Local Governments Working Together Since 1905
Legislative Bulletin

February 7, 2007

Overview of House, Senate budget amendments

The House and the Senate will each take up their own proposals to amend the 2006-2008 state budget on Thursday (Feb. 8).

After each chamber votes to accept its own budget, it will take up and then reject the other chamber's budget. A House-Senate conference committee will then be appointed to work out the differences.

The following is a report on budget amendments of possible interest to local governments. For each budget item reviewed in this Legislative Bulletin, we list:

  1. any applicable amendment proposed by Gov. Tim Kaine on Dec. 2,
  2. the House's proposed amendment, and
  3. the Senate's proposed amendment.

Not every one of these three parties proposed amendments on each issue. If so, it will say "did not address" next to the chamber's name. If the governor introduced an amendment and either the House or Senate (or both) declined to propose any changes to it, it will state "accepts amendment." There are big differences among some approaches to budget items, and sometimes some small or subtle differences. Any differences will have to be worked out in the conference committee before the final budget is presented during the last week of the General Assembly session.

Local officials should review the amendments and make sure that they communicate their support or opposition to their delegates and senators. VML will send a letter outlining top funding issues to the budget conferees (as soon as they are appointed), and will include information on those priorities in an upcoming Legislative Bulletin.

Aid to Local Governments

HB 599 for localities with police departments

Governor: Increase FY08 funding by $1.12 million; allocate new funding on 60-40 basis, with 60 percent distributed according to the standard formula and 40 percent distributed proportionately to the 20 cities and counties with the highest average rates of violent crime based on State Police data.

House: Maintains funding but eliminates language regarding the 60/40 distribution, meaning all funds would be distributed based on the existing formula. Distribution under existing formula (Excel). (Item 393#1h).

An additional amendment requires localities to annually certify to the Department of Criminal Justice Services that HB 599 funds were used to supplement, not supplant, local funding for public safety services. (Item 393#2h)

Senate: Maintains proposed funding level but eliminates 60-40 language. Instead, proposes that $206.4 million in FY08 be used to provide each eligible locality with an amount equal to what it received in FY07, and distribute the remaining funds according to the existing formula. (Item 393#1s). Local specific 599 information.

Agriculture and Forestry

Department of Agriculture and Consumer Services

Emergency service animals

Governor: Provides $69,030 in FY08 and one position to coordinate evacuation and transportation of pets and service animals during disasters and natural emergencies, as required by recent federal legislation, and to supervise the pound and shelter program.

House: Accepts amendment

Senate: Rejects amendment; removes the funding and position (Item 89#1s)

Commerce and Trade

Secretary of Commerce & Trade

Workforce Services.

Governor: Provides $2 million in FY07 and $2 million in FY08 for the workforce services jobs investment program to encourage job creation and private investment.

House: Rejects amendment by eliminating the proposed increase (Item 102 #1h)

Senate: Accepts amendment

Department of Business Assistance

Small Business Financing Authority

Governor: Did not address

House: Did not address

Senate: Provides $300,000 in FY08 for the Virginia Small Business Financing Authority's capital access program (Item 103 #2s)

Department of Housing and Community Development

Enterprise Zones

Governor: Provides $2 million in FY07 and $2 million in FY08 in additional funding for the enterprise zone grant program to encourage job creation and private investment in distressed areas of the state.

House: Accepts amendment

Senate: Accepts amendment

Eastern Shore Broadband

Governor: Provides $1.6 million in FY07 to complete predevelopment engineering etc. necessary for the future installation of fiber optic cable on the Eastern Shore.

House: Removes the funding (Item 104 #4h).

Senate: Accepts amendment.

Indoor plumbing rehabilitation

Governor: Provides $1.6 million in FY08 in additional funds for the indoor plumbing rehabilitation program. Also, provides $900,000 in FY07 to the Southeast Rural Community Assistance project, earmarked for indoor plumbing rehabilitation.

House: Accepts amendment

Senate: Language amendment diverts $17 million in Water Quality Improvement Funds appropriated in 2006 for the Southern Rivers to a program to target communities outside the Chesapeake Bay watershed and having illegal straight pipe discharges into streams and groundwater (Item 104 #13s).

Virginia Housing Partnership Revolving Fund

Governor: Earmarks $2 million in FY08 for the Virginia Housing Partnership Revolving Fund for affordable housing and housing for the elderly, disabled and homeless.

House: Removes the $2 million appropriation (Item 103 #1)

Senate: Reduces the appropriation by $1.0 million (Item 103 #3s)

Covington Research and Development Center

Governor: Provides $330,000 in FY08 to enable Covington to partner with a higher education institution to creation of an industry-focused research and development center. Hopewell and Lynchburg were already included in this program.

House: Removes the increase in funding (Item 104 #2h)

Senate: Removes the increase in funding (Item 104 #12s)

Virginia Economic Development Partnership

Emerging markets

Governor: Provides $200,000 in FY08 to assess potential emerging markets.

House: Removes the funding (Item 119 #3h).

Senate: Reduces funding by $50,000 (Item 119 #4s)

Newport News Carrier Integration Center

Governor: Provides $1 million in FY07 for the Herbert H. Bateman Advanced Shipbuilding and Carrier Integration Center (ASCIC) for research and development and workforce training projects of value to Virginia's shipbuilding and ship repair sector.

