eNews Jan 13 2017
Friday, January 13, 2017 - 01:30pm
Legislation from the Virginia Cable Telecommunications Association poses problems for localities
Previously VML sent out information from the Virginia Cable Telecommunications Association that contained “concepts” for a bill. The bill is HB2108 by Delegate Byron and contains some changes from the concepts but is fairly similar. Please provide comments and let your legislators know how problematic this bill would be for localities.
VML contact: Michelle Gowdy, mgowdy@vml.org
Wireless infrastructure bill from last year is back – and it’s still not good
HB2196 from Delegate Kilgore is the patron on this bill which originated from Sprint. VML has fought this bill and will continue to do so. This bill has significant ramifications for local government including the use of public property without proper remuneration, loss of local land use control and blind permit approvals essentially due to the restrictions on what local governments could review. Please provide comments and talk with your legislators regarding this proposal. For a good primer on the issues and talking points, check out this article from the December issue of Virginia Town & City.
VML contact: Michelle Gowdy, mgowdy@vml.org
Restrictions on lobbying by VML, VACo, other associations proposed
Is VML too successful in representing local interests? Are local interests too trivial for legislators to even consider? At least one member of the General Assembly appears to think so. SB 1157 (Reeves) would prohibit political subdivisions and any of its associations from using public funds to lobby on behalf of the subdivisions. Further, funding for lobbying activities would have to be held in a separate bank account. In addition, associations would be required to go through an additional registration process and register as lobbyists any local officials who lobbied for the association. The bill, in effect, would curtail local voices. State decision makers would be deprived of the information they need to make the best decisions.
The bill will be heard in the Senate Rules Committee, which has not yet scheduled a meeting. Please get in touch with members of the committee, whether or not they are in your local delegation, to oppose the bill. Members are: McDougle (Chairman), Norment, Hanger, Newman, Ruff, Wagner, Obenshain, Vogel, Stuart, Stanley, Carrico, Reeves, Saslaw, Locke, Dance
Talking points:
- Since Virginia is a Dillon Rule state, much of the legislation introduced each session affect local governments.
- Legislators rely on associations such as VML, VACo, Virginia First Cities, Virginia School Boards Associations, Virginia Association of School Superintendents and others to explain the effects of proposed legislation on the operation of local government.
VML contact: Mary Jo Fields, mfields@vml.org
Real property tax exemption amendments eat away at real estate tax
Two constitutional amendments that will further erode local real estate tax authority are before the General Assembly.
HJ 562 (Miyares) and HJR 697 (Byron) deletes current language that limits the tax exemption for surviving spouses of those soldiers killed in action to the principal place of residence by allowing the tax exemption to follow the surviving spouse to a different place of residence. There may be a fiscal impact, but it is indeterminate.
SJR 284 (Stuart) extends the real property tax exemption for the principal residence of the surviving spouse of a member of the armed forces killed in action to any member who died in a combat zone but was not killed in action. There would be a fiscal impact as well.
The General Assembly should not be using local taxing authority to grant property tax exemptions. Local governments are not responsible for raising armies and sending Americans in uniform into war zones. If the state believes the federal government is failing the families of Americans killed in combat, then it is up to the General Assembly to pay for the exemptions.
HJR 697 will be heard at the 8 a.m., Monday, Jan. 16 meeting of the House Privileges & Elections Constitutional Amendments Subcommittee. Subcommittee members are: Minchew (Chairman), Miller, Hugo, Miyares, Lindsey, Price, Cole. HJR 562 will be heard by the same committee, perhaps on Jan. 23.
SJR 284 will be heard by the Senate Privileges and Elections Committee Tuesday, Jan. 17 at the committee’s 4 p.m. meeting. Committee members are: Vogel (Chairman), Howell, Deeds, Edwards, Reeves, Ebbin, Chafin, DeSteph, Chase, Sturtevant.
VML contact: Mary Jo Fields, mfields@vml.org
Optional authority to move away from fair market value proposed
HJR 577 (Cole) applies to property that has a significant increase in fair market value due to public improvements. The amendment would give localities the authority to reduce the assessed value of the property by an amount established by the General Assembly until the property is sold or the owner dies. VML has a practice of not testifying for or against resolutions that are local option.
The amendment will be heard 8 a.m., Monday, Jan. 16 in the House Privileges & Elections Constitutional Amendments Subcommittee. Subcommittee members are: Minchew (Chairman), Miller, Hugo, Miyares, Lindsey, Price, Cole.
VML contact: Mary Jo Fields, mfields@vml.org
Tangible property tax amendment introduced
HJR 706 (Rush) would grant localities the authority to exempt from taxation the first $5,000 of value of tangible personal property used in a business. Again, VML has a practice of not testifying for or against resolutions that are local option.
