Legislative Bulletin January 31, 2023
Tuesday, January 31, 2023 - 03:47pm
In this issue:
- Property tax bill would add burden to local governments seeking to raise revenue [UPDATED 4:15 pm, Jan. 31]
- Late breaking school funding snafu puts many on edge
- Oppose: Bill would limit ability of localities to decide construction method for projects
- Headed for study: Bill that would have prohibited localities from restricting short term rentals managed by a Virginia realtor
- Oppose: Bill would permit citizen lawsuits against zoning officials
- Sovereign immunity for cities and towns challenged
Budget
Support these budget amendments!
It’s decision week for House and Senate budget amendments – please reach out to your delegation!
This is the last week for House Appropriations and Senate Finance and Appropriations to consider budget amendments to include in their respective budgets that will be reported out on Sunday, Feb. 5!
Please communicate with your General Assembly members about the amendments listed below. Tell them how they would help your community and urge their support, even if they are not on House Appropriations or Senate Finance and Appropriations.
- Full contact list for House of Delegates available here >
- Full contact list for Senate available here >
Amendments to support
Use the links below to jump to each topic:
- Elimination of cap on recognition of K-12 support positions
- Instructional aides
- Flexibility in teacher compensation increase and bonus payments
- School capital (language amendment)
- School capital funding
- Jail per diems
- Aid to localities with police departments (“HB 599”)
- Reimbursement to localities for 2024 Presidential primary expenses
- Recordation tax distribution to localities
- Stormwater Local Assistance Fund (SLAF)
- VML Contacts
Elimination of cap on recognition of K-12 support positions
Item 137#8h (Davis), Item 137 #34h (Avoli), Item 137#31h (Bourne), and Item 137#5s (McClellan) provide additional funding for K-12 support positions. Since 2009, the state has arbitrarily capped its support for these positions at a ratio that does not reflect local prevailing practice. Though significant progress has recently been made in restoring funding to pre-2009 levels, approximately $270 million is still needed to make localities whole. These amendments provide additional funding or fully eliminate the cap.
KEY POINTS:
- Support positions are currently arbitrarily capped at a ratio that does not reflect the need for these positions or the local prevailing practice.
- Support staff (such as school psychologists, school social workers, and licensed health and behavioral positions, cafeteria workers, IT professionals, administrative personnel, custodial staff, etc.) have decreased since 2009, even as the number of students has risen statewide. This means less support for more students.
- These positions are geared to support mental health and student wellness and allow for students to have the support needed to achieve successful educational outcomes. The number of economically disadvantaged students, English Learners, and students with certain disabilities has increased disproportionately to general student population, and so have their needs.
- Furthermore, adjusted for inflation, state direct aid for public schools has fallen by 3.4 percent since 2009. Local governments have taken on this share of the funding burden, investing more than $4.2 billion beyond what they are required to do so to support K-12 education, yet many localities struggle to raise sufficient revenue to meet the growing needs of students and communities.
Instructional aides
Item 137#30 (Maldonado), Item 137#10s (Norment), and Item 137#11s (McClellan) provide $38.6 million GF in FY 2024 for the state’s share of funding for instructional aides. Currently, instructional aides are only funded for kindergarten and special education. These amendments provide additional state support for positions that are currently funded with local dollars.
KEY POINTS:
- This amendment reflects increased state basic aid for school divisions employing instructional aides to reflect local prevailing practice.
- The SOQs fund only a portion of the actual prevailing costs of K-12 education in Virginia.
- These amendments provide additional state support to school divisions for positions that are currently funded with local funds.
- Teacher aides are vital positions that work with classroom to provide extra help and attention to students. They help enforce classroom rules and help supervise children during recess and lunch. They may work with students one-on-one or in groups to help reinforce lessons the teacher discussed. Teacher aides often help teachers track assignments and attendance, prepare lesson materials and equipment and more. Some teacher aides may work in specific areas of a school, such as a computer lab.
Flexibility in teacher compensation increase and bonus payments
Item 137#2h (Watts), Items 137#9s (Ebbin), and Item 137#26s (Marsden) remove the requirement for school divisions to provide at least an average 2.5 percent salary increase in each year of the biennium in order to access the state share of the five percent compensation supplement that is proposed for each year of the biennium, and clarify that the proposed retention bonus for instructional and support staff would be provided at local option.
KEY POINTS:
- Local governments recognize the difficult work done by teachers and school staff and make considerable local contributions toward compensation, in addition to funding necessary positions unrecognized by the lagging Standards of Quality.
