eNews

 

In this issue

• Tuesday’s lava flow on the Senate floor may foreshadow volcanic eruption next week
• In the meantime…urge your Senator(s) to adopt a budget: Local governments and their citizens need a state budget sooner rather than later
• Hoarding, inoperable vehicles are topics for Housing Commission subcommittee
• Advisory opinions, religious preferences and public records definition discussed
• State ban on mining uranium headed for U.S. Supreme Court
• Running bamboo ordinance posted on VDACS website
• First Legislative Committee meeting to be held May 31

Tuesday’s lava flow on the Senate floor may foreshadow volcanic eruption next week

“Discussion” on Medicaid expansion exposes raw nerves.

After starting late in the afternoon on May 22 and approving commending and memorial resolutions, the Senate’s traditional cordiality and courtesy were snuffed out. The Senate recessed to allow the Rules Committee to exercise a procedural maneuver delaying for another week the Finance Committee’s consideration of two House budget bills (HB 5001 and HB 5002) and a joint budget proposal prepared by Chris Jones, the House Appropriations Committee chairman, and Emmett Hanger, who is co-chairman of the Senate Finance Committee.

Senate Democrats had come to Richmond expecting decisive votes to expand Medicaid coverage for up to 400,000 Virginians who are without health insurance. Their disappointment was matched by House Speaker Kirk Cox who issued a statement that “(t)he House of Delegates passed a budget five weeks ago. Since then, the Senate Finance Committee had ample time to draft a budget and put it on the floor for debate and a vote. Instead, we’ve seen a series of disappointing delays that have pushed this process late in to May.”

Gov. Ralph Northam also expressed his frustration over the turn of events. “This unnecessary delay is made more insulting to Virginians by the reality that the House of Delegates passed a budget that expands health care weeks ago, and a majority of Senators have indicated they would vote for a similar measure if the Senate would simply put one on the floor. Virginians have waited long enough. It’s time to pass a budget that expands Medicaid and invests in the future of our economy.”

Although acknowledging that Medicaid expansion is likely to pass, Senate Majority Leader Tommy Norment said the delay was necessary to allow senators to review the joint budget proposal. He announced that the Finance Committee will meet at noon next Tuesday, May 29, with a Senate floor session scheduled for 3:00 p.m. that same day. If needed, a floor session will also be scheduled for next Wednesday.

Senate Minority Leader Dick Saslaw made clear to the members that if the Finance Committee fails to put a budget bill on the floor next Tuesday, then he is prepared along with Senator Hanger to make a motion to discharge the committee from further consideration. If the motion is successful, the budget bills would be taken up by the Senate as a committee of the whole.

It was soon after Senator Saslaw spoke that the discourse fractured along ideological fault lines. It was not the Senate’s finest hour. Opponents of Medicaid expansion claimed that the program will foster more government dependency and lead to even more government intervention in the economy and in people’s lives. Proponents of expansion argued that the program is critical to address the hardships of Virginians facing and trapped by personal health and financial catastrophes.   It was clear that the two sides were talking at and not to each other.

Assuming that Senate Republicans have exhausted all of the available rope-a-dope tactics to delay a vote, Medicaid expansion may be approved. But, the floor debate leading to the voting will likely engage full-scale pyrotechnics.

VML contact: Neal Menkes, nmenkes@vml.org

 

In the meantime…urge your Senator(s) to adopt a budget

Local governments and their citizens need a state budget sooner rather than later

VML urges you to tell your state senator that localities can wait no longer. It’s time to pass the state budget. It’s time to govern. Save the policy debates for next November.

It’s quite likely that the state budget impasse will not be resolved until sometime in June. That means local governments will have to scramble to make sure all financial bases are covered.

For example:

1. Does your locality have enough cash reserves and/or new tax revenues coming in June and July to float operations until state dollars arrive? Does your school division have the fiscal capacity to operate during this timeframe?
2. Spending items you are expecting in the state budget may not arrive until who knows when. Will you have to revise your budget plan? Will the school board have to revise its budget?
3. If you built pay raises in your budget assuming state money will cover some portion of the cost increases does your budget include contingency provisions? Does your budget have enough flexibility to cover compensation increases until the state spigot is turned on? Do the teacher contracts have contingency language?
4. Do you have a plan to explain to the public the reasons for curtailing core services (and state mandates) in the absence of state dollars?
5. If you’re planning to enter the bond market for capital projects have you consulted with your financial advisors about the impact of the state budget crisis? Failure to pass the state budget before June 30 will likely shake Wall Street’s confidence in Virginia debt. If the state’s bond rating drops, then yours is likely to do so as well.  If that’s the case, then your bond issuance and interest costs will go up.
6. Is your unrestricted cash position strong enough to handle delays in state reimbursements for Compensation Board funded positions, local social services departments, urban road maintenance, and Children’s Services Act programs?
7. Are you prepared for local tax dollars to get “lost” in the state budget development abyss? Distribution of local revenues collected by or held by the state – such as local sales taxes, communications sales and use taxes, and local fines and fees imposed by the courts – could be delayed.
8. How will you handle locally administered positions and programs that are jointly funded by you and the state? Think about regional jails, community colleges, local health departments, regional commissions, etc. Do you have the cash?
9. What happens if the federal pass-through grants you are expecting from the state get held up?

Please reach out to your members of the Senate. Tell them to adopt the budget.