House: Removes the funding (Item 119 #2h)

Senate: Accepts amendment

Governor's Development Opportunity Fund

Governor's Opportunity Fund

Governor: Adds $5 million in FY07

House: Removes the additional funding of $5 million (Item 462 #2h)

Senate: Decreases the additional funding by $2.25 million in FY07, thus adding an additional $2.75 million in the fund. (Item #5s)

Virginia Tourism Authority

Governor: Includes additional funding of $250,000 in FY08 for state welcome center operations.

House: Provides $890,000 in FY07 and $1.4 million in FY08 to promote America's 400th Anniversary and to stimulate tourism activity (Item 125 #2h). Also provides $75,000 in FY08 for the Coalfield's Tourism Authority: Heart of Appalachia (Item 125 #1h).

Senate: Provides $490,318 in FY08 to support the operations of the Danville and Potomac Gateway Welcome Centers (Item 125 #7s).

Direct Aid to Education

The governor's budget amendments reduced proposed K-12 spending by $43.4 million in FY07 (the current year), primarily due to decreases in Average Daily Membership (ADM), and increased it by $26.9 million in FY08. Overall, the House budget amendments decrease direct aid to education by $6 million in FY08 and increase the required local share in FY08 due to a higher health care credit for retired teachers. The Senate budget decreases state funding in FY07 by $1.4 million and increases funding by $8.7 million in FY08; the required local share in FY08 is increased due to a higher health care credit for retired teachers.

Locality specific information for the House budget.

Locality specific information for the Senate budget.


Teacher salary increases

Governor: Adds $63.9 million to fund the state's share of a three percent salary increase for state-supported positions, effective Dec. 1, 2007 (the prior budget supported a 1.5 percent raise for instructional positions). Localities would have to give at least a 1.75 percent increase in order to qualify for the funding, as the funding is available as an incentive rather than a mandate.

House: Accepted amendment

Senate: Accepted amendment

Reductions due to ADM reforecasting

Governor: Reduction of $20.4 million in FY07 and $35.8 million in FY08 to reflect lower students in ADM (5,742 lower in 2007, and 8,448 lower in 2008).

House: Accepted amendment

Senate: Accepted amendment

Sales tax estimates

Governor: Adds $1.1 million in FY07 and $2.7 million in FY08 to reflect changes in projected revenues from sales tax (this is the 1-1/8 percent distributed on the basis of school age population) but decreases state basic aid accounts by $1.5 million in FY07 and $3.4 million in FY08. When sales taxes increase, basic aid decreases, as do the state and required local shares of basic aid.

House: Accepted amendment

Senate: Increases the forecast for sales tax for public education by $3.4 million in FY07 and $3.5 million in FY08, based on year-to-date sales tax on food collections. The FY07 amount is allocated towards reducing the one-time hold harmless amount provided in September 2006. For FY08, the increase results in an offsetting reduction in the state's share of Basic Aid of $1.9 million, for a net increased distribution to local school divisions of $1.5 million. (Item 135 #7s)

FY07 hold harmless sales tax payment

Governor: Decreases the hold harmless sales tax payment, adopted last October, by $1.2 million to account for the increased sales tax estimates referred to in the bullet above. The governor's budget amendments did not propose extending the sales tax hold harmless payment to FY08, as the governor has maintained that the hold harmless payment was for FY07 only.

House: Accepted amendment

Senate: See above under sales tax estimates

Lottery payments

Governor: Decreases funding in anticipated lottery proceeds by $20.7 million in FY07 and FY08, reflecting that North Carolina now operates its own lottery, which is affecting lottery ticket sales in Virginia. The per pupil amount for the distribution of lottery payments will by $222.24 in FY07 and $220.99 in FY08. The money is distributed on the basis of the per-pupil amounts in ADM, and must be matched by the local governments based on the local composite index.

House: Accepted amendment

Senate: Accepted amendment

Pre-school pilot programs

Governor: Adds $4.6 million to fund an estimated six pre-school pilot programs (Start Strong program), to serve an estimated 1,250 children. The pilots would be voluntary and could include public and private facilities. The pilots cannot limit participation to only at-risk students; the budget language also states that the local match requirement "may be waived."

House: Rejected amendment (Item 135 #8h)

Senate: Reduces the governor's amendment by $1.2 million to increase funding for the Virginia Preschool Initiative to serve an additional 1,000 students, and to provide $300,000 for start-up funding. (Item 135 #2s)

Early reading intervention expansion

Governor: Adds $4.1 million for expansion of the Early Reading Intervention program to include 100 percent of the eligible children in grades 1 and 2 (currently the state funds 50 percent of these students identified as in need of the service).

House: Rejected amendment (Item 135 #9h)

Senate: Accepted amendment

SOL Algebra Readiness expansion

Governor: Adds $3.9 million for expansion of the Standards of Learning Algebra Readiness program, to include students in the sixth grade. Currently state funding is provided only for 7th and 8th graders.

