House, Senate OK budget conference report

With no debate or dissention, the House and Senate approved the budget conference report on the final day of the 2007 session. The conference report amends the state’s 2006-2008 budget. It incorporates some of the items introduced by Gov. Tim Kaine in December, as well as items proposed by members of the House of Delegates and Senate.

March 26 is the deadline for Kaine to submit amendments to the budget bill and other legislation passed during the session. VML will summarize the Kaine amendments in an upcoming Legislative Bulletin. The General Assembly will take up the amendments at the reconvened or “veto” session on April 4.

The following is a report on budget items of possible interest to local governments, including amendments submitted by Kaine and approved by the General Assembly, as well as the amendments approved in the conference report.

Aid to local governments

HB 599 for localities with police departments. Retains the funding increase included in the introduced budget ($1.2 million) and increases the funding to this program by an additional $1.1 million. The $1.2 million will be run through the existing statutory formula and distributed accordingly to all eligible communities. The $1.1 million added by the General Assembly is to be allocated to those communities that would otherwise see a decrease in their allocation in FY08 as a result of updated data run through the existing formula. In short, this creates what amounts to a hold harmless provision for those affected communities. This hold harmless is being used instead of the 60/40 distribution proposed in the introduced budget, where 40 percent of the new funding for HB 599 would have been distributed to communities based upon violent crime rates. (Item 393 #1c)

HB 599 certification. Requires that communities receiving HB 599 money certify to the Department of Criminal Justice Services annually the total amount of local support for public safety services and that HB 599 money was used to supplement, not supplant, local funding for public safety. (Item 393 #2c)

ABC distributions and wine taxes. No changes to the funding levels in the introduced budget.

Agriculture and Forestry

Department of Agriculture and Consumer Services

Emergency service animals. Removes funding proposed in the introduced budget of $69,030 in FY08 and one position for a veterinarian to coordinate evacuation and transportation of pets and service animals during disasters and natural emergencies, as required by recent federal legislation. (Item 89#1c)

Hydrilla. Provides $200,000 to support the eradication of hydrilla on Lake Gaston, the Potomac River and other bodies of water. This invasive plant species interferes with recreation, destroys fish and wildlife habitats, and can severely degrade water delivery systems. (Item 91#2c)

Commerce and Trade

Department of Business Assistance

Workforce Services. Provides $2 million in FY07, but eliminates $2 million in FY08 for the workforce services jobs investment program, to encourage job creation and private investment. (Item 102 #1c)

Department of Housing and Community Development

Housing Partnership Revolving Fund. Removes a proposed new appropriation of $2 million in the second year for the Virginia Housing Partnership Revolving Fund for affordable housing and housing for the elderly, disabled and homeless. (Item 103#c)

Enterprise zones. 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. (Introduced budget)

Indoor plumbing rehabilitation reporting. Language amendment requires DHCD to report on ways to improve efficiencies in the indoor plumbing program. (Item 104#2c).

Indoor plumbing rehabilitation assistance. Transfers the $17 million in Water Quality Improvement Funds currently managed by the Department of Environmental Quality to the Department of Housing and Community Development to carry out the grant program's purpose: to assist local governments in reducing the amount of untreated or under-treated household wastewater being directly discharged into streams and groundwater in the Southern Rivers drainage areas. DHCD will use existing delivery systems to accelerate the commitment of this money to community projects and document the effects of the program. A companion amendment is included in the appropriations for the Department of Environmental Quality. (Item 104 #3c and Item 364 #3c)

Indoor plumbing rehabilitation funding. Provides $1.6 million in FY08 in additional money for the indoor plumbing rehabilitation program. Also, provides $900,000 in FY07 to the Southeast Rural Community Assistance project, earmarked for indoor plumbing rehabilitation. (Introduced budget)

Covington Research and Development Center. Removes a proposed $330,000 new appropriation in FY08 for a research and development center in Covington. Budget language requires the department to submit a report on the progress made by the two other regional research and development centers in Hopewell and Lynchburg, funded in 2006. (Item 104 #1c)

