Legislative Newsletter - April 29, 2009

Number 8

State Revenue Update

State revenue collections through the first nine months of the current fiscal year are down 6.8%, which remains ahead of the revised annual revenue forecast of a 7.3% decline. Though not considered a significant collection month, March general fund revenues fell nearly 14% from a year ago, with collections of individual withholding and sales taxes trailing their annual forecasts, and corporate income tax collections also below projections. Also in March, the state issued $365.2 million in tax refunds ($313 million was issued in March, 2008). Refunds are nearly 10% ahead of the same period last year, ahead of the annual forecast of a 7.4% increase. State officials say April, May and June revenue collections must total about $4.4 billion to meet the FY09 forecast. Tax collections in the last quarter of FY 2008 were $4.8 billion, so collections can fall 8.3% through June and still reach the annual estimate of a 7.3% decline.

CTB Designates Stimulus Projects

The Commonwealth Transportation Board (CTB) earlier this month approved more than $345 million in projects to be paid for with American Recovery and Reinvestment Act (ARRA) funding. States were required to obligate at least 50% of their discretionary funding within 120 of the Act’s passage (which occurred on February 17). Priority in Virginia was given to addressing deficient bridges and to resurfacing interstate and primary roads. Among the projects endorsed were 119 deficient bridges (including three in Nelson County), numerous culvert projects (more than a dozen in Nelson) and over 430 miles of interstate and primary road paving, including sections of Routes 20, 29, 33, 53 and 250 in our area. Also included in the CTB action was $17.3 million in initial funding for rural and small urban transit systems (Charlottesville Transit is receiving $1.3 million).

General Assembly Acts on Gubernatorial Amendments

The General Assembly met April 8 for its annual reconvened session to consider amendments and vetoes recommended by Governor Tim Kaine.  The legislature allowed several line-item vetoes of budget items to stand, which had the affect of restoring state funding to previously-reduced items, including a restoration of $1.1 million for the Fire Programs Fund.

Of interest to localities was approval of proposed amendments to HB 1788 and SB 1276, the measures that bar localities from prohibiting the installation of alternative systems (where no sewers or sewerage disposal systems are available) and limit local regulation of maintenance requirements for such systems. The governor’s amendment, as approved, extends the allowance for prohibitions on installation until after the enactment of regulations governing the operation and maintenance of the systems (which likely will not be approved until at least July 1, 2010). The bill as crafted by the General Assembly called for local bans on installation to expire upon approval of regulations governing licensing of installers of such systems (expected by July 1, 2009).  Also, the lawmakers approved Kaine amendments to HB 1919 and SB 1199 that increase from $1 to $3 the daily amount a locality may charge an inmate to defray the costs associated with the inmate's keep and provide that a person jailed for an offense and later acquitted shall be refunded any such fees paid (the General Assembly had approved an increase to $5/day).

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)