House: Rejected amendment (Item 135 #10h)

Senate: Rejected amendment (Item 135 #4s)

Update fringe benefit rates in FY28

Governor: Adds $4.3 million in FY08 to reflect a decrease from 0.45 to 0.40 percent for the group life contribution, and an increase from 0.49 to 0.70 for the teacher retiree health care credits.

House: Adds an additional $5.7 million the second year from the general fund to increase the retiree health care monthly credit amount from $2.50 up to $4.00 per month for every year of creditable service, and to increase the cap from $75 to $120, effective Jan. 1, 2008. The local share will be approximately $8.4 million, and will be reflected in higher teacher retirement rates for FY08. (Item 135 #11h)

Senate: Adds $11.9 million in FY08 to pay the state share of increasing the health insurance credit for retired teachers from $2.50 to $4.00 per month for every year of service, with no cap on the total credit, effective July 1, 2008. This increases the retiree health care credit to 1.16 percent (from the 0.70 percent as proposed in the governor's amendments). The local share will be $18.6 million, and will be reflected in higher teacher retirement rates for FY08. (Item 135 #1s)

Cost of competing

Governor: Did not address

House: Adds $1.6 million in FY08 to phase-in Frederick and Winchester into the calculations for the cost of competing adjustment, the phase-in would be 25 percent in fiscal year 2008 and put these two divisions on par with the six divisions added during the 2006 Special Session I. (Item 135 #5h)

Senate: Did not address

At-risk add on

Governor: Did not address

House: Decreases funding for the at-risk program by $4.9 million in FY08 and appropriates $4.7 million of that amount for these "special projects:"

1) a one-time allocation of $300,000 in FY08 for mathematics specialists in selected divisions (a grant of $25,000 each for 2 specialists in Portsmouth, 4 in Richmond, 3 in Stafford, 1 in Spotsylvania & 2 in Virginia Beach).

2) a one-time allocation of $300,000 in FY08 for Project WORD for Norfolk public schools.

3) $500,000 in FY08 to help create a Center for Teacher Quality & Educational Leadership to provide professional development to teachers and administrators in schools and divisions struggling to meet SOL and NCLB requirements.

4) Three $1 million grants annually to innovative public school programs that address the needs of at-risk students through academic programs that stress high academics and career and technical education.

5) An additional $100,000 for Jobs for Virginia Graduates, for career specialists.

6) An additional $500,000 in funding for purchase of secondary career-technical equipment, distributed on the basis of enrollment in career and technical courses. (Items 134 #1h, 134 #3h, 134 #4h, 135 #4h, 135 #5h, 135 #33h, 135 #34h, 135 #35h, 135 #36h, 136 #37h and #135 #38h)

Senate: Did not address

Project Discovery

Governor: Did not address

House: Did not address

Senate: Adds $400,000 in FY08 to increase the grant to Project Discovery, a dropout prevention and college access preparatory program offered through 19 community action agencies to 4th through 12th graders. (Item 134 #1s)

SOQ workgroup

Governor: Did not address

House: Did not address

Senate: The budget currently establishes a workgroup of staff from Senate Finance, House Appropriations, Department of Education and JLARC to study the cost of re-benchmarking of the SOQ. The Senate proposes a legislative workgroup of three members of Senate Finance and House Appropriations to study the issue; retains the same staff input; and authorizes the committee to contract for consulting services. (Item 135 #8s)

Other Education

Extension Division

Governor: Did not address

House: Adds $370,000 in FY08 for six additional positions in the extension division. (Item 224 #1h)

Senate: Adds $552,000 in FY08 for eight additional positions in the extension division. (Item 224 #5s)

Libraries

Governor: Did not address

House: Did not address

Senate: Adds $190,000 in FY08 for installation of filters on library computers, pursuant to SB 1392 (Item 236 #1s)

Compensation & benefits

Salaries for state employees and state-supported local employees

Governor: Did not address

House: Adds $16.9 million in FY08 to increase to 4 percent (from 3 percent) the salary increase for state classified employees as well as state-supported local employees. Increase is effective Dec. 1., 2007 for state-supported local employees. (Item 461 #5h)

Senate: Did not address.

State supported local employees

Governor: Includes employees of local community corrections programs and pre-trial services programs in the list of state-supported local employees.

House: Accepted amendment (Item 461 #1h)

Senate: Accepted amendment (Item 461 #1s)

Actuarial rate of return

Governor: Did not address

House: Decreases funding by $2.2 million to reflect an actuarial assumed rate of return of 8 percent for the employee group life insurance, the Virginia Sickness and Disability program, and the state employee retiree health credit. (Item 461 #4h) Employee group life is a pooled program for state, teacher and local employees; this amendment, however, does not assume similar savings for teachers and or local governments.

Senate: Did not address

Health and Human Resources

Small business insurance pools

Governor: Provide $100,000 in FY08 for the Secretary of Health and Human Resources to develop strategies to encourage operation of health insurance risk pools for small businesses domiciled and operated in Virginia.

House: Same as above.

Senate: Eliminates funding from this proposal (Item 278#1s)

Transfer of adult services and licensing

Governor: Does not address.

