eNews March 26, 2021
Friday, March 26, 2021 - 05:00pm
In this issue:
- Biden administration pushes the pedal to the metal
- Political fallout from the American Rescue Plan may delay relief for states and localities
- Economic heavy hitters push for more federal action
- VDOT Local Assistance Division Transportation webinars coming in April
- Dates announced for FHWA webinars on proposed updates to Uniform Traffic Control Devices manual
- 2021 VML Innovation Awards nominations now being accepted
- New episode of VML podcast with Virginia Department of Health airing next week
A note to our readers: Beginning with this issue, eNews will revert to our every-other week schedule. The next regular issue of eNews will publish Friday, April 9. However, we will publish special editions as needed to keep you informed of time sensitive issues and information as circumstances warrant.
Health & Human Services
Marcus Alert: New resources and survey available for localities
Local governments preparing for the implementation of the Marcus Alert legislation may find some items recently provided by Department of Behavioral Health and Developmental Services (DBHDS) Commissioner Alison Land helpful. The new DBHDS resources aid in understanding the basic requirements of the new crisis response system, the timeline for implementing basic components of the program, and how it will intersect with current crisis response initiatives from DBHDS, Community Services Boards, and Behavioral Health Authorities.
The new resources are available here:
- One-Pager: General Information, Intersections with STEP-VA and Behavioral Health Enhancements, and Initial Planning
- A Detailed Look at Virginia’s Plan for Crisis System Transformation
- Checklist: Overview of Local Requirements
As a reminder, this legislation (HB5043 / SB5038) was approved by the 2020 Special Session of the General Assembly. The Marcus Alert system legislation requires a comprehensive approach to ensure that Virginia provides a health-focused, therapeutic response to behavioral health emergencies and decreased reliance on law enforcement responses. A statewide implementation plan must be completed by July 1, 2021. This plan will establish the framework each local government must use to develop its own local plan for the new Marcus Alert services.
A statewide workgroup of advocates and public safety/CSB stakeholders is currently working on that plan with oversight and assistance from DBHDS and the Department of Criminal Justice Services (DCJS). The group, which began meeting in January, convenes approximately every week. Anyone interested in following the Marcus Alert workgroup meetings and materials can find that information on this page. Meetings are posted on the Commonwealth Calendar website as well.
Community Survey now available
The group has also hosted community listening sessions and has developed a community survey that you can share with community members:
DBHDS is also developing a survey for local public safety agencies and CSBs/BHAs to gain a better understanding of services already in place and working relationships between agencies. That should be distributed in early April.
Submit comments
Finally, DBHDS is accepting comments and questions on a continuing basis. These can be emailed to marcusalert@dbhds.virginia.gov. All comments received prior to May 16, 2021 will be reviewed by the workgroup.
Thank you very much for your collaboration in this important matter.
VML Contact: Janet Areson, jareson@vml.org
Finance & Economy
Biden administration pushes the pedal to the metal
Can an infrastructure bill be coming soon?
White House officials are preparing to present President Biden with a roughly $3 trillion infrastructure and jobs package that includes numerous sweeping domestic policy priorities.
After completing the $1.9 trillion coronavirus relief package earlier this month, Biden administration officials are piecing together their next major legislative priority. While no final announcement has been made, the White House is expected to push a multitrillion jobs and infrastructure plan as the centerpiece of the president’s “Build Back Better” agenda.
That effort is expected to be broken into two parts — one focused on infrastructure, and the other focused on other domestic priorities, such as universal prekindergarten, national childcare, and free community college tuition.
Part 1 – Infrastructure
According to recent news reports, the infrastructure part of the plan includes hundreds of billions of dollars for repairing the nation’s roads, bridges, waterways, and rails. It also includes funding for retrofitting buildings, safety improvements, and school infrastructure.
The infrastructure component of the proposal also includes $400 billion in spending to combat climate change, including $60 billion for infrastructure related to green transit and $46 billion for climate-related research and development. The plan also would aim to make electric vehicle charging stations available across the country. The measure would also include $200 billion for housing infrastructure, including $100 billion to expand the supply of housing for low-income Americans.
