eNews – November 14, 2025
Upcoming VML events, Medicaid and k-12 spending, Behavioral Health Commission updates...and more!
Friday, November 14, 2025/Categories: eNews
This edition of eNews is sponsored by the OpenGov, the leader in AI and ERP solutions for local and state governments in the U.S. Learn more >
In this issue:
VML Events
Finance
Health & Human Services
Resources
Opportunities
VML Events
Emerging Technology Conference happening December 8-10 in Hampton
This annual event explores the convergence of technology and public safety to prepare organizations to be ready to meet the challenges of an evolving threat landscape. Communications professionals, IT professionals, public sector and emergency communication leaders are among those who will benefit from offerings that cover a range of topics such as AI, GIS, cybersecurity, IoT, and Converged Communications.
This event is Hosted by the Commonwealth of Virginia Statewide Interoperability Executive Committee (SIEC) in Partnership with the Virginia Municipal League and the Virginia Association of Chiefs of Police and Foundation, Inc.
More information and registration are available on VML’s website here >.
VML Contact: Rob Bullington, rbullington@vml.org
Elected Officials Conference happening January 7-8 will include certified FOIA/COIA training
For 2026, VML is pleased to offer an expanded take on our annual Elected Officials Conference. Attendees can choose to register for one or both days. This in-person event is offered to local officials and staff from VML member localities.
Registration and more information are available on VML’s website here >.
Wednesday, January 7 - Elected Officials and Public Safety (1:00 PM - 4:30 PM)
An afternoon of sessions dealing with public safety for elected officials. Topics will include Community Policing for the Elected Official and the Officer as well as Personal Safety for Public Officials.
There will be a reception for attendees beginning at 5:00 PM.
Thursday, January 8 - Elected Officials Boot Camp (8:30 AM - 4:00 PM)
The Elected Officials Boot Camp is a valuable training and networking opportunity for newly elected and veteran local officials from across the Commonwealth.
Sessions on January 8 will include Freedom of Information Act (FOIA) and Conflict of Interest Act (COIA) training provided by staff from the FOIA and COIA councils. As such, these sessions will satisfy the bi-annual requirement for these topics.
Breakfast and lunch are included. Attendees arriving the day before are invited to attend the reception happening at 5:00 PM on January 7.
VML Contact: Rob Bullington, rbullington@vml.org
Local Government Day in Richmond on February 5
Join us at the half-way mark for the 2026 General Assembly session to learn about legislation that may affect local governments. The day will kick off with lunch and briefings beginning at 11:00 AM at the Hilton Richmond Downtown. Attendees can visit with their delegation and attend session meetings in the afternoon. An evening reception at the Hilton will provide further opportunities for networking and talking with legislators.
Information and registration are available here >.
VML Contact: Rob Bullington, rbullington@vml.org
Finance
Projected spending on Medicaid and K-12 education far surpasses initial estimates
A few weeks ago, it was noted that state agencies requested more than $4.2 billion in additional general fund spending for the upcoming 2026-28 biennium. At the time, it was also pointed out that those agency requests did not reflect the forecasted need in Medicaid or K-12 education, two of the Commonwealth’s primary budget drivers.
We do now. And the ask, especially for Medicaid, is eye-popping.
Officials from the Department of Medical Assistance Services (DMAS) estimate that an additional $3.2 billion in general funds will be needed simply to maintain funding for the cost of serving current Medicaid enrollees. The ask is unprecedented, far exceeding any previous Medicaid forecast. By fiscal year, the projected general fund need breaks down as follows:
- $410 million in FY 2026 (current biennium)
- $1.1 billion in FY 2027 (next biennium)
- $1.7 billion in FY 2028 (next biennium)
That's $3.2 billion TOTAL.
In a letter from Medicaid Director Cheryl Roberts to lawmakers, it was suggested that “fraud, waste, and abuse in several lines of service” may be inflating Medicaid spending. She also indicated that a contributing factor was “anomalous managed care organization (MCO) plan performance resulting in sharp increases in rates.” Medicaid officials did not provide any additional data to evaluate those assertions.