- By virtue of this large number of locally-funded positions, localities fund an estimated 56 percent of salary increases in order to provide the local match for the SOQ-recognized positions as well as the local funding required to provide equivalent salary increases for locally-funded positions in order to treat the school workforce equitably.
- These amendments would provide flexibility in implementing the compensation actions in the introduced budget in recognition of the significant number of positions that would not be covered by the state funding for the salary increase and retention bonus.
School capital (language amendment)
Item 137#32h (Morefield) and Item 137#7s (McClellan) provide additional guidance on the eligibility of School Construction Assistance Program applicants by allowing a multi-year review of local composite index and fiscal stress, allowing projects where construction began on July 1, 2022, to be eligible, as well as allowing the principal portion of future debt service payments on projects not yet begun as a eligible expense. These were recommendations from the State Board of Education and the Commission on School Construction and Modernization.
KEY POINTS:
- According to the Commission on School Construction and Modernization, more than half of K-12 school buildings in Virginia are more than 50 years old. The amount of funding needed to replace these buildings is estimated at $25 billion.
- The condition of facilities in which children are educated has a direct impact on their ability to learn. Issues like inadequate climate control, lack of modern electric circuitry and internet capacity, and leaking roofs and crumbling infrastructure negatively affect student learning environments and performance as well as staff morale.
- Many localities face significant challenges in raising sufficient funds to undertake these projects.
- This funding represents a significant investment to help address this issue.
School capital funding
Item 137#6s (McClellan) provides $2.5 billion GF in FY 2024 to increase funding of School Construction Grants Program by $500 million GF in FY 2024 and increase funding of the School Construction Assistance Program by $2 billion GF in FY 2024. These programs represent the first time since the Great Recession that the state has made significant investments in school capital costs. This funding increase is a recommendation of the Commission on School Construction and Modernization.
KEY POINTS:
- According to the Commission on School Construction and Modernization, more than half of K-12 school buildings in Virginia are more than 50 years old. The amount of funding needed to replace these buildings is estimated to cost $25 billion.
- The condition of the facilities in which children are educated has a direct impact on their ability to learn. Issues like inadequate climate control, lack of modern electric circuitry and internet capacity, and leaking roofs can negatively affect student assessment performance and staff morale.
- Many localities face significant challenges in raising sufficient funds to undertake these projects.
- This funding represents a significant investment to help address this issue.
Jail per diems
Item 73#1h (Krizek) and Item 73#1s (Reeves) would restore the local-responsible per diem rate from $4 to its pre-FY 2011 level of $8.
KEY POINTS:
- The local-responsible per diem rate was cut in half in FY 2011, from $8 to $4.
- “Local-responsible” inmates include individuals who are arrested on state warrants and incarcerated in a local or regional jail while awaiting trial, individuals convicted of misdemeanor offenses and sentenced to a term in a local correctional facility, and individuals convicted of felony offenses with an effective sentence of 12 months or less.
- The 2022 General Assembly increased the state-responsible per diem rate from $12 to $15. This funding increase is much appreciated and is a critical step in the right direction toward increasing state support for jails. Revisiting the local-responsible rate will provide important assistance to local and regional jails, as there are more local-responsible than state-responsible offenders in local and regional jails.
- Virginia localities make a substantial contribution to the housing and care of inmates in local and regional jails. According to the Compensation Board, in FY 2021, localities contributed $601.4 million in operating and capital costs for jails and jail farms and an additional $16.4 million to house inmates in other jurisdictions; the state through the Compensation Board contributed $361.3 million.
- Partnership of the state in support of this critical function of government is essential.
Aid to localities with police departments (“HB 599”)
Item 410#1h (McQuinn), Item 410#2h (Brewer), Item 410#3h (Hayes), and Item 410#2s (Edwards) provide $20.8 million in FY 2024 in aid to localities with police departments to align funding for this program with the percentage change in total general fund revenue collections, in accordance with Code of Virginia requirements.
KEY POINTS:
- While the Operation Bold Blue Line proposal in the introduced budget would provide important recruitment and retention resources for state and local law enforcement solely in the second year of the budget, HB 599 funding is the only long-standing program to support local police departments.
- Localities that receive HB 599 funding contribute significant local funds to their local police departments. In FY 2023, localities that receive HB 599 funds have been allocated $210.8 million from this funding source and budgeted $2.4 billion in local funds for this purpose.