Part 2 – Domestic priorities
The second component of the effort would include many of Biden’s other domestic priorities. Those include universal prekindergarten and free community college tuition. The package would also dramatically expand spending on childcare. The measure would extend for several years the expansion of the Child Tax Credit recently signed into law for just one year as part of the $1.9 trillion stimulus plan.
The legislation would also include extending subsidies for the Affordable Care Act, as well as free and reduced tuition at Historically Black Colleges and Universities.
Friction creates heat
How will this package be funded? Biden is expected to be presented with a menu of tax options by Treasury officials to pay for the plan. Biden campaigned on raising the corporate tax rate from 21 percent to 28 percent, as well as increasing taxes on wealthy investors. Given the breadth of the proposal under development, its cost and possible tax changes, it is highly likely (meaning that you can bet on it) that this will be a hotly contested measure that will not be embraced by congressional Republicans.
VML Contact: Neal Menkes, nmenkes@vml.org
Political fallout from the American Rescue Plan may delay relief for states and localities
Treasury Secretary Janet L. Yellen told a congressional committee this week that she is grappling with a host of “thorny” issues related to a provision in the $1.9 trillion stimulus package that restricts states from using federal aid money to fund tax cuts, suggesting that the looming legal battle over the matter could be long and complicated.
Language in the American Rescue Plan establishing the Coronavirus State Fiscal Recovery Fund spells out the purposes of the dollars to be distributed to state governments. The language also includes restrictions:
“A State or territory shall not use the funds provided under this section or transferred pursuant to section 603(c)(4) to either directly or indirectly offset a reduction in the net tax revenue of such State [emphasis added] or territory resulting from a change in law, regulation, or administrative interpretation during the covered period that reduces any tax (by providing for a reduction in a rate, a rebate, a deduction, a credit, or otherwise) or delays the imposition of any tax or tax increase.
‘‘(B) PENSION FUNDS.—No State or territory may use funds made available under this section for deposit into any pension fund.”
The Treasury Department has 60 days from when the law was enacted to craft guidance on how the money can be spent. In the meantime, the Ohio attorney general sought a preliminary injunction that would bar the federal government’s ability to enforce what he described as the “tax mandate.”
Several Republican governors and 21 Republican attorneys general have asked for clarification on the provision. Ms. Yellen wrote a letter to the attorneys general earlier this week explaining why there are restrictions on the use of the funds. In this letter, she foreshadowed the legal argument that Treasury might use if litigation moves forward.
“It is well-established that Congress may place such reasonable conditions on how states may use federal funding,” Yellen wrote. “Congress includes those sorts of reasonable funding conditions in legislation routinely, including with respect to funding for Medicaid, education and highways.”
While legal action could bottle up the federal dollars, the potential slowdown of funding for states may not affect localities. The Coronavirus Local Fiscal Recovery Fund does not expressly prohibit the use of these funds for making local treasuries whole if local governing bodies decide to provide local tax relief. Language in the American Relief Plan does include a restriction, however, prohibiting local use of the money for contributions to pension funds.
“No metropolitan city, non-entitlement unit of local government, or county may use funds made available under this section for deposit into any pension fund.”
VML is working to get more information on the American Rescue Plan.
VML Contact: Neal Menkes, nmenkes@vml.org
Economic heavy hitters push for more federal action
Before disappearing under dark clouds in 1988, the American brokerage firm E.F. Hutton was probably best known for its television commercials that hyped the line “When E.F. Hutton speaks, people listen.”
Earlier this week the Chairman of the Federal Reserve Bank Jerome Powell and the Secretary of the Treasury Janet Yellen tried to channel the spirit of E.F. Hutton’s tagline in presentations to the Senate Banking Committee.
Mr. Powell said in his remarks that the federal government had averted the worst possible outcomes in the pandemic economic recession with its aggressive spending response and super-low Fed interest rates.