House: Language directs the Secretary of HHR to develop a plan to transfer adult services and adult services licensing from the Dept. of Social Services to the Department for the Aging. Plan must include cost impact on state and local agencies and organizational changes necessary to implement the plan. Due Dec. 1, 2007. (Item 278#1h)

Senate: No amendment

Citizenship verification

Governor: Does not address

House: Language directs the Secretary of HHR to work with state agencies, including Department of Social Services and Department of Motor Vehicles to develop systems to streamline verification of citizenship and identity of applicants for Medicaid and enable caseworkers to access necessary information for eligibility purposes. Federal law now requires most applicants and recipients to provide documentation of U.S. citizenship and identify. (Item 278#2h)

Senate: No amendment

Study on restructuring of Auxiliary Grants

Governor: Does not address

House: Language directs the Secretary of HHR to report on feasibility of restructuring the Auxiliary Grant program to make it a portable benefit for consumers who receive case management from a community services board (CSB) or behavioral health authority (BHA). Requires assessment of how the grant could be used to meet need of consumers who would benefit from a living arrangement other than an assisted living facility to promote more focused recover and independence, and an estimate of the potential cost of the restructured program. Report due Dec. 1, 2007. (Item 278#3h)

Senate: Similar request, but stipulates that such program would be for up to 200 consumers, specifically those eligible for, or receiving an auxiliary grant who are: 1)unable to access assisted living beds in their communities and 2)receiving the grants, but whose needs are not being met by their current housing arrangement and who would benefit from an alternate arrangement of their choice that promotes more focused recovery and independence. Report due Dec. 1, 2007. (Item 28#2s)

Comprehensive Services Act for At-Risk Youth and Families

Study of allocations

Governor: Does not address

House: No amendment

Senate: Increases allocation (from $47,395 to $100,000) to Pittsylvania County to increase pool of funds available for non-mandated children; further directs the State Executive Council to examine and report on the current allocation, adequacy, and equity of the funding allocations for mandated and non-mandated services to children served through CSA, including recommendations for any changes necessary, including additional funding, to eliminate gaps in the current allocation formula. Report due Oct. 31, 2007. (Item 279#1s)

State reimbursement for services

Governor: Adds $4.4 million in FY07, and $7.1 million in FY08 to pay the state share of service costs for children and families covered by this program.

House and Senate: Accept amendment

Federal cost-shift adjustment

Governor: Adds $1.2 million in FY07, and $3.6 million in FY08 to cover costs previously covered by federal Medicaid, but disallowed under the Federal Deficit Reduction Act, which re-wrote some Medicaid eligibility rules, thereby ending federal participation in the cost of most therapeutic foster care services.

House and Senate: Accept amendment

Treatment foster care study

Governor: Requires the Office of Comprehensive services and Departments of Social Services and Medical Assistance Services (Medicaid), and affected advocacy groups to study the feasibility of implementing statewide rates for treatment foster care. The Federal Deficit Reduction Act removed treatment foster care services from the list of Medicaid-eligible services. The study's goal is to determine the future cost of this program without federal assistance.

House and Senate: Accept amendment.

See DMHMRSAS for items regarding children's mental health funding

Department for the Aging

"No Wrong Door"

Governor: Provides $554,184 in FY08 to continue development of the "No Wrong Door" system for elderly Virginians to access various long-term care services without having to go through multiple agencies.

House: Eliminates $50,000 from FY08 that was earmarked for SeniorNavigator help desk support of private providers who will interact with the system. A remainder of $504,184 in FY08 remains for software and development costs of the "No Wrong Door" system. (Item 282#1h)

Senate: Eliminates funding for this program in FY08; transfers the funding for additional home-delivered meals for the elderly. (Item 282#1s)

Meals on Wheels

Governor: Adds $704,000 in FY08 to expand the number of elderly served, and also to offset the increased price of fuel, which has negatively affected the ability of some area agencies on aging (AAAs) to serve more elderly clients.

House: No amendment; concur with governor.

Senate: Transfers the funding from "No Wrong Door" ($554,184) to this program to help serve more elderly clients (Item 282#1s)

Department of Health

Doctors for underserved areas

Governor: Increases by $250,000 in FY08 the funding to the Virginia Physician Loan Repayment Program to provide loan repayments for more doctors agreeing to serve in medically underserved areas of the state.

House: Eliminates original amendment and replaces it with another in Department of Health Professions , which allows a total of $780,964 for loan repayments in each year. (Item 293#5h)

Senate: Same approach as House (Item 285#1s).

Food permits for local festivals

Governor: Did not address

House: Did not address

Senate: Language allows an exemption from the annual permit fee for individuals who provide food for sale at a local event each calendar year within the locality in which they live. (Item 292#1s)

Birthing centers in underserved areas

Governor: Did not address

House: Did not address

Senate: Provides $150,000 in FY08 to complete funding establishing two birthing centers in the Northern Neck and Emporia. Start-up funding of $150,000 was provided in FY07 for this initiative. (Item 293#2s)

Antiviral purchases / pandemic preparedness

Governor: Language supports purchase of a stockpile of antiviral treatments in accordance with federal pandemic flu preparedness guidelines. Makes $9.6 million available to complete a stockpile that, combined with federal actions, could serve up to 25 percent of Virginia's population if a pandemic is declared.