VML contact: Neal Menkes, nmenkes@vml.org

 

Hoarding, inoperable vehicles are topics for Housing Commission subcommittee

Matt Paxton, who was on the TV show “Hoarders,” was the featured speaker on hoarding at the May 22 meeting of the Housing Commission Subcommittee on Affordable Housing, Real Estate Law and Mortgages. Adam Kinsman, James City County Attorney, was the featured speaker on inoperable vehicles along with Christy Parrish, the James City County zoning administrator.

Hoarding

Delegate Keam brought hoarding as an issue to the attention of the General Assembly through his introduction of HB391 in the 2018 session; he told the Housing Commission today that this was an issue that should be studied and a solution that could be a nationwide model was his goal.

Hoarding affects over 14.5 million people in the United States and affects people at all income levels.   In 2014, the American Psychiatric Association deemed hoarding as a protected mental disorder. Paxton indicated that hoarding is often triggered by a traumatic event such as a death, trauma, divorce, abuse or even job loss.

It is believed that 5% of the Virginia population, roughly 424,000 people, struggle with hoarding. It is prevalent in Northern Virginia, according to Mr. Paxton based upon his experiences. Used in combination, some form of therapy and cleaning can tame hoarding disorders with a success rate of 60%, according to Paxton.

After a lot of discussion, the Housing Commission subcommittee agreed to continue to study this issue and bring in some additional speakers later in the summer.

Inoperable Vehicles

James City County has unsuccessfully attempted to be added to Virginia Code Section 15.2-905 for more than 3 years. This Code section allows localities to enforce inoperable vehicle ordinances if a vehicle is missing a valid inspection sticker or a license plate. There are over 20 localities listed in this code section. Ironically all localities can take advantage of Virginia Code Section 15.2-904 which states that the vehicle must be missing both a valid inspection sticker and license plate. The Housing Commission subcommittee agreed to look at draft language during their next meeting that may include combining the two code sections applying to all localities and tightening up the definition of “inoperable vehicle.”

VML contact: Michelle Gowdy, mgowdy@vml.org

 

Advisory opinions, religious preferences and public records definition discussed

The records and remedies subcommittees of the FOIA Advisory Council met May 21^st to consider bills sent to it for study after the 2018 General Assembly session. The full FOIA Council meets on August 22, and these subcommittees will complete their work before that meeting.

Remedies Subcommittee

The remedies subcommittee met first and took up HB213 (Mullin) relating to formal advisory opinions and immunity from civil penalties.   This legislation would require that formal advisory opinions issued and approved by the FOIA Council be published on the Council’s website. Currently the Council issues advisory opinions that are available on their website; these opinions are written by staff but they are not put before the council for approval. In addition, the bill provides that persons who rely upon a formal advisory opinion and act in compliance with the opinion shall not be found to willfully and knowingly violated certain enumerated provisions of the Act if they acted in good faith.

Senator Surovell’s SB630, which would impose additional civil penalties to the FOIA penalty code section, was the second bill considered by the subcommittee.   The Senator indicated he was trying to solve two problems with this bill: the first to deal with persons who intentionally or destroy records and the second for persons who certify closed session when it is improper to certify that only the business stated in the motion was discussed.   It was alleged that some localities were telling their employees that if they didn’t have a record (email or text message) that they couldn’t turn it over under a FOIA request because it didn’t exist and with a “wink wink” it was suggested that these records not be maintained.   The Senator went on to allege that many localities and other boards/commissions certify closed session even when it is improper.   For both of these acts, this legislation would impose an additional penalty on the person who acted intentionally.

These bills were discussed at length and additional drafts with options will be presented at their next meeting which is June 4.

Records Subcommittee

The Records subcommittee first took up HB1329 (Tran), dealing with the dissemination of information concerning religious preferences and affiliations.  The intent of the bill is to prohibit state agencies from disseminating information on individuals’ religious preferences and affiliations to the federal government for the purpose of compiling a list based on religious affiliation, national origin or ethnicity. There are some limited exceptions. This bill was recommended to be heard at the full FOIA Council meeting on August 22, 2018.

Senator DeSteph had the second bill of the day, SB730, which deals with the definition of a “public record.”   His legislation proposes to add this line to the current definition: “Records that are not prepared for or used in the transaction of public business are not public records.” This line was removed during the 3-year FOIA study that ended last year. The legislation also proposed to define “social media account” and create a new discretionary exemption for social media records of General Assembly members when the records relate to the use of a social media account by a member in his or her individual capacity. It also requires the public body to be a necessary party in enforcement proceedings. This bill, in part, is the result of litigation against a member of the General Assembly due to his/her Facebook page and the costs that he/she incurred in defending the suit.   This bill will be considered again at their next meeting on June 27.

VML contact: Michelle Gowdy, mgowdy@vml.org

 

State ban on mining uranium headed for U.S. Supreme Court

The U.S. Supreme Court agreed this week to consider whether the Commonwealth has the legal authority to ban uranium mining. Lower federal courts have ruled against the suit filed by Virginia Uranium, upholding the state’s ban that was put into effect by the General Assembly in 1982. The Fourth Circuit Court of Appeals upheld the district court decision declaring that federal law does not preempt state regulations of conventional uranium mining. The case will be heard in October.

Virginia Uranium’s request for Supreme Court intervention was boosted in April by the U.S. Solicitor General who is representing the Nuclear Regulatory Commission. The federal government’s argument is that the Atomic Energy Act gives the federal government the power to oversee all matters of radiological safety, effectively prohibiting any state from banning uranium mining over fear of radiation hazards.