“But the recovery is far from complete, so at the Fed, we will continue to provide the economy the support that it needs for as long as it takes,” he said.
Ms. Yellen, who pushed hard for the recently passed $1.9 trillion relief package, said that responding to a crisis with a needed surge of temporary spending without paying for it was “appropriate.”
“Longer-run, we do have to raise revenue to support permanent spending that we want to do,” she said.
She said that expanded unemployment insurance, part of the recent relief package, did not seem to be discouraging work and was needed at a time when the labor market is not at full strength.
“While unemployment remains high, it’s important to provide the supplementary relief,” Ms. Yellen said, noting that the aid lasts until the fall. She said that as the economy recovers, the aid “should be phased out.”
Meanwhile, in Virginia…
In Virginia there are signs of economic recovery which may be harbingers for an improving job market.
The Virginia Employment Commission (VEC) announced this week that the number of initial claims filed during the most recent filing week were 60 percent lower than when pandemic employment impacts first began to be felt a year earlier in March 2020.
For the filing week ending March 20, the figure for seasonally unadjusted initial claims in Virginia was 17,560. The latest claims figure was an increase of 2,035 claimants from the previous week. However, continued weeks claimed totaled 58,233, which was a 2.9 percent decrease from the previous week, but 36,605 higher than the 21,628 continued claims from the comparable week last year.
Putting it in perspective and seeking clarity
Compared to a year ago, on a seasonally adjusted basis, ten out of eleven major industry divisions experienced employment decreases with one industry unchanged. The largest over-the-year job loss occurred in leisure and hospitality, down 81,600 jobs (-19.4 percent). The next largest over-the-year job loss occurred in government, down 33,100 jobs (-4.5 percent). Within government, the decreases in local government employment (-28,600 jobs) overshadowed Virginia’s and the federal government’s employment losses.
Nationwide, in the week ending March 20, the advance figure for seasonally adjusted initial claims was 684,000, a decrease of 97,000 from the previous week’s revised level.
The flood of economic and job information, some of which is sometimes conflicting, is particularly frustrating as the local governments go through budget development.
VML is hopeful that in the upcoming weeks as federal guidance is issued on the American Rescue Plan and the General Assembly and Gov. Northam finalize the state budget that the fiscal picture will come into focus.
Stay tuned.
VML Contact: Neal Menkes, nmenkes@vml.org
Transportation
VDOT Local Assistance Division Transportation webinars coming in April
The Virginia Department of Transportation’s (VDOT) Local Assistance Division will be holding a Transportation Alternatives Applicant Workshop and a Revenue Sharing Applicant Workshop as webinars on April 14th and 29th respectively.
Details for each applicant workshop can be found below, along with registration information.
Transportation Alternatives (TA) Applicant Workshop
- When: Wednesday, April 14 from 10am-noon
- What: This webinar will review program eligibility, the application process, and scoring criteria.
- Who: The TA Applicant Workshop is strongly recommended for localities and other project sponsors that are interested in applying for FY 2023/2024 federal Transportation Alternatives (TA) funds. In addition to local governments, schools, regional park authorities, federally recognized tribes and federal natural resource agencies are eligible to apply.
- How: Registration information is available here >. Joining information will be sent 24 hours prior to the webinar.
Revenue Sharing Applicant Workshop for Local Governments
- When: Thursday, April 29 from 10am-noon.
- What: This webinar will review program eligibility and the application process. The Revenue Sharing program provides for a dollar-for-dollar match to primary, secondary or urban improvement, reconstruction, construction or maintenance projects being funded by counties, cities or towns. Fiscal Year’s 23/24 application has enhancements that will improve the application process for both locality and VDOT users. We will also discuss the availability of funds, project schedules and present an overview with helpful hints of the Smart Portal application process.
- Who: The Applicant Workshop is strongly recommended for localities that are interested in applying for Revenue Sharing funding.
