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April 24, 2008

General Assembly approves most budget amendments; no local cuts restored

The House and Senate rejected nine out of the 40 amendments Gov. Tim Kaine proposed to the 2008-2010 budget during Wednesday’s reconvened General Assembly session.

As expected, none of the governor’s proposed budget amendments addressed the more than $378 million in budget cuts local governments were hit with in the 2008-2010 budget, which begins July 1. Those cuts, along with elimination ABC/wine distributions to localities and the freezing of the “599” local law enforcement program, will remain.

Most of Kaine’s proposed amendments were technical ones. Those were largely left intact. The amendments that were rejected were ones that changed policies or program funding levels previously approved by the General Assembly.

Amendments of interest to local governments that were rejected included:

• A proposed increase in ambulances rates paid for by Medicaid. The governor’s amendment would have moved funding away from new substance abuse treatment services to pay for the ambulance rate increase.
  
• A proposed exemption for Patrick County from the jail construction moratorium. During the regular session, the General Assembly adopted budget language authorizing Martinsville, Patrick County and Henry County to build a new regional jail. Kaine’s proposed amendment would have allowed Patrick to build its own jail without a regional partnership.
  

The legislature took no action on transportation funding. It may return at the beginning of the summer to tackle the issue once again if Kaine calls a special session.

General Assembly adopts capital bond package

The General Assembly approved for Gov. Tim Kaine’s review a $1.46 billion state-supported debt program (SB/HB 5001) for 75 capital projects at the special session held on Wednesday.

Of this amount, just over $1 billion in bonds is for projects at the state’s public colleges and universities. Another $438 million of bond money is allocated for the state park system, mental health system, prison system and other state agencies. The package also includes $46.5 million for planning an additional 33 capital projects.

All of the bonds are projected to be issued by 2014. The annual debt service will be close to $117.1 million.

Kaine originally proposed a capital program of $1.5 billion. The Senate and House approved programs of $2.1 billion and $1.2 billion, respectively. The special session was made necessary because the House and Senate could not reconcile their differences in the regular session that concluded on March 13.

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