Legislative Newsletter - February 3, 2009

Number 3

Calendar for 2009 General Assembly Session

February 8       House and Senate budgets released

February 10     “Crossover” day of bills

February 28     Adjournment

BUDGET

   The House Appropriations and Senate Finance Committees are scheduled to report proposed amendments to the current two-year budget on Sunday afternoon. They will be preparing their recommended spending plans based on changes submitted by Governor Kaine in December, a budget that estimates a $2.9 billion gap for the remainder of the biennium. Yesterday on the Senate floor, several senators lamented the budget challenge facing them in the coming days.  Some predict the state’s revenue situation could worsen, with the gap perhaps growing to $3.5 or even $4 billion.

   House and Senate members have focused a lot of attention on how to address reductions in public education funding (the governor proposed reductions totaling just over $600 million in FY10). Both bodies may try to make some of the reductions temporary, rather than permanent changes. The Senate appears poised to reject the governor’s proposal to reduce funding for school support personnel. One proposal that is likely to appear in the House version of the budget would give school boards the option of offering an early retirement program for school employees. School boards could choose to participate in the program, under which they could buy from one to five additional years of service for employees age 50 and over, with 25 years of service, allowing them to retire early with additional years of service and without penalty.

    Legislators also are keeping a watchful eye on the outcome of Congressional discussion of the “American Recovery and Reinvestment Act of 2009.” A House briefing the end of last week on the federal stimulus package revealed that under the $800-plus billion measure passed by the U.S. House of Representatives, Virginia could expect to receive about $5.8 billion over the next two years, with allocations to be made for state fiscal stabilization, transportation and other infrastructure improvements, K-12 education, Medicaid and energy-related programs. Nearly $1.6 billion of the possible state total would be for fiscal stabilization, while initial estimates have Virginia receiving about $745 million for highways and $100 million for transit capital. Priority for allocation of highway funds is to be given to projects that can be awarded a contract in 120 days, are included in a statewide transportation plan, can be completed within three years and that are located in economically distressed areas. Education funds would be targeted for the disadvantaged, special education students and a modernization and repair program. Senate debate is being held now, with a Senate vote possibly to take place by the end of the week.

LEGISLATION

   HB 1991 has passed the House unanimously. In light of contentious stormwater management regulations that are proceeding through the public comment process, this bill would extend the period of time that localities have to adopt a local stormwater management program, while delaying the proposed regulations from taking effect until July, 2010 (thus allowing for another legislative session prior to then).

   The two blight bills, HB 1671 and SB 1094 finally are moving forward on their respective floors, after having been held up the past several days because of some fears that the bills would expand eminent domain powers. The bills are designed to provide incentives to landowners to clean up blighted properties that are vacant, boarded up and have had utilities disconnected for a period of six months.

   The Senate has unanimously approved SB 1131, which reduces from 30 days to 10 days the public notice required by localities, under certain circumstances, for increasing the local real property tax rate above the rate that would generate 101% of the prior year's property tax revenues. Previously, localities were required to give seven days notice, but the time was extended to 30 days by the 2007 General Assembly. The Senate also approved SB 1003, which provides for 14 days notice when state appropriations are delayed; HB 2308 is the House version that is on the House floor for approval.

   SB 986 and HB 1891 have passed their respective chambers. The bills reduce from $100,000 to $50,000 the amount of the land preservation tax credit that may be claimed during tax years 2009 and 2010. Similar provisions are included in the introduced budget submitted by Governor Kaine.

House Counties, Cities and Towns Committee/Senate Local Government Committee

   The House Counties, Cities and Towns (CCT) Committee has several important bills remaining on its docket. HB 2613 would require localities, beginning July 1, 2010, to reduce the maximum amount of cash proffer to be accepted by 20%, then an additional 20% each year thereafter. Efforts are being made to redirect the bill to the Joint Subcommittee to Study Development and Land Use Tools, which is a two-year study approved by the 2008 General Assembly and which contains a workgroup on proffer/impact fees that is continuing to address these issues.

   Two other bills pending in a CCT subcommittee have been the subject of numerous discussions and amendments in recent days. The latest version of HB 1788 would limit local regulation of “alternative” septic systems to provisions in forthcoming Department of Health regulations, and would provide for disclosure of the existence of such systems. A similar measure, SB 1276, was reported by the Senate Local Government Committee today. Also before the subcommittee is HB 2077, which would extend current expiration deadlines on various, previously approved plats and plans. Senate Local Government today reported SB 1533, which extends the validity of existing special use permits until July 1, 2011.

   Previously, HB 2029 was approved by the House Counties, Cities and Towns Committee and is on the House floor for approval. It would reduce, for a period of five years, the bonding requirement from 25% to 10% of estimated construction costs for the administrative allowance required from a developer.

Other Bills

   Localities, the Virginia Department of Transportation and other interested parties have been discussing potential changes to the introduced version of  HB 2019, which calls for the designation of transportation “corridors of regional and statewide significance.” Local governments are concerned that the language of the bill would restrict local land use authority in such corridors. This bill and a related measure, SB 1398 that calls on local transportation plans to be based on the statewide plan, will be taken up on Thursday in their respective Transportation committees.

   The Senate Rehabilitation and Social Services Committee has reported several bills that seek to make more data available about children being served through the Comprehensive Services Act (CSA). The three bills, SB 1180,  SB 1181, and SB 1182, add reporting requirements about expenditures on children receiving and not receiving CSA pool funding,  funding streams used in providing services and on the nature and costs of services.

   Finally, a pair of proposed Constitutional amendments that would strengthen the restrictions on eminent domain enacted by the General Assembly two years ago have been working their way through the legislative process. The bills would establish limitations of takings of private property. A House subcommittee has recommended reporting HJ 725, but late this afternoon, a Senate committee defeated SJ 290 on an 8 to 7 vote.

Here’s an update on bills of specific local interest:

→Lower speed limit on unpaved roads—HB 1837 (Albemarle Co.) (in Senate Transportation Committee)

→Regional Transit Authority enabling legislation—HB 2158 (on House floor)

→Referendum on funding for transit and transportation—HB 2161 (defeated in House Finance Committee)

→Certain licensed distillers as ABC agents (Eades Distillery-Nelson County)—HB 2390 (stricken) and SB 1213 (approved by Senate)

→Rivanna Scenic River designation—SB 957 (in House Agriculture Committee)

→Increase in transient occupancy tax—SB 1025 (Greene Co.) (approved by Senate)

→Clean energy financing authorization— SB 1212 (Charlottesville and Albemarle) (on Senate floor)

→CSA judicial review— SB 1506 (Greene Co.) (in Senate Rehabilitation and Social Services)

→Camille remembrance— SJ 379 (Nelson Co.) (on Senate floor)

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)