At stake for Virginia Uranium is a deposit located in Pittsylvania County that is estimated to hold 119 million pounds of uranium. The value of the deposit depends on market demand but has been projected in the range of $7.0 billion to $10.0 billion. The site has the potential to supply the nation’s nuclear power plants for about two years.

Opponents of uranium mining point out that there is no large-scale uranium mining east of the Mississippi River because population density and a wet climate increase the chance of radiation contaminating streams and groundwater and exposure to humans. Several Hampton Roads cities that draw their water supplies from Lake Gaston in Southside Virginia oppose mining for this reason.

Repeated efforts over the years to persuade the General Assembly to rescind the ban have failed. Studies by the National Academy of Sciences and the National Academy of Engineering concluded that steep hurdles had to be surmounted before Virginia should lift the ban. A technical report ordered by former Gov. Bob McDonnell and prepared by several state agencies noted that a robust regulatory structure would be needed to oversee uranium mining and that there would be challenges tied to the storage of radioactive-laced rock that would have to be stored on site for generations.

VML has supported the moratorium on the mining and milling of uranium in Virginia until studies can demonstrate that such activity is safe for the environment and the public’s health.

VML contact: Neal Menkes, nmenkes@vml.org

 

Running bamboo ordinance posted on VDACS website

Bills allowing localities to adopt ordinances regulating “running bamboo” were passed in the 2017 session (HB2154 and SB964). The bills also directed the Department of Conservation and Recreation (DCR) and the Virginia Department of Agriculture and Consumer Services (VDACS) to develop a model running bamboo ordinance for localities to adopt. That model ordinance has now been developed and is posted on the VDACS website at https://bit.ly/2J1R5N7.

 

First Legislative Committee meeting to be held May 31

VML’s 2018 Legislative Committee kicks off its preparations for the 2019 session on May 31 from 10 a.m. to 2 p.m. The meeting will be held at the Virginia Society of Certified Public Accountants Center, 4309 Cox Road, Glen Allen, VA 23060.

The committee will take a deep dive into some of the issues that VML will need to develop positions on for its 2019 legislative program, including the state budget, tax reform, transportation funding and more.

The meeting also will include a review of actions taken in the regular 2018 session and an overview of how VML’s legislative program fared.

By the conclusion of the meeting, the committee will have developed a list of items for the policy committees to consider at their July 19 meetings at the Richmond Convention Center.

Bluefield Mayor Don Harris chairs the committee and Suffolk Council Member Roger Fawcett is the vice chair.

In addition to the meeting on May 31, the committee will meet Thursday, September 6, and Sunday, September 30, during the VML Annual Conference, which will be held September 30-October 2 in Hampton. The full membership will debate and vote on the 2019 legislative program at the annual business meeting held during the conference.

VML contact: Janet Areson, jareson@vml.org

 

 

In this issue

• There will be a state budget in place before July 1
• Revenue surplus shaping up for June. Could exceed $400.0 million
• Jails, housing, and funding on agenda for Deeds Subcommittee
• VML policy committees to meet July 19; Institute for Local Officials will meet July 19-20
• Don’t forget: Sign-up for webinar on summer food program
• News from VRS: New employer website set to be launched
• More VRS news: Learn about return-to-work
• Innovation awards, Stairway to Success, Go Green awards open
• Interested in serving on teacher advisory board?

 

There will be a state budget in place before July 1

But don’t ask about the details. No one knows.

The kickoff for this past Monday’s Senate Finance Committee meeting featured a statement by the committee’s co-chair, Tommy Norment, declaring that the General Assembly will pass a budget.

The roadblock to Senate passage seems to have been cleared weeks earlier by Republican Senators Emmett Hanger and Frank Wagner who have said they will not vote for a budget that does not include Medicaid expansion. The 2018 General Assembly debate on Virginia’s participation in the Affordable Care Act (“Obamacare”) pitted Gov. Ralph Northam, a majority of the House of Delegates, and nineteen Senate Democrats against 21 Senate Republicans.

If Senators Hanger and Wagner (and possibly one or two more Senate Republicans) support Medicaid expansion, their votes coupled with solid block voting by the Democrats will improve the odds that a budget for the upcoming biennium will indeed happen.

The timetable to enact the budget remains hazy. The Senate will convene next Tuesday at 3:30 p.m., but the Finance Committee has not yet scheduled a meeting to consider HB 5001 and HB 5002. Earlier this week, the committee considered 36 “suggestions” offered by Senators for the budget. A number of the suggestions affect Medicaid and K-12 education.

Assuming the Senate passes a budget with Medicaid expansion provisions next Tuesday, there still will be issues between the House and Senate that need to be ironed out, meaning a budget conference will be required. It’s possible but doubtful that the Senate will simply adopt the House budget.

The outstanding issues of interest to local governments include:

Title	Dollars	Dispute
K-12 Public Education	$170.5 million	House spending exceeds Senate’s February action
Public Employee Compensation	$233.7 million	House spending for state and state-supported employees exceeds Senate’s February action
Financial Assistance for Local Police Departments (HB 599)	$7.2 million	Senate cut FY20 amount recommended by Gov.
Stormwater Local Assistance Fund	$20.0 million	Senate spending exceeds House’s action on HB 5002
Communications Sales and Use Tax	$4.0 million	Senate transferred revenue to state general fund in February. House budget does not include the transfer.