Virginia Economic Development Partnership

Emerging markets. Removes $200,000 in FY08 to assess potential emerging markets/competitive advantages. (Item 119 #3c)

Newport News Carrier Integration Center. Eliminates a proposed appropriation of $1 million for the Herbert Bateman Center for Advanced Shipbuilding and Carrier Integration for research and development and workforce training projects of value to Virginia’s shipbuilding and ship repair sector. Conference committee concluded that the state fulfilled its commitment to fund $58 million in costs for the construction of this facility. (Legislation authorizing, but not requiring, payment of $40 million in operating grants for this facility expires at the end of the biennium.) (Item 119 #2c)

Governor’s Opportunity Fund. Eliminates the proposed $5 million increase in FY07 for the Governor's Opportunity Fund. An appropriation of $15.1 million in the first year is retained, and along with available cash balances in the fund, more than $17.5 million remains unobligated from this fund in the current fiscal year. (Item 462 #2c)

Virginia Tourism Authority.

Welcome centers. Provides $490,318 in FY08 to support the operations of the Danville and Potomac Gateway Welcome Centers (Item 125 #1c).

Coalfields Tourism Authority. Provides an additional $75,000 in FY08 to support the Coalfields’ Tourism Authority in Buchanan, Dickenson, Lee, Russell, Scott, Tazewell and Wise counties, and the City of Norton. (Item 125 #2c).

Compensation & benefits

Salaries for state employees and state-supported local employees. Adds $21.2 million in FY08 to increase to 4 percent (from 3 percent) the salary increase for state classified employees, faculty and state-supported local employees. Increase is effective Dec. 1., 2007 for state-supported local employees. (Item 461 #4c)

State supported local employees. Includes employees of local community corrections programs and pre-trial services programs in the list of state-supported local employees. (introduced budget)

Statewide health pool study. Provides $12,500 in FY08 for a joint legislative subcommittee to study the feasibility of a statewide health insurance experience pool for state and local employees, including health insurance costs of state and local early retirees not eligible for Medicare (from SJR 372) (Item 1 #1c)

Direct Aid to Education

Kaine’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. The conference report decreases Direct Aid by an additional $1.2 million in FY07 and increases funding by $8.1 million in FY08. The increase in FY08 is primarily due to the cost of raising the teacher retiree health care credit.

Teacher salary increases. Adds $63.9 million to fund the state’s share of a 3 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. (introduced budget)

Teacher retiree health care credit. 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 per month for every year of service, and removing the cap of 30 years of service. The cost is based on a retiree health care credit of 1.16 percent (the current rate is 0.49 percent). The local share will be $18.6 million, and will be reflected in higher teacher retirement rates for FY 08. (Item 135 #7c)

Reductions due to ADM reforecasting. 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). (introduced budget)

Sales tax estimates; FY07 hold harmless sales tax payment. 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 #11c)

Lottery payments. 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 be reduced to $222.24 in FY07 and to $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. The decrease in the current year, however, is offset to some extent by the distribution of excess lottery profits from FY06, which will result in an additional distribution of $6.4 million (or the state share of an estimated $9.50 per pupil in FY07). (introduced budget)

At-risk add on program, Pre-school pilot programs. Shifts $2.6 million from the at-risk add-on program in FY08 and redirects the funding to school divisions electing to participate in the pilot evaluation initiative for early childhood education. Funding for the at-risk program is decreased by reducing the minimum percentage add-on from 2 percent to one percent, and by ending the practice of funding the program at a 96 percent proration level. The $2.6 million is to be allocated to eligible school divisions that have existing partnerships with private or non-profit providers and that elect to participate in a pilot for at-risk preschool students not presently served. (Item 135 #6c; Item 135 #12c)

Early Reading Intervention expansion. 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). (introduced budget)

