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Review of 2008 General Assembly budget
Despite deteriorating economy, General Assembly pushes new spending and program expansions
Finishing their work five days after the originally scheduled adjournment date of March 8, the General Assembly passed HB 29 to amend the budget for the remaining months of fiscal year 2008 and HB 30 for the 2008-2010 biennium, which begins July 1.
Managing revenue reductions
The legislature accepted Gov. Tim Kaine's recommendations to reduce general fund revenue projections by almost $1.4 billion for the three-year period -- fiscal years 2008, 2009 and 2010. The new forecast recognizes a 1.2 percent growth of general fund revenues in fiscal year 2008, and growth rates of 2.2 percent and 6.8 percent in fiscal years 2009 and 2010, respectively.
To make up for the revenue loss, the General Assembly employed three major strategies:
- withdrawals from the Revenue Stabilization, or "Rainy Day" Fund;
- swapping cash for debt for state capital projects; and
- spending reductions
The General Assembly authorized the withdrawal of $351.5 million from the Rainy Day Fund for this fiscal year. (However, the withdrawal is offset by the loss of $54.8 million that was expected to revert from the Rainy Day Fund this year, resulting in a net withdrawal of $296.7 million.)
Regarding capital projects backed by General Fund appropriations, the General Assembly replaced $300 million of general fund cash with Virginia Public Building Authority (VPBA) debt. The legislature also generated $100 million by using short-term debt instruments rather than cash for state capital maintenance projects. Finally, the General Assembly gained another $100 million in cash flow by reverting state capital project balances in FY 2008 and restoring the funding in FY10. With debt service and interest, the "bottom line" costs for all of these projects will increase.
Budget reductions comprised the third strategy. The amount taken from local governments equals almost $400 million over the three years and affects public education, health and human services, law enforcement, economic development and water quality. Some budget items under discussion affecting local governments, however, were not adopted, including an amendment to take away $10 million a year of excess fees collected by clerks of the circuit courts.
Other strategies used to balance the state's books included transferring to the General Fund the interest earned on Non-General Fund accounts -- $5 million in FY08 and $24 million in 2008-2010. Some of the 62 special fund accounts affected provide services to, or on behalf of local governments. State agency budgets were also reduced; for example, $35 million in across-the-board cuts were taken, as well as $119.4 million of "excess" employer premiums paid, to the state employee Health Insurance Fund. Budget writers also made changes in VRS contributions for state employees, public school teachers and constitutional officers.
The combined strategies result in $35.5 billion of General Fund resources available for appropriation in 2008-2010.
Impact on Local Governments
($s in millions)Total Revenue Shortfall Jail per diems '599' for local law enforcement Direct aid -- Reduced sales tax for education Direct aid -- Communities in School program Direct aid -- data coordinators for 'at risk' program Direct aid -- Virtual Virginia advanced placements program Direct aid -- Turnaround specialists/teacher incentives Direct aid -- Cap inflation rates Direct aid -- Career and technical educ Direct aid -- Lottery proceeds for schools Governor's Opportunity Fund Comp Board -- 90 day hiring freeze Comp Board -- LEOS benefits Rural broadband project Eliminate distribution of ABC profits and wine taxes to cities, counties, and towns CSA -- foster family homes CSA -- Mandatory use of Medicaid Free health clinics Community health centers DSS -- Foster care recruitment and retention DSS -- Foster care and adoption services worker training DSS -- Quality rating system for early childhood programs DSS -- reentry program for ex-offenders DSS -- Inspections of foster homes DSS -- Auxiliary grants CSA -- Family foster care VA Early Childhood Education Foundation Dam repair fund VA Water Facilities Revolving Loan Fund James River CSOs WQIF facility upgrades Farmland preservation grants Compensation supplement 4.2% 'flexible' local cut to cities and counties Pre-school initiative Total local cuts Local % of Total Cuts Responding to 'flexible' local cuts
The General Assembly approved spending reductions of $50 million each year of the new biennium to "capture savings in state aid to programs and services operated by local government in a manner that gives localities flexibility in how such savings are implemented. This reversion is necessary as a result of the downward adjustment in general fund revenues caused by the slowing of the Virginia economy." (Item 475.1).
The Department of Planning and Budget (DPB) is directed to give the chief operating officer of each city and county a list of certain state aid to local government programs along with an estimate of the general fund amount for each program that each county and city could expect to receive from the state. This total will serve as the basis for calculating the savings apportioned to each city and county. In addition to the obvious problem of the impact on local budgets, this approach takes state policy makers off the hook for having to either make service cuts or increase taxes to make up for across-the-board cuts.
Local governments can choose to:
- take the total savings out of one program included on the DPB list;
- reduce multiple state aid programs on a proportional basis or by a specified percentage; or
- reimburse the state in aggregate for the savings share, thereby keeping the state aid programs at an unreduced level.
Each locality may also use a combination of the three options, but must decide before Aug. 30, 2008. DPB will review each local plan to determine if the local choices are accurate and obtainable.
This budget reduction action is based on Kaine's Feb. 12 recommendation to the General Assembly.
For a list of potential programs subject to the 4.2 percent cuts, click here.
New initiatives and program expansions
The budget conference reports for HB 29 and HB 30 passed the Senate by votes of 26-14, representing the closest margins in recent memory. Among the reasons given by the dissenters was an objection to funding new or expanded programs at the expense of existing core services.
Examples of new or expanded programs in the budget include the preschool initiative for disadvantaged four-year-olds ($22 million), the Tuition Moderation Incentive Fund ($35 million), 600 mental retardation waiver slots ($34.6 million), mental health initiative ($41.6 million), mortgage counseling assistance ($250,000), "wounded warriors" program ($4.5 million), and "Alicia's Law" ($1.5 million).
Revenue outlook
The next few months may provide better clues whether the weakness in sales and recordation tax collections will continue. These two sources comprise almost 25 percent of all General Fund revenues. It also remains to be seen if slowing job growth and an increasing unemployment rate in Virginia will affect personal income tax collections. The Virginia Employment Commission released a re-benchmarking of employment data for calendar year 2007 showing that payroll employment increased 0.9 percent rather than the previously reported 1.5 percent. Also, unemployment rose from 3.2 percent to 3.8 percent in January. Payroll withholding taxes and individual income tax withholding account for 75 percent of General Fund revenues. And, in January, the Virginia leading index fell 0.4 percent, marking the fifth decline in six months.
In an economy suffering from battered real estate values, credit crunches, increasing commodity prices, and uncertain employment growth, local governments will have to manage responsibilities knowing that the state may not be as reliable a funding partner.
Summary of budget actions -- HB/SB 30
The following is a summary of actions affecting local government that were approved by the General Assembly for the 2008-2010 state budget, which begins July 1. We have given the source of each amendment at the end of each summary -- either the item number from the conference report, or else a notation that is an item from the introduced budget that remained unchanged by the General Assembly. All funds are state general funds (GF) unless otherwise noted as non-general funds (NGF).
State Aid to Local Governments
Assistance to local police departments (HB 599). Retains amount in the introduced budget ($205 million each year). Kaine's October 2007 budget reduction plan lowered the amount to $205 million per year; the General Assembly continued this reduced appropriation for the coming biennium. (Introduced budget)
Revenue sharing
ABC net profits and wine liter tax collections. Eliminates any sharing of these revenues with towns in the biennium by taking $533,000 each year in ABC and wine tax distributions to towns. The introduced budget removed the $8.5 million in revenues shared with cities and counties. (Item 264 #1c)
Recordation taxes. No changes made to the $40 million to be distributed each year.
Rolling stock taxes. No changes made to the $4.97 million to be distributed each year.
Community and Economic Development
Governor's Opportunity Fund. Provides $7.6 million the first year and $7.5 million the second year to attract economic development prospects to locate or expand in Virginia. Funds are often used by localities for site acquisition and development and other infrastructure improvements. (Item 102 #5)
Emergency Shelters and Homeless Prevention. Provides $7.8 million the first year and $7.9 million the second year and $7.1 million (NGF) each year to support emergency shelters and housing for population with special needs and for local homeless prevention programs.
Rural Access to Broadband Technology. Eliminates $500,000 in each year of the introduced budget to expand rural access to broadband technology on the Eastern Shore and to develop a business plan for a higher education center and business incubator on Wallops Island. (Item 110 #5)
Base Realignment and Closure Assistance. Includes three separate budget items: (1) a specific appropriation of $921,653 for the state's share of the Fort Monroe Federal Area Development Authority's operating costs; (2) appropriations of $7.5 million the first year and $19.5 million the second year to retain the jet base in Virginia Beach, the Defense Advanced Research Projects Agency (DARPA) in Arlington, and to accommodate the buildup at Fort Lee near Colonial Heights; and (3) an appropriation of $484,500 each year to operate the Virginia National Defense Industrial Authority. (Item 473 #1)
Enterprise Zone Program. Continues funding for the grant program at $15.4 million each year. The program's purpose is to induce private investment in economically distressed areas. (Introduced budget)
Workforce Investment Act. Transfers $47.2 million (NGF) each year and 38 positions from the Virginia Employment Commission to the Virginia Community College System (VCCS). Also transfers an additional $1.7 million (NGF) tied to the Workforce Innovation in Regional Economic Development grant program from VEC to VCCS. The transfer is part of the Governor's initiative (SB 252) to reorganize the delivery of workforce services. The VCCS will become the grant recipient and fiscal agent for the federal Workforce Investment Act funding. (Introduced budget)
Tourism Development. Continues funding for local and regional tourism authorities at $425,000 each year. Also provides $325,000 each year for the Outdoor Advertising Association of Virginia ($100,000/year) and the Virginia Association of Broadcasters ($225,000/year) to advertise Virginia tourism. (Items 130 #1 and 130 #3)
Financial Assistance to Cultural Organizations. Eliminated $5.8 million the second year for local educational, cultural, community, and artistic items. However, the legislature did approve a number of amendments for such activities.
Business Incentives. Eliminated the proposed $7 million payment of the remaining incentive grants for a research-related facility along I-81. (Item 473 #c). Removed $13.8 million of the proposed acceleration of Semiconductor Grant payments due to Qimonda. (Item 105 #1).
Constitutional Officers - Compensation Board
Require localities to fund one-half of retiree health credit premium payments. Decreases state funding by $402,725 in each year by requiring localities to fund 50 percent of the retiree health care credit for constitutional officers and their employees. (Introduced budget)
Require localities to pay one-half of liability insurance and bond premium payments. Reduce funds by $1.6 million a year by requiring localities to fund 50 percent of the liability insurance and bond premiums for constitutional offices. (Introduced budget)
LEOs coverage. Removes the $2 million in the first year and $4 million in the second year in the introduced budget that was to provide funding for additional reimbursement to those jurisdictions that include their sheriffs' deputies and regional jail correctional officers in the Law Enforcement Officers Retirement System (LEOS). Under SB 1166 enacted in the 2007 session, local governments are required by July 1, 2008, to provide LEOS benefits with the 1.7 percent benefit multiplier and the annual supplement to deputy sheriffs. Therefore, the state has completely backed away from funding the additional costs associated with the state mandate. (Item 69 #2c)
Continue savings related to vacancies. Reduces funding by $1.3 million (GF) in each year by requiring clerks, treasurers, finance directors, and commissioners of the revenue to maintain positions vacant for 90 days prior to filling. These constitutional offices would not be allowed to expend accrued vacancy savings. This is continued from the budget reductions taken in October 2007. (introduced budget). A budget amendment in the conference report extends the 90-day hiring strategy to sheriffs and commonwealth's attorneys, and thus saves the state an additional $1.1 million in FY09 and $1.7 million in FY10. (Item 76 #4c)
Continue 2008 budget reductions. Decreases funding by $909,567 in FY09 and $909,567 in FY10 as a continuation of the budget reductions announced in October 2007. (Introduced budget)
Education
Direct Aid to Education
The appropriation in General Fund and lottery fund dollars in FY09 is $6.2 billion, a decrease of $47.4 million from the introduced budget. In FY10, General Fund and lottery fund dollars total $6.4 billion, a decrease of $121 million from the introduced budget. The budget changes the process for rebenchmarking to include a cap on inflation recognized by the state, which will save the state about $10 million a year in rebenchmarking costs. The budget does not include the more costly proposal to disregard local salary increases in the rebenchmarking process, nor does it increase the deduction of federal revenues. The budget includes revisions to the process by which lottery profits are used for education in order to comply with the finding that the lottery profits have to be placed in a separate fund before distribution. While the establishment of the process is really a technical maneuver, the budget changes how lottery funds are used, and decreases the amount going directly to localities. Locality-specific information will be posted in a Superintendent's Memorandum, probably the close of business today. Here is an overview of the major budget items affecting K-12 education.