 

Localities should also insist that any expansion of Medicaid must include sufficient state resources for local departments of social services to properly manage eligibility determinations and, if enacted, work requirement provisions. Skimping on essential administrative costs would put any expansion effort at risk for delay and fraud.

And, local governments should be wary about any budget language that mandates, without increasing state funding, the hiring of additional Commonwealth’s Attorneys based on the number of body cameras worn by local police officers. No credible study has been done in the Commonwealth to assess the workload on the courts and Commonwealth’s Attorneys as well as the financial impact on local budgets.

VML members should take the opportunity before budget conference begins to remind their delegates and senators about the importance of these local-oriented issues.

 

Revenue Surplus Shaping Up For June. Could exceed $400.0 million

Governor says surplus needs to be used as a cash reserve to preserve Virginia’s bond rating

The April Revenue Report prepared by Secretary of Finance Aubrey Layne for Gov. Ralph Northam lauded the 17.8 percent increase in general fund revenue collections in April over the same period a year ago.

On a fiscal year-to-date basis, total revenue collections rose 6.7 percent through April, ahead of the annual forecast of 3.4 percent growth. Collections in individual withholding, individual non-withholding, sales, and corporate income taxes are all exceeding the annual estimates.

In fact, state tax collections could decrease by 8.8 percent in May and June and the state would still meet the official forecast. (Last year revenues increased by 3.7 percent in May and June.)

However, Secretary Layne in Monday’s Senate Finance Committee meeting pointed out several areas of concern. The first concern is individual income tax non-withholding. Collections in this area were $876.9 million compared with $628.2 million in April of last year, an increase of 39.6 percent. To date, non-withholding collections are 23.6 percent above the same period last year, well ahead of the annual estimate of a 4.3 percent increase. This good news is tempered by the volatility of non-withholding collections, meaning it is subject to large swings both up and down. And, in FY 2018, a significant number of high-income tax payers who paid the tax have not yet filed their state tax returns. Layne thinks a large portion of these individuals will be owed refunds, driving down the collections amount.

The second concern is centered on Virginia’s coveted triple-A bond rating. The Commonwealth’s overall cash reserve balances and reserve balances measured as a percent of general fund expenditures rank last among the twelve states holding AAA rating from all three major rating agencies.

	Rainy Day Fund Balances ($s in millions)			Rainy Day Fund Balances (% of Expenditures)
	FY 2016	FY 2017	FY 2018	FY 2016	FY 2017	FY 2018
Delaware	$215	$221	$232	5.5%	5.4%	5.6%
Georgia	2,033	N/A	N/A	9.3%	N/A	N/A
Indiana	1,468	1,474	1,434	9.8%	9.5%	9.2%
Iowa	729	605	624	10.1	8.3	8.6
Maryland	832	832	859	5.0	4.8	5.0
Missouri	291	294	304	3.2	3.2	3.3
North Carolina	1,575	1,838	1,838	7.4	8.3	8.0
South Dakota	143	157	165	9.8	10.2	10.4
Tennessee	568	668	800	4.5	4.9	5.5
Texas	9,715	10,297	10,457	18.0	19.2	19.1
Utah	493	493	493	7.8	7.7	7.4
Virginia	236	549	283	1.2	2.7	1.4
Source: “The Fiscal Survey of States, Fall 2017”, National Assoc of State Budget Officials

 

Virginia’s cash reserves are at historic lows because governors and the General Assembly have relied on the Rainy Day Fund to pay for ongoing expenses in both bad and good economic times.

Under Virginia’s Constitution, the estimated maximum dollar amount authorized for the state’s Rainy Day Fund would be almost $2.6 billion, a far cry from the $283 million projected for FY 2018.

If actual collections in FY18 exceed the revenue forecast, then roughly one of every two dollars collected after the first $100.0 million will be required to be deposited to the Rainy Day Fund. This will not be enough to convince Wall Street that Virginia deserves to hold on to its bond rating.

Secretary Layne told the Finance Committee members that to remove the negative outlook from Standard and Poor’s and to maintain the triple-triple-A ratings, the state needs to rebuild reserves and demonstrate sustainable structural balance as a matter of policy. In fact, the state’s financial advisor recommends that the Commonwealth adopt a plan to phase-in the rebuilding of cash reserves relative to revenues or expenditures to a level of at least eight percent.

This sobering assessment is coupled with significant uncertainty on future federal spending in Virginia. The state is the number one recipient of federal defense dollars. The Commonwealth’s dependency on individual income and sales taxes (approximately 88.0 percent of all general fund dollars) is another issue. And, the state’s reaction to federal tax reform will also affect efforts to rebuild cash reserves. In past years, “tax reform” in Virginia has meant tax cuts.

Why is this important to local governments? If the state itself is facing major financial challenges, then will the state take the necessary actions to assure the financial sustainability of local governments to deliver essential public education, public safety, and infrastructure services?

 

Jails, housing, and funding on agenda for Deeds Subcommittee

Examining the financial and administrative alignment and responsibilities of the publicly-funded mental health system, including community-based responsibilities and local funding is among the priority issues to be studied by the Joint Subcommittee to Study Mental Health Services in the Commonwealth in the 21^st Century. Other priority issues include finding alternatives for people with mental illness who wind up in local and regional jails; expanding supportive housing to keep people with mental illnesses in a stable setting and out of jails, hospitals, or homeless on the streets; and tackling the issue of “rightsizing” the state hospital system to alleviate increasing admissions as the result of “last resort” legislation passed a few years ago. The Deeds study, as it is generally referred to, is named for Senator Creigh Deeds of Bath County. Deeds championed a study of Virginia’s system following the death of his son, Gus, in 2013. The study began in 2014 and was recently approved for another two years of work.

