February 8, 2008

VML/VACo Legislative Day

Kaine tells audience he will fully fund 'rebenchmarking'

Economic downturn will result in even deeper state budget cuts though ...

Kaine

Despite continuing economic woes that will prompt even deeper state budget cuts than have been announced previously, Gov. Tim Kaine told more than 500 local elected officials Thursday that he will fully fund the state's Standards of Quality (SOQ) for public education.

Speaking at the 7th Annual VML/VACo Legislative Day in downtown Richmond, Kaine told the gathering that a revised revenue forecast to be released next week would require further reductions in the current FY08 budget -- as well as additional cuts to his proposed 2008-2010 biennial budget.

Despite the additional cuts, which he hinted could total as much as $900 million for the three budget years, Kaine pledged to fully fund the SOQ.

Every two years the state updates the calculation of the cost of public education. The governor's introduced budget includes an additional $900 million in state funding for FY09-FY10 just to cover the increased costs associated with maintaining existing K-12 programs. The process, referred to as rebenchmarking, reflects no additional programs or initiatives. The $900 million, while significant, does not move the state forward toward meeting new educational goals. It does not even adequately reflect what educational services will cost in the upcoming biennium. What it does, in part, is recognize some of the costs of K-12 public education already being delivered at the local level.

Kaine told the Legislative Day audience that to the extent the budget cuts affected local government, he wanted to give cities, towns and counties as much flexibility as possible to deal with them.  In addition, the governor reiterated his support for: expanding early childhood education opportunities; placing more foster care children with families instead of sending them to government-run group facilities; passing a higher education bond package.

 House committee kills machinery & tool tax bill

The House Appropriations Committee voted Friday to carry over legislation that would have phased out local taxation of machinery and tools equipment. The bill was HB 124 (Purkey). Staff contact: Neal Menkes (nmenkes@vml.org)

 Homestead exemption killed in Senate Finance Committee

Legislation to exempt or defer a portion of a homeowner's tax bill was defeated in the Senate Finance Committee on Feb. 7. 

SJ 6 (Whipple) failed to be reported on an 8-8 vote.  Sen. Chuck Colgan, chairman of the committee, joined all seven Republican committee members to defeat the proposed constitutional amendment. 

Alexandria Mayor Bill Euille spoke to the committee and delivered VML's position on the issue.  He reminded the committee that VML supports the measure if the implementing legislation provides local governments the flexibility to craft a program that best meets local needs.

 The constitutional amendment authorizes the General Assembly to enact legislation allowing localities by ordinance to exempt from real property taxes, or defer real property taxes on, up to 20 percent of the value of residential property that is the owner-occupant's primary dwelling.  The amendment had passed the 2007 Session of the General Assembly, but needed to pass again in this Session to go before the voters in November.

 The House of Delegates passed the House counterpart, HJR 4, on January 29 by a vote of 96 to 0.  HJ 4 was referred to and is awaiting action in the Senate Privileges and Elections Committee.  The House Committee on Privileges and Elections carried over Delegate Paula Miller's bill -- HB 1118 -- to implement the constitutional amendment.  HB 1118 would have provided localities with the necessary program flexibility.  Staff contact:  Neal Menkes (nmenkes@vml.org); Mary Jo Fields (mfields@vml.org)

House Finance Committee reports tax deferral, notice bill

The House Finance Committee took action Feb. 7 to squash two bills affecting the powers of local governments to determine tax rates and to transfer the burden of proof for assessment increases from homeowners to local governments.  HB 602 and HB 927 were "passed by for the day," which effectively removes them from consideration for the remainder of the session.

 Some bills falling under this category, however, have been known to resurface during a legislative session.  On Feb. 6, a House Finance Subcommittee failed to recommend Del. Tim Hugo's HB 1009, but the committee chairman, Del. Harry Purkey, exercised his privilege to bring the bill before the full committee.  The committee rolled HB 1560, sponsored by Del. Scott Lingamfelter, into HB 1009, and voted to report the combined measures to the House floor.  HB 1009 now mandates local governments to offer a deferral program for real estate taxes and to include in the assessment notice the tax rate that will apply to the new assessed value.  In addition, local governments would have to mail with their real estate and tangible personal property tax bills new information, including the tax rate that will apply, the assessed value of the real property, the total amount of the new tax levy, the total amount of the prior year's tax levy, and the percentage change in the new tax levy from the prior year's tax levy.  The Senate counterparts to these bills were carried over to the 2009 session.  If your locality has a position on HB 1009, please inform you delegation and VML.  Staff contact:  Neal Menkes (nmenkes@vml.org).

 Law enforcement funding amendments (HB 599) presented to subcommittee

Four delegates presented budget amendments to restore funding for state assistance for local police departments at a Feb. 6 meeting of the Public Safety Subcommittee of the House Appropriations Committee.

Funding for the 599 program was cut by 5 percent in the current fiscal year. The governor's proposed budget for FY08-FY10 recommending freezing funding for the program at the current level.

Williamsburg Deputy Police Chief David Sloggie was among the local representatives prepared to address the subcommittee.  As it turned out, subcommittee members and the delegates presenting the amendments had a spirited interchange in which the usefulness of the HB 599 program and the problems facing the state budget were discussed.