Rebenchmarks SOQ, categorical and incentive programs. Adds $429 million in FY09 and $493 million in FY10 to rebenchmark the SOQ and other education programs. Rebenchmarking costs are lowered by $10.4 million in each year to reflect the adoption of a cap on the amount of inflation that the state will recognize in rebenchmarking non-personnel and health insurance costs for the SOQ. The state will recognize 100 percent of inflation up to 3 percent, and will recognize 50 percent of inflation increases between 3 and 7 percent. The conference report notes that this is consistent with the methodology used by VRS in funding post-retirement benefits under § 51.1-166 B. In contrast to post-retirement benefits, however, the inflation cap applies to items such as utilities and fuel costs, which are skyrocketing, as well as health insurance premiums for current employees. These premiums have increased by 6-10 percent over the last several years. The conference report also continues the joint subcommittee of Senate Finance and House Appropriations to study the methodology for funding SOQ salaries and the policy for the federal revenue deduction, and adds six members to the committee. (Item 140 #23c)
Lottery proceeds. Establishes a Lottery Proceeds Fund consisting of $461 million in each year. Of that amount, $160.2 million in FY09 and $151.3 million in FY10 will be placed in the Additional Support for School Construction and Operating Costs program, for distribution to school divisions to support a state share of $246.48 per pupil in ADM in FY9 and $224.19 per pupil in FY10. (Despite the upward revision of the lottery profits, the adopted budget decreases the amount of lottery funds going directly to school divisions by $5 million in FY09 and $14 million in FY10 from the introduced budget. In the introduced budget, the per pupil amount was $246.48 in FY09 and $245.57 in FY10.) The funds distributed to school divisions are subject to a local match based on the composite index. At least 50 percent of the funds must be used for capital or other nonrecurring expenses. Of the total $461 million in lottery profits, $308.1 million in FY09 and $309.7 million in FY10 is used to pay the state share of these incentive programs: remedial summer school, foster care, enrollment loss, at-risk add-on, VPI, early reading intervention, mentor teacher, K-3 class size reduction, school breakfast, SOL algebra readiness. Appropriations for these programs used to come from the general fund. The amount of lottery profits distributed directly to school divisions is decreasing. In FY09, 34.7 percent of lottery funds are distributed directly to school divisions (about the same percentage as in the current year budget), and only 32.8 percent in FY10. When the lottery was first started, approximately 40 percent was distributed directly to school divisions. (Item 140 #21c)
Adjust sales tax revenues for public education. Increases sales tax revenue projections, which in turn decreases state basic aid payments, for a net increase in state funding of $10.9 million in FY09 and $14.7 million in FY10. (Item 140 #7c)
Update benefit contribution rates for Standards of Quality related positions. Sets the teacher retirement contribution rate at 8.81 percent of salaries, 0.82 percent for group life, and 1.08 percent for the teacher retiree health care credit. The retirement rate reflects an 8 percent return rate and a 30-year amortization period. The introduced budget set the retirement rate at 9.35 percent of salaries, group life at 0.89 percent and the retiree health care credit at 1.12 percent. (Item 472.10 #1c)
Recalculation of the composite index. Recalculation of local composite indexes results in additional state funding of $4.9 million in the first year and $5.0 million in the second year. (Introduced budget)
Salary increase for public school teachers. No state funding for teacher/instructional salary increases for FY09. Decreases funding by $53.3 million in FY10 to fund a 2 percent salary and fringe increase for funded SOQ instructional and support positions and other funded incentive program positions. A match based on the composite index is required. The budget reflects a decrease in funding because the introduced budget had included a higher increase. (Items 140 #18c, 140 #1c)
Virginia Preschool Initiative. Retains basically the same preschool initiative program for the next biennium, thus not adopting the proposals in the introduced budget to make more children eligible for the program. The budget uses proceeds from the Lottery Proceeds Fund to fund the preschool initiative at $59.9 million in FY09 and $68.1 million in FY10, for an increase from the FY08 amended budget of $9.9 million in FY09 and $18.1 million in FY10. Grants will be for the state share of a $6,000 per pupil payment for at-risk 4-year-olds. (The per pupil payment currently is $5,700.) A local match based on the composite index is required. The local match will be capped at 50 percent starting in FY10. The preschool initiative currently is funded from the General Fund instead of the Lottery Proceeds Fund. The lottery fund is a less stable funding source. The proposal in the introduced budget to use TANF dollars in FY10 for the preschool initiative was not adopted. (Items 140 #17c, 141 #1c)
Rebenchmarking methodology study. Continues the joint subcommittee of Senate Finance and House Appropriations to study the use of the prevailing salary and cost approaches to funding the SOQ, as compared with alternative approaches, such as a fixed point in time salary base that is increased annually by some minimum percentage or funding the national average teacher salary; and to review the "federal revenue deduct" methodology, including the current use of a cap on the deduction. Six members are added to the current two-member committee. (Item 1 #3c)
Removes proposed new funding for data coordinators. Removes the $2.1 million that had been proposed in FY10 in the proposed budget for data coordinator positions. These positions, therefore, are not funded, nor are they required. (Items 140 #4c, 140 #20c)
Literary Fund transfers to General Fund for teacher retirement. Increase transfers from Literary Fund to pay teacher retirement resulting in a decrease of $70 million in General Fund and an increase of $70 million in Non-General Fund for FY09; for FY10, an increase of $5 million (GF) and a decrease of $5 million (NGF). There is an additional $10 million in FY09 and $5.0 million in FY10 for the Literary Fund Interest Rate Subsidy Program. Total transfers from the Literary Fund to the General Fund to pay for teacher retirement will now equal $186.1 million in FY09, and $111.1 million in FY10. (Items 140 #8c, 140 #9c)
Corrects special education child count. Adds $6.7 million in FY09 to reflect correcting the incorrect special education child count data that had been turned in by a number of localities. (Item 140 #3c)
Remove one-time funding for career and technical education. Reduces funding by $0.5 million in each year to remove funding to purchase secondary career technical education equipment. (Introduced budget)
Level funds Project Discovery. Freezes funding for Project Discovery programs in the first year and second year. These monies are to fund about one-half of the cost of the 25 programs, including those in Abingdon, Alexandria, Amherst, Arlington, Charlottesville, Danville/Pittsylvania, Lynchburg, Newport News, Norfolk, City of Richmond, City of Roanoke, and Williamsburg/James City. DOE determines funding distributions to each community action agency. The introduced budget had increased funding by $100,000 in FY10, but this increase was removed. (Item 139 #5c)
Communities in Schools. For FY10, removes $500,000 for the Communities in Schools program that had been included in the introduced budget. (Item 139 #6c)
Education for a Lifetime. Decreases funding by $2.6 million in each year to level fund the mentoring and middle school math teacher corps, and to eliminate funding for turnaround specialists and incentives for teachers in hard-to-staff schools. (Item 140 #11c)
Cost of competing. The budget includes cost of competing funding for school divisions in Planning District 8, and a 25 percent cost-of-competing factor for Stafford, Fauquier, Spotsylvania, Clarke, Warren, Frederick, and Culpeper counties and the Cities of Fredericksburg and Winchester. (Introduced budget)
School construction grants program. The program is level funded at $27.5 million each year. (The General Assembly did not reduce the program by half as suggested by the Governor in February.) Language is added to restrict the use of the funding in localities that will have 2,000 or more personnel moving in as a result of BRAC. In those localities, the funds have to be used first to address BRAC-related needs. (Item 140 #6c)
Library funding
Preservation of Circuit Court records. Freezes support at $3.5 million (GF) a year. (Introduced budget)
Local library aid. Freezes (from October level) library aid ($17.3 million GF in FY09 and $17.4 million GF in FY10), and earmarks an additional $100,000 in FY10 as a supplement for the Fairfax County Library System. (Introduced budget)
Employee Compensation and Benefits