Two major new players at the table this year are Behavioral Health and Developmental Services Commissioner Hughes Melton, M.D., a family practitioner who previously served as a deputy commissioner at the Virginia Department of Health, and Secretary of Health and Human Resources Daniel Carey, a cardiologist and former hospital administrator from Lynchburg. Neither has a background in the behavioral health system.

The Deeds Joint Subcommittee held its first meeting of the year at Eastern State Hospital in Williamsburg, which included a tour of the facility for study members, a meeting of the full subcommittee with remarks from both Dr. Carey and Dr. Melton, and a meeting of the workgroup on system structure and financing.

This workgroup approved its workplan for the year, which will again hold importance to local governments. The group will look at 1) existing models of service delivery and operation, including the legal relationships and roles of CSBs, the state department and its board, private providers, and the Department of Medical Assistance Services; 2) other models of mental health service delivery (e.g., other states’ public service systems and other potential models of state and local cooperation for service delivery); and 3) building a new system (i.e., options, reforms, and stakeholders to be involved). These include big issues potentially affecting local governments, including administrative and funding responsibilities.

The joint subcommittee’s next meeting is scheduled for June 5 at Central State Hospital in Petersburg. Information about the study and joint subcommittee/workgroup meetings may be found on the Division of Legislative Services website.

Contact: Janet Areson jareson@vml.org

 

VML policy committees to meet July 19; Institute for Local Officials will meet July 19-20

VML’s six policy committees will meet on Thursday, July 19, at the Greater Richmond Convention Center. We are moving back to a one-day format, with three committees meeting in the morning; lunch for all participants mid-day; and three committees meeting in the afternoon. Moving to a one-day format will allow more members to carpool together to the meetings and see more colleagues at the mid-day lunch.

The following committees will meet from 9:30 a.m. to 12 noon:

• General Laws
• Human Development & Education
• Transportation

These committees will meet from 1:00 – 3:30 p.m.:

• Community & Economic Development
• Environmental Quality
• Finance

Many local governments have returned their policy committee nomination forms; if you have not, there is still time to sign up for committees! Please email Janet Areson at VML (jareson@vml.org) to get policy committee information and a locality nominations form.

Finally, VML will hold its Institute for Local Officials starting the evening of July 19 and all-day July 20. We hope this cuts down on travel time for people who may be attending the policy committees and the conference! Register on-line at https://www.vml.org/education/conferences/institute-for-local-officials-2/. A draft agenda is posted there as well. This conference will be an excellent overview for newly-elected officials and incumbents as well.

 

Don’t forget: Sign-up for webinar on summer food program

Before you kick off your Memorial Day weekend, join First Lady Pamela Northam and Richmond Mayor Levar Stoney on May 24^th from 2:15 – 2:45 pm for a webinar on how you can support the Summer Meals Program in your community.

During the summer months, children from low-income families lose access to school breakfast and school lunch. For many Virginia children, summer is the hungriest time of the year.

The Summer Meals Program provides free summer meals to kids. Unfortunately, because of a lack of awareness and availability, only 15% of Virginia children who rely on free or reduced-price school lunches are also getting free meals during the summer.

Find out how your locality can get involved. RSVP to Sarah Steely at sarah.steely@doe.virginia.gov or (570) 854-5023 for call-in information.

 

News from VRS: New employer website set to be launched

VRS will soon introduce a redesigned website for employers that will include several new sections, including:

• Quick Topics: Links to some of the most helpful pages on the site.
• Employer Hub: Fast access to resources such as the employer manual, employer update, publication orders, return-to-work guidelines and VRS’ hybrid and defined contribution administrative sites.
• News and Insights: Highlights to help you stay up to date on news and action items.

Once the site is live, you can click the Employers tab on varetire.org.

 

More VRS news: Learn about return-to-work

Employees who retire under VRS may work for any non-VRS employer and continue to receive their retirement benefits. However, if a VRS retiree returns to covered employment — usually meaning a full-time, salaried position with an employer that participates in VRS — the employer will begin to report the employee to VRS, retirement benefits will stop, and the retiree will become an active member once again. Some part-time permanent, salaried state positions also are covered.

VRS has guidelines to help ensure compliance with all applicable Internal Revenue Service and VRS rules regarding the hiring of retirees. The May 2018 VRS Employer Update has more details posted at https://bit.ly/2KNrRjs, including information on rehiring retirees on an interim basis and rehiring retirees for consulting or independent contractor services. Be aware that under some circumstances, the employer, not the retiree, may be required to repay to VRS any retirement benefits a retiree who is rehired receives. Additional information is available on the VRS website.

 

Innovation awards, Stairway to Success, Go Green awards open

Three types of awards will be made at the 2018 VML Annual Conference, to be held September 30-October 2 in Hampton. Recipients also will be recognized in Virginia Town & City.