Other experts who have looked at the Medicaid forecast indicate that projected growth is being driven by higher MCO rates, utilization increases, and enrollment in higher cost categories. Further, eligibility policies that were loosened during the pandemic are returning to normal, resulting in lower cost enrollees being removed from Medicaid, leaving individuals with higher health care needs on the program.
The explanations offered by DMAS officials raise troubling questions about proper oversight of the Medicaid program. Budget language requires DMAS to report to the General Assembly on Medicaid expenditures every month and Medicaid Managed Care Organization expenditures by service category every quarter. If anomalous spending or fraud, waste, and abuse was occurring in the order of magnitude being reported, wouldn’t that show up in the monthly or quarterly data being assembled?
As JLARC staff pointed out earlier this week, Medicaid is the second largest general fund program in the Commonwealth. More transparency and better communication are necessary to stay on top of these trends and address them in a timely manner.
Governor Youngkin and his team have promised recommendations to reduce the anticipated program costs when his budget is unveiled next month. It won’t be easy. Much of the growth in the Medicaid program appears related to services provided to the elderly and disabled who require intensive interventions to reside in the community. Reducing the cost of caring for these vulnerable populations is a delicate balancing act, complicated by vocal advocacy groups and sympathetic lawmakers.
The other thing worth noting is that the recently released forecast does not appear to capture historic changes to Medicaid funding included in HR 1, the federal budget reconciliation bill that was signed into law in July 2025. Those costs, which DMAS previously reported are significant, appear to be further down the road.
The other area of state spending that will require additional general funds is K-12 education. The Department of Planning and Budget (DPB), along with the Department of Education (DOE), prepares an annual update to the Standards of Quality (SOQ) based upon the most current data available.
That figure came in at $1.2 billion for the 2026-28 biennium but is reduced by more than $200 million because of downward revisions to retirement costs for educators. After another downward adjustment is made for participation in the Virginia Preschool Initiative, it is estimated that $843 million will be needed for K-12 education.
Combined, the funding needs for Medicaid and K-12 education will consume more than $4.0 billion in available general fund resources when Governor Youngkin prepares his budget.
As the demand for general fund resources continues to be tallied, it is important to remember the words of caution expressed by budget writers in the General Assembly that can be summed up as follows – “we’re likely to face tough sledding in the short run.” Our first glimpse of what that might mean will become clearer next week when the House Appropriations Committee convenes at George Mason University on Tuesday, November 18 and the Senate Finance & Appropriations Committee meets in Radford on Thursday, November 20 and Friday, November 21.
The money committee staff will present their economic and revenue outlooks and identify the key budget demands facing the Commonwealth. It will be interesting, informative, and probably sobering. Regardless, VML staff will be there to see what’s discussed and what it might mean for our communities.
VML Contact: Joe Flores, jflores@vml.org
Health & Human Services
Behavioral Health Commission adopts recommendations, discusses local match
Recommendations for possible legislative and budget proposals regarding the Marcus Alert Program; crisis services and civil commitment process; and STEP Virginia were reviewed and adopted during a November 12 meeting of the General Assembly’s Behavioral Health Commission. The Commission also received a report and made a recommendation for additional study regarding the local government match for community services boards (CSB).
The Commission is made up of House and Senate members and is chaired by Senator Creigh Deeds (D-Charlottesville).
All of the proposed actions for the Commission’s 2025 studies can be seen on the meeting slides available here >.
On the study of the implementation and effectiveness of the Marcus Alert Program, which is a statewide mental health crisis intervention and response program being implemented by region, the Commission endorsed several recommendations, including the following:
- Provide funding to the 13 CSBs that are slated to implement the program in the next two years to keep the program on track as required by the Code and allow the CSBs to receive funding one year before their implementation date.