Salary increase for state-supported local employees. Adds $11.5 million in FY09 and $2 million in FY10 to fund a 2 percent salary increase in each year for state-supported local employees, both effective on Dec. 1. (The amount is lower in FY10 because the introduced budget had included a 3 percent raise.) State supported local employees include constitutional officers and full time employees of constitutional officers, social services, election boards, health departments, community services boards, Centers for Independent Living, secure detention centers, juvenile delinquency prevention and local court service units, local pretrial services act and comprehensive community corrections programs. Also funds a 2 percent salary increase for state employees and higher education faculty. (Item 472 #3c)
Retirement contribution rates. Sets a 6.23 percent retirement contribution rate for state employees. Localities are reimbursed for a portion of the costs of retirement for constitutional officers and their employees based on the lower of either the state employee contribution rate or the local retirement contribution rate. Funds group life at 0.82 percent of salary. (Item 472.10 #10c)
Health and Human Resources
VML staff contact: Janet Areson
Comprehensive Services Act for At-Risk Youth and Families
Foster care maintenance. Reduces the amount of the increase in payments for foster family homes by $522,584 in the second year. The introduced budget increased payments to these homes by 15 percent the first year and 10 percent the second year. This keeps the 15 percent increase in the first year, but reduces by two percent the increase in the second year. Other amendments reduce payments for federal Title IV-E foster care payments, adoption subsidies, and special needs adoptions. (Item 283 #1c)
Required use of Medicaid. Requires Community Policy and Management Teams (CPMTs) to use Medicaid-funded services whenever available for the appropriate treatment of children receiving CSA services (current policy already requires this). Forbids the use of state pool funds for services that can be funded through Medicaid for eligible children beginning July 1, 2009. The projected savings for the state is estimated at $2 million in the second year. (Item 283 #2c)
Local match rate changes and workgroup. Substantially modifies the language and funding changes from the introduced budget regarding changes to CSA state-local match rates for residential and community based care. The changes in match rates from the proposed budget were modified as follows:
Community-based services -- Beginning July 1, 2008 the local match rate for community-based services will be reduced by 50 percent compared to the FY07 base rate.
Residential Services -- Beginning July 1, 2008, localities shall review their caseloads for individuals who can be served in the community and transition those cases to community-based services. From Jan. 1, 2009, until June 30, 2009, the local match rate for residential services will increase by 15 percent above the FY07 base rate after a locality has incurred a total of $100,000 in residential care expenditures (overall expenditures, not per child). On July 1, 2009, the local match rate for residential services will increase by 25 percent above the FY07 base rate, after a locality has incurred a total of $200,000 in residential care expenditures (overall expenditures, not per child).
The State Executive Council is directed to monitor the implementation of the incentives/disincentives; provide technical assistance; and recommend best practices to assist localities in transitioning individuals into community-based care. The SEC must report on the changes made and their outcomes by Nov. 1, 2008, and each year thereafter.
As requested by local governments, this amendment also requires the Secretary of Health and Human Resources to convene a workgroup, including VML representation, to examine the impact of match rate changes on local and state administration of the program, reporting requirements, service development, and other aspects of service delivery. This group is also to look at: utilization management; managed care; use of CSBs for care coordination and monitoring of behaviorally and emotionally disturbed children; better communication, cooperation and coordination in development of individualized education plans (IEPs) and plans of care for special education children in CSA; and better communication and coordination with court services units, the courts, and the Department of Juvenile Justice regarding plans of care for "Children in Need of Services" as defined under the new guidelines on foster care services or children at risk for residential placement through an order by a judge. (Item 283 #3c)
Analyze expansion of mandated population. Requires the State Executive Council analyze and report on the impact of the expansion of the CSA-mandated population that resulted from the interagency guidelines on foster care services for children "in need of services" that were approved last fall. The analysis shall include a fiscal impact on the state and localities, the number of additional children services, the types of services provided to them, how they were referred for services, and whether they would have received services through CSA prior to the adoption of the guidelines. The report is due Dec. 1, 2008, to the governor and the House and Senate budget committees. (Item 283 #5c)
Outpatient mental health services for children. Specifies that funding from the introduced budget ($2.8 million in the first year; $3 million the second year) to be used for outpatient clinician services for children with mental health needs may to be used for both mandated and non-mandated children in the CSA program (the introduced budget would have allowed services only for non-mandated children). CSBs must work with court services units and accept children referred for services by Family Assessment and Planning Teams (FAPTs) for such services. (Item 316 #5c)
Local service infrastructure grants. Maintains $500,000 each year for competitive grants to localities to help pay for start-up costs associated with building community-based services. (Introduced budget)
Department for the Aging
No wrong door. Designates local area agencies on aging as the lead agency for No Wrong Door, a system designed to improve access to long-term care services for the elderly. All the other doors remain open as well. (Item 284 #2c)
Health Department
Regional EMS councils. Restricts the Board of Health from redistricting the regional emergency medial services (EMS) councils to serve different geographical areas than are currently served by the councils. Precludes the Board from making redistricting a condition of designation as a council, or as a condition of receiving state funding. (Item 290 #1c)
EMS "four for life." Projects a four percent increase ($4.2 million in additional funds each year) in the "four for life" fund (gathered as a part of vehicle registration fees). These funds are used to pay for training and education of EMS personnel, purchase equipment and supplies, and to support local EMS operations. (Introduced budget)
Office of minority health. Removes $157,711 and two positions in FY08 and $153,363 and two positions in FY09, thereby funding the Office of Minority Health and Public Policy at the FY07 level. (Item 294 #2c)
Electronic health records. Eliminates $325,000 each year for grants for electronic health records. (Item 297 #7c)
Community health centers/free clinics. Provides $1.8 million the first year and $900,000 the second year (a $900,000 reduction from the introduced budget) for community health centers. The introduced budget included $1.8 million in funding each year for additional support for these centers that serve low-income Virginians (Item 297 #9c). Also provides $1.7 million the first year and $850,000 the second year (a $850,000 reduction) for 52 free clinics. The introduced budget included $1.7 million each year. (Item 297 #10c)
Well and septic fee increases. Increases fees for onsite sewer and water services, as well as restaurant, hotel, campground and summer camp permit applications that help fund local health department functions. In FY09, an increase of $2.5 million (NGF); in FY10, an increase of $3.5 million (NGF), offset by a decrease of $1.1 million (GF), for a net increase of $2.4 million. (Introduced budget)
Mental health, mental retardation and substance abuse services
Emergency custody/commitment data. Directs the Secretary of Health and Human Resources, working with staff to the Supreme Court, to develop a reporting system for relevant information regarding emergency custody orders, involuntary commitment orders, and mental health commitment hearings by fiscal year. Information is to be broken down by locality, and include the estimated cost, duration, location, and disposition of each proceeding. This information must be reported to the Governor and chairs of the Senate Finance and House Appropriations Committees by Nov. 1 of each year. (Item 282 #1c)
Mental retardation waivers. Provides $9.4 million the first year and $12.6 million the second year (and equal federal funds) to increase the number of mental retardation waiver slots by 600 over the two years. (Item 306 #7c) A related amendment (Item 316 #1c) provides $1.6 million the first year and $800,000 the second year for start-up costs to establish community residential services (such as home or vehicle modifications, furniture, clothing, bedding, or other one-time costs) to support the individuals added to the waiver program.
