eNews – April 25, 2025
Small Towns Conference in June, General fund revenues soften, SLAF needs assessment survey...and more!
Friday, April 25, 2025/Categories: eNews
This edition of eNews is sponsored by Virginia American Water delivering clean, safe, reliable and affordable water and wastewater services. Learn more >.
In this issue:
VML News
Finance & Budget
Opportunities
VML News
Virginia Small Towns Conference happening June 5-6
Building on the success of last year's inaugural offering, the Virginia Municipal League and Virginia Tech are pleased to host a second Virginia Small Towns Conference.
Dates: Thursday, June 5 (all day with evening reception) and Friday, June 6 (8am - noon).
Location: On the campus of Longwood University in Farmville.
Details & Registration: Posted to the VML website here >.
See you in Farmville!
VML Contact: Rob Bullington, rbullington@vml.org
Legislative review section meetings coming in early May
VML will offer legislative wrap-up meetings through Zoom for the City/Urban Section and the Town Section. VML staff will present updates on bills and budget actions affecting localities during these sessions. The meetings are open to our members and their staff.
- City/Urban Section meeting: Thursday, May 1, from 11:30 a.m.- 12:30 p.m.
- Town Section meeting: Friday, May 2, from 11:30 a.m. – 12:30 p.m.
The registration links will also be emailed to VML member localities in the coming weeks.
VML Contact: Janet Areson, jareson@vml.org
Finance & Budget
General fund revenues soften as federal policy decisions appear to weigh on consumer spending
It was only a matter of time before soft data points, like surveys about consumer sentiment and the business climate, started to show up in hard data, such as sales tax revenues. That time seems to have arrived based on the monthly data report for March 2025 released a week ago; that report showed sales and use tax collections plummeting by 8 percent, compared to a year ago.
More troubling is that the recently reported sales tax data reflects transactions from February 2025 (the reported data lags one month), prior to the imposition of tariffs on April 2, 2025, which has added another, deeper layer of uncertainty about the direction of the economy.
Americans have rarely been this pessimistic about the economy. According to the University of Michigan’s most recent survey of consumer sentiment, confidence in the economy plunged 11 percent in April, recording the second-lowest reading since the survey began collecting data in 1952. Consumer sentiment has fallen for four months in a row, declining by 30 percent since December 2024.
Because consumer spending plays a pivotal role in the nation’s economy, including the Commonwealth’s, it’s no wonder that sales tax revenues were off. While some of the divergence can be attributed to year-over-year data comparisons, it’s not a good sign going forward, especially since consumer’s outlook on the economy has taken a hit in recent weeks and is unlikely to be fully reflected in the data. In other words, the sour taste in consumer’s mouths hasn’t translated to significant drops in revenue. We will have to wait for additional data points to see whether that trend continues.
Overall, revenues were down 0.1% in March 2025, the first actual decline in general fund revenues in nearly a year. For comparison, general fund revenues were up 12.6 percent in February and 2.4 percent in January.
There seems to be little doubt that general fund revenues are wavering. The trend is also showing up in data reported to national organizations that monitor state revenues, especially sales and use taxes. We don’t know how much revenues are fluctuating or what it means going forward. The next three months, the last of the current fiscal year, will be critical in telling that story.
VML Contact: Joe Flores, jflores@vml.org
Governor Youngkin hints at signing budget
Nearly a month has passed since the General Assembly unceremoniously pitched most of Governor Glenn Youngkin’s proposed amendments to HB 1600, the current 2024-26 budget. As a reminder, lawmakers at the 2025 Reconvened Session on April 2, 2025, discarded 172 of the Governor’s 205 recommended changes to the budget. Most of the approved 33 amendments were technical.
Since then, speculation has run rampant around Capitol Square whether the Governor would sign the budget bill, veto it, or propose line-item vetoes to amendments the General Assembly rejected. According to recent news reports, it appears the Governor will sign the bill.
The Governor’s signature on the budget approved by the General Assembly would be greatly appreciated and add much-needed certainty to state and local budgets, at a time when uncertainty about federal fiscal policy remains off the charts.
While questions and concerns remain about the impact on state and local revenues of unprecedented federal funding decisions, it looks like we may be able to count on additional resources for K-12 education, including the elimination of the support cap, one-time bonus payments to teachers and support staff, English-language learners, and special education, as well as one-time rebate checks for income tax filers.
There are a lot of funding items beneficial to local governments in the budget, but it does feel like the “calm before the storm” as dark clouds continue to drift over the economic horizon. One only has to look at weakening sales tax revenues flowing into the state’s general fund as evidence for that. But for now, we’ll be grateful, albeit mindful, that the fiscal atmosphere can change as rapidly as the weather.