SOL Algebra Readiness expansion. Keeps funding at its current level by removing $3.9 million from the introduced budget that would have expanded the program to include sixth graders. (Item 135 #4c)

Cost of competing. Adds $2.4 million in FY08 to phase-in Winchester, Culpeper and Frederick into the calculations for the cost of competing adjustment; the phase-in would be 25 percent in FY08 and put these two divisions on par with the six divisions added during the 2006 Special Session I. (Item 135 #14c)

Mathematics specialists. Adds a one-time allocation of $150,000 in FY08 for mathematics specialists to cover a portion of the salaries for 12 math specialists who have been placed at five school divisions through a National Science Foundation federal grant. (two specialists in Portsmouth, four in Richmond, three in Stafford, two in Virginia Beach and one in Spotsylvania). (Item 134 #4c)

Project WORD. Adds a one-time allocation of $300,000 in FY08 for Project WORD for Norfolk Public Schools. (Item 134 #3c)

Jobs for Virginia Graduates. Adds $100,000 for Jobs for Virginia Graduates, which will allow the program to place career specialists in up to four additional school divisions. (Item 134 #2c)

Project Discovery. Adds $100,000 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 #1c)

Career-technical equipment. Adds $500,000 in FY08 for purchase of secondary career-technical equipment. The base allocation for each school division will be increased from $2,000 to $3,000, with the additional funding distributed on the bases of enrollment in career and technical courses. (Item 135 #13c)

SOQ Workgroup. Directs that one member from the House Appropriations Committee and from Senate Finance provide oversight to the staff workgroup studying the cost of rebenchmarking and other education cost issues. (Item 1 #4c)

Education (other)

Extension Division. Adds $461,000 in FY08 for seven additional positions in the extension division. (Item 224 #1c)

Libraries. Adds $190,000 in FY08 for installation of filters on library computers. SB 1393 and HB 2197 require public libraries to install technology protection measures to filter or block Internet access to materials deemed harmful to minors. (Item 236 #1c)

Old Dominion University. Adds $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. (Item 178 #4c)

Health and Human Resources

Secretary of Health and Human Resources

Small business insurance pools. Retains the language from the introduced budget requesting 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, but removes the $100,000 in funding proposed for this effort. (Item 278 #3c)

Transfer of adult services and licensing. Directs the Secretary of Health and Human Resources to examine and report on the feasibility of transferring adult services and licensing of those services from the Department of Social Services to the Department for the Aging. Plan must include cost impact on state and local agencies and services, and the organizational changes necessary to implement such a transfer. Due Dec. 1, 2007. (Item 278 #4c)

Citizenship verification. Directs the Secretary of Health and Human Resources to work with state agencies, including the Departments of Social Services, Medical Assistance Services, and Motor Vehicles, to develop methods to streamline verification of citizenship and identity of Medicaid applicants and to enable caseworkers to gain access to necessary information for eligibility purposes. Federal law now requires most Medicaid applicants and recipients to provide documentation of U.S. citizenship and identity. Federal regulations have resulted in delays in application processing, lower enrollment (including in FAMIS), and application backlogs. (Item 278 #2c)

Auxiliary grant study. Directs the Secretary of Health and Human Resources to report by Dec. 1, 2007, on the feasibility of restructuring the Auxiliary Grant program to make it a portable benefit to pay for housing for the adults who receive, or are eligible to receive this benefit, and who receive case management services from a community services board (CSB) or behavioral health authority (BHA). Currently, the benefit is directed to qualified individuals who live in assisted living facilities (elderly individuals and mental health consumers). This report would 1) look at using the grant to pay for housing for individuals in other settings that would promote more focused recovery and independence; 2) estimate the number of consumers who could be eligible under a restructured program; and 3) estimate the potential cost of a restructured program. There is a potential additional cost for local governments as well, as they pay a 20 percent match on each grant. (Item 278 #1c)