- Clarify that the Department of Behavioral Health and Developmental Services (DHBDS) is responsible for convening an evaluation task force as called for in the original legislation; it would be directed to meet quarterly
- Establish and fund one analyst position at DBHDS who will be responsible for program evaluation and work with the task force.
The Commission also endorsed a policy option to remove language in the Appropriations Act requiring that each CSB implementing Marcus Alert receive a fixed allocation of $600,000 annually and instead give DBHDS discretion to distribute Marcus Alert funds based on community needs. Currently, CSBs receive the same amount of funding regardless of size, needs, or fiscal situation. It does not say how DBHDS would make its funding determinations. The Commission also endorsed a policy option to require each CSB to direct a portion of funding received to Public Safety Answering Points (PSAPs) for necessary system updates, training, and related expenses. It does not set a floor or ceiling on this amount to be funneled to PSAPs.
Other recommendations endorsed by the Commission would provide more flexibility in regional response and give 911 call centers the authority to dispatch a behavioral health-only Mobile Crisis Response team instead of law enforcement to assist someone in crisis.
Regarding the issue of aligning crisis services and civil commitment processes, the Commission adopted some recommendations, including seeking language and funding in the budget for pilot programs that would enable regional mobile crisis response (MCR) teams to be dispatched from 911 call centers to individuals who are at high risk of coming under an emergency custody order but who do not present an imminent public safety risk using various approaches in pilot programs, and also allowing call centers to dispatch teams from third party calls to the center (e.g., family members, neighbors or concerned residents).
On the STEP-VA program, the Commission adopted recommendations including one to appropriate STEP-VA funding as one amount rather than by individual STEP to give both DBHDS and CSBs flexibility to reallocate funds among STEPs.
The Commission also received a staff report (available here) on CSB local matching funds. This was a limited-scope staff report, not a full Commission study. This staff report focused on the funding contributed by each locality toward CSB local match and identified some factors affecting local contributions.
Staff noted that 11 CSBs (out of 40) did not meet the 10 percent match requirement in FY25, and that those not meeting the match were more likely to be in areas with smaller population or experiencing greater fiscal distress. Staff said other factors cited by CSBs for not receiving the 10 percent match from their locality(ies) included competing priorities such as local school infrastructure costs, funding repairs after natural disasters, and meeting public safety needs. Overall, the “lost” revenue from not meeting the match requirement accounted for 0.03 percent of total CSB funding: the majority of CSBs received more than the required local match, including eight that received more than a 50 percent local match.
Staff noted that increases in state funding to CSBs trigger higher local matching requirements (state appropriations to CSBs have increased 59 percent over the last five years). The highest number of CSBs falling below the 10 percent threshold corresponded with the steepest increases in state funding, with 15 CSBs falling below the 10 percent match in FY 24. This decreased to 11 in FY25. Some of this can be attributed to local budget processes not lining up the state appropriations timeline (i.e., local budgets were set by the time the General Assembly increased funding to CSBs).
Another issue noted by staff is that regional hubs are not recognized in the state funding flow. That is, any CSB serving as a fiscal agent for regional projects experiences an increase in its match requirement even though the funds coming to it as fiscal agent are not used by that locality but are being distributed across all localities in the region served.
Staff said that the current matching requirement applies uniformly and does not take into account the variation in fiscal capacity or population density. They said that a 2019 JLARC report on CSB funding suggested incorporating some measure of ability to pay into the matching formula. Any such change would require a Code change. They also said that JLARC found that none of the other seven states it reviewed required any local match for community behavioral health services.
The Commission discussed the issue of local match at length, and even though staff had not presented any recommendations for action on this item, the Commission endorsed proposing budget language directing DBHDS to look at the 10 percent match and what the right percentage match it is should be, including looking at Virginia’s school funding model as a possible way forward.