The amendment will be heard in the House Privileges & Elections Constitutional Amendments Subcommittee, probably at the meeting on Jan. 23. Subcommittee members are: Minchew (Chairman), Miller, Hugo, Miyares, Lindsey, Price, Cole.
VML contact: Mary Jo Fields, mfields@vml.org
School board taxing authority proposed
HJR 634 (Cole) is a constitutional amendment that would allow the General Assembly to grant elected school boards the authority to levy real estate taxes.
The amendment will be heard at the 8 a.m., Monday, Jan. 16 subcommittee meeting. Subcommittee members are: Minchew (Chairman), Miller, Hugo, Miyares, Lindsey, Price, Cole.
VML contact: Mary Jo Fields, mfields@vml.org
Call to oppose charter school constitutional amendments
HJR 629 (Bell, R. B.) and SJR 240 (Obenshain) would grant the state Board of Education the authority to establish charter schools. VML’s policy statement includes this language: “The state should not take any actions that limit or reduce authority of local school boards and local governing bodies to finance and manage local schools. Local school boards should retain the responsibility for approving applications for charter schools. Otherwise, decisions that affect the funding of public schools potentially could be made by a statewide, appointed body that has no direct connection to the council or board of supervisors.”
HJR 629 will be heard by the House Privileges & Elections subcommittee on constitutional amendments, perhaps at its Jan. 23 meeting. Please call or email members in opposition. The members are: Minchew (Chairman), Miller, Hugo, Miyares, Lindsey, Price, Cole.
SJR 240 will be heard by the Senate Privileges and Elections Committee Tuesday, Jan. 17 at the committee’s 4 p.m. meeting. Committee members are: Vogel (Chairman), Howell, Deeds, Edwards, Reeves, Ebbin, Chafin, DeSteph, Chase, Sturtevant.
VML contact: Mary Jo Fields, mfields@vml.org
Election recall process proposed
HB 1733 (Anderson) would set up a process for the recall of elected officers. The process would start with a petition signed by at least 20 percent of the total number of votes cast at the last election for the office the officer holds. VML has no position at this time. The bill will be heard in the House Privileges & Elections Subcommittee on Elections, which meets Tuesdays at 7:30 a.m. Members of the subcommittee are: Ransone (Chairman), Landes, Fowler, Adams, Sickles, Torian, Cole.
VML contact: Mary Jo Fields, mfields@vml.org
Call to support redistricting reform
Both the House and Senate Privileges and Elections Committees will hear several constitutional amendments and bills designed to reform the decennial redistricting process. VML supports redistricting reform, including the use of a non-partisan independent commission to draw state legislative and Congressional lines based on specified and consistent criteria, including, insofar as possible, preservation of the integrity of existing city, town, county and precinct lines.
Please call the members of the Constitutional Amendments Subcommittee of House Privileges & Elections in support of HJR 628 (Plum) and HJR 651 (Carr). Both constitutional amendments would establish a commission to redraw district lines, and call for the recognition of existing political boundaries. The amendments are not identical, but the important point is that they promote redistricting reform. This subcommittee has been the graveyard for reform efforts in past years, but it is important to keep the pressure on. Measures probably will be heard on Jan. 23. Subcommittee members are: Minchew (Chairman), Miller, Hugo, Miyares, Lindsey, Price, Cole.
At least nine measures supporting redistricting reform are before the Senate Privileges & Elections Committee for its Tuesday, Jan. 17 meeting. The committee has supported similar measures in past years, but it would be helpful to express support for redistricting reform to the committee members: Vogel (Chairman), Howell, Deeds, Edwards, Reeves, Ebbin, Chafin, DeSteph, Chase, Sturtevant
Here is a list of some of the measures before the Senate committee:
SB 846 Virginia Interim Redistricting Commission; criteria for remedial redistricting plans.
SB 878 Congressional and state legislative districts.
SB 1133 Voter referendum; independent redistricting commission.
SB 1206 Redistricting process.
SB 1410 Congressional and state legislative districts; compactness standard.
SJ 260 Constitutional amendment (first resolution); Virginia Redistricting Commission.
SJ 269 Constitutional amendment (first resolution); Virginia Redistricting Commission.
VML contact: Mary Jo Fields, mfields@vml.org
Local fiscal stress study proposed
SJR 278 (Hanger) would establish a 15-member joint subcommittee to study local government fiscal stress. The two-year joint subcommittee would review (i) the taxing authorities of local governments, including the disparity between city and county tax authority; (ii) local responsibilities for service delivery of state-mandated or high priority programs, (iii) causes of fiscal stress among local governments, (iv) the current state tax system, including the future of the car tax; and (v) potential financial incentives and other governmental reforms to encourage increased regional cooperation and consolidation of services. The 15-member subcommittee would include eight legislators and seven citizens, four representing VACo and three representing VML.
