Virginia Indian Memorial Commission Nears Approval by Legislature

--Resolution to Honor the American Indians of Virginia Passes House Unanimously-- Virginia Indians may soon be recognized at the State Capitol for their contribution to the Commonwealth. Patroned by Delegate Christopher K. Peace (R-Hanover) House Joint Resolution 680 expresses the General Assembly's support for and calls upon the Governor to establish a commemorative commission to honor the life, achievements, and legacy of Virginia Indians on the grounds of Capitol Square. Modeled after the Civil Rights Commission, this project must submit findings and recommendations to the Governor and General Assembly no later than the first day of the next Regular Session of the General Assembly for the 2009 and 2010 interims. This bill passed the House by a vote of 95-0.

“As the representative of several state recognized tribes in the 97th district I believe that we do each citizen honor when we so recognize the achievements of these original Virginians,” said Del. Peace.

The legislation points out that despite hardships brought about by the loss of lands, languages and civil rights, American Indians in Virginia persisted and continued to contribute to the Commonwealth through agriculture, land stewardship, teaching, military and civil service, the arts, and other avenues of productive citizenship. A memorial to Virginia Indians and their ancestors would remind everyone who visits the Capitol grounds that Virginia Indians' courage, persistence, determination and cultural values have significantly enhanced and contributed to our society for centuries. Delegate Peace is delighted to have commitments from the 8 state recognized tribes to press forward, a very strong majority. Deanna Beacham, Virginia Council on Indians, expressed, "This is a wonderful idea. I did not expect to see it addressed this year."

The resolution draft follows the model of the Moton School commission which recently unveiled the Civil Rights Memorial in 2008. When asked for his input on the legislation, Robert Vaughn, who represents the Virginia Foundation for the Humanities, stated, "Many thanks for undertaking this resolution to create a commission. [This legislation addresses] explicitly the historical omission and misrepresentation of Virginia Indians in the flawed "official" histories that have shaped public understanding until very recently."

WARN Act

Background The Worker Adjustment and Retraining Notification Act (WARN) is a federal law that protects workers, their families, and communities by requiring most employers with 100 or more employees to provide notification 60 calendar days in advance of plant closings and mass layoffs. Employees entitled to notice under WARN include managers and supervisors, as well as hourly and salaried workers. WARN requires that notice also be given to employees' representatives, the local chief elected official, and the state dislocated worker unit.

Advance notice gives workers and their families some transition time to adjust to the prospective loss of employment, to seek and obtain other jobs, and, if necessary, to enter skill training or retraining that will allow these workers to compete successfully in the job market.

Enforcement Neither the federal government (e.g., the U.S. Department of Labor) nor state or local governments have been given authority under WARN to enforce its provisions. Any individual who believes that the WARN Act has been violated regarding his particular situation thus must file suit in federal court on behalf of himself (either individually or as part of a class action). While some states have enacted their own versions of the WARN Act to provide additional worker protections, Virginia has not.

Further Information Although DOL has no enforcement role in seeking damages for workers who did not receive adequate notice of a layoff or received no notice at all, it does provide a wealth of information about WARN and its provisions. For example, www.dol.gov/compliance/laws/comp-warn.htm gives an overview of the Act, along with, among other things, “Compliance Assistance Materials” (such as the “WARN Guide to Advance Notice of Closings and Layoffs”). The Virginia Employment Commission also has information about WARN on its website. For example, the VEC’s website indicates that, effective July 1, 2007, the Governor's Office for Workforce Development assumed responsibility for the State Dislocated Worker Unit. All WARN Notices and requests for Rapid Response Assistance should thus be directed there.

Measure to Enhance Educational Resources Advances to Senate

-House Passes Peace's Open Education Resource Bill--Legislation creates path to improve content and reduce textbook costs across State-

Mechanicsville, VA- Delegate Christopher K. Peace (R-Hanover) reports passage of House Bill 1940. A recommendation from the Joint Commission on Technology and Science and the result of two years of study, Peace’s measure requires the State Board for Community Colleges, in consultation with the Virginia Department of Education and the State Council of Higher Education for Virginia, to develop a competitive grant pilot program that with private funds will provide grants to community colleges who establish open education resource centers. Open educational resources are educational materials and resources offered freely and openly for anyone to use and under some licenses to re-mix, improve and redistribute. The primary purpose of establishing Open Education Resource Centers is to provide centralized clearinghouses, open education courses, course materials, research, and professional training.

