Legislative Newsletter - May 9, 2006

Number 11

Budget Impasse Lingers

            State budget negotiators reached agreement on changes to the (current) FY06 state spending plan yesterday, thus allowing the full House and Senate to take up the compromise plan and approve it in the next several days. From preliminary information on the amendments to the FY06 budget, it is thought that about $7.5 million additional CSA dollars contained in the introduced budget are included in the compromise. The plan also includes $200,000 for a study of passenger rail from Washington, D.C. to Richmond. The final differences in the budget, over a facility for violent predators and a health center for the elderly, will be addressed in the next biennial budget. Additional details on the specifics of the compromise are due out tomorrow.

However, there’s been no progress on a compromise budget for fiscal years 2007 and 2008.  As for the transportation debate, several transportation bills approved recently by the Senate, including a statewide            measure and several regional authority bills, were left on the table last week in the House Finance Committee for 90 days.  Thus, it appears, the House may not act on transportation funding measures until after the beginning of the next fiscal year on July 1. The Senate is holding public meetings this week in Virginia Beach and Fredericksburg to tout its plans. Recall that the House has proposed to use surplus state general fund dollars as the main source for additional transportation funding. 

JLARC Releases Workplan

            The Joint Legislative Audit and Review Commission (JLARC) released its yearly workplan this week, providing details on various studies of interest to local governments. Predominant among them is a study of administration of the Comprehensive Services Act (CSA) as directed by HJR 60. In its two-year review, staff plans to (1) examine why the cost of residential care is increasing, (2) assess whether children receive quality residential services for the funds expended, (3) determine whether the State and local governments utilize suitable mechanisms to balance the cost and quality of services, (4) examine the extent to which limited availability of community-based services contributes to program costs, and (5) analyze the impact of cross-jurisdictional placements on local infrastructure and children well-being. It will also recommend steps to control costs. CSA pool expenditures totaled $273 million in FY05 for a caseload of over 16,000 children. The first year report is due in December.

            HJR 100 directed JLARC to study criteria used by the State Corporation Commission (SCC) when determining the feasibility of placing electric transmission lines underground. There has been concern that the process used by the SCC may not be sufficient to determine whether lines should be underground or not and that it has not fully considered the impact of overhead lines on property values and the environment. The study will review the factors, criteria and policies used by the SCC in considering underground versus overhead lines, and whether improvements to this process are warranted. It will also examine options for paying the higher costs typically associated with placing lines underground.

                SJR 82 directed JLARC staff to review small community water systems to determine whether safe and affordable drinking water needs are being met. The regulatory framework for such systems presently involves five state agencies. In addition, local governments are responsible for approving new residential construction and the utilities required to serve these residences. The study will focus on the quality of drinking water and affordability of rates charged to customers of small systems and the roles of state and local governments in ensuring the sustainability of these systems.

            Finally, the December JLARC meeting will include a pair of annual spending reports. One is the annual review of state spending that looks at trends and factors explaining long-term budget changes, focusing on fiscal years 1997-2006. Second is the annual report on factors affecting state spending for the Standards of Quality (SOQ). One legislator expressed concern that that the SOQ has become a “rolling budget” with requirements being added, but not deleted, and suggested that a future study identify standards that should be removed from the funding formula.

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)