Legislative Newsletter - May 25, 2007

Number 8

State Revenues Trail Expectations

Through the first 10 months of the current fiscal year, state revenue collections are significantly lagging behind projections. Total general fund revenue collections grew 2.5% in April compared to April of last year. On a year-to-date basis, revenues have increased 3.6% over the same period last year, trailing the annual forecast of 6.5%. As a result, revenue collections may fall as much as $200 to $300 million below forecasts for the current fiscal year, which could force budget cuts to be made by Governor Kaine, and which would have a ripple effect into the next biennial budget to be considered by the 2008 General Assembly. This is of particular concern, given the anticipated need for significant new state dollars in the next biennium to pay for high priority and required expenditures, including public education rebenchmarking costs and additional Medicaid and other human services costs.

CSA to be Legislative Focus; Guidelines for Expanding CSA Released

The Comprehensive Services Act (CSA) will get top billing in the regional legislative packet this coming year. Both the TJPD Commission and the “Mayor and Chairs” group have reiterated concerns recently about the impacts of CSA on the region’s localities, and suggested the issue be a legislative focus this coming year. Following its discussion, the “Mayor and Chairs” recommended that the CSA position stress the need for more state funding for CSA and address accountability by residential providers. The group is inviting the region’s legislators to meet with them at their July meeting to discuss the issue and staff also will be consulting with local officials and VACo and VML on this priority.

The State Executive Council (SEC) for CSA met last week to review proposed guidelines regarding expansion of CSA. This comes on the heels of a late March directive issued by several state agency chiefs that changes the state's policy regarding foster care prevention. A new May 18th memo that addresses only specific foster care services funded through CSA now has superceded that directive. In particular, those specific situations address children 1) identified as needing services to prevent or eliminate the need for foster care placements, or 2) who have been placed through an agreement between the parents or guardians and the local social services department where legal custody remains with the parents or guardian.

The SEC then released the proposed guidelines late last week without adopting or endorsing them. A 60-day public comment period will run through July 20. The SEC is scheduled to meet in early August to review public comments and act on the guidelines, which would take effect shortly thereafter. At last week’s meeting, SEC members questioned the effect of the proposed guidelines, including the number of additional children and families who would become mandated. To help answer that question, a workgroup looking at the guidelines is expected to survey local governments soon to try to determine the potential impact. YOU ARE ENCOURAGED TO HAVE YOUR STAFF REVIEW THESE GUIDELINES AND PROVIDE ANY COMMENT ON THEM to the Office of Comprehensive Services for At-Risk Youth and Families, 1604 Santa Rosa Road, Suite 137, Richmond VA, 23229. Email comments are encouraged to Marsha.mucha@dss.virginia.gov. The directive and the proposed guidelines can be found at http://www.csa.virginia.gov/ . That website also has recently posted 2008 CSA Pool Fund Allocations and Medicaid targets by locality.

Finally, the Comprehensive Services Act will be the topic of a June 19 meeting in Richmond. The 2006 General Assembly approved SJR 96, which established a joint study to examine the Comprehensive Services Act, particularly to look at its cost-effectiveness and to collaborate with the Joint Legislative Audit and Review Commission (JLARC) regarding its evaluation of the administration of CSA. JLARC’s report was released last December.

Draft Residential Provider Regulations Released

The Department of Social Services has released draft regulations for Interdepartmental Regulation of Children’s Residential Facilities. The changes being made to the regulation are designed to bring the children’s residential facility industry up to meet current industry practices, and will replace an emergency regulation enacted last year. Among other things, the proposal strengthens requirements for staff making administrative and supervision decisions at facilities and adds requirements to ensure that a qualified staff person is available to make decisions. Additional training is proposed, and requirements also have been added for every facility to name a community liaison person to train staff and have policies and procedures regarding positive community relations.

The public comment period runs through July 27. Public hearings on the proposal will be held in early July in Roanoke, Richmond and Virginia Beach. More information on the proposed regulations can be founds at http://www.townhall.virginia.gov/Stage/ViewStage.cfm?Stage=4052.

Comment Period Extended on Secondary Street Regulations

Due to some technical problems, any comments previously submitted electronically by localities to the Virginia Department of Transportation (VDOT) about the development of new subdivision street acceptance regulations were not received. Thus, the comment period has been extended and comments should be submitted (or resubmitted) to VDOT by June 18. Comments can be posted at http://www.vdot.virginia.gov/projects/ssar/ or sent to SSAR Public Comment, c/o VDOT Policy Office, 1401 East Broad Street, Richmond, Virginia 23219.

The new regulations to be developed will replace the current Subdivision Street Requirements and should be in place by January. The 2007 General Assembly directed the Commonwealth Transportation Board (CTB) to establish new requirements for the acceptance of secondary streets into the state system. SB 1181 stipulates that the new regulations address connectivity of road and pedestrian networks and the minimization of impervious surface area and stormwater runoff. These new Secondary Street Acceptance requirements will establish the conditions and standards to be met before secondary streets constructed by developers and localities will be accepted into the state system for maintenance by VDOT.

JLARC Studies Take Shape

The Joint Legislative Audit and Review Commission (JLARC) released its yearly workplan earlier this month, providing details on studies of interest to local governments. JLARC staff will be studying compensation for state employees over the next year-and-a-half. Included in that review will be a look at how selected changes might impact both state and local employee costs. Teachers and localities are expected to be among the groups that are surveyed and interviewed. Last year, the state spent nearly $5 billion on total compensation for salaried, classified employees. Staff will brief the Commission on its work a couple of times this year, with a final report due next fall.

A report on the Virginia Preschool Initiative (VPI) and the concept of universal preschool will be released in November. State appropriations for the VPI began in FY06, and funding was more than doubled in FY05 so that now more than 12,000 unserved at-risk students participate.

Staff also will conduct a study of the impact of substance abuse on state and local budgets, and it will examine existing and expanded substance abuse services. Virginia spent nearly $2 billion as a result of substance abuse, according to a study in the late 1990’s. This review will focus on determining the extent to which Virginia could realize savings by investing in substance abuse services. A final report to the Commission is due next spring.

Finally, the Commission will receive a report next month on the impact of assisted living facilities. Interim reports were completed the past two years. The study has focused on the impact of regulatory changes required by previous legislation. In recent years, state funding for auxiliary grant recipients residing in those facilities has been increased.

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)