- How: Registration information is available here >. Joining information will be sent 24 hours prior to the webinar.
VML Contact: Mitchell Smiley, msmiley@vml.org
Dates announced for FHWA webinars on proposed updates to Uniform Traffic Control Devices manual
The Federal Highway Administration (FHWA) has announced a series of webinars on proposed revisions to the “Manual on Uniform Traffic Control Devices for Streets and Highways” (MUTCD). This is the first proposed comprehensive update in more than a decade to a document that sets national standards for the use of traffic signs, signals, and markings on all roads open to public travel in the United States.
In a press release, Acting Federal Highway Administrator Stephanie Pollack noted that “the Manual has not been revised in more than a decade and during that time we have learned a lot about how to ensure that all roadway users are safe. Pollack continued, “We want to hear from you – whether you manage a transportation agency or are a traffic engineer, urban planner, safety advocate, driver, pedestrian or bicyclist, your input will help shape the future of traffic control on our highway system and this important document for years to come.”
FHWA officials said the webinars are intended to help all stakeholders better understand the proposed changes and encourage them to submit comments on the proposals, and on other potential changes for consideration before the extended comment period ends on May 14, 2021.
The webinars do not replace the public comment process but, instead, are intended to help potential commenters understand the MUTCD’s proposed revisions.
The webinars will be held at 2:00 p.m. ET on each of the following dates:
March 18, 2021 – Introduction and Overview
- An overview of the MUTCD revision process, highlights of some of the major changes proposed, and how you can participate in providing comment.
March 25, 2021 – Pedestrians, Bicycles, and Transit
- Highlights of proposed changes related to traffic control devices for pedestrian, bicycle, and transit facilities.
April 1, 2021 @ 2:00 p.m. – Urban Traffic Control
- Highlights of proposed changes related to traffic control devices in urban centers and urbanized communities.
Each webinar will also include background information on navigating the comment process.
Registration
To register for the upcoming webinars, visit the FHWA website. Recordings of each webinar will be posted at a later date.
About the MUTCD
The MUTCD is the national standard for traffic signs, signals, and pavement markings that guide users of the nation’s streets and highways. The proposed revisions are intended to offer many proven advancements while remaining flexible to accommodate newer technologies and operational strategies.
As part of the process of updating the MUTCD, FHWA continues to gather feedback from the docket that is now open for public comment at the Federal Register.
VML Contact: Mitchell Smiley, msmiley@vml.org
VML News
2021 VML Innovation Awards nominations 
now being accepted
Forty-five years ago, the Virginia Municipal League launched its “Achievement Awards” to recognize outstanding work being done by local governments across Virginia. The program went on to become Virginia’s highest honor in local government creativity. In 2017 the name was changed to “Innovation Awards”, but the purpose remains the same: To celebrate all that you do to make your city, town, or county a great place to live!
Appropriately this is the “sapphire anniversary” year for the awards as sapphire is often associated with healing and peace – two things we have good reason to welcome in 2021.
So, don’t miss this opportunity to spotlight programs and individuals that have made a big difference to your residents by creating innovative solutions to address emerging needs.
Full details and the entry form are available here >.
The deadline to submit is Monday, August 16. The awards will be presented at VML’s Annual Conference in Leesburg in October.
VML Contact: Manuel Timbreza, mtimbreza@vml.org
New episode of VML podcast with Virginia 
Department of Health airing next week
Rob Bullington, the host of VML’s podcast the VML Voice, recently chatted with a couple staff members from the Virginia Department of Health’s Office of Environment Health Services. He was joined by Director Julie Henderson and Legal Affairs and Environmental Health Coordinator Karri Atwood. The conversation covered a lot of ground – from sewage to shellfish, from enforcing coronavirus restrictions to lessons learned from the pandemic…and more!
The new episode will post early next week and will be announced via Facebook and Twitter.
Subscribe to the VML Voice today so you won’t miss an episode!
VML Contact: Rob Bullington, rbullington@vml.org