Mental retardation waiver reimbursement. Adds $5 million each year (state and federal funds) to increase by 3.6 percent the reimbursement for group home services for individuals served through the MR waiver program. (Item 306 #11c)
CSB standards and service improvement plans. Removes $275,000 and a position in the second year to level-fund activities to develop core standards and service improvement plans for services provided through community services boards (CSBs). (Item 312 #2c)
Autism spectrum disorders services. Removes $100,000 and one position each year. The introduced budget added funding for a staff position to coordinate with families and community resources to determine statewide availability of and need for autism spectrum disorders services. (Item 315 #2c)
Housing for people with intellectual disabilities. Requires the Department of Mental Health, Mental Retardation and Substance Abuse Services to convene a workgroup and report by Oct. 1, 2009, on investment models and best practices for the development of affordable and accessible community-based housing for persons with intellectual and related developmental disabilities. The report must include specific funding options that will increase the availability of housing, leverage state dollars, and promote individualized, person-center housing. It must also include the number of housing units, location, and type of units as well as an allocation methodology to ensure equitable statewide distribution. Finally, it must address access to transportation and support networks necessary for these housing options to be successful. (Item 315 #6c)
Jail diversion services. Adds $3 million each year for the continuation and expansion of a jail diversion services pilot program funded in the 2006-08 biennial budget. Funding provides diversion and wraparound services and supports for an estimated 300-500 individuals. (Introduced budget)
Emergency mental health services funding. Allocates $10.3 million in the first year and $18.01 million in the second year for emergency services, crisis stabilization, case management, and inpatient and outpatient mental health services. Along with providing these services for individuals in need of them, including those who meet the criteria for treatment pursuant to HB 559/SB 246, this funding is supposed to offset the fiscal impact of establishing and providing mandatory outpatient treatment (from HB 499/SB 246), and attendance at involuntary commitment hearings by CSB staff who completed prescreening reports (HB 560/SB 246). The MHMRSAS Commissioner is to work with CSBs, court officials, law enforcement, and hospitals to implement a process for allocating the funding. This is a change from the introduced budget, which allocated specific amounts for various services. The Commissioners shall report on the process used to allocate funding, as well as the amounts, to the Governor and chairs of the House and Senate budget committees, by Sept. 1, 2008. (Item 316 #2c)
CSB reporting for new funding. Requires the MHMRSAS Commissioner to work with CSBs and the House and Senate budget committees to develop and maintain a reporting process to monitor 1) new services resulting from the item above; 2) changes to the civil commitment process (SB 246/HB 499/HB 559/HB 560). DMHMRSAS and the CSBs will identify data elements or performance measures that will be reported through this process. A report is due Dec. 1, 2008, and each year thereafter, on implementation of these new services and performance of CSBs on participation in the civil commitment process. (Item 316 #3c)
Olmstead Decision compliance. Requires DMHMRSAS to comply with the 1998 U.S. Supreme Court's Olmstead decision, the Code of Virginia, and federal Medicaid regulations regarding the discharge of individuals from the Southeastern Virginia Training Center to the mental retardation waiver program. (Item 325 #1c)
Social Services
Foster care recruitment and retention. Reduces by $2.5 million GF/$835,880 NGF the first year and $2.7 million GF/$875,596 NGF the second year the amounts from the introduced budget ($6.9 million) to be used for recruitment and retention of foster parents. The surviving $1.8 million (GF) includes funding to improve use of family-based care and lessen the reliance on residential care. (Item 337 #1c)
Foster care staff training. Reduces by $1.9 million GF/$1.2 million NGF in the first year, and $1.7 million GF/$1.1 million NGF the second year the amount set aside for training foster care and adoption services workers. The introduced budget included $2.2 million GF each year for this purpose. The remaining $790,000 (GF) will go towards enhancing child welfare training to improve performance outcomes and reduce repeat occurrences of child abuse and neglect. (Item 337 #2c)
Additional foster care workers for visitation and support. Eliminates the $1 million GF/$125,000 NGF added in the introduced budget to add social workers in local departments to carry out activities related to improving permanency for children in foster care, including additional visits to foster care families and evaluation of services children were receiving in foster care. (Item 339 #1c)
Foster care and adoptive family payments. Reduces by $1 million GF/$620,143 NGF the funding in the second year for maintenance payments made for family foster care, adoption subsidies, and special needs adoptions. There will be a 15 percent rate increase in the first year (same as the introduced budget), and an eight percent rate increase in the second year (the introduced budget gave a 10 percent increase). In total, payment rates would increase by $ 4.5 million in the first year, and $7 million the second year (GF). A companion amendment in the CSA section makes a similar adjustment for CSA foster care payments. (Item 342 #1c)
Cost savings in smaller departments of social services. Requires the Commissioner of Social Services to work with the governing bodies of localities with populations of 20,000 or less to identify cost savings that may be achieved from consolidating programs or administrative functions. They will look at staffing patterns compared with performance measures, compliance with performance measures. This does not compel consolidation. A report on potential savings to be accrued by consolidation is due to the Governor and chairs of the House and Senate budget committees by Dec. 1, 2008. (Item 339 #2c)
Prisoner re-entry case management. Eliminates $506,174 in the first year and $565,100 in the second year as well as language from the introduced budget for new case managements to supplement services in five re-entry pilot programs for ex-offenders. (Item 338 #3c)
Auxiliary Grant housing pilot program. Directs the Secretary of Health and Human Resources, working with the State Board of Social Services, to develop a plan for a pilot program that would allow for the use of Auxiliary Grants to pay for a wider variety of housing (currently, auxiliary grants are used only to pay for beds in assisted living facilities). The pilot would target current grantees or those eligible for a grant, and who also receive case management services from a community services board or behavioral health authority. The plan would include eligibility criteria for 1) residents displaced from assisted living facilities (ALFs) or for those for whom alternative service and housing supports would cost less than higher-cost institutional care; 2) individuals living in localities without ALFs, and 3) individuals ready for discharge from a state hospital and who do not have access to an ALF placement. The plan must include information on eligibility, the number of people to be served, financing, program monitoring and quality assurance, and information on the roles and responsibilities of state agencies, CSBs, local social services, and local governments in determining eligibility, administering the program, providing case management, and other support services. The plan is due to the Governor and chairs of the House and Senate budget committees by Nov. 1, 2008. (Item 282 #2c)
Auxiliary grants. Reduces funding by $1 million each year for the auxiliary grant program, to reflect revised estimates of spending for these grants. The auxiliary grant program helps to pay for beds in assisted living facilities for eligible disabled or elderly individuals. (Item 341 #2c)