Healthy Families study. Directs the Secretary of Health and Human Resources, in coordination with the Department of Social Services, to report on the strategic plan for the Healthy Families Virginia organization, including site capacity and process for identifying sites that could be expanded to assist at-risk children and families to prevent child abuse and neglect. This will include a review of the findings of the Hampton Healthy Families Partnership Benchmark Study and recommendation of strategies that other communities may adopt to further reduce child abuse and neglect. Report is due Oct. 1 to the governor and the chairs of the House Appropriations and Senate Finance committees. (Item 278 #5c)

Comprehensive Services Act for At-Risk Youth and Families

Study of non-mandated allocations. Requires the State Executive Council to examine and report on the current allocation, adequacy, and equity of the funding allocations for non-mandated services to children served through CSA. The council shall recommend any changes necessary, including additional funding, to eliminate gaps in the current allocation formula. Report is due to the chairs of House Appropriations and Senate Finance by Oct. 31. (Item 279 #1c)

Study of impact of increasing CSA mandated population. Directs the Office of Comprehensive Services to report on the fiscal impact of implementing the requirements set forth in SB 1332 (Devolites Davis, Fairfax). This bill, which passed the General Assembly with a re-enactment clause requiring affirmative action by the 2008 General Assembly, would expand the pool of mandated children to be served through CSA by including children with mental health needs and without adequate, or any private insurance coverage or Medicaid and whose parents may otherwise use foster care placements to obtain publicly-funded mental health services. The report would include 1) an estimate of the number of additional children who would become eligible under this bill, 2) the type and estimated cost of services anticipated to be needed to serve these children through CSA; and 3) mechanisms to offset the cost of these services, including the need for additional statutory, policy, or procedural changes to ensure services are delivered in the least restrictive and most effective manner. (Item 279 #2c)

State reimbursement for CSA services. Adds $4.4 million in FY07, and $7.1 million in FY08 to pay the state share of mandated service costs for children and families covered by this program. (From introduced budget)

Federal cost-shift adjustment. 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. (From introduced budget)

Treatment foster care study. 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. (From introduced budget)

Department for the Aging

“No Wrong Door.” Eliminates $50,000 in FY08 from the introduced budget for the continued development of the “No Wrong Door” system for elderly Virginians. The $50,000 was earmarked for SeniorNavigator to provide support to private providers who will interact with the system. The “NWD” system will develop a computerized uniform assessment instrument to screen elderly for long-term care services and a web portal that will allow multiple state agencies to share this information. The remaining $504,184 from the introduced budget will be used for a contract with a software developer for this system and to develop the in-house expertise to manage the system in the future. (Item 282 #1c)

Meals on Wheels. Allocates an additional $300,000, in addition to the $704,000 proposed in the introduced budget, to expand the number of frail elderly served in FY08 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 clients. (Item 281 #1c)

Department of Health

Doctors for underserved areas. Maintains the current level of funding for the physician loan repayment program in the FY08. A total of $780,964 will be available for loan repayments each year of the biennium. (Item 285 #1c)

Food permits for local festivals. Language recognizes the Department of Health’s recent decision to allow an exemption from the annual permit fee for individuals who provide food for sale at a local event each calendar year within the locality where they live. (Item 292 #1c)

Birthing centers in underserved areas. 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 #6c)

Antiviral purchases – pandemic preparedness. 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. (From introduced budget)

Federal cost-shift adjustments. 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. (From introduced budget)

Noncompliant waterworks. Provides $75,000 in FY08 for the Department of Health to design a program for identifying noncompliant waterworks and to develop enforcement options, pursuant to HB 2366 (E. Scott, Culpeper) and SB 988 (Houck, Spotsylvania) passed by the 2007 General Assembly (Item 294 #1c)

Transfer of biosolids program. Transfers $91,513 and two positions in FY08 from the Department of Health to the Department of Environmental Quality (DEQ) for the permitting, compliance assessment, and enforcement of Virginia’s laws and regulations on the application of biosolids, pursuant to HB 2802 (Byron, Campbell), passed by the 2007 General Assembly. This legislation transfers these responsibilities to DEQ effective Jan. 1, 2008. (Item 295 #1c)