Open educational resources (OER) are an Internet empowered worldwide community effort to create an education commons. The term "open educational resources" was first adopted at UNESCO's 2002 Forum on the Impact of Open Courseware for Higher Education in Developing countries funded by the William and Flora Hewlett Foundation.

Open educational resources include: learning content includes full courses, course materials, content modules, learning objects, collections, and journals. Tools used are software to support the creation, delivery, use and improvement of open learning content including searching and organization of content, content and learning management systems, content development tools, and on-line learning communities.

The pilot centers would be required to: Develop a model for the creation of OER course content and use; Develop two elementary, secondary, or community college courses using open education resources. All courses would be developed to meet SOL requirements; Develop a professional in-service training and development course that introduces faculty, staff, and course developers to OER; Conduct a two-year study that compares OER with non-OER courses and materials with regard to quality and cost, and evaluates the efficacy of the pilot program for statewide replication. The study report would be submitted to the General Assembly no later than July 1, 2011; Provide outreach to school districts and community colleges at regional and state educational and technology conferences to support the establishment of local OER centers.; and Recommend a sustainable funding stream for Open Education Centers.

The legislation now heads to the Senate where Sen. John Watkins (R-Chesterfield) is carrying companion legislation.

RTD: Layoffs at Qimonda are questioned

EMILY C. DOOLEY TIMES-DISPATCH STAFF WRITER, Published: February 6, 2009 When Qimonda North America laid off 500 workers and cut off their pay, health insurance and other benefits this week, the company may have violated a federal labor law. Some former employees of the Henrico County memory-chip manufacturing plant have contacted elected officials and attorneys about the issue, and a local delegate is investigating the case.

But the company says it was in financial distress, which it believes provides an exemption to the law. The Worker Adjustment and Retraining Notification Act requires employers to provide 60 days' notice of a layoff or 60 days' pay in lieu of notice. Qimonda laid off the 500 employees over the course of two days. In most cases, workers were given an hour to collect their belongings and turn in their security badges.

An additional 500 were given dates within the next 30 days; the remaining will leave in waves through April. Continued pay or benefits were not an option, employees say they were told. "It was one of the grossest things I've ever witnessed in my entire work life," said Eric Askew, 43, a manufacturing technician who was among the first 200 people hired in 1997 to work in the memory-chip plant in eastern Henrico. "I do believe they are in violation with the WARN act."

The law, dating to 1989, is intended to provide workers protection in the case of mass layoff or closure.

There are a few instances that trigger the WARN act, including cuts that involve 500 or more employees at a single site, said John Philo, legal director of the Sugar Law Center in Detroit, which specializes in the law. But the law also comes with exemptions. Natural disaster is one; so is the loss of a customer that is so significant the business cannot continue.

Another exemption, and one Qimonda believes applies, involves financial distress. That clause relates to companies trying to get investors or a loan. If issuing a notice of a layoff would scare off potential investors or lenders, the notice time can be shortened, said Ann C. Hodges, a law professor at the University of Richmond who specializes in employment law. "It's only if it's not foreseeable or they were trying to get capital," Hodges said.

Qimonda North America's parent company, Qimonda AG, filed for insolvency protection in Germany last month, which is akin to claiming bankruptcy. Since then, the company has not provided operating cash to the Sandston plant or been able to buy any memory-chip wafers the facility produces.

Qimonda North America spokesman Glen Haley said the company does not feel WARN applies based on the financial condition of the company. "We obviously would not have made this decision if there were legal issues with it," Haley said. "We are not in a financial position to be able to pay them for 60 days."

Several employees said they have made calls to an attorney specializing in class actions and are awaiting a response.

A local elected official questions whether the employees were treated fairly. "The WARN act could be an issue, and that is something I'm in the process of investigating," Del. Christopher K. Peace, R-Hanover, said yesterday. "The question will be whether . . . notice was timely."

Hodges and Philo said they believe employees have a claim, but they will have to pursue legal action against the company on their own.

The WARN act has no federal enforcement mechanism. "I would expect they could and should get a judgment here and try to recover [wages and benefits]," Philo said. Two bills introduced in the U.S. Senate and House of Representatives in 2007 to beef up WARN provisions and enforcement died without action. Sen. Sherrod Brown, D-Ohio, and then-senators Barack Obama and Hillary Rodham Clinton signed on to the bill, which added a provision allowing state officials to bring suit against companies on behalf of workers. A media aide in Brown's office said the senator was considering reintroducing the bill.