Community action agency moratorium. Places a moratorium on funding for new community action agencies or expansion of service areas by existing agencies during the new biennium, unless the Secretary of Health and Human Resources certifies that sufficient funding exists for this purpose. (Item 344 #6c)
Local early childhood systems. Eliminates the $500,000 in the first year and $1.5 million in the second year for the Virginia Early Childhood Foundation (VECF) to increase community capacity to develop early childhood development programs. These grants were intended to help communities develop school readiness councils to address comprehensive needs of children from birth to school entry. (Item 344 #8c)
Natural Resources
Water Quality Improvement Fund (WQIF). Provides a total of $20 million for agricultural best management practices to control nonpoint source water pollution. The amendment replaces $6 million that was in the introduced budget with $6 million in interest earnings collected by the Department of Environmental Quality on the WQIF. It is projected that the WQIF will earn $12.5 million in interest during FY08 and at least $2.5 million during FY09. The amendment also specifies that these funds will be deposited into, and dispersed from, the Virginia Natural Resources Commitment Fund in accordance with HB1335/SB 511. (Item 361 #4c)
Richmond and Lynchburg CSO construction. Provides $3 million for the cities of Richmond and Lynchburg for Combined Sewer Overflow construction projects. The introduced budget had provided $6 million for the cities of Richmond and Lynchburg for CSO projects. (Item 368 #3c)
Wastewater treatment plant upgrades. Eliminates $1.2 million in additional general fund support to increase the state match funding (Water Revolving Loan Fund) for federal grants to provide low-interest loans for local wastewater treatment plant upgrades. (Item 368 #1c)
Dam safety. Reduces the additional general fund support provided in the introduced budget for the issuance of loans and grants to private entities and localities for dam repair. With this action, a total of $600,000 from the general fund each year will be provided as grants and loans for improving the safety of dams that need renovation or repair. The introduced budget provided $1 million each year to capitalize the Dam Safety, Flood Prevention, and Protection Assistance Fund. (Item 361 #2c)
Open-space preservation. Reduces the level of general fund support for use by the Virginia Land Conservation Foundation by $1 million each year. With this action, $2 million each year of the biennium remains for the VLCF land acquisition purposes. (Item 362 #5c) Also, reduces the proposed increase for the Virginia Outdoors Foundation to $225,000 per year; VOF will receive a total of $1.5 million in operational funding each year. (Item 362 #4c) Retains $500,000 the first year and $1 million in the second year from the introduced budget to provide a state match for local Purchase of Development Rights programs (Item 94 #2c). Eliminates $500,000 of the $700,000 each year that was included in the introduced budget for the Office of Farmland Preservation at the Department of Agriculture and Consumer Services. This funding represented the expansion of a new initiative that was funded on a one-time basis in the current biennium. VDACS will retain $200,000 each year for the base operations of the Office of Farmland Preservation, but not the additional funding previously proposed to expand the state matching program for local purchase of development rights programs. (Item 94 #1c) Finally, decreases by $20 million over the biennium funding from the Virginia Public Building Authority for preservation of open space and historic resources. The introduced budget provided $50 million. (Item C-110 #1c)
Capital outlay for parks. Eliminates $4.5 million to develop High Bridge State Park and $3 million for Powhatan State Park that was included in the introduced budget. (Item C-108 #1c and C-109 #1c)
Public Safety
VML staff contact: Janet Areson
Drug courts. Maintains the $3 million each year (from the introduced budget) for 14 drug courts currently supported with state general funds. The House budget recommended elimination of general fund support for these 14 programs. (Introduced budget)
Jails (Compensation Board)
Per diems. Provided $11.9 million in base funding per year to partially fund the state share of jail per diems in the coming biennium. (Item 70 #1c)
Federal inmates in regional jails. Adds $2.6 million in the first year only to restore a share of state funding to jails where the cumulative federal share of capital costs exceeds the state's cumulative capital contribution. This restoration affects Alexandria's jail, the Central Virginia Regional Jail, and the Northern Neck Regional Jail. (Item 70 #2c)
Mental health survey in jails. Requires that the Compensation board conduct a jail mental health survey on an annual basis. This survey includes the number and diagnoses of inmates with mental illnesses in local and regional jails, the treatment services provided, and expenditures on mental health programs and services. The report is due Oct. 1, 2008, to the Governor and chairmen of the House and Senate budget committees. This also requires the Compensation Board to conduct a feasibility study of developing an annual cost report for the other constitutional officers (treasurers, commonwealth's attorneys, and commissioners of the revenue), similar to the annual jail cost report. (Item 70 #3c)
Operating capacity of jails. Directs the Compensation Board, working with the Secretary of Public Safety, to determine the resources necessary to review and assess the operating capabilities of all local and regional jail facilities and staffing requirements for those facilities when under and above capacity. The report is due Oct. 1 to the Governor and chairs of the House and Senate budget committees. (Item 76 #2c)
Victim notification system. Provides $760,000 each year to implement and maintain the interface between all local and regional jails in the state and the Statewide Automated Victim Notification (SAVIN) system. (Item 76 #6c)
Department of Corrections
Jail construction and renovation report. Requires the Department of Corrections to submit an annual report on the status of jail construction and renovation projects as approved by its board. The report will focus solely on projects that increase bed capacity. The report shall include the six-year population forecast, as well as the double-bunking capacity compared to the rated capacity. It also will include the general fund impact on community corrections programs, and the recommended financing arrangements and general fund requirements for debt service. The report is due Jan. 1 of each year to the chairmen of the House and Senate budget committees. (Item 388 #8c)
Incidence of brain injuries in offenders. Directs the Secretary of Public Safety to analyze the incidence of traumatic brain injury in the adult and juvenile state-responsible offender populations. A report is due Nov. 1, 2008, to the chairmen of the House and Senate budget committees. (Item 381 #1c)
Housing geriatric offenders. Directs the Department of Corrections and Parole Board to analyze the costs and benefits of contracting with privately-operated minimum security assisted living or nursing facilities or other programs for lower-risk geriatric offenders. A report is due to the chairmen of the House and Senate budget committees by Sept. 1, 2008. (Item 387 #2c)
Department of Criminal Justice Services
Immigration law/Spanish language training. Provides $150,000 each year for basic training in immigration law and policy as well as the Spanish language for local law enforcement officers. (Item 395 #1c)
Regional criminal justice training academies. Provides an additional $275,000 each year from non-general funds (court fees) for regional criminal justice training academies. Court fees, which by law are allocated to the academies, are anticipated to increase in the coming biennium. (Introduced budget and Item 395 #2c)
Internet crime task force expansion. Provides an additional $1.5 million in the first year to fund the expansion of two programs targeting Internet crimes against children. The Bedford County Sheriffs' Department, which operates the Southern Virginia Task Force will receive $750,000, and the Virginia State Police, which works in Northern Virginia (with Washington, D.C.) will receive $750,000. (Item 397 #1c)
Department of Fire Programs