Reimbursement to localities for 2024 Presidential primary expenses
Item 485#1h (Sickles) and Item 485#1s (Deeds) provide an additional $1.4 million to increase the reimbursement amount included in the introduced budget for the 2024 Presidential primary.
KEY POINTS:
- Virginia Code requires the Commonwealth to pay the costs of Presidential primaries.
- The introduced budget includes approximately $5.8 million to reimburse localities for costs associated with the 2024 primary. This is the same amount as what was appropriated in 2020; localities reported costs of approximately $5.7 million to administer that primary.
- In order to account for growth in the number of registered voters and inflation in the intervening years, as well as the increasing complexity of election administration, the budget amendments request an additional $1.4 million for 2024 primary expenses.
Recordation tax distribution to localities
Item 266#1s (Stuart) provides $20 million from the general fund in FY 2024 to be distributed amongst localities, as was done prior to 2020. This funding can be directed toward transportation or public education purposes.
KEY POINTS:
- Prior to the 2020 General Assembly session, a portion of recordation tax revenues had been distributed to counties and cities since 1993. Funding was distributed quarterly and could be used for transportation or public education purposes.
- We support the restoration of state recordation taxes distributed to localities.
Stormwater Local Assistance Fund (SLAF)
Item C-80#1h (Bulova) and Item C-80#1s (Hanger) increases SLAF funding by 9.9 million. SLAF is a grant-based funding program for localities managed by the Department of Environmental Quality. Grants can be used by localities to make stormwater improvements including capital improvements that reduce pollutants and improve water quality and implement stormwater best management practices.
KEY POINTS:
- Stormwater improvements are capital intensive and essential for improving water quality across the commonwealth.
- SLAF provides matching grants to localities for planning, design, and implementation of stormwater best management practices that are cost effective and improve water quality.
- SLAF grants are essential for helping localities fund capital stormwater projects by implementing best management practices. Funding can be used for capital improvement projects such as stream, wetland, and pond restoration.
VML Contacts:
- Education – Josette Bulova, jbulova@vml.org
- Public Safety – Janet Areson, jareson@vml.org
- Elections – Josette Bulova, jbulova@vml.org
- Recordation taxes – Joe Flores jflores@vml.org
- Natural Resources – Mitchell Smiley, msmiley@vml.org
Finance
Property tax bill would add burden to local governments seeking to raise revenue
[UPDATE – 4:15pm, Jan. 31] This bill has died. No further action is needed. Thanks to everyone who voiced opposition to this legislation.
HB1749 (Walker) Real property taxes; rate of increase procedure. Would impose additional requirements on local governments to raise property tax revenues by more than one percent, compared to the prior year’s revenues.
Specifically, the bill would require:
- An increase up to three percent would require a public hearing and a majority vote of the governing body.
- An increase more than three percent but less than five percent would require a public hearing and a two-thirds majority vote.
- An increase of five percent or more would require holding a referendum.
VML does not support the imposition of additional hurdles that local governments must cross to address the unique needs in their communities.
VML Contact: Joe Flores, jflores@vml.org
Late breaking school funding snafu puts many on edge
On Friday, January 27, the Department of Education (DOE) sent a memorandum to local school officials explaining that “the tool released last month [December 2022] did not include recognition of the grocery tax hold harmless payment, which began in FY 2023 as part of the offset in the Basic Aid formula.”
OK. But what does that mean?
In a nutshell, it means that when local school divisions built their budgets last spring, they assumed they would receive more from the state than they actually will receive to the tune of $58 million in FY 2023 and $143 million in FY 2024. Apparently, DOE failed to fully account for changes to the grocery tax when they transmitted data on basic aid to local school divisions after the budget passed last June. Due to this oversight, the calculation tool provided to local school divisions for determining local match and Direct Aid was inaccurate.
As the House and Senate begin putting the final touches on their respective budgets this week, the timing couldn’t be worse. It means one more issue the money committees will need to address with less than a week to go before Sunday, February 5 (aka Super Budget Sunday!).
Does it mean the money committees will pony up additional general fund resources to match the budgets school divisions enacted last spring? Or will schools be asked to pare back their plans in the waning months of the 2022-23 academic year? Higher sales tax revenues dedicated to public education that the Governor reported in December may also factor into a remedy.
Time will tell.