The subcommittee had taken up a number of bills earlier in the meeting that would have increased state or local funding, primarily for increased incarceration costs.  In almost every instance, Del. Phillip Hamilton of Newport News suggested, perhaps facetiously, using HB 599 money as a possible source for funding these bills. 

Whether the 599 money is restored will be determined during budget negotiations.

Staff contacts: Neal Menkes (nmenkes@vml.org) and Mary Jo Fields (mfields@vml.org).

 Pedestrian safety bills need help in House, Senate

VML, VACo and the State Police are among the supporters of two bills that set out the responsibilities of pedestrians and drivers at marked and unmarked crosswalks.  

The Senate approved SB 644 (Ticer) 22-16 Feb. 8.  The House Transportation Committee approved HB 1270 (Ebbin) 11-8 on Feb. 5. HB 1270 was passed by for the day in the House on Feb. 8. 

Local governments interested in these measures are urged to contact their delegates in support. Staff contact: Denise Thompson (dthompson@vml.org).

 Billboard bill carried over

The Senate Transportation Committee carried over legislation -- SB 763 (Ticer) -- that would have imposed a moratorium on the erection or conversion of advertisements into changeable electronic variable message signs. Staff contact: Denise Thompson (dthompson@vml.org).

 Workers compensation presumption bill dies in committee

After sailing through a subcommittee, HB 532 (Mathieson) was tabled by the House Commerce and Labor Committee on a 12-9 vote. 

For the purpose of awarding workers' compensation payments, the bill would have made local governments responsible for any disease contracted by a "first responder" during an emergency declared by the state Department of Health.

Thanks to the elected officials who contacted their committee members about this bill. Staff contact: Tim Ailsworth (tailsworth@vmlins.org).

  Senate Finance reports mental health bills

This week the Senate Finance Committee reported SB 246 (Howell), an omnibus Senate bill reforming involuntary outpatient commitment standards and responsibilities.  The bill is now on the Senate floor for final passage.  The Committee also sent forward bills addressing standards and responsibilities for involuntary mental health treatment of minors -- SB 67 (Howell), SB 247 (Howell) and SB 276 (Cuccinelli). 

 SB 246 would establish a new standard for involuntary outpatient commitment where a person has a mental illness and there exists a substantial likelihood that, as a result of the mental illness, the person will in the near future 1) cause serious physical harm to himself or to others as evidenced by recent behavior; or 2) suffer serious harm due to substantial deterioration of his capacity to protect himself from harm or to provide for his basic human needs.  The bill also would create new requirements for disclosing mental health records to a magistrate, the court, the person's attorney, the independent examiner, the community services board (or behavioral health authority) or law enforcement officer, and it allows for a single four-hour extension of an emergency custody order.  Finally, it would impose new requirements on CSBs or BHAs regarding representation at each commitment hearings as well as additional requirements for outpatient commitment, and the monitoring duties of CSBs/BHAs regarding individuals in outpatient commitment.

 The committee incorporated SB 140 (Edwards) into SB 246 as well. The bill would require development of a training program for people who conduct independent examinations of individuals coming before a magistrate because of a mental health issue.

 The committee also reported a bill -- SB 297 (Puller) -- addressing mental health services for veterans after adding the Senate Finance "clause" to it.  The clause states that the provisions of the bill will go into effect only if funding is appropriated for it in the state budget.  This bill would require the state commissioner of veteran services to establish, in cooperation with the state departments of mental health and rehabilitative services, a program to address the unique mental health needs of veterans (including post-traumatic stress disorder and traumatic brain injuries) and to seek federal, state, and private sources of funding.

 Finally, the committee decided to carry over five bills until the 2009 session. The five bills would undergo additional study by a special subcommittee of the Finance Committee in the coming months.  All of the bills carry a fiscal impact at the state or local level. 

These bills are SB 177 (Marsh), which would establish a program of assisted outpatient treatment for the severely mentally ill (fiscal impact estimated at between $7.3 and $10 million each year); SB 16 (Edwards), which would establish law-enforcement crisis intervention team pilot programs (carries both a state and local fiscal impact, with the larger impact on localities); SB 18 (Edwards), which would require the establishment of between two and five mental health courts for non-violent offenders with serious mental health issues; and SB 275 (Cuccinelli), and SB 440 (McEachin; Miller, YB) which would address emergency psychiatric treatment for defendants in criminal matters with serious mental illness.

 The House Appropriations currently is considering a number of mental health-related bills that were referred from other committees because of the potential fiscal impact.  Those bills should be before the committee today, Feb. 8.  Staff contact: Janet Areson (jareson@vml.org).

 DEQ permitting bills moving forward

Legislation that would vest the authority to issue and enforce permits (including general permits), licenses, and certificates related to air and water pollution with the director of the Department of Environmental Quality is moving forward in both the House and Senate. 

A special subcommittee of the Senate Agriculture, Conservation and Natural Resources Senate Committee has recommended reporting SB 423 (Puckett).  The legislation also provides for public hearings when there is substantial public interest in the permit, when there are significant legal or factual issues that are both germane to the draft permit and within the department's jurisdiction, and when the public hearing could provide additional information.  The House Committee on Agriculture, Chesapeake and Natural Resources approved similar legislation, HB 1332 (Landes). 

Staff contact: Denise Thompson (dthompson@vml.org).