VML Contact: Joe Flores, jflores@vml.org
Opportunities
Learn about Virginia’s Flood Protection Master Plan – DCR public webinar April 29
The Virginia Department of Conservation and Recreation (DCR) invites you to join us for a public webinar about the Virginia Flood Protection Master Plan (VFPMP) and its efforts to proactively reduce flood risks and increase flood resilience in the Commonwealth.
All Virginians face a risk of flooding and benefit from flood resilience efforts. We encourage you to stay informed on the VFPMP and opportunities for public participation. Please consider sharing the invitation below with your family, friends, and community members and invite them to attend this webinar, as well.
What is the VFPMP?
The VFPMP aims to reduce current and future flood risks across the Commonwealth by developing long-term, coordinated strategies to reduce flood risks and maximize the benefits of flood resilience efforts. It will serve as a plan for the Commonwealth to use in developing policies and programs that lessen the impacts of flooding on people, the economy, and the environment.
Development of the plan began in late summer 2024, with a target release at the end of 2025. Learn more about DCR and the VFPMP here.
Contact: General inquiries, pcmo@dcr.virginia.gov
Complete the SLAF Needs Assessment Survey by May 16
The Virginia Department of Environmental Quality (DEQ) is seeking input to identify future funding needs for SLAF-eligible nutrient reduction projects in the Commonwealth. This survey intends to capture an estimate of the SLAF funding needed for permittees conducting stormwater projects in the near future. Please note that there are several new survey questions in this year’s survey. Please pay special attention to the first section of the survey where these changes occur.
Survey data will be used to prepare an estimate of the amount of SLAF matching grants expected to be requested by local governments. This will be included in the biennial funding report submitted to the Governor pursuant to § 2.2-1504 and included in the Chesapeake Bay and Virginia Waters Clean-up Plan and Report submitted annually by the Secretary of Natural and Historic Resources to the Governor and the General Assembly pursuant to § 62.1-44.118. Submissions must be received by May 16, 2025, in order for DEQ to include your information in these related reports.
Access the survey here: bit.ly/4iLvzK4
DEQ Contact: Karen Doran, 804-836-5912 or cwfap@deq.virginia.gov
Get ready for American Wetlands Month!
May is American Wetlands Month and communities thrive when the environment around them is healthy. Protecting your local wetlands leads to improved water quality, better flood control, and reduced shoreline erosion. In turn, these healthy habitats support your local economy. Some of the most valuable sectors of the Virginia economy depend on clean water and thriving wetlands:
- Lucrative commercial fisheries, like blue crab and oyster, annually have an economic value of more than $200 million
- Outdoor recreation like fishing, boating, wetland-dependent bird hunting, and bird watching adds more than $9 billion to Virginia's economy each year
- Access to public parks and other natural amenities helps attract and retain a strong workforce and improve quality of life for residents
- Wetland restoration can protect pastures and cropland, contributing to Virginia’s robust agricultural sector
Investing in wetlands is good for business. Wetlands are vital to the health of the Chesapeake Bay and in 2014, the region was calculated to provide at least $107.2 billion in natural benefits annually. Learn more about how to conserve wetlands and their valuable benefits at ProtectLocalWaterways.org.
VML Contact: Mitchell Smiley, msmiley@vml.org
Funding available from National Fitness Campaign for outdoor wellness infrastructure
Free, accessible outdoor wellness opportunities for communities and schools across Virginia are possible thanks to a continued partnership between National Fitness Campaign and Aetna.
In 2025, the sponsorship will provide more than $350,000 in new grant funding to communities and schools across the Commonwealth. This funding will be allocated to support municipalities across Virginia to join the growing National Fitness Campaign, building healthy infrastructure for smart communities and schools of the future. The campaign has expanded significantly in the past few years, with plans to welcome its 750th Healthy Community in America in 2025, fostering a healthier, more active country.
The program is designed to bring world-class healthy infrastructure to public spaces, along with consulting, funding, and community programming support. Watch NFC’s 3-minute video describing the program: Campaign Video.
The Town of Dumfries celebrated the launch of its Fitness Court in 2023 at Ginn Memorial Park. Town of Dumfries Mayor Derrick Wood shared his enthusiasm for the community: "Based on our comprehensive plan and resolutions that had already passed in Dumfries, the Fitness Court Studio already aligned with the vision, creating unanimous support in the town. We chose the location for highest density and best walkability in town to make sure the space would be activated for years to come.”
In 2025, the program is seeking applications from municipalities of all sizes interested in building accessible outdoor wellness infrastructure to support the health and wellbeing of their residents. Funding is now available for 2025 applicants and is projected to be allocated over the next 60 days.
If you would like to join a 30-minute briefing to learn more about the NFC/Aetna wellness campaign in Virginia and how to qualify for funding, please fill out a short contact form at the link below. The briefings require the attendance of the Parks Director, Mayor, Town Manager, or Administrator to qualify for funding.
Sign up for briefing for funding qualification here >.
NFC Contact: Sarah Morgan, sarah@nfchq.com