At this point, it is not clear if the study resolution will be considered first in a subcommittee or by the full committee. Meeting dates have not been set. Members of the full committee are: McDougle (Chairman), Norment, Hanger, Newman, Ruff, Wagner, Obenshain, Vogel, Stuart, Stanley, Carrico, Reeves, Saslaw, Locke, Dance
VML contact: Mary Jo Fields, mfields@vml.org
Two proposed studies that local governments need to watch
SJ289 is a proposed study requested by Senator Ebbin regarding the conflict of interest disclosure forms and the “procedures for the filing and review of disclosure forms by local government officers and employees.” The language in the study seems to suggest that local governments should file their forms electronically so that the public has better access. The study is to be completed by the Virginia Conflict of Interest and Ethics Advisory Council by November 30, 2017.
HJ705 is a proposed study by Delegate Yancey encouraging localities to streamline permitting processes. The proposal encourages VML and VACo to develop best and uniform practices for permitting processes by localities throughout the Commonwealth. When discussing this proposal with the Delegate, he indicated that more consistency in permitting will help economic development.
VML contact: Michelle Gowdy, mgowdy@vml.org
Interstate Compact proposed to oversee Washington Metrorail Safety
Legislation (SB 1251 and HB 2136) has been introduced to set up a new Interstate Compact for Virginia, the District of Columbia, and Maryland to create a state safety oversight authority for the WMATA Rail System (“Metrorail”). This entity would have exclusive safety oversight authority pursuant to federal law, be responsible for developing and adopting a written state safety oversight program standard, be empowered to investigate incidents and accidents, be able to require corrective actions, and meet other federal and state safety requirements.
Federal law mandates states provide safety oversight to heavy rail transit systems operating under their jurisdiction. Because of a long litany of problems, the Federal Transit Administration assumed full federal safety oversight over Metrorail early in 2016.
If D.C., Maryland and Virginia fail to establish a safety oversight organization in 2017, then the U.S. Department of Transportation has the discretion to withhold from each state up to 5.0 percent of their federal formula funding for urbanized transit.
This potential threat is not limited to Northern Virginia and the Metrorail riders. The loss of federal dollars can be applied statewide, meaning transit systems in Richmond, Hampton Roads, Roanoke, and other areas of the state could be at risk.
SB 1251 was referred to the Committee on Privileges and Elections. HB 2136 is awaiting committee assignment.
State revenues dip in December
The first half of FY 2017 has faded in the rearview mirror. With a general fund forecast projecting 2.9 percent growth for the fiscal year, state budgeteers can relax a bit with the knowledge that actual collections for FY17 are running 4.0 percent ahead of the forecast.
The 1.0 percent drop in December collections compared to December a year earlier is largely due to one less deposit day for payroll withholding. Payroll taxes in December fell 5.8 percent.
But a year-to-date comparison shows withholding collections are 4.5 percent ahead of the same period last year, and ahead of the annual estimate of 3.6 percent growth.
Payroll employment rose 1.0 percent in November from the previous November with Northern Virginia posting growth of 2.2 percent.
Non-withholding of individual income taxes is up 1.5 percent after the first six months of FY 2017. The official revenue forecast calls for a 0.7 percent decline.
Sales tax collections, reflecting November sales, rose 10.4 percent, but continue to disappoint. On a year-to-date basis, sales taxes have declined 0.2 percent, trailing the forecast that estimated a 2.7 percent growth.
The Governor’s revenue team prefers to view December and January collections together. The reasons revolve around the timing of certain tax payments. For example, taxpayers have until January 17 to submit their fourth estimated payment of non-withholding taxes for calendar year 2016. This revenue source accounts for 16.0 percent of general fund revenues. A clearer assessment of revenue growth will not be known until February.
In other words, the state’s revenue situation could be better or worse than this week’s news. If the revenue report is significantly better or worse, Gov. McAuliffe may submit a new revenue forecast to the House Appropriations and Senate Finance Committees as the senators and delegates wrestle with the 2017 Budget Bill. The true state of revenue collections is critically important for local governments who are working now on their FY 2018 budget proposals.
VDOT announces new SMART SCALE dashboard
VDOT informed localities earlier this week of a new initiative to communicate the status of SMART SCALE projects. Localities will partner with VDOT to administer the project development for roughly one-third of the 163 projects approved this past summer by the Commonwealth Transportation Board (CTB).
The new dashboard, which has been jointly developed by VDOT and DRPT, will be rolled out at the January CTB Workshop. The dashboard will include all SMART SCALE funded projects regardless of whether the project is state or local managed.
As for the information made available to the public on the dashboard, users will be able to search on locally administered projects and determine project status. All projects will include the name and contact information of the project manager.
VDOT will use the dashboard as its primary communications tool for SMART SCALE projects. The state agency will demand a steady flow of information to ensure that the dashboard is up-to-date and that yellow and red dashboard indicators are based on real slowdowns and not on slow responses of critical information.
More information on the dashboard will be released as it becomes fully implemented.
