5% pay raise in FY 2009 and a 4% pay raise in FY 2010, for a total of 9% over the biennium. The revised methodology would provide that school division with the state’s share of a total 6% increase. The additional cost of the difference between the state’s 6% and the school division’s 9% would be paid by the school division.
Five-County Education Funds - Biennium Breakdown
County Adopted House Budget Senate Revised Governor’s
Bland $12,888,253 $12,705,913 $12,562,187
Giles $34,370,168 $33,997,923 $33,768,411
Pulaski $62,701,702 $62,216,826 $61,539,854
Tazewell $91,224,444 $90,642,027 $89,760,196
Wythe $54,720,316 $54,276,958 $53,758,724
The House budget reduces the counterproductive cuts to higher education proposed by the Administration, includes a first-year salary increase for college faculty, and provides incentives for public colleges and universities not to increase tuition. It also replaces partial carry-forward funds to the Community College System. This budget not only adds funding to address the weaknesses in the community mental health system that were revealed by the Virginia Tech tragedy, but also meets the growing need for mental health services by funding 800 MR Waiver slots. Also included is an additional $41.6 million to expand statewide mental health services. Child welfare is another area that sees great benefit from the House budget. For the biennium, $14.5 million have been added to support extending foster care and the children’s services available through the Department of Social Services. This budget protects the Commonwealth’s valuable AAA-bond rating, exercises restraint by limiting reliance upon the state’s Rainy Day Fund to $220 million, but sadly does not include any earmarked funding for non-state agencies. I had requested non-state agency monies for each of my five counties, which will have undesired outcomes, and this disappoints me greatly. My hope is that by this time next year, there will an economic upturn and we may get these non-state agency funds in the second year of this biennium.
Additionally, by preserving the $180 million in funding for transportation that the Governor proposed moving, this budget safeguards last year’s historic, multi-billion dollar investment in upgrading Virginia’s roads, railways, and public transit systems, minus the abuser fees that the House removed.
I am also very pleased to report that the amendments in the House budget that took away funding from Commissioners of Revenue and Treasurers were rejected on the floor. Funding was restored to these offices.
This budget also includes funding for magistrate reform, as well as $2.5 million to the State Board of Elections in FY 2008 for the cost of the Presidential Primary. The budget also eliminates the proposed transfer of the E-911 program from VITA to the Department of Emergency Management.
Steering away from the budget, there was other important legislation on the floor this week, especially gun control bills SB 436 and SB 476. The first relates to carrying a weapon in a car, boat, or other vehicle. Prior to SB 436, one could carry an open gun in a vehicle, but it was unlawful if the weapon was locked in the glove compartment and hidden from plain view; SB 436 turns that around. SB 476 states that, although it is lawful to carry a concealed weapon in a restaurant or bar, the carrier must notify a designated manager or employee of the weapon. The carrier is also prohibited from consuming alcohol while on the premises. It is already legal to carry an open gun and drink; this bill actually tightens the law.
As a final note, we have received about 50 hotline messages on HB 538, which passed the House on February 12. This bill tightened up regulations for commercial dog breeders. It has now moved on to the Senate, if you would like to, direct further comments to your Senator. If you are in Richmond, please feel free to come by our office in the General Assembly Building, and do not hesitate to send us your questions or comments. Delegate Anne B. Crockett-Stark, Sixth District
General Assembly Building – Room 819
P.O. Box 406
Richmond, VA 23219
Phone: (804) 698-1006
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