VML Contact: Joe Flores, jflores@vml.org
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General Laws
Oppose: Bill would limit ability of localities to decide construction method for projects
SB954 (Petersen) likely to be heard tomorrow in Senate General Laws and Technology
SB954 (Petersen) – Virginia Public Procurement Act; construction management; construction manager allowed to bid on certain contracts. This legislation would remove the authority of localities to use design-build or construction management at risk contracts (CM) for construction projects costing under $125 million. Current law allows their use for projects over $26 million and for complex projects below that amount. While most local projects are constructed using the design-bid-build method of construction, there are certain projects where a locality would prefer to use design-build for construction management.
VML strongly opposes this bill as a limitation on the ability of localities to make the decision as to which construction method is best suited to an individual project and has requested that the bill be referred to the Procurement Study Group for a more complete study of the issues.
Background
Under the current law (2.2-4382), a local public body can choose to use CM if the project is more than $26 million (cost threshold established by Secretary of Administration in DGS regs) without any other requirements other than making a determination that competitive sealed bidding is not practicable or not fiscally advantageous and having an architect or engineer advise the locality regarding the use of CM. For projects under $26 million, it additionally must be a “complex project” and the local governing body must specifically approve using CM.
Under the proposed language, that $26 million dollar limit would go to $125 million! Also, a new section is added just for localities which states: “For all projects less than $125 million…a local public body that enters into a contract for construction management shall conduct a two-step process beginning with a preconstruction contract. Upon completion of the preconstruction contract, the local public body shall then obtain construction services for the project through competitive sealed bidding.”
Talking points
- Localities should retain their authority to use design-build or construction management at risk contracts for construction projects costing under $125 million.
- Current law allows for their use for projects over $26 million and for complex projects below that amount – Please support leaving these thresholds as is.
- This legislation limits the ability of a locality to decide what procurement method fits each individual project.
Action requested
Please contact the members of the Senate General Laws and Technology Committee to oppose SB954.
Senate General Laws and Technology Committee members:
| Ebbin (Chair) | district30@senate.virginia.gov | (804) 698-7530 |
| Barker | district39@senate.virginia.gov | (804) 698-7539 |
| Ruff | district15@senate.virginia.gov | (804) 698-7515 |
| Locke | district02@senate.virginia.gov | (804) 698-7502 |
| Vogel | district27@senate.virginia.gov | (804) 698-7527 |
| Reeves | district17@senate.virginia.gov | (804) 698-7517 |
| McPike | district29@senate.virginia.gov | (804) 698-7529 |
| Dunnavant | district12@senate.virginia.gov | (804) 698-7512 |
| Mason | district01@senate.virginia.gov | (804) 698-7501 |
| Boysko | district33@senate.virginia.gov | (804) 698-7533 |
| Stuart | district28@senate.virginia.gov | (804) 698-7528 |
| Pillion | district40@senate.virginia.gov | (804) 698-7540 |
| Bell | district13@senate.virginia.gov | (804) 698-7513 |
| Hashmi | district10@senate.virginia.gov | (804) 698-7510 |
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VML Contact: Michelle Gowdy, mgowdy@vml.org
Headed for study: Bill that would have prohibited localities from restricting short term rentals managed by a Virginia realtor
Thanks to all who provided comments and contacted General Assembly members regarding SB1391 (Lewis) the Short Term Rental bill that restricted localities from Virginia Realtor managed property. This bill will become a study at the Virginia Housing Commission over the summer.
It is anticipated that HB2271 (Marshall) will meet the same fate in a subcommittee of House Counties, Cities and Towns later this week.
VML Contact: Michelle Gowdy, mgowdy@vml.org
Education
Oppose: Education Savings Account Program bills coming up tomorrow
HB1371 (Scott, P.A.) and HB1508 (Davis) are among the several versions of the Education Savings Account Program bills that have been introduced this session:
- HB1371 will be heard Wednesday, Feb. 1, in the House Education Early Childhood Innovation Subcommittee that immediately follows the adjournment of the full Education committee.
- HB1508 (Davis), Gov. Glenn Youngkin’s vehicle for a school choice program, will be heard in the House Appropriations Elementary and Secondary Subcommittee in the afternoon of Wednesday, Feb. 1.
VML opposes any attempts to divert public funds for private use and urges you to contact your members on these committees to oppose these bills.