Behavioral Health Services/Medicaid

Mental health services for children at risk for foster care placement. 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 #4c)

Availability of psychiatric beds for children/adolescents. Provides $25,000 to develop a “real time” reporting system for hospitals to report on the availability of acute psychiatric beds for children and adolescents. DMHMRSAS will contract with Virginia Health Information (VHI) to develop and operate the reporting system. (Item 312 #6c)

Waiver services reimbursement. Adds language and $5.3 million (general fund (GF) and non-general fund (NGF) ) in FY08 to increase by 15 percent the reimbursement rate for home- and community-based Medicaid mental retardation, developmentally disabled, and day support waiver services in Northern Virginia in the hope that this will help providers hire and retain qualified staff to work with disabled individuals covered by the waiver program. (Item 302 #8c)

Medicaid reimbursement for rural hospitals. Provides $584,142 (GF & NGF) in FY08 to eliminate the rural wage index category and increase Medicaid reimbursement to rural hospitals to help them with workforce shortages and competition for staff with small-urban and urban areas. (Item 302 #9c)

Mental retardation waiver slots. Provides $2.3 million (GF & NGF) in FY08 to add another 160 slots to the mental retardation waiver program. This in addition to the 170 slots funded in the introduced budget, providing a total of 330 new MR waiver slots to be phased-in next fiscal year. This program provides services in community settings to individuals with mental retardation. (Item302 #11c)

Community residential services for waiver program. Provides $550,000 in start-up funds to establish community residential services in support of 330 new mental retardation waiver program community slots to be added in FY08. (Item 312 #7c)

Developmental disabilities waiver slots. Adds $1.3 million (GF & NGF) in FY08 to phase-in 100 additional community-based waiver slots under the Developmental Disabilities support waiver program. (Item 301 #10c)

Medicaid coverage for substance abuse services. Provides $5.25 million (GF & NGF) in FY08 to expand Medicaid coverage to children and adults for reimbursement of substance abuse treatment services. Services may include assessment and evaluation, case management, crisis intervention, outpatient treatment, and medical detoxification. Directs DMAS to seek federal approval to implement these state plan amendments. (Item 302 #6c)

Expand substance abuse treatment. Adds $2.4 million in FY08 to provide a range of community-based treatment and support 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 #5c)

Local reimbursement for pre-admission screenings. Directs the DMAS director to examine the reimbursement rate paid to staff from local Departments of Social Services and the Virginia Department of Health or local health departments for conducting pre-admission screenings according to the Uniform Assessment Instrument (UAI) and assessing how the reimbursement rate compares to the cost to localities for conducting the assessment. The UAI is a pre-admission screening tool required for all individuals seeking nursing facility care. Report is due Sept. 1, 2007. (Item 307 #1c).

Wellness and recovery program. 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 #2c)

Restructuring and community needs. Requires the DMHMRSAS Commissioner to work with community services boards (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 #3c)

Geriatric mental health pilot programs. Allocates $1 million from the federal Community Mental Health Services Block Grant in FY08 for two specialized geriatric mental health pilot programs with the goal of 1) giving discharge assistance to individuals leaving state mental health geriatric units; and 2) diverting individuals from admission to state mental health geriatric units through the use of intensive specialized mental health teams, etc. Funds will be evenly split between two pilot projects: one in Northern Virginia, the other on the Virginia Peninsula. (Item 312 #1c).