Fire marshal fees on schools. Adds general funds of $49,900 in the first year and $52,800 in the second year to make up for funds lost by eliminating the inspection fees the State Fire Marshal has been charging public and private schools for fire code administration and enforcement. (Item 407 #1c)
Department of Juvenile Justice
Juvenile delinquency prevention efforts. Requires the Department to analyze the level of federal, state, local and other funding for juvenile delinquency prevention programs in Virginia, and assess the current state of evaluation research in juvenile delinquency prevention. This will include a review of the use of funds provided through the Virginia Juvenile Community Crime Control Act (VJCCCA). Report is due Sept. 1, 2008, to the Secretary of Public Safety and the chairmen of the House and Senate budget committees. (Item 410 #2c)
Virginia Juvenile Community Crime Control Act (VJCCCA). Adds language to accelerate the return of uncommitted VJCCCA funding by local governments. This will allow the state to re-appropriate prior year balances of this funding for short-term grants to localities to use for programs and services that have been demonstrated to improve outcomes, including reduced recidivism. (Introduced budget)
Prevalence of gangs. Directs the Department to analyze the extent of juvenile gang activity as it affects the operation of court services units, local and regional detention facilities, and state juvenile facilities. The report shall address current programs and recommendations for further action. Report is due Sept. 1 to the Secretary of Public Safety and the chairmen of the House and Senate budget committees. (Item 410 #1c)
Veterans Services
Behavioral health services. Provides $2.5 million the first year (with $150,000 NGF) and $2 million the second year (with $150,000 NGF) and staffing to establish a new "Wounded Warrior" program, pursuant to HB 475/SB 297. The program is to be developed with the Department of Mental Health, Mental Retardation and Substance Abuse Services and Department of Rehabilitative Services, to monitor and coordinate mental health and rehabilitative services for Virginia veterans, members of the Virginia National Guard, and Virginia residents in the Armed Forces reserves. The purpose is to support for covered individuals to ensure they receive timely assessment and treatment for stress-related injuries and brain disorders caused by service in combat zones. This is a new initiative. (Item 425 #2c)
Central Appropriations
State agency reduction account. Reduces state spending by $17.5 million each year, and directs state agencies to develop plans for achieving budget savings or increased productivity during the 2008-2010 biennium. Plans are due to the Governor by Aug. 1, 2008. Plans shall not include savings based on reductions in aid to localities (which is covered by the following item). Agencies may use any unexpended balances at the end of FY08 to help cover its share of reductions in the new biennium. These unexpended balances may not include any pass-through funding to entities outside state government, including aid to local government payments. (Item 475.1 #1c)
Aid to localities reduction account. Captures $50 million in savings each year in state aid to local governments. Localities are allowed to come up with plans as to how they will meet their targeted reduction. Within 30 days after enactment of this act, the Director of Planning and Budget must give each city and county chief operating officer a list of certain state aid to local government programs along with an estimate of the general fun amount for each program that each locality could expect to receive from the state during each year of the biennium. The total amount listed for these programs will serve as the basis for calculating the savings apportioned to each locality. The savings apportionment will be equal to the percentage of the aggregate general fund amount for all of these state aid programs in each city and county, totaling $50 million each year.
Localities will determine how to reach their reduction target. They may: 1) reduce one program; 2) take reductions in a number of programs on a proportional basis or by a specified percentage reduction; 3) reimburse the Commonwealth in aggregate for their share of the savings, thereby keeping the state aid programs at an unreduced level, or 4) use a combination of the other three. Localities must notify DPB of its choice by Aug. 30, 2008. DPB will certify the amounts for accuracy and sustainability. If a locality has not submitted a plan or approved certification by Oct. 1, DPB is authorized to withhold payments to that locality in an amount equivalent to the savings apportioned to it. The withholding could be started only with the most discretionary funds and those representing general purpose aid before withholding any categorical grants serving a particular functional area or public service. This decision shall remain in force until it is superseded by the subsequent approval of a certification for the affected city or county after Oct. 1, 2008. (Item 475.1 #2c and Item 3-1.01 #7c)
Transportation
Department of Motor Vehicles
DMV Fees. Rejected the governor's proposal for a ten-dollar increase on all driver's licenses, except commercial driver's licenses, and a five-dollar increase of duplicate, reissue, or replacement licenses. Approved a proposal allowing customers to purchase a license valid for eight years to replace the revenue loss. A related legislative proposal increasing the car inspection fee to $20 but altering the requirement from an annual to biennial inspection was withdrawn. (Item 441 #1c)
Jamestown 400th Anniversary Registration Fee. Eliminated the $1.00 fee on annual vehicle registrations originally adopted to pay for the Jamestown 400th Anniversary. (Item 443 #1).
Department of Rail and Public Transportation
Mass Transit Formula Assistance. Includes $138.0 million (NGF) the first year and $144.3 million (NGF) the second year for local and regional transit systems. The increase can be attributed to the passage of the 2007 transportation funding bill, but the additional appropriations were reduced by the General Assembly to reflect revised revenue estimates. (Item 449 #1)
Transportation Efficiency Improvement Fund (TEIF). Adopts a policy change to the $4 million (NGF) per year program that expands the program's scope to include projects reducing freight on Virginia's highways. (Introduced budget)
Rail Enhancement Fund. Provides $39.5 million (NGF) the first year and $39.8 million (NGF) the second year. The fiscal year 2008 appropriation was $25.4 million. The increase can be attributed to the passage of the 2007 transportation funding bill. (Introduced budget)
Department of Transportation
Local Revenue Sharing. Provides $15 million (NGF) each year. The Code of Virginia authorizes up to $50 million each year for this secondary road revenue sharing program. The Commonwealth would make up the remaining match amounts from bond proceeds. The 2007 Session of the General Assembly authorized $3 billion in bonds for transportation projects. (Introduced budget)
2007 Transportation Fund Bill (HB 3202). Provides additional spending for VDOT of $135.2 million (NGF) the first year and $137.1 million (NGF) the second year. The spending is based on increased vehicle registration fees, higher diesel fuel taxes, and fines on overweight vehicles. The amounts also reflect the elimination of abusive driver fees. (Item 455 #6)
General Fund Support for Transportation. The 2006 General Assembly appropriated $339 million for a series of road, rail, transit, and port projects. In the next year, the General Assembly added another $161 million to this amount, increasing total general fund support to $500 million. The 2008 General Assembly approved reverting $180 million in the first year on the basis that the authorized projects will not need the cash in fiscal year 2009. The money can then be used for other general fund spending. A separate amendment appropriates $180 million of bond proceeds in fiscal year 2010 to the same projects. (Items 459 #1 and 462 #1)
Funding New Roads. The Commonwealth Transportation Board (CTB) will reduce the current Six-Year Program by at least $1.1 billion. Funding for secondary roads and the urban system will be reduced by some 45 percent in FY 2009 and transit funding will be reduced on average by 10 percent. See VDOT material.
