eNews – October 23, 2026
Submit comments on census changes, Data center ordinance consideration, VML policy statements and legislative program available...and more!
Friday, October 23, 2026/Categories: eNews
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In this issue:
VML News
Action Items
Cannabis
Finance
Transportation
Health & Human Resources
FOIA
VML News Board – Recent Posts
VML News
2027 legislative program and policy statements now available
VML’s five revised policy statements and 2027 legislative program were approved by the VML membership at the annual business meeting held during the 2026 Annual Conference in Norfolk.
You can view VML’s 2027 approved legislative program here >.
You can view the policy statements by clicking on each policy committee link here >.
VML thanks all members who participated in the policy and legislative development process this year. The 2027 policy process will get underway next spring.
VML Contact: Janet Areson, jareson@vml.org
Registration open for these 2027 events: Elected Officials Conference, Emerging Technology Conference, and Legislative Day
Additional information and registration for each event is posted to VML’s Events Listing page.
Elected Officials Conference (with FOIA/COIA training) – The Elected Officials Conference is a valuable training and networking opportunity for newly elected and veteran local officials from across the Commonwealth.
- Dates: January 7-8
- Location: The Place at Innsbrook - Richmond (Short Pump)
Emerging Tech Conference – 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.
- Dates: January 12-14
- Location: Hampton Roads Convention Center - Hampton
Local Government Day – The Virginia Municipal League invites its members to the VML Local Government Day. This is the day when all cities, towns and counties come together and advocate on behalf of our communities.
- Date: February 4
- Location: Richmond Marriott Downtown
VML Contact: Rob Bullington, rbullington@vml.org
Action Items
Submit comments on proposed changes to the 2030 Census by November 2
On September 10, 2026, the Census Bureau proposed a rule that would change who gets counted in the 2030 Census, where they get counted, and what questions get asked. Several of these changes could put an accurate count at risk:
- Non-citizens and green card holders only. The count would, for the first time, exclude students on visas, workers on visas, refugees and undocumented immigrants.
- A possible legal-status question. The Bureau is weighing whether to add a question about legal or citizenship status to the census form.
- A narrower definition of "usual residence." Instead of counting people where they live most of the year, the rule would count them where they spent the most days during a new January 3-April 1 window. This could misplace seasonal residents (e.g. "snowbirds"), students, and other mobile populations who don't fit that narrow snapshot.
- Heavier reliance on administrative records. The Bureau would lean more on tax, immigration and other government records to determine residency instead of self-reported information. This shift could risk missing renters, part-time workers, students, young children and others who aren't well captured in those records.
- The end of race, ethnicity and other demographic data. Race and ethnicity questions - asked on every census since 1790 - would be eliminated entirely and most other demographic questions would become optional. Communities rely on this data to track equitable service delivery, target economic development, and meet federal reporting requirements.
Together, these changes could shrink the count in communities across the country. Every undercounted household means fewer resources for the entire community, not just the households that go uncounted.
Thank you to everyone who has already submitted comments, resulting in an extension of the comment period.
If you have yet to submit, the Census Bureau is accepting comments on this proposed rule until November 2, 2026.
To submit a comment, you can use the fillable form provided by National League of Cities – available here >.
Additional Resources:
VML Contact: Jessica Dennis, jdennis@vml.org
Localities are encouraged to exempt telecommunications Head End facilities from Data Center ordinances
As your locality considers ordinances to regulate Data Denters, the Broadband Association of Virginia respectfully asks that you include a clear exemption for telecommunications Head End facilities. Neither state law nor local ordinances define "Data Center" consistently, and some draft definitions are broad enough to unintentionally capture these facilities, creating uncertainty for the providers that serve your residents, businesses, and public safety agencies.
Telecommunications Head End facilities are not Data Centers. They are essential community infrastructure that:
- Route and manage 911 calls.
- Deliver public safety announcements.
- Provide news and internet services to your community.
The General Assembly recognized this distinction last session when it adopted budget language stating that telecommunications Head End facilities are not Data Centers.
The Broadband Association of Virginia is pursuing legislation to codify that language, but localities do not need to wait. We encourage you to include the same exemption in your Data Center definitions now, so your ordinances stay consistent with the General Assembly's approach and critical communications services are not swept into rules intended for a different industry.