House and Senate: Accept amendment

Federal cost-shift adjustments

Governor: Replaces federal funds with state general funds in FY08 for a number of programs previously funded by the federal TANF program, including Resource Mothers Sibling program, Partners in Prevention, and teen pregnancy prevention programs.

House and Senate: Accept amendment

Behavioral Health Services/Medicaid

Mental health services for children at risk for foster care placement

Governor: Did not address

House: Language specifies that funding for mental health services for children and adolescents with serious emotional disturbances and related disorders, provided currently through DMHMRSAS to CSBs, shall be allocated with priority placed on serving those children who are at-risk for custody relinquishment. (Item 312#3h)

Senate: Authorizes transfer of up to $2 million in FY08 from DMHMRSAS to CSA to serve children requiring mental health services in order to prevent foster care placement. The CSA director would determine when cases qualified for these funds, according to provisions of proposed SB 1332 (Devolites Davis). Local governments would pay the regular CSA match (up to 47 percent) on funds used for this purpose. This amendment is contingent upon passage of SB 1332.

Mental health services in juvenile detention

Governor: Provides $200,000 to help five juvenile detention facilities to continue provision of mental health services after a federal grant lapses in FY08.

House and Senate: Accept amendment

Waiver services reimbursement

Governor: Did not address

House: Adds language and $7.8 million (GF & NGF) in FY08 to increase reimbursement for home- and community-based mental retardation, developmentally disabled, and day support waiver services in Northern Virginia by 20 percent to help providers hire and retain qualified workforce for waiver services. (Item 302#1h)

Senate: Three amendments address this topic: 1) Item 302#3s directs DMAS to increase individual supported employment rates for providers of home- and community-based waiver services to be consistent with those established under the Dept. of Rehabilitative Services; 2) Item 302#4s provides $882,856 to increase reimbursement for home- and community-based Medicaid MR and DD waiver services in Northern Virginia by 5 percent on Jan. 1, 2008, in order to retain workers for these services; and 3) Item 302#5s provides $2.97 million (GF& NGF) to increase by 3 percent the reimbursement rates for unique services provided under the home- and community-based waiver program for mental retardation and developmental disabilities.

Mental retardation waiver slots

Governor: Provides $5.2 million (GF & NGF) for 170 additional mental retardation waiver slots

House: Provides $4.2 million (GF & NGF) in FY08 to fund 160 mental retardation waiver program slots, in addition to the 170 slots in the introduced budget. The 330 new slots would serve about one-third of the urgent care waiting list as of December 2006. (Item 302#2h) Another amendment would add $550,000 to help establish community residential services to support the 330 new slots added in FY08. (Item 312 #1h)

Senate: No new slots are added, but three amendments increase reimbursement or employment rates for providers of home- and community-based services in the waiver program (see item above)

Developmental disabilities waiver slots

Governor: Did not address

House: Adds $1.7 million in FY08 (GF & NGF) to fund 100 additional community-based waiver slots under the Medicaid Individual and Family Developmental Disabilities (DD) support waiver program. (Item 302#3h)

Senate: Did not address waiver slots; addresses waiver reimbursements in other amendments.

Medicaid coverage for substance abuse services

Governor: Did not address

House: Did not address

Senate: Provides $5.25 million (GF & NGF) in FY08 to expand Medicaid coverage to children and adults for substance abuse treatment services. Includes assessment and evaluation, crisis intervention, outpatient treatment, and medical detoxification. (Item 302#2s)

Acute and long-term care services

Governor: Did not address

House: Modifies language in current budget to require DMAS to convene an advisory group of stakeholders on the benefits and costs of a regional pilot and the Program of All-Inclusive Care of the Elderly (PACE) projects prior to implementation of statewide regional models for integration of acute and long-term care. (Item 302#10h)

Senate: Eliminated funding earmarked for development of an additional PACE site in northern Virginia (six programs are included in current budget) (Item 302#9s)

Expand substance abuse treatment

Governor: Did not address

House: Did not address

Senate: Adds $2.4 million in FY08 to provide community services to consumers with substance abuse disorders, including opioid or methamphetamine addiction, in order to avoid more costly or inappropriate treatment, such as inpatient hospital services. (Item 312#3s)

Local reimbursement for pre-admission screenings

Governor: Did not address

House: Did not address

Senate: Directs the DMAS director to examine the reimbursement rate paid to localities for performing the Uniform Assessment Instrument (UAI). The UAI is required for all individuals seeking nursing facility care. Report is due Sept. 1, 2007. (Item 307#1s).

Wellness and recovery program

Governor: Did not address

House: Did not address

Senate: Allocates $750,000 in FY08 from the federal Community Mental Health Services Block Grant to expand and develop consumer-directed pilot programs to promote wellness, recovery, and improved self-management. Programs include hospital liaison services, recovery education center, crisis respite home, employment center, self-help support groups, and a homeless outreach program with mobile services (Item 312#1s)

Restructuring and community needs

Governor: Did not address

House: Language requires the DMHMRSAS Commissioner to work with CSBs to ensure restructuring funds meet the needs of individuals to be discharged into each region of the state as a result of state facility downsizing. (Item 312#2h)

Senate: Did not address

Geriatric mental health

Governor: Did not address

House: Did not address

Senate: Allocates $1 million from the federal Community Mental Health Services Block Grant for two specialized geriatric mental health pilots to divert individuals from admission to state facilities through intensive specialized mental health teams, etc. One pilot site is in northern Virginia; another is in an region with insufficient capacity to meet the needs of this population (Item 311#1s).