Department of Social Services

Increase in auxiliary grant rates. Adds $995,280 to increase the state share of the maximum monthly auxiliary grant rate effective July 1, 2007. Combined with the governor’s introduced budget, the rate will have increased by 5 percent from Jan. 1, 2007, to July 1, 2007. Local costs will increase as a result of this amendment, because local governments pay 20 percent of each grant. (Item 337 #2c)

Temporary assistance to needy families. 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; reduces funding in introduced budget for training and day care costs by $1 million. (Item 334 #2c)

Community action agencies. Provides an additional $250,000 in FY08 for these agencies. (Item 340 #1c)

Non-custodial foster care placements. Requires the Department of Social Services, in collaboration with other state and local partners, to develop and disseminate clearly defined policies that encourage the use of non-custodial placement agreements, when appropriate, in order to improve access to mental health services to children who otherwise are at risk of placement in foster care. Also requires the Department to disseminate “best practices” information in order to improve access to children’s mental health services and prevent parents from relinquishing custody of their children. (Item 338 #1c)

Natural Resources

Department of Conservation and Recreation

Soil and Water Conservation Districts. Provides $300,000 the second year from the general fund for the state's soil and water conservation districts. (Item 358#1c)

Agricultural BMP tracking program. Provides up to $500,000 in FY08 in interest earnings from the WQIF to improve or replace DCR’s current agricultural BMP tracking program. (Item 358 #6c)

Chesapeake Bay Restoration Fund. Provides $362,102 in FY07 from special funds derived from the sale of "Friend of the Chesapeake" license tags is allocated to carry out the recommendations of the Chesapeake Bay Restoration Fund Advisory Committee. (Item 358 #7c)

Chesapeake Bay Public Access. Provides $75,000 to the Middle Peninsula Planning District Commission, which serves as the fiscal agent for the Middle Peninsula Chesapeake Bay Public Access Authority. The authority will, in turn, use this funding to assist the authority's seven member localities develop more public access to the Chesapeake Bay as recommended in the Virginia Outdoors Plan for the Middle Peninsula region. (Item 359 #4c)

Water Quality Improvement Fund. Removes $3.7 million additional appropriation from the general fund for controlling nonpoint source pollution because the Code of Virginia requires that any additional general fund appropriation to the Water Quality Improvement Fund beyond the deposit of year-end revenue surpluses be used for upgrading wastewater treatment plants. (Item 358 #3c)

Dam safety. Provides $352,377 in FY08 to evaluate dams not now under regulation and classified as high hazard. (Introduced budget)

Dam repair. Provides $616,000 in FY08 to match federal grants to repair dams owned and operated by local Soil and Water Conservation Districts. (Introduced budget)

Land conservation. Provides $6.6 million from the general fund in the 2006-08 biennium for a land conservation initiative. The amendment provides $500,000 each year for the Virginia Land Conservation Foundation; $950,000 the first year for the Virginia Outdoors Foundation; $99,040 each year for the Department of Conservation and Recreation's land conservation programs; $151,920 for the Historic Easement Program administered by the Department of Historic Resources, and $3.6 million the first year and $700,000 the second year for a Purchase of Development Rights program managed by the Department of Agriculture and Consumer Services (Item 359 #6c)

State Parks. Provides $1.0 million from the general fund and $250,000 in nongeneral funds in FY08 to support the addition of 10 park rangers and seasonal wage staff for the operation of Virginia's state park system. (Item 359#2c)

High Bridge State Park. Provides $5.0 million from general funds to construction new cabins and campgrounds at state parks and $1 million from general funds to develop the new High Bridge State Park. (Item C-255.10 #1c)

Department of Environmental Quality

Wetlands/water protection program. 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. (Introduced budget)

Solid waste management. Provides $511,218 in FY08 and an increase of five positions for oversight of landfills and to enhance solid waste management compliance. (Introduced budget)

Water Quality Improvement Fund. Provides $20 million in FY08 from the general fund for deposit to the Water Quality Improvement Fund to upgrade wastewater treatment plants' nutrient removal technology. This is in addition to mandatory funding for the WQIF of $1.62 million in FY07. (Item 354 #1c)

Shenandoah River. Provides an additional $100,000 in FY08 from the Virginia Environmental Emergency Response Fund (nongeneral funds) for the Shenandoah River task force investigating the extensive fish kills, which began in 2004. The task force includes DEQ, DGIF and scientists from Virginia Tech, VCU and EPA. (Item 362 #2c)