2026 Budget Language: Page 660, 3-5.24
VML Contact: Michelle Gowdy, mgowdy@vml.org
Cannabis
Cannabis Control Authority webinar November 19: Cannabis Retail Market and Local Ordinance Capability
This webinar is an opportunity to bring your questions and concerns directly to CCA, gain insight into updated cannabis and hemp laws in Virginia, and better understand the tools and resources available to support local decision-making and governance.
Date: Thursday, November 19, 2026
Time: 10:00–11:00 am
Registration: https://zoom.us/webinar/register/WN_ZzwUg_sbS02TGawolUwh4g#/registration
Topics will include:
- Cannabis and hemp laws in Virginia
- Cannabis license types and restrictions
- Model ordinances, zoning, and local policy considerations
- Local government authority and regulatory capabilities
- Public health education and safety resources
VML Contact: Mitchell Smiley, msmiley@vml.org
Finance
General fund revenue growth hints at additional revenues…maybe!
With Halloween a week away, Secretary of Finance Mark Sickles’ monthly revenue report to the Senate Finance & Appropriations Committee (SFAC) earlier this week didn’t seem to spook many observers of the Commonwealth’s revenue outlook. In fact, his revenue report was rather ho-hum with some categories exceeding the forecast while others went the other way.
For example, Secretary Sickles’ memorandum to Governor Spanberger on revenue collections through September noted that “Through the first three months of Fiscal Year 2027, General Fund revenue collections are generally ahead of projections assumed in the current official forecast.”
That’s about as plain vanilla as you can get.
Secretary Sickles also highlighted headwinds that are likely to hold back revenue growth…and we’re only three months into the fiscal year! But consumer sentiment has plummeted, reflecting the fact that many Americans are in a sour mood when it comes to the economy, maybe because gas prices remain high, inflation is as sticky as ever, and the housing market is softening.
That said, let’s start with what appears to be good news. Through the first quarter of the Commonwealth’s fiscal year, general fund revenues are up 8.0% or $613 million compared to the same period from last year. That data point was trumpeted in the monthly press release from the governor’s office. For budgeting purposes, however, how we’re doing relative to the official forecast is more telling; by that measure general fund revenues are ahead of the forecast by 3.2% or $254 million.
As we start to unmask the figures, things get interesting. For example, net individual income taxes through September – revenues that account for 70% of general fund collections – are only slightly ahead of the official forecast at 0.8% or $45 million. In other words, our major revenue sources are flat.
Most of the growth in this category was driven by increases in nonwithholding payments that tend to mirror changes in the stock market. That category was up 9.1% or $112 million compared to the official forecast. As the Secretary reminded the SFAC, nonwithholding is a volatile revenue source. However, individual income tax collections from wages and salaries are below forecast by $22.8 million through September. While that may be concerning, it may be due to the timing of daily revenue deposits that can skew the reported data.
Sales tax revenues, a category that typically makes up 15% of general fund revenues, came in strong at 5.8% above the forecast. Corporate income taxes came in even stronger at 26.2% or $120 million above the forecast. While corporate income taxes typically account for 6% of overall general fund revenues, it’s hovering around 45% this quarter; an anomaly that was highlighted by Secretary Sickles.
While a modest increase in general fund revenues may be in the cards, at least through September 2026, the Joint Advisory Board of Economists (JABE), an entity that provides economic counsel to the governor as she prepares the official revenue estimate, pointed out that Virginia’s economic outlook will lean toward a “slow growth environment”. Further, JABE’s advisors noted that attention will need to be paid to “inflation, interest rate pressure, low job growth, and stretched market valuations.”
In summary, while general fund revenues are up slightly through the first quarter of FY27, it seems doubtful that there will be an abundance of new monies going into the 2027 Session. We’ll know in less than two months, as Governor Spanberger and her finance team put the final touches on the revenue forecast and make budgetary decisions.
While none of this is cause for alarm, what is scary is that we’re already in the thick of budget development! Didn’t we just finish?
VML Contact: Joe Flores, jflores@vml.org
Transportation
Spanberger administration proposes $70 million increase to local road maintenance funding
This week, Secretary of Transportation Nick Donohue outlined the steps the Spanberger Administration believes can be taken to close the more than $250 million annual road maintenance funding gap to avoid decreased quality in state and local roads and bridges. This plan involves boosting local maintenance funding by $70 million annually alongside a $239 million annual increase in maintenance payments for VDOT roads. Both increases would occur in FY28.
