Legislative Newsletter - January 25, 2010

Number 2

Calendar for 2010 General Assembly Session

February 16     “Crossover” day of bills
February 21     House and Senate versions of the budget released

            State lawmakers are focusing much of their attention this session on crafting the next biennial budget, and they are tackling that challenge under a cloud of persistent economic challenges at both the national and state levels. New Governor Bob McDonnell addressed a joint session of the General Assembly just two days after his inauguration. He laid out ideas for job creation and economic expansion, including increasing dollars in the Governor’s Opportunity Fund and creating business-friendly income tax credits. This coming week, he is expected to offer strategies for closing the state’s budget gap. 

            You will recall that a provision in the FY11/12 budget introduced by then-Governor Kaine would have ended state payments to localities for the Personal Property Tax Relief Act. Accompanying legislation proposing a 1% income tax surcharge, with all of the estimated $1.6 to $2 billion being sent back to localities that commit to eliminating the “car tax” on qualifying personal vehicles, was introduced. HB 1155 was sent to the House Rules Committee, which reported the measure without recommendation, to be voted on by the full House. Last Thursday, the House declined to advance the measure, as NO delegates voted in favor of the bill. This means that approximately $2 million in anticipated revenue that was built into the introduced budget will not be available, therefore necessitating additional program and service cuts.

            The December state revenue report was shared with lawmakers this past week. Total general fund revenue collections grew 5.5% in December, the first uptick in 16 months. However, that figure was boosted by tax amnesty program collections that exceeded estimates by $21 million over December forecasts. Removing amnesty boost, revenues actually declined 1.8% for the month. On a year-to-date basis, total revenues have fallen 4.4%, trailing the revised annual forecast of a 2.7% decline.
  

            The Virginia Association of Counties-requested bill (SB 280) that would remove the cap of 4% for the county meals tax and allow counties to impose the tax or increase the rate by a majority vote of governing body was approved by the Senate Finance Committee on a 13 to 2 vote. It should gain Senate approval early this coming week.

            When the dust settled after Friday’s filing deadline, legislators had submitted over 2,400 bills and resolutions for consideration. All legislation must be acted on in its house of introduction by February 16. Here are more to add to our growing list; again, please note that you can view the summary and text of the bills listed below by clicking on the links.

General Assembly Contact Numbers for David Blount, TJPD Legislative Liaison

PHONE: 434-979-7310 x350
EMAIL: dblount@tjpdc.org (preferred) or dblount64@hotmail.com (alternate)