Combined sewer overflow (CSO). Provides $6.1 million in FY08 from the general fund for combined sewer overflow projects in the cities of Lynchburg and Richmond. (Item 354 #2c)

Biosolids. Transfers $91,513 from the general fund and associated nongeneral funds and 2 positions in FY08 from the Department of Health to DEQ for the permitting, compliance assessment, and enforcement of Virginia's biosolids laws and regulations, pursuant to HB 2802. HB 2802 transfers these responsibilities to the DEQ effective Jan. 1, 2008. (Item 295 #1c)

Biosolids regulation. Provides $730,000 in FY08 in nongeneral funds and 20 full-time positions to the Department of Environmental Quality for a program to site, permit, enforce, and monitor the application of biosolids on Virginia's farmlands. HB 2802 and SB 1339 of the 2007 Session of the General Assembly are the source of the special revenues. (Item 362 #1c)

Biosolids regulation. Provides $173,000 in FY08 from nongeneral funds and two full-time positions for the Department of Conservation and Recreation to review nutrient management plans with particular emphasis on plans including land applications of biosolids. Funding comes from fees generated for the biosolids program established in HB 2802 and SB 1339. (Item 358 #2c)

Biosolids study. Language amendment directs the Department of Environmental Quality to convene a panel of experts to evaluate the impact of land application of biosolids on human health and the environment. (Item 361 #1c)

Game and Inland Fisheries

Rappahannock River easement. Provides $410,000 in FY08 in nongeneral funds for two game wardens and one biologist to work the Rappahannock River Easement, which is 4,600 acres and extends from Fredericksburg northwest for 25 miles and westward up the Rapidan River for twelve miles. The Game Department does not sufficient staff to adequately patrol the area. Unappropriated watercraft sales taxes are the source of revenue. (Item 367 #c)

Marine Resources Commission

Oyster replenishment. Provides $200,000 the second year from the general fund for the Marine Resources Commission's oyster propagation and habitat improvement program. (Item 372 #1c)

Department of Historic Resources

Historic Site Preservation Fund. Provides funding in FY08 to the Department of Historic Resources to continue the Civil War Historic Site Preservation Fund. The amendment also clarifies that recipient non-profit organizations must provide $2 in matching funds for each dollar received from the fund. The amendment also names a number of sites, including Appomattox, Fredericksburg, Glendale, New Market and Petersburg, which would be eligible for grants for the fund, although these grants are not limited to the sites named. (Item 370 #2c)

Public Safety

Compensation Board

Enhanced retirement benefits for sheriffs’ deputies. Removes the $11.5 million in the introduced budget proposed to encourage localities to include sheriffs’ deputies in the Law Enforcement Officers Retirement System. SB 1166, passed during the 2007 session, requires that localities include deputies in the program by July 1, 2008. The budget is amended to require the governor to include in his budget recommendation for the next session funding for any additional cost incurred by the Compensation Board as a result of localities providing these enhanced benefits in the upcoming year. (The state may incur some additional costs because the Compensation Board bases its payments on the lower of either the local retirement contribution rate, or the state retirement contribution rate. Therefore, if a locality adds LEOS coverage for its deputies, and its retirement rate goes up--but is still less than the state rate -- it will receive some additional funding from the Compensation Board. Most of the cost of the additional benefit, however, will be borne by the locality. The estimated cost of LEOS coverage is approximately 11 percent of salary of the public safety officers.) (Item 59 #1c)

Multi-jurisdictional sheriffs. Provides an additional $1,000 annually to the compensation of each sheriff that serves multiple jurisdictions, (Item 59 #2c)

Jail per diems. Provides an additional $3.1 million in the current year for the state share of jail per diem payments for state inmates in local and regional jails. This is in addition to the $7.7 million proposed in the introduced budget. Actual year-to-date inmate population counts are ahead of earlier projections, requiring this additional funding (Item 60 #1c)

Department of Corrections

Prisoner re-entry pilot programs. Eliminates $792,000 from the introduced budget for FY08 in support of new local re-entry councils. Existing non-profit organizations that offer services to offenders will use federal grant balances to support these services. (Item 391 #7c)

Department of Emergency Management

Citizen preparedness information and communication. Eliminates $370,000 from the introduced budget to pay for a citizen preparedness survey and the ReadyVirginia! public service campaign; reduces by $150,000 the funding for the EMNet initiative in Hampton Roads and central Virginia ($350,000 remains available for this initiative). Reduces by $50,000 the funding proposed for expansion of the Citizen Alert Network, leaving $200,000 available to expand this network, which is intended to give government agencies the capability of using reverse-911 to warn the general public of severe weather or other hazards (Items 395 #2c; 397 #1c, 397 #2c)

All hazards preparation. Directs the State Coordinator of Emergency Management to report on the implementation of the components in the All-Hazards Initiative, including a summary of funding recommendations as included in the Governor’s proposed 2008-10 budget. Report is due to House Appropriations and Senate Finance prior to the 2008 General Assembly Session. (Item 398 #1c).

Department of Juvenile Justice

Mental health services in juvenile detention centers. Provides $900,000 in FY08 to help the nine remaining juvenile detention facilities that do not currently receive state funding for mental health services. This money cannot be used to supplant existing local funding of such programs. (Item 312 #8c).

Transportation

Department of Aviation

Aviation economics/strategic planning. Provides $375,000 in FY08 for contractual services to measure and report aviation economic activity and airport facility needs. (Introduced budget)

Department of Transportation

Transportation Partnership Opportunity Fund/Local Road Revenue Sharing Program. Adds two items to those proposed in the introduced Budget Bill for funding under the Transportation Partnership Opportunity Fund. HB 1650 proposes $305 million to advance Capital Beltway HOT lanes, Hillsville Bypass, I-64/I-264 interchange, and Route 50 widening in Loudoun and Fairfax Counties, the Environmental Impact Statement for Route 37 Eastern Bypass in Frederick County, and right-of-way owned by Norfolk Southern Corporation and located between the Cities of Norfolk and Virginia Beach. The amendment also provides $20 million to supplement the Local Road Revenue Sharing Program, increasing total resources for the Program to $35 million. (Item 449.10 #1c)

Rail Enhancement Fund. Provides $65 million to the Rail Enhancement Fund to complete funding for the six I-95 rail corridor improvements underway and the travel-time improvements for passenger rail service between Main Street and Staples Mill stations. Remaining funds will address Phase 1 of the I-85 Rail Corridor Improvements to take trucks off of I-81. (Introduced budget)

Rolling stock acquisition. Provides $45 million to the Commonwealth Transit Capital Fund to support rolling stock acquisition by the Washington Metropolitan Area Transit Authority and the Virginia Railway Express, and for the Hampton Roads Transit Light rail project. (Introduced budget)

Commonwealth Port Fund. Provides $50 million to the Commonwealth Port Fund to complete the Route 164 rail relocation in South Hampton Roads (up to $40 million) and to begin the planning and engineering for the Craney Island expansion. (Introduced budget)

Department of Rail and Public Transportation

Transit Capital Assistance program. Language amendment provides that the $10 million from the general fund provided for a transit project in Hampton Roads be authorized for expenditure for hybrid-electric buses to be purchased by Hampton Roads Transit, with the remainder deposited into the statewide capital assistance program. The funds had previously been earmarked for a bus rapid transit system that the localities do not plan to implement (Item 437 #2c)

Expand empty rail yard. 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. (Introduced budget)

Virginia Port Authority

Local service charges. Language amendment clarifies that the $1 million general fund appropriation to the facilities in the Commonwealth that host Virginia Port Authority cities included in HB 1650 is to be used solely for roadway maintenance to repair damages caused by the heavy truck traffic attracted by the presence of the port facilities. (Item 454 #1c)

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