Virginia Ports Authority
Financial Assistance for Port Activities. Provides $1 million (GF) each year and $2.1 million (NGF). The general fund dollars are to be distributed by the Commonwealth Transportation Board for roadway maintenance activities in localities hosting Virginia Port Authority facilities. The remaining dollars will aid locally owned port facilities and compensate host localities for payments in lieu of taxes (PILT). (Introduced budget)
2008 Caboose budget items (HB/SB 29)
VML staff contact: Janet Areson
The following items are amendments of interest to local governments included in the General Assembly's budget conference report on the current year (FY08) budget.
Community and Economic Development
Mortgage Counseling. Provides $250,000 in the current fiscal year for statewide foreclosure counseling services. Grants will be available to nonprofit organizations to support new or expanded foreclosure prevention counseling services targeted to areas of the state and populations at greatest risk. (Item 103 #1)
Governor's Opportunity Fund. Provides $750,000 for the program this fiscal year. The Governor had proposed $1.5 million. The General Assembly reduced the appropriation by 50 percent. (Item 462 #1)
Direct Aid to Public Education
Carry over of funds to FY09. Language amendment to allow any locality that has met its required local effort to carry over into FY09 any remaining state fund balances available to help minimize any revenue shortfall related adjustments that may occur instate funding to that locality. (Item 135 #5c)
Update Average Daily Membership (ADM) and Fall Membership. Decrease of $31.6 million to reflect revisions in the projections of unadjusted and adjusted average daily membership (ADM) for fiscal year 2008. Statewide basis, this results in a decrease in unadjusted ADM of 7,005 students. While enrollment is still growing statewide, it is not growing as much as originally projected. (Introduced budget)
Update Sales Tax Projections. Decrease of $5.7 million to reflect net effect of a decrease in estimated sales tax revenues and the corresponding off-set for basic aid. When sales tax goes down, both state and local required shares of basic aid go up. (Item 135 #3c) This is on top of the decrease of $17.9 million in the introduced budget.
Lottery profits. Increases estimated lottery profits by $57 million in FY08, and transfers all profits to a Lottery Proceeds Fund. The introduced budget had estimated an increase of $48 million; the conference report increased that by $9 million (Item 3-1.01 #3c). Included in this amount is a transfer of $31.7 million in excess lottery profits realized in FY07. The state uses the entirety of these additional funds to help pay its share of basic aid. None is shared directly with school divisions, therefore, the per pupil payment for lottery proceeds remains at $222.71, the per pupil amount included in the budget as adopted by the 2007 session. The Superintendent is authorized to use lottery funds to pay any items included in direct aid. (Item 135 #1c)
Special education regional tuition payments. Decrease of $4.0 to reflect updated tuition payment information (Item 135 #2c)
Virginia preschool initiative. Decrease of $4 million to reflect participation. (introduced budget and Item 135 #4c)
Special education categorical programs. Decrease of $472,941. (Introduced budget)
Remedial summer school program. Decrease of $515,279 to reflect enrollment. (Introduced budget)
Governor's schools programs. Decrease of $592,803 to reflect enrollment. (Introduced budget)
School breakfast program. Increase of $337,280 to reflect participation. (Introduced budget)
Additional Literary Fund transfer for teacher retirement. Transfers an additional $8.8 million in fiscal year 2008, (transfer is increased from $116.1 million to $124.9 million for teacher retirement).
Election administration
Presidential primary. Adds $2.5 million to cover the costs associated with the 2008 presidential primary. Up to $2.28 million may be used by the State Board of Elections to reimburse localities for their presidential primary expenses; the remaining funds may be used to cover expenses of the State Board. (Item 462 #2c)
Finance
Rainy Day Fund. Provides for a withdrawal of $351.5 million from the Revenue Stabilization Fund this year. This is about $71 million below the maximum withdrawal allowed by the Constitution. (Item 260.10 #1c)
Health & Human Resources
CSA match rate workgroup. Directs the Secretary of Health and Human Resources to establish a workgroup to prepare for the implementation of changes to the local and state match rates for community-based versus residential services. Local government is included on this workgroup. The group also is to consider future actions to improve the quality of care, cost effectiveness, and administrative efficiencies of the program. Actions to be considered include: 1) a managed care approach to coordinate care and provide utilization management and quality assurance of services; 2) participation of CSBs in providing care coordination and monitoring of children with emotional or behavioral problems served through CSA; 3) better communication, coordination, and cooperation among different parties regarding development of individualized education plans (IEPs) and plans of care for children in special education who are served through CSA; and 4) better communication, coordination, and cooperation between court services units, courts and judges, and the Department of Juvenile Justice on plans of care for "children in need of services" now covered under the interagency guidelines approved last fall or those children at risk for residential placement through an order by a judge of the Juvenile and Domestic Relations Court. This group will continue its work into the new biennium. (Item 279 #1c)
CSA state pool of funds. Adds $54.3 million to the pool of funds used to pay for services to youth and families in the CSA program. The additional funding is needed because of continued growth in program expenses and because of the state's decision in 2007 to expand the mandated population for the program. This expansion will increase local costs as well. (Introduced budget)
DSS -- child care services. Adds $6 million (NGF) for at-risk child care subsidies for low-income families (Introduced budget).
Public Safety
Jail per diems. Provides a total of $11.9 million to pay the state share of per diem costs for FY08. This is $3 million lower than the introduced budget, because the Compensation Board is expected to have $3 million in balances at year end that may be used for this purpose. (Item 60 #1c)
Transportation
2007 Transportation Fund Bill (HB 3202). Provides additional spending for VDOT of $112.6 million (NGF) in the current fiscal year. The spending is based on increased vehicle registration fees, higher diesel fuel taxes, and fines on overweight vehicles authorized under the 2007 transportation funding act.
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