House Education Early Childhood Innovation Subcommittee members:
| Coyner (Chair) | DelCCoyner@house.virginia.gov | (804) 698-1062 |
| Avoli | DelJAvoli@house.virginia.gov | (804) 698-1020 |
| Wampler | DelWWampler@house.virginia.gov | (804) 698-1004 |
| Cherry | delmcherry@house.virginia.gov | (804) 698-1066 |
| Tata | delaftata@house.virginia.gov | (804) 698-1082 |
| Rasoul | DelSRasoul@house.virginia.gov | (804) 698-1011 |
| McQuinn | DelDMcQuinn@house.virginia.gov | (804) 698-1070 |
| Simonds | DelSSimonds@house.virginia.gov | (804) 698-1094 |
| Davis | DelGDavis@house.virginia.gov | (804) 698-1084 |
House Appropriations Elementary and Secondary Subcommittee members:
| Davis (Chair) | DelGDavis@house.virginia.gov | (804) 698-1084 |
| Brewer | DelEBrewer@house.virginia.gov | (804) 698-1064 |
| Marshall | DelDMarshall@house.virginia.gov | (804) 698-1014 |
| Coyner | DelCCoyner@house.virginia.gov | (804) 698-1062 |
| Wampler | DelWWampler@house.virginia.gov | (804) 698-1004 |
| Bulova | DelDBulova@house.virginia.gov | (804) 698-1037 |
| McQuinn | DelDMcQuinn@house.virginia.gov | (804) 698-1070 |
| Reid | DelDReid@house.virginia.gov | (804) 698-1032 |
| Knight | DelBKnight@house.virginia.gov | (804) 698-1081 |
VML Contact: Josette Bulova, jbulova@vml.org
Public Safety
Oppose: Bill would permit citizen lawsuits against zoning officials
SB1495 (Surovell) will be heard tomorrow in Senate Judiciary
SB1495 (Surovell) Local enforcement action; willful disregard for applicable law; damages. Allows a citizen to go to court for damages and attorneys’ fees if a zoning enforcement action against the person is done with “willful disregard” of the law. That standard means the official knows the rules but nevertheless acts in a manner not allowed by the rules.
Key points
- This bill creates a new way to “fight city hall” when there are already adequate protections for those who are affected by local zoning actions.
- Those aggrieved by a zoning action may obtain a remedy through an appeal to the Board of Zoning Appeals and, in many cases, to the circuit court.
Action requested
The bill is in the Senate Judiciary Committee, which meets Wednesday 30 minutes after adjournment. Please contact the members of the committee to note your locality’s concerns with the bill.
Senate Judiciary Committee members:
| Edwards (Co-Chair) | district21@senate.virginia.gov | (804) 698-7521 |
| Deeds (Co-Chair) | district25@senate.virginia.gov | (804) 698-7525 |
| Saslaw | district35@senate.virginia.gov | (804) 698-7535 |
| Norment | district03@senate.virginia.gov | (804) 698-7503 |
| Lucas | district18@senate.virginia.gov | (804) 698-7518 |
| Obenshain | district26@senate.virginia.gov | (804) 698-7526 |
| McDougle | district04@senate.virginia.gov | (804) 698-7504 |
| Stuart | district28@senate.virginia.gov | (804) 698-7528 |
| Stanley | district20@senate.virginia.gov | (804) 698-7520 |
| Petersen | district34@senate.virginia.gov | (804) 698-7534 |
| Surovell | district36@senate.virginia.gov | (804) 698-7536 |
| McClellan | district09@senate.virginia.gov | (804) 698-7509 |
| Boysko | district33@senate.virginia.gov | (804) 698-7533 |
| Morrissey | district16@senate.virginia.gov | (804) 698-7516 |
| Peake | district22@senate.virginia.gov | (804) 698-7522 |
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Contact: Mark Flynn, markkflynn@gmail.com
Sovereign immunity for cities and towns challenged
SB 1379 (Deeds) would end sovereign immunity for medical providers, including doctors, nurses, and others who provide medical services to inmates. The bill was filed in response to a Virginia Supreme Court opinion stopped an inmate’s malpractice suit against a doctor employed by the city. The bill is in the Senate Rehabilitation and Social Services Committee, which meets Friday.
VML has two concerns:
- This would be the first of a thousand cuts that kills sovereign immunity. If city and town employees are faced with being personal defendants in lawsuits, it will become harder to hire workers and will cause the cost of operating to dramatically increase.
- The bill may mean that any city, town or county nurse or ambulance crews that respond to a call at a local or regional jail could be subject to litigation over the inmate’s care. This will increase insurance costs and will discourage potential employees from taking EMS jobs.
We ask that you let your Senator know about the concerns about this bill.
Contact: Mark Flynn, markkflynn@gmail.com