The Innovation Awards recognize outstanding achievements in local governments across Virginia. This program-and its successor Achievement Awards- is 40 years old and is recognized as Virginia’s highest honor in local government creativity. Don’t miss this opportunity to spotlight programs that have made a big difference to your residents – to celebrate innovative solutions that address emerging needs. The call for entries: https://www.vml.org/education/innovation-awards

The third year of the Stairway to Success program is also underway! The program has been revamped but remains true to its original purpose of encouraging local government participation in early childhood education. The application process and a checklist of actions that count toward recognition are posted on VML’s website. Additional information is here: https://www.vml.org/education/stairway-to-success/

Go Green Virginia is celebrating its 10^th year! The Go Green Challenge opened May 15; check out the details at http://www.gogreenva.org/. Participating in this friendly competition will help local governments implement specific environmental policies and practical actions that reduce carbon emissions – and save money! Local governments can garner points by taking specific actions and be recognized as certified, silver, gold or platinum green governments.

 

Interested in serving on teacher advisory board?

The Virginia Board of Education is seeking nominees to serve as the classroom teacher (Middle) representative on the Advisory Board on Teacher Education and Licensure for the unexpired term of July 1, 2016 to June 30, 2019.

Nominations may be made by completing the nomination form attached to Superintendent’s Memo #124-18. Please send the completed form to Emily Webb, Director of Board Relations, P. O. Box 2120, Richmond, VA 23218-2120.  Nominations may also be submitted by e-mail to Emily.Webb@doe.virginia.gov.

Nominations must be received by Friday, May 25, 2018.

 

Inside this issue

• Enough is enough. Pass a budget.
• Housing Commission work gets underway
• Northam, Stoney summer meals program conference call scheduled for May 24
• FOIA council tackles lengthy list of issues
• School safety committee looks at past initiatives, new directions
• State policymakers consider proposed transportation spending
• Nominees sought for city governing body member on CSA oversight board
• Policy committees, institute for local officials scheduled for July
• Broadband Advisory Council updated on legislation

 

Enough is enough. Pass a budget.

Question: What do the 2012, 2014 and 2018 legislative sessions of the General Assembly have in common?

Answer: For the third time in six years, the General Assembly has failed to pass a budget during its regular sessions. The issue this year as was the case in 2014 is Medicaid expansion under the Affordable Care Act (“Obamacare”).

This federal legislation has proved to be a magnet for controversy, fueling partisan passions in national and state elections and in legislative bodies and the federal courts. Notwithstanding a blizzard of law suits, the U.S. Supreme Court has upheld the law’s constitutionality.

On the political front, the Affordable Care Act has proven to have more lives than any cat, surviving over 50 attempts since 2009 in the House of Representatives to repeal, or repeal and replace, or modify the law. Legislative efforts in the Senate to repeal the Affordable Care Act have also fizzled.

In Virginia, the General Assembly passed budget language in the 2013 session, mandating a series of reforms to Medicaid as well as establishing the Medicaid Innovation and Reform Commission. The legislature and the governor made Virginia’s participation in Medicaid expansion contingent upon the development and implementation of cost-saving, effective reforms of the state’s Medicaid Program.

By April 2014, Virginia’s Secretary of Health and Human Resources reported that the Commonwealth had begun implementing innovations in service delivery and program administration and was engaging Medicaid recipients to take an active role in the quality of their health care and in sharing responsibility for wisely using Medicaid dollars.

VML itself has wrestled with Medicaid expansion. Members approved language in the organization’s 2018 Human Development and Education Policy Statement to endorse expansion of state Medicaid eligibility. (VML’s support is conditioned on the Commonwealth appropriating sufficient resources to cover increases in the workload and costs for local departments of social services.)

Holding up passage of the state budget over Medicaid expansion is wrong. The federal law is not going away. But, time is fading for local governments to pass their budgets and have them in place by July 1.

Budgeting is always a difficult task, and the difficulty in matching available resources with local needs is compounded by the uncertainty of the state’s inaction. Education, law enforcement, social services, and a myriad of other programs are put at risk if the budget impasse continues through the Spring.

Medicaid expansion is a settled issue. But, the amount of state financial assistance for localities to carry out state-mandates and state high-priority programs is up in the air.

Scrambling at the last minute to put together local budgets is no one’s idea of a best management practice.

It’s time for the General Assembly to accept Medicaid expansion and pass a state budget.

 

Housing Commission work gets underway

The Virginia Housing Commission on April 17 began its work by creating three subcommittees: Affordability, real estate law and mortgages; common interest communities; and neighborhood transitions and residential land use. Topics to be studied are linked here.

The neighborhood transitions and residential land use subcommittee will meet May 7^th at 10:00 am in the state Capitol to talk about tiny houses. The affordable housing, real estate law and mortgages subcommittee will meet on May 22 same time and place; the word is that the focus will be on hoarding.

 

Northam, Stoney summer meals program conference call scheduled for May 24

A good way to kick off the Memorial Day weekend is to join First Lady Pamela Northam and Richmond Mayor Levar Stoney on May 24^th from 2:15 – 2:45 p.m. for a conference call to learn about how localities can support the Summer Meals Program in your community.

During the summer months, children from low-income families lose access to school breakfast and school lunch. For many Virginia children, summer is the hungriest time of the year.

The Summer Meals Program provides free summer meals to kids. Unfortunately, only 15% of Virginia children who rely on free or reduced-price school lunches are also getting free meals during the summer. Why is there a gap between the children in need and the children who participate in the summer meals programs? The answers relate to availability and awareness. Some children do not have a feeding site nearby. Others, although they live near a feeding site, are not able to access the meals due to transportation issues. Finally, many families are not aware that the programs exist. There are also misperceptions about who is eligible to participate. All kids, age 18 and under, are invited to participate regardless of need.

Please RSVP to Sarah Steely at sarah.steely@doe.virginia.gov or (570) 854-5023 for call-in information.