VML Contact: Janet Areson, jareson@vml.org
Resources
Fall issue of the National Civic Review is now available
The fall issue of the National Civic Review explores how communities are confronting democracy’s toughest tests with creativity and resolve. From reimagining how citizens participate in public life to tackling challenges like homelessness, environmental sustainability, and civic trust, contributors share practical insights for making democracy work better for everyone. This issue highlights how local leadership, innovation, and everyday participation continue to shape a more responsive and resilient democracy.
Explore the online edition of the Review, made possible through the Virginia Municipal League’s partnership with the National Civic League. Access it here!
Contact: Rebecca Trout, rebeccat@ncl.org
Opportunities
American Public University hosting free webinar for healthcare professionals – December 9
VML Community Business Member American Public University (APU) will be hosting a 30-minute virtual information session for all Healthcare Professionals of our corporate partners. This session is designed to help working professionals explore how APU’s flexible, affordable programs can support their educational goals.
Don't miss this exclusive webinar on Tuesday, December 9th at 12:30 PM EST! Discover the powerful educational opportunities waiting for you with APU.
In this session, we'll reveal how attendees can:
- Explore 200+ online degree and certificate programs in high-demand fields, such as Health Sciences, Nursing, Health Administration, and more.
- Access special reduced tuition rates and comprehensive educational benefits available to you and your family as a corporate partner employee.
- Balance work, life, and education through APU’s flexible online learning model.
Online Event: Register Today!
Addressing Food System Resilience in Virginia: Free webinar December 2
Join VML in collaboration with Virginia Tech on December 2, from 12:00 PM to 1:00 PM on Zoom for a listening session on Addressing Food System Resilience in Virginia.
Please register here >.
The listening session is part of the Cultivating Rural Vitality in Virginia’s Food System (CRRV) project, a collaborative seed project by Virginia Tech’s College of Agriculture and Life Sciences and Virginia Cooperative Extension. This project is a step towards longer term objectives to develop an actionable plan for Virginia food system resilience.
Contact: Lia Kelinsky-Jones, kelinskyjones@vt.edu
National Fitness Campaign: 2025 grant deadline approaching
Virginia Municipal League is pleased to share the following grant opportunity with members interested in bringing free-to-use, accessible outdoor wellness spaces to their communities.
Through the National Fitness Campaign’s Healthy Cities Grant Program, more than $350,000 in funding is available to support municipalities and schools across Virginia who want to join a growing movement uniting cities and schools across the country to champion health, connection, and accessible wellness for all.
National Fitness Campaign has partnered with more than 700 cities and schools to deliver free, outdoor wellness infrastructure within a 10-minute walk of home—bringing daily movement, connection, and health prevention to over 14 million people nationwide. Our mission in facilitating the country’s largest public-private community wellness partnership is to measurably reduce healthcare costs and improve quality of life through innovative, publicly accessible wellness infrastructure, promotions, and programming.
This summer, the City of Martinsville became a statewide leader in outdoor wellness with the launch of Virginia’s first Fitness Court® Studio at Baldwin Park.
“Investing in public health means investing in the future of Martinsville,” said Mayor L.C. Jones. “This new Fitness Court Studio is a symbol of our city’s commitment to wellness, equity, and community strength.”
The project, supported by the Harvest Foundation, created an open-air wellness hub designed for adults of all abilities, offering flexible space for group classes like Zumba and dance, alongside the signature Fitness Court.
“This is a wonderful example of what it looks like when we align missions,” said Sandy Strayer, program officer at the Harvest Foundation. “This studio gives our community a place to gather, to connect, and to improve health.”
Martinsville now joins Bedford, Sterling, Pulaski County, and other partners leading the movement to make outdoor wellness a permanent part of community life across the Commonwealth. Municipalities of all sizes are invited to pre-qualify for grant funding by attending a 30-minute virtual briefing with Jeff Pressly from NFC.
Reserve your briefing today to learn how your community can join the movement and lead the next wave of healthy infrastructure development in Virginia.
Schedule a briefing call here >.
NFC Contact: Sarah Morgan, sarah@nfchq.com