Department of Social Services

Increase in auxiliary grant rates

Governor: Would increase the monthly rate by $38 per month effective Jan. 1, 2007.

House: Did not address.

Senate: Increases state share of the maximum monthly auxiliary grant rate to $1,061 by July 1, 2007. Combined with funding from introduced budget, would increase the rate by five percent from Jan. 1, 2007, to July 1. (Note: local costs would rise, because local governments pay a 20 percent match on each grant). (Item 337#1s)

Temporary assistance to needy families

Governor: Adjusts a number of items in the department's budget because of federal reductions/elimination of funding in the Temporary Assistance to Needy Families (TANF) program.

House: Reduces $1 million for TANF in FY08 to implement changes in federal policy regarding training and day care costs. (Item 334#2h)

Senate: Accepts amendments

Community groupings for TANF payments

Governor: Did not address

House: Requires the Department to review options on the three-tiered locality grouping structure used to set payment amounts for TANF. The initial groupings were established several decades ago and may not reflect current cost of living levels. (Item 334#4h)

Senate: Did not address

Community action agencies

Governor: Did not address

House: Language corrects available funding for these agencies (Item 340#1h)

Senate: Adds $500,000 in FY08 for community action agencies (Item 340#1s)

Natural Resources

Department of Conservation and Recreation

Water Quality Improvement Fund

Governor: Increases funds to provide matching grants for controlling agricultural runoff pollution using riparian buffers, cover crops, conservation tillage, nutrient management, and livestock exclusion from state waters. (The appropriation of $7.5 million in FY07 includes $3.8 million that is the remainder of the mandatory deposit required by statute.)

House: Deletes a proposed $3.7 million additional appropriation from the general fund for nonpoint source programs; does not affect the $3.8 million mandatory deposit from the FY 06 revenue surplus Provides up to $500,000 in FY08 in interest earnings from the WQIF to improve DCR's current agricultural BMP tracking system. (Item 358 #4h).

Senate: Supports the $7.5 million appropriation in the introduced budget. Also, provides up to $500,000 in FY08 in interest earnings from the WQIF to improve DCR's current agricultural BMP tracking program (Item 358 #7s).

Dam safety

Governor: Provides $352,377 in FY08 to evaluate dams not now under regulation and classified as high hazard.

House: Accepts amendment

Senate: Accepts amendment

Dam repair

Governor: Provides money to match federal grants to repair dams owned and operated by local Soil and Water Conservation Districts. For FY08, $616,000.

House: Accepts amendment

Senate: Accepts amendment

Land conservation

Governor: Increases funding by $20 million for the land conservation initiative. Funding includes $13.7 million in FY07 in grants to the Virginia Land Conservation Foundation, and $5 million in FY07 to the Office of Farmland Preservation to establish a state fund to match local government purchase of development rights program funds for the preservation of working farms and forest lands. Operating support of $950,000 is provided to the Virginia Outdoors Foundation for FY07 to provide assistance to landowners with placing property under conservation easements.

House: Eliminates $14.7 million for these programs (Item 359 #4h).

Senate: Eliminates the proposed land conservation initiative of $20 million but restores $8 million for land conservation. Includes $3 million in FY07 and $1.2 million in FY08 for the Virginia Land Conservation Foundation; $950,000 for the Virginia Outdoors Foundation; $1.8 million for DCR's land conservation programs; $151,920 for the Historic Easement program; and $2.5 million in FY07 for a Purchase of Development Rights program (Item 359 #5s and Item 359 #6s).

Department of Environmental Quality

Wetlands/water protection program

Governor: For FY08, provides $574,566 and an increase of six positions to take on the U.S. Army Corps of Engineers State Programmatic General Permit program, reducing redundancy in the wetlands/water protection permitting program.

House: Accepts amendment

Senate: Accepts amendment

Solid waste management.

Governor: Provides $511,218 in FY08 and an increase of five positions for oversight of landfills and to enhance solid waste management compliance.

House: Accepts amendment

Senate: Accepts amendment

Water Quality Improvement Fund.

Governor: Provides additional mandatory funding for the WQIF of $1.61 million in FY07. The governor also introduced a separate bill to authorize the issuance of up to $250 million in bonds for nutrient removal technologies at wastewater treatment plants in the Chesapeake Bay watershed, which has been amended significantly.

House: Provides $50 million in FY08 from the general fund for the WQIF (Item 364 #2h). Extensive language amendments direct that $1.7 million be used for improving wastewater treatment facilities in the Southern Rivers area, $15 million to be used for correcting illegal straight pipes and $300,000 for developing local and regional wastewater treatment plants (Item 364 #1h).

Senate: Language amendment removes authorization for DEQ to manage a $17 million water quality grant program for localities outside the Chesapeake Bay watershed. The amendment transfers the $17 million to the Department of Housing and Community Development to assist local governments in reducing illegal straight pipe discharges from households in the Southern Rivers drainage areas (Item #364 #6s).