In FY27 local maintenance payment rates decreased $24.15 million from FY26. This week’s proposal would increase total funding by approximately $70 million over the current FY27 funding levels. According to Secretary of Transportation Donohue, the cost of maintenance materials and equipment continues to increase faster than inflation and has more than doubled in the last 10 years.
The administration’s proposal would delay a number of construction projects from the most recent round of Smart Scale Round 6. The upcoming SMART Scale Round 7 will have less funding as a result. Additional funding for SMART Scale Round 7 could come from two separate bond funding sources for new construction.
It’s worth noting that the Code of Virginia and language in the Virginia State Budget require that funding be provided for highway and street maintenance prior to funding any new construction.
The administration’s proposal to increase local maintenance payments by $75 million in FY28 represents a meaningful increase over current levels and is a welcome signal that the administration is sensitive to local road maintenance needs. In fact, this move is in keeping with the legislative position that VML adopted during the annual business meeting earlier this month. That position is: “VML supports maintaining or increasing the annual maintenance payment rates set by the Commonwealth Transportation Board; VML opposes any reduction in these payments.”
Of course, the proposals presented by Secretary Donohue this week will require the approval of the legislature during the 2027 session. VML will be following this issue closely and will advise members of any new developments.
VML Contact: Mitchell Smiley, msmiley@vml.org
Health & Human Resources
How to stay informed of VDH updates to its pool and aquatic facility regulations and contacts
Does your locality manage a public pool, splash pad, wave or surf venue, or other aquatic facility? If yes, you may be interested in completing a short survey from the Virginia Department of Health (VDH) that will ensure that you stay informed of updates from the Department on regulatory processes, guidance, and other important announcements.
The survey will help VDH (and your locality) with:
- Better statewide data for planning and safety efforts.
- Faster notifications regarding regulatory updates, guidance, or inspection procedures.
- More accurate outreach during emergencies or waterborne illness investigations.
- Improved transparency and communication between VDH and aquatic facility operators.
Here is the link to the survey: Aquatic Facility Information Survey
The survey is currently being shared on:
Questions? Reach out to Ms. Briana Bill, environmental health coordinator with the Office of Environmental Health Services at VDH (Briana.Bill@vdh.virginia.gov).
VML Contact: Janet Areson, jareson@vml.org
FOIA
Freedom of Information Advisory Council subcommittees meet
Two Freedom of Information Advisory Council (FOIA Council) subcommittees hosted their final planned meetings of the year on October 19.
The Records Subcommittee again discussed HB313 (Wachsmann), which would expand the definition of who can request public records under FOIA to include non-Virginia residents who own property in the Commonwealth. Discussion among subcommittee members was split, with some members supporting the legislation as drafted and others advocating for amended language to limit the type of records available. The subcommittee did not reach agreement on bill language but sent the original version of the bill to the full FOIA Council to allow for further discussion.
The subcommittee also discussed proposed legislation, which would require localities to itemize cost estimates for FOIA requests, as opposed to the current practice of providing a non-itemized estimate. The subcommittee referred the draft language to the full FOIA Council; however, with a request for FOIA staff to prepare a best practices analysis as part of the bill discussion during the full FOIA Council meeting.
Subcommittee staff also presented draft best practices for the use of artificial intelligence (AI) on FOIA requests. The draft best practices were referred to the full FOIA Council for discussion.
The Meetings Subcommittee again discussed HB463 (Cohen), which amends the FOIA definition of “meeting” from the “rule of three” to a quorum and would authorize members of a public body participating remotely in a meeting in which other members are participating in person to count towards quorum as though the member was physically present.
The subcommittee discussion focused on the quorum component, with committee members and other stakeholders expressing a variety of concerns. Given the ongoing concerns, even after four meetings of subcommittee and stakeholder engagement, the subcommittee chair moved to table the quorum component of the legislation and recommended studying it further in 2027. The remote participation portion of the legislation will be considered by the full FOIA Council.
The recommendations from both subcommittees will be reviewed by the full FOIA Council during their next meeting, currently scheduled for Monday, November 16 at 1:00 PM.
VML Contact: Jessica Dennis, jdennis@vml.org
VML News Board – Recent Posts
Please check the VML News Board (no password required) for the latest notices and opportunities for local governments, including recently added items such as: