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BZA Appeal bill would impose legal fees on local governments
SB 519 (Sen. John Watkins) changes the existing law on attorneys fees in appeals of BZA decisions. The bill provides that if the petitioner in an appeal wins, the court may award attorneys fees, presumably against the BZA. Current law allows the petitioner to collect attorneys fees only if the BZA acted in bad faith.
In many cases, the BZA or locality isn’t the most interested party. When neighbors appeal a decision that favors a developer, it is the neighbor/petitioners and developers who are the most interested parties. It would be unfair to allow attorneys fees against the locality when the fight is between the various affected landowners. Staff contact: Mark Flynn (mflynn@vml.org).
House Finance to consider measures changing assessment, taxing, and budget processes
Legislation has been introduced altering the required local government processes for assessment, taxation and budget notifications and actions.
The General Assembly has addressed these issues in both the 2006 and 2007 sessions, (1) increasing the amount of minimum notice localities must give the public of a public hearing in which there will be proposals to increase total real estate levies more than 101 percent of the prior year levies and (2) requiring localities to include specific information on assessment notices.
VML, VACO and the representative for the Commissioners of the Revenue and Treasurers have recommended to the patrons of these various bills to carry them over in order for the House Finance Committee to designate a special subcommittee to review the current processes and requirements.
These bills include: HB 74 (Delegate Bob Purkey), HB 102 (Delegate David Albo), HB 927 (Delegate Sam Nixon), HB 1009 (Delegate Tim Hugo), and HB 1036 (Delegate Jeff Frederick). Staff contact: Neal Menkes (nmenkes@vml.org) and Mary Jo Fields (mfields@vml.org).
Local governments get help with road construction reporting requirement
The Senate Committee on Agriculture, Chesapeake and Natural Resources approved on Jan. 14 a bill that would assist local governments with roadway construction projects. SB 43 (Miller), as amended, requires local government highway construction, reconstruction, or improvement projects estimated to cost more than $1.0 million to include an environmental impact report. The 2007 Transportation Act mandated the additional reports for local governments, but set the requirement at projects costing $100,000 or more. The bill still requires state agencies to submit an environmental impact report for projects where the land acquisition or construction costs are greater than $100,000. Similar legislation, HB 1083 (Suit) and HB 1259 (O’Bannon), will be in front of the House Committee on Agriculture, Chesapeake and Natural Resources. Staff contact: Denise Thompson (dthompson@vml.org).
Bills would increase workers comp costs for local governments
SB 500 (Northam) and HB 532 (Mathieson) would both make localities responsible for unknown diseases if an emergency worker can document exposure while working on behalf of the state or local government during a gubernatorial declared emergency. Currently emergency workers are already covered for exposure to certain named diseases but these bills would significantly broaden a local government’s workers compensation exposure. Another reason this bill is bad for local governments is because there is no way to do pre-employment testing for an unknown disease thus negating the employer’s ability to rebut the presumption that the disease was contracted while on the job.
SB 673 (Wampler) would require local governments to allow deputy sheriffs to use sick, vacation or “comp” time to supplement workers compensation benefits. Currently several local governments allow its employees to use their own accrued time, but this bill would make this practice mandatory. Workers Compensation generally pays 66 2/3rds percent of salary on the theory that since neither taxes nor social security are taken out of the workers comp check then the employee is made whole. Apparently, deputies believe they are not made whole and want the option to use their own accrued sick or vacation leave to supplement workers compensation payments. Staff contact: Tim Ailsworth (tailsworth@vmlins.org).
Overtime compensation law enforcement
Senator R. Creigh Deeds has introduced SB 269, which specifies when overtime compensation is to be paid to law enforcement employees and firefighters. Current law excludes the state police and employers with less than 100 law enforcement employees from the overtime requirement. This bill removes that exclusion and makes the law application to both the state police and all law enforcement employees. The bill has a fiscal impact of 6.2 million dollars per year at the state level and is likely to have a significant fiscal impact at the local level. Please call your Senators on the Courts of Justice Committee to express your opposition to this bill. Staff contact: Randy Cook (wrcook@mmecpc.com).
Law-Enforcement Procedural Guarantee Act amendments proposed
Three bills have been introduced to amend the Law-Enforcement Procedural Guarantee Act. HB 100, introduced by Delegate David E. Poisson adds deputy sheriffs to the groups of employees covered by the Act. SB 355, introduced by Senator R. Creigh Deeds and SB 76, introduced by Senator Ken T. Cuccinelli make revisions to the act that strengthen the protections afforded to law enforcement officers during internal investigations, questioning and disciplinary hearings. These measures have been opposed in prior years by the Virginia Sherriff’s Association, the Virginia Association of Chiefs of Police and by local governments. These groups contend that the provisions of the bill improperly restrict and interfere with the efficient operation of law enforcement agencies. Both SB 76 and SB 355 have been heard by the Senates Courts of Justice civil law subcommittee and are scheduled to be heard again on Monday January 21, 2008 at 9:00 a.m. Please call your Senators on the Courts of Justice Committee to express your opposition to this bill. Staff contact: Randy Cook (wrcook@mmecpc.com).
Increase in Literary Fund loan cap proposed
HB 556 (Crocket-Starke) and SB 408 (Puckett) raise the maximum loan amount for loans from the Literary Fund from the current $7.5 million to $14 million. The bills are in House Education and Senate Education and Health, respectively. The higher loan amount is certainly needed, but still falls short of the amount needed to build new schools. Further, transfers have been made from the Literary Fund to help pay the cost of teacher retirement, as permitted under the state Constitution. Currently, funding is being deferred for projects on the first priority waiting list as the Literary Fund is short of cash. Staff contact: Mary Jo Fields (mfields@vml.org).
School construction revolving loan program proposed
A revolving loan program for school construction is proposed under HB 923 (Rust). The program, an initiative of Speaker William Howell, is a private sector replication of the state wastewater revolving loan fund. State funding would be deposited in the program, which would make below-market rate loans for the construction of school buildings. Loan payments would replenish the fund. The funding would be in the appropriations act. The legislation proposes housing the program in the VML-VACo local government finance program, which currently offers a pool for bonds for various local projects. The bill has been referred to the House Appropriations Subcommittee on Elementary and Secondary Education. VML supports the legislation contingent on the funding of the rebenchmarking of education funds. Staff contact: (mfields@vml.org).
Economic uncertainty dampens revenue collections
The Secretary of Finance, Jody Wagner, presented a mixed bag of economic news to the Senate Finance Committee. Citing a growing consensus among national economists that a recession is likely, the Secretary pointed out that:
- Payroll employment in Virginia still grew 1.7% in November;
- But unemployment rose slightly from 2.9% to 3.0% in November; and
- The Virginia leading index fell by 0.4% for the fourth consecutive month. (The index reviews the number of building permits issued, automobile registrations, and initial unemployment claims, as well as the number of hours manufacturers are in production each week and the U.S. Leading Index.)
General fund revenues grew slightly at 1.8%. On a year-to-date basis, revenues have increased 3.2% over fiscal year 2007, which is close to the official forecast of 3.3%.
Good News: Collections of payroll withholding taxes is 5.6% on a year-to-date basis, which equals the official revenue forecast. Also, the year-to-date increase of 3.4% in individual income tax refunds trails the official forecast of a 7.7% increase.
Bad News: Although collections of sales and use taxes, reflecting November sales, grew 16.0%, this number is probably overstated by an entire week of Thanksgiving holiday sales. The last time this occurred was in 2001 when a 14.1% increase in sales tax collections was followed by an 8.7% December drop. Also, recordation taxes fell 26.9% in December. So far in fiscal year 2008, this source declined 17.3% compared to the official estimate of a 10.7% decline.
Why this is important -
In his 2008-2010 budget, the Governor proposes that 53.0% of all general fund operating dollars be used either directly or indirectly for services provided by localities as mandates or in partnership with the state. Public education alone comprises one-third of the general fund budget.
A sagging economy could require the General Assembly to rework the revenue numbers and spending priorities. Senator Walter Stosch, who serves on the Senate Finance Committee, asked Secretary Wagner if the economy could fully support both the proposed spending in 2008-2010 as well as tax relief programs, e.g., repeal of the estate tax ($158.0 million) and land conservation tax credit ($225.0 million) enacted over the past two years.
Staff contacts: Neal Menkes (nmenkes@vml.org); Janet Areson (jareson@vml.org)
OPEB bill goes to Senate floor
The Senate Finance Committee on Jan. 16 reported a bill to allow the Virginia Retirement System to manage and invest funds used to pay for post employment benefits. SB 614 (Stolle) authorizes local governments to contract with VRS for the administration of trusts established to pre-fund post employment benefits. Legislation enacted last year allowed local governments to establish these trusts but the House Appropriations Committee stripped the VRS role from the final version of that bill. SB 614, therefore, would authorize that role for VRS. VML supports the bill. Staff contact: Mary Jo Fields (mfields@vml.org).
House moves all bills addressing immigration issues to single committee
The House leadership has moved all bills that deal with immigration issues to the House Rules Committee. The committee chairman, speaker William Howell has appointed a special subcommittee to address the bills. That subcommittee will be chaired by majority leader Morgan Griffith. The other members are delegates Kirk Cox, Steve Landes, Clarke Hogan and Joe Johnson.
The bills include numerous subject matters, including jail issues, business license eligibility, voting eligibility, health services and educational services eligibility and others. The value of sending all the bills to the subcommittee is the ability of the House to develop a comprehensive, consistent policy on immigration issues. The subcommittee has not established a time for meeting to address the bills. Staff contact: Mark Flynn (mflynn@vml.org).
Money committees begin budget work
The House Appropriations and Senate Finance Committees, along with their respective subcommittees, began hearing presentations from their staffs and the administration on the budget bills – HB/SB 29 for fiscal year 2008 and HB/SB 30 for the 2008-2010 biennium.
This Thursday, January 17, at 5:00 p.m. is the deadline for Senators and Delegates to submit their budget amendment requests to the money committees.
The two committees will conclude their work and report their amendments on Sunday, February 17. Each chamber must complete action on its budget amendments no later than Thursday, February 21. Staff contacts: Neal Menkes (nmenkes@vml.org); Janet Areson (jareson@vml.org)
'First reference' constitutional amendments to be carried over
Several constitutional amendments proposing real estate tax exemptions for disabled veterans, assessment caps and restrictions on eminent domain have been proposed. Constitutional amendments have to be passed in two different sessions in the exact same form with a general election intervening. For this reason, the “first reference” constitutional amendments introduced in even years are generally carried over for action to odd years. Senator Janet Howell, chair of the Senate Privileges & Elections Committee, announced on Jan. 15 that both the House and Senate committees would be carrying over the first reference amendments.
The homestead exemption, however, is a “second reference” amendment, meaning that it was passed in one session (2007); a general election was held (Nov. 2007), and it is now before the General Assembly for the second adoption. If approved, the amendment would be on the November 2008 ballot.
The Chamber of Commerce is mounting an intensive battle against the passage of the homestead exemption. Staff contact: (mfields@vml.org).
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