Combined Sewer Overflow (CSO)

Governor: Provides additional $9.1 million for combined sewer overflow projects in Richmond and Lynchburg. Funding includes $3.1 million for Lynchburg in FY07, and $3 million for each city in FY08.

House: Eliminates the proposed funding (Item 354 #3h).

Senate: Accepts amendment

Biosolids

Governor: No proposal.

House: Provides $183,026 from the general fund and $456,114 from nongeneral funds for the DEQ to assume responsibility the biosolids program pursuant to HB 2802. A companion amendment in Item 295 reduces funding in the Virginia Department of Health (Item 361 #h1). Language amendment directs DEQ to convene a panel of experts on the subject (Item 361 #2h).

Senate: Provides $173,000 to DCR in FY08 to review nutrient management plans including land application of biosolids. Revenue is from biosolids fees (Item 358 #9s). Provides $730,000 in FY08 and 20 positions to manage the biosolids program. Funding is from proposed increases in the biosolids fee in SB 1339 (Item 362 #5s).

Game and Inland Fisheries

Rappahannock River Easement

Senate: Provides $410,000 in nongeneral funds in FY08 for staff to work the Rappahannock River Easement.

Public Safety

Compensation Board

Per diem jail payments

Governor: Adds $7.7 million in FY07 to meet increased costs of per diem payments in local jails. No funding yet included for anticipated need in FY08.

House: Accepted governor's amendment.

Senate: Increases the governor's amendment by an additional $3.1 million in FY07 for per diem payments by the Compensation Board for support of inmates in local and regional jails. (Item 60 #2s)

Enhanced retirement benefits for sheriffs' deputies

Governor: Adds $11.5 million in FY08 to reimburse localities for additional costs resulting from including deputies in the Law Enforcement Officers Retirement Systems. The state funding would have ranged from $600 to $1,825 for each state-funded position, based on the local fiscal stress index.

House: Deletes the program and funding proposed by the governor and instead adds $3.8 million for increased retirement contribution rates for deputies. Budget allows localities that have not already extended these enhanced benefits to their deputies to have the option of putting deputies under either LEOs or the less expensive Virginia Law Officers Retirement System (VALORS), which up until now has been available only to state employees. The House budget also increases the maximum retirement contribution rate reimbursed by the Compensation Board from 5.74 percent to 7.77 percent for deputies included under LEOS or equivalent programs. Localities may raise the multiplier for public safety officers to 2 percent. (Item 59 #1h, Item 59 #2h)

Senate: Budget retains the $11.5 million, but spends it to implement SB 1166, which requires (not encourages) localities to put deputies under LEOS, provides state funding for each deputy position based on the local stress index, establishes an increased multiplier for sheriffs with the amount increasing for each year of service beyond the age of 55, and allows localities to increase the multiplier in the same way for other public safety officers. (Item 59 #8s, Item 473 #1s)

Sheriffs' pay

Governor: Did not address

House: Did not address

Senate: Adds $9,000 in FY08 to compensate sheriffs serving multiple localities with an additional $1,000 annually. (Item 59 #6s)

Department of Corrections

Local jail health care costs

Governor: Did not address

House: Language limits payments by local or regional jails for inmate health care items, treatments, or services to the lesser of the amount paid by Medicare or Medicaid. (Item 60 #1h). A similar amendment addresses the same for state correctional facilities.

Senate: Did not address

Jail telephone systems

Governor: Did not address

House: Limits the amount of profit the state and its political subdivisions can make off the operations of inmate telephone systems entered into, renewed, or amended on or after July 1, 2007, to no more than 10 percent more than the cost that people using the service pay. (Item 387#4h)

Senate: Did not address

Prisoner re-entry pilot programs

Governor: Requests $4.3 million to support five pilot local interagency programs to help adults and juveniles re-entering the community from incarceration. Includes housing, career readiness programs, and case management.

House: Eliminates $792,000 in grants in introduced budget for new local en-entry councils, stipulating that there are federal grant balances available to use in supporting existing local non-profit organizations. (Item 391#2h) Another amendment eliminates $77,000 for expansion of services for offenders returning to the community. The expansion would have been in areas currently not served by such programs.

Senate: Reduces funding by $642,000 in FY08 for direct grants for re-entry services and grants to five pilot local re-entry councils. A total of $150,000 remains for grants for purchase of services by local re-entry councils. (Item 391#15s)

Jail construction proposals

Governor: Did not address

House: Did not address

Senate: Requires Board of Corrections to consider the current and projected numbers of mentally ill offenders when approving new jail construction projects, and requires the Board to report on the scope of the project and the required capital and operating expenditures when jail projects are approved. (Item 384#3s)

Department of Emergency Management

Citizen information, continuity of operations (COOP)

Governor: Provides $1.3 million in FY08 to expand citizen alert networks, EMNet for Hampton Roads and central Virginia local governments to target densely populated areas, and support for continued development of continuity of operations (COOP) efforts to ensure state and local delivery of services in cases of prolonged states of emergency (such as a pandemic or devastating hurricane).