 

FOIA council tackles lengthy list of issues

The FOIA Council has set a host of subcommittee meetings, all to take place in the Pocahontas Building. The first is the remedies subcommittee that will meet May 21^st at 10:00 a.m. to discuss formal advisory opinions and immunity, as well as civil penalties for FOIA violations. The records subcommittee will meet at 1:30 p.m. that same day with a focus on the definition of “public record” and the Government Data Collection and Dissemination Practices Act. Additional meetings of this subcommittee are set for June 27 at 10:00 a.m. and August 8^th at 1:00 p.m. The meetings subcommittee will meet June 5 at 10:00 a.m. to discuss the right to speak at open meetings and the use of text messages during a public meeting. No future meetings are currently scheduled.

 

School safety committee looks at past initiatives, new directions

Looking towards potential legislative and budgetary recommendations for the 2019 General Assembly Session, the House Select Committee on School Safety, chaired by House Speaker Kirk Cox, got right to work at its first meeting on April 26 in Richmond.

The creation of the committee was announced by Speaker Cox soon after the Stoneman Douglas High School massacre. According to a March 8 letter from Speaker Cox to House Clerk Paul Nardo, the select committee’s scope of work is limited to:

• reviewing state and local policies relating to school security and protection, including strengthening emergency preparedness;
• hardening school security infrastructure;
• implementing security best practices;
• deploying additional security personnel;
• providing additional behavioral health resources for students; and
• developing prevention protocols at primary and secondary institutions

Chairman Cox, assisted by Vice Chair Danny Marshall, announced that a website had been created for the select committee: https://schoolsafety.virginia.gov/ with meeting information, materials, and a public comment/feedback section.

Three subcommittees will carry out the majority of the work and will meet independently throughout the summer and early fall. The subcommittees are as follows:

• Infrastructure and Security
• Prevention and Response Protocol
• Student Behavior and Intervention

Also at the first meeting of the committee, members received an overview of findings and recommendations made by a 2013 School Safety Task Force formed by then-Governor Bob McDonnell. The committee also heard a presentation on school safety laws in Virginia by Donna Michaelis, manager of the Virginia Center for School and Campus Safety with the Virginia Department of Criminal Justice Services.

The committee held a general discussion following the presentations during which a number of members suggested areas of possible examination. It was noted that several members had already toured schools within their districts; Vice Chair Danny Marshall suggested that members coordinate with their city councils/boards of supervisors for visits to their local schools.

The committee’s next meeting will be held in June, the date and location to be announced.

State policymakers consider proposed transportation spending

Members of the Commonwealth Transportation Board (CTB) were presented in April with the draft Six-Year Improvement Program (SYIP) FY 2019 – FY 2024. The proposed $20.1 billion draft was prepared by VDOT and the Department of Rail and Public Transportation (DRPT).

Historical Comparison of SYIPs  ($s in billions)
	FY16-21	FY17-22	FY 18-23	Draft           FY19-24	$ Change    FY18-23	% Change  FY18-23
Highway Construction	$9.9	$10.7	$15.2	$16.9	$1.7	11.2%
Rail & Public Transp.	$3.4	$3.7	$3.4	$3.2	($0.1)	(5.9%)
Total SYIP	$13.3	$14.4	$18.6	$20.1	$1.5	8.1%
Source: VDOT Submission to CTB, April 17, 2018

Road Construction Highlights:

The optional construction formula approved in the 2012 legislative session remains in place through FY 2020. Under the optional formula, an amount not to exceed $500.0 million is distributed as follows:

• 25% to bridge construction and rehabilitation;
• 25% to advance high priority statewide projects;
• 25% to reconstruct deteriorated interstate and primary pavements;
• 15% to undertake public-private transportation projects;
• 5% to pave unpaved roads carrying more than 200 vehicles per day; and
• 5% to promote smart roadway technology.

Funding for the Revenue Sharing Program would be maintained at $100.0 million (state share) annually.

Allocations under the draft SYIP for the State of Good Repair Program would be $1.3 billion. The FY 2024 allocation for the Construction District Grant Program would be $213.7 million. An additional allocation in FY 24 of $213.7 million would be made available for the High Priority Projects Program.

SMART SCALE updates would not be made until Round 3 applications are submitted in the FY 2020-2025 SYIP. The schedules for updating other construction programs are:

• State of Good Repair – programmed annually
• Regional Surface Transportation Program (RSTP) – programmed annually
• Congestion Mitigation Air Quality (CMAQ) – programmed annually
• Highway Safety Improvement Program (HSIP) – programmed annually
• Revenue Sharing Program – programmed odd years only
• Transportation Alternatives (TA) – programmed odd years only

The proposed FY 2019 – 2024 SYIP will support more than 3,700 projects with 459 new projects added.

Rail and Transit Highlights:

The table below shows allocations for DRPT’s rail programs under the draft SYIP.

Rail SYIP Allocations by Major Program  ($s in millions)
	FY 19	FY 20	FY 21	FY 22	FY 23	FY 24	FY19-24 Total
Passenger/Freight	$131	$154	$111	$103	$83	$17	$599
Preservation	$8	$6	$7	$5	$5	$4	$35
Total	$139	$160	$118	$108	$88	$21	$634
Source: DRPT, Draft Six-Year Improvement Program FY 2019-2024, CTB, April 2018

 

DRPT assigns the decline in allocations for passenger and freight to an uncertain economic outlook that hampers long range planning done by the agency’s railroad partners.

For transit programs, DRPT proposes establishing an operating and capital reserve in FY 2019 that would total $10.0 million. This is the maximum balance that can be reserved under state law.

 

Transit SYIP by Program  ($s in millions)
	FY 19	FY 20	FY 21	FY 22	FY 23	FY 24	6-Yr Tot	Percent
Operating	$117	$122	$123	$125	$126	$128	$741	28.5%
Capital	$111	$102	$111	$113	$106	$97	$640	24.6%
Other	$5	$9	$9	$9	$9	$10	$51	2.0%
WMATA	$223	$224	$214	$168	$169	$172	$1,170	45.0%
TOTAL	$456	$457	$457	$415	$410	$407	$2,602

 

Comparison of Past and Proposed SYIP Allocations  ($s in millions)
	FY 15-20	FY 16-21	FY 17-22	FY 18-23	FY 19-24
Public Transit	$2,730	$2,816	$2,928	$2,605	$2,602
Rail	$502	$558	$799	$823	$634
TOTAL	$3,232	$3,374	$3,727	$3,428	$3,236

 

DRPT expects to switch over to a new project prioritization process beginning in FY 2020. In an April 30 presentation made to the Transit Service Delivery Advisory Committee (TSDAC), DRPT proposed a state match of 68.0 percent, which would be the maximum state contribution relative to a project’s total cost. In fact, the state share would be the lesser of the 68.0 percent participation rate applied to a project’s total cost or the remaining need after federal and local funding is deducted from total cost. The new approach would replace the variable state match rates now applied to the three-tiered project categories.

The state agency also recommended an alternate approach for scoring projects that would split funding between State of Good Repair project applications like bus replacements and Minor Enhancement projects like maintenance facilities, bus shelters, and maintenance equipment and parts.

Next Steps:

The CTB will conduct public hearings on the draft SYIP prior to approving the draft along with any revisions at its June meeting in Richmond.

 

Nominees sought for city governing body member on CSA oversight board

The seat for a city governing body member on the State Executive Council (SEC) for the Children’s Services Act is open and nominees are being sought. This is a gubernatorial appointment.

The SEC provides administrative and policy oversight of the Children’s Services Act and the Office of Children’s Services. Its membership includes the Secretary of Health and Human Resources, department heads of the state agencies involved with CSA, a juvenile and domestic relations judge, a member of the Virginia House and Senate of Virginia, private provider representatives, and five local government representatives, including city and county chief administrative officials and governing body members. Appointments are three years in length; a member cannot serve more than two consecutive terms.

The SEC’s work is important to local governments because policies approved by the Council affect how local governments administer CSA and the requirements localities must meet. These policies can carry fiscal impacts.

The SEC meets at least four times each year, most often in the Richmond area. The meetings usually run from 9:30 a.m. to noon. The SEC also has some subcommittees, which meet infrequently and independently of the full SEC.

If you are interested in serving on the SEC, you can fill out a nominations form on the Secretary of the Commonwealth’s webpage. For more information about CSA/SEC, look at the CSA website, or email Janet Areson at VML, jareson@vml.org.

 

Policy committees, institute for local officials scheduled for July

VML’s six policy committees will meet July 19 in Richmond for a day of briefings and policy developments. These six policy committees create policy statements that guide our lobbying efforts and steer VML’s legislative process. The committees are: Community & Economic Development, Environmental Quality, Finance, General Laws, Human Development & Education and Transportation. Having these meetings on the same day allows our members to have time to talk with each other and share rides. Additional information on the location is forthcoming. If membership on the committees has changed due to elections on May 1 (or other reason), let Joni Terry know (jterry@vml.org).

This summer’s Institute for Local Officials will piggyback on the policy committees-thereby saving travel time and money! We hope that newly-elected officials as well as incumbents will stay on for an evening event on July 19, followed by a full day of educational sessions on July 20. The agenda for the conference will include council/manager relations, the Freedom of Information Act, the Conflict of Interests Act, budgeting and more. Details as to the cost and location are being finalized and will be distributed soon but, in the meantime please mark your calendars and plan to attend.

 

Broadband Advisory Council updated on legislation

The Broadband Advisory Council met April 30 to receive a legislative update as well as discuss their business for the upcoming summer. A Commonwealth Broadband Chief Advisor position was created by the General Assembly and the Secretary of Commerce and Trade has been directed to ask the Center for Innovative Technology to study the feasibility of a statewide dig once policy, including the installation of conduits with bridge and tunnel construction projects. Further, the wireless infrastructure bills require the Secretaries of Commerce and Trade and Public Safety and Homeland Security to convene a workgroup to develop a plan for expanding access to wireless services in unserved and underserved areas of the Commonwealth. The Center for Innovative Technology also presented on their activities during 2017.

 

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VML legislative staff and assignments

Michelle Gowdy – Local government authority, planning and zoning, legal matters, housing, Freedom of Information, telecommunications and technology. mgowdy@vml.org; 804-523-8525

Janet Areson – Health and human services, and the state budget. jareson@vml.org; 804-523-8522

Neal Menkes (under contract) – Taxation and finance, the state budget, transportation funding, retirement, education funding and community and economic development. nmenkes@vml.org; 804-523-8523

Roger Wiley (under contract) – Courts, criminal law, civil law, and procurement. roger@heftywiley.com; 804-780-3143

Chris LaGow (under contract) –Insurance and workers’ compensation. chris@lagowlobby.com; 804-225-8570

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