Legislative Newsletter March 30, 2005

Governor Proposes Amendments to Budget, Bills

Governor Mark Warner has proposed 30 changes to the state biennial budget approved by the General Assembly in late February. He also submitted recommendations to 45 bills approved by the legislature (he signed 888). Lawmakers return to Richmond next Wednesday, April 6, for their annual reconvened session, at which time they will consider those amendments and vetoes recommended by the governor.

Budget: 

In his proposed amendments to the budget, the governor provides an additional $3 million to increase the salaries of sheriffs and deputy sheriffs (as well as state police and Capitol police) by 4.4% effective December 1, 2005. The legislature had endorsed 3% salary hikes for those groups of employees. Additional funding of $5.1 million is provided to support rural and cultural economic development and tourism, largely targeted at distressed areas of the state. The governor also hopes to revive a school breakfast initiative similar to the one he proposed in December. His amendment provides $1.2 million for a 20 cent/breakfast reimbursement, available only to schools that increase the number of breakfasts served. 

Language is proposed to allow the Fire Services Board to increase minimum payments to counties and cities under the Fire Programs Fund (from $10,000 to $12,000) as revenues increase. Opinions of the Attorney General the past several years on the Board’s authority to do this absent statutory language have been in conflict. This amendment would authorize the Board to continue providing the higher minimum payments until the Code is amended. Finally, the governor proposes to increase funding for grants to non-state agencies by about $3.4 million (to $34.1 million), and includes a requirement that each recipient describe its economic benefit to the state when it applies for the grant. These amounts include an additional $20,000 for the Paramount Theater, for which the legislature earmarked $250,000. 

            A handful of transportation language amendments were proposed. They include the following:

1) Changes to provide flexibility to VDOT regarding funding sources and distribution schedules in implementing various parts of the approved transportation initiative; the governor states that without this language, the use of about $84 million in federal funds that were freed up by eliminating project deficits will be severely restricted.

2) Changes to extend the eligibility period by one year (from 2006 to 2007) for the Local Partnership Program. The General Assembly approved $40 million to encourage increased local participation in construction projects by assuming responsibility for the management and administration of such projects.

3) The legislature earmarked $20 million for improving welcome centers and rest areas along Interstates 95 and 64. Citing heavy traffic volumes on Interstate 81, the governor proposed language that allows the CTB to consider I-81 rest stops when determining use of this funding.

4) Language is proposed to clarify that VDOT is authorized to apply proceeds from the sale of residue property to projects in the system and locality where the residue property is located.

Legislation:

The governor proposed to amend HB 1922, which provides that a locality or service authority may place a lien on a property for certain sewer fees and charges. The amendment states that upon payment of all or part of the outstanding amount, the property owner shall be substituted against the tenant in place of the locality in the amount paid by the property owner. 

            A proposed amendment to HB 1993, which requires the Department of Planning and Budget to provide agency budget requests and analysis of such requests to the legislature, removes requirements for providing analysis of the requests.

            As approved by the General Assembly, HB 2238 requires the Board of Health to prescribe regulations related to emergency medical services and response times, and for enforcement of such regulations. Proposed amendments provide for civil penalties, rather than fines, to be levied for violations.

HB 2795 provides that a person who serves on jury duty for more than four hours in one day cannot be required to begin work on or after 5:00 p.m. the same day or before 3:00 a.m. the following day. Amendments propose this be applicable if a person is summoned and appears for jury duty.

Proposed amendments to SB 1139, which requires the fair market value of qualified donations under the Virginia Land Conservation Act to be substantiated by an appraisal, stipulate that no donation between January 1, 2005 and July 1, 2006 related to an historic building can qualify for a land preservation credit unless the building is designated as an historic landmark.

Rising Property Values Being Targeted by Statewide Candidates

            Candidates for statewide offices up for election in November are making homeowner relief from rising property assessments a priority in their campaign platforms. Lt. Governor Tim Kaine, seeking the Democratic nomination for governor, has proposed amending the state constitution to allow localities to exempt up to 20% of a home or farm’s assessment from the real estate tax. He also suggested requiring local governments, when sending out new assessments, to explain the effect of any assessment change on the homeowner’s tax bill and to provide notice of the local governing body public hearing and vote on any tax rate change. Former Attorney General Jerry Kilgore, seeking the Republican nomination to run for governor, says that if he’s elected, he would restrict annual increases in local real estate assessments to no more than five percent a year, unless the property is sold or improved. He also proposes that any increases in the state sales, income or gasoline taxes be put to voters in a referendum. Other candidates for statewide office also have touted real estate tax relief.

**Contact your legislators prior to next Wednesday should you wish to voice support or opposition to any of the governor’s proposed amendments noted above.

**A final summary of General Assembly action will distributed in early May.

General Assembly Contact Numbers for David Blount, TJPDC Legislative Liaison

804-644-3702 (phone)

804-783-8226 (fax)

979-7310 x350 (Charlottesville voicemail)

(Richmond email)