House: Eliminates $250,000 for expansion of citizen alert network, given availability of other media services, such as television emergency broadcasting system, radio, print media and Internet. (Item 397#1h)

Senate: Reduces funding for EMNet by $100,000, leaving $400,000 available (Item 397#1s).

Department of Juvenile Justice

Mental health services for detention centers

Governor: Did not address

House: Did not address

Senate: Provides $900,000 in FY08 for additional mental health services for the nine remaining local or regional juvenile detention centers that do not currently receive state funding for mental health services. These funds are not to be used to supplant existing local funds. (Item 405#4s)

Transportation

Department of Aviation

Aviation economics/strategic planning

Governor: Provides $375,000 in FY08 for contractual services to measure and report aviation economic activity and airport facility needs.

House: Accepts amendment

Senate: Accepts amendment

Transit Capital Assistance program.

Governor: Adds language to re deploy an unused $10 million to the Transit Capital Assistance program. The funds had previously been earmarked for a bus rapid transit system that the localities do not plan to implement.

House: Language amendment provides that the $10 million provided for the Light Rail transit project in Hampton Roads be authorized for expenditure on different transit projects in the same region (Item 437 #2h).

Senate: Accepts amendment

Transportation Funding Initiative

Governor: Provides $161 million in FY07 to supplement the $339 million Transportation Initiative. The budget presently sets aside $339 million in general fund support for transportation but the General Assembly has been unable to agree on specific project authorizations. The addition of $161 million in general fund revenue will bring the total initiative to $500 million. A language amendment proposes funding as follows:

House: Language amendment states that the $10 million provided for the Light Rail transit project in Hampton Roads be authorized for expenditure on different transit projects in the same region (Item 437 #2h). Increases the proposed $500 million appropriation by $66 million and authorizes the director of the Department of Planning and Budget to increase the nongeneral fund appropriations to allow for the expenditure of money by transportation agencies pursuant to legislation adopted by the 2007 General Assembly (Item 446 #1h).

Senate: Amendment provides $23.2 million in FY08 for the Commonwealth Mass Transit Fund (Item 437 #6s). Amendment provides $3 million in FY08 for the Shortline Railway Preservation and Development Fund, contingent on passage of SB 1379 (Item 438 #3s). Provides $4 million in FY08 for a commuter parking lot in Prince William County, contingent on passage of SB 1379 (Item 443 #4s). Provides $5.8 million in FY08 to replace the two-lane bridge at Lewistown Road and I-95 with a four-lane bridge, contingent on passage of SB 1379 (Item 443 #6s). NOTE: SB 1379, however, did not progress. (Under SB 1379, revenues would have been derived from increases to vehicle registration, truck registration, abusive driver fees, and an increase of 1.5 cents in the diesel excise tax.)

Amendment reprograms the $500 million in FY07 from the general fund:

  1. Complete 5 rail projects in I-95 corridor: $20 million
  2. Improve rail between Manassas and Front Royal: $40 million
  3. Washington Metropolitan Area Transit Authority rolling stock: $20 million
  4. Virginia Railway Express rolling stock: $15 million
  5. Norfolk Light Rail rolling stock: $10 million
  6. Local capital transit: $15 million
  7. Route 164 median rail relocation: $40 million
  8. Craney Island Marine Terminal design work: $10 million
  9. Local road revenue sharing: $23 million
  10. Loudoun County bus purchase: $2.5 million
  11. Preliminary design for VRE expansion to Gainesville: $1.5 million
  12. Norfolk Southern right-of-way acquisition in Tidewater: $10 million
  13. Route 37 Eastern Bypass design update: $1.5 million
  14. Transportation Partnership Opportunity Fund: $130 million

Highway maintenance

Governor: Decreases funding for highway construction and transfers $19.3 million in FY08 to the department's highway maintenance program as a result of increases in the costs of materials used for road maintenance. This reduction in construction funding will result in a $19.3 million increase in funding for maintenance.

House: Does not address maintenance

Senate: Does not address. (Based on the provisions of SB 1379, would have provided $125.4 million in FY08 to VDOT's maintenance program,. Under the bill, funds would be used to supplement the Highway Maintenance and Operating Fund, thereby freeing up an identical amount of cash for new construction in the Transportation Trust Fund. The introduced budget assumes the $125.4 million will be transferred from the Transportation Trust Fund for maintenance. The SB 1379 revenues would have derived from increases to vehicle registration, truck registration, abusive driver fees, and an increase of 1.5 cents in the diesel excise tax (Item 444 #2s).)

Virginia Port Authority


Local service charges

Governor: Provides $1 million in FY08 for service charges to be paid to counties and cities in which the Virginia Port Authority owns tax-exempt real estate.

House: Language amendment clarifies that the $1 million general fund appropriation to the VPA host cities is to be used solely for roadway maintenance to repair damage caused by heavy truck traffic from the ports (Item 454 #1h)

Senate: Language amendment clarifies legislative intent that the general fund amendment of $1 million will not supplant nongeneral fund appropriations expended by the VPA for this purpose (Item 454 #2s).

Expand empty rail yard

Governor: Provides $20 million in FY07 and FY08 to expand rail facilities into a vacant area at the Norfolk International Terminal. The project will be funded through terminal revenues.

House: Accepts amendment.

Senate: Accepts amendment.

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