Peace said it is too late to submit legislation to the Virginia General Assembly this year, but he said he has contacted the attorney general's office and the governor's office about the Qimonda situation.

Contact Emily C. Dooley at (804) 649-6016 or edooley@timesdispatch.com

Health Benefits Questions: Qimonda Richmond

Qimonda employees impacted by the announced shut down of the Richmond factory have several options regarding health benefits. Typically, health benefits for employees (and family members included in the employee’s 2009 Benefits election) end on an employee’s last day of employment (also known as the date of separation). This is a standard industry policy and is the same process used for employees who voluntarily leave the company. Following an employee’s date of separation, they have the option of transferring to a spouse’s medical plan or to continue medical benefits through COBRA.

The difference for employees impacted by the February 3 shut-down is that Qimonda is not financially able to help subsidize the cost of COBRA for employees who elect it, but the opportunity to enroll in the same health coverage, under COBRA, is provided.

Any medical/vision/dental claims that were incurred prior to an employee’s date of separation will be covered (assuming the procedures complied with the employee’s specific benefits elections), since they were still officially Qimonda employees at that time.

Some details on COBRA:

If employees, or former employees, have questions, here is some contact information: • Impacted employees will be contacted within three weeks by SHPS, Qimonda’s benefits administrator, to enroll in COBRA benefits continuation. However, employees can also contact SHPS directly to expedite COBRA enrollment if needed. SHPS can be contacted at 1-888-498-5520 or http://www.enrollone.com/qno. • COBRA is available to you and your covered dependents for up to 18 months following your separation, and includes all medical/vision/dental benefits elected during Qimonda’s 2009 Benefits Enrollment process. • Employees have up to 60 days to enroll in COBRA. If elected, they are responsible for the full cost of COBRA for up to 18 months or sooner based on need. • Once enrolled, if payments are not received with 30 days of the due date, COBRA coverage is terminated. • If an employee elected to participate in the heathcare flexible spending account for 2009, they can continue contributions through COBRA. However, the contributions will be after-tax following your separation date.

If employees, or former employees, have questions, here is some contact information: • SHPS: 1-888-498-5520 or http://www.enrollone.com/qna • Qimonda: 1-804-952-7493 or QNAquestions@qimonda.com • Or contact their specific plan providers

Measure to Improve Public Safety in Hanover and Spotsylvania Passes House

-Hanover, Spotsylvania and the Town of Ashland granted the power to prohibit hawking activities in medians and roadways- Today, House Bill 1619 passed by a vote of 98-0. Patroned by Delegate Christopher K. Peace (R-Mechanicsville), HB 1619 adds Spotsylvania, Hanover and the Town of Ashland to a list of localities that can prohibit or regulate by local ordinance the sale of merchandise, distribution of materials or the solicitation of contributions along medians and corners of public roads and highways.

This measure, requested by the localities, addresses issues with impeding traffic flow, distraction of motorists, and the safety of those participating in these activities. In Hanover, Sherriff Cook and County Attorney Sterling Rives favored the legislation in order to curb the secondary sales of race tickets in and around RIR in eastern Hanover.

"I understand the concern for safety of participants and citizens by law enforcement. It can be uncomfortable and scary for someone to be allowed to approach your car to ask for money or give you written materials," stated Peace.

Virginia is a Dillon Rule state so counties and localities must ask permission from the state legislature to adopt local laws. The legislation is now headed to the Senate.

Pfizer recently announced that it agreed to acquire Wyeth

Pfizer recently announced that it agreed to acquire Wyeth (located in Eastern Henrico and the City of Richmond), becoming the premier global biopharmaceutical company with the strongest assets, pipeline and capabilities within health care. The diversity, agility and scale of the combined company will enable them to more effectively address the health, wellness and unmet medical needs of patients around the world. The opportunities created by this combination are far greater than either Pfizer or Wyeth could achieve alone. The new company, which will be called Pfizer, will be a leader in human, animal and consumer health; primary and specialty care; and biologics as well as pharmaceuticals.

Importantly, this combination will support Pfizer's mission to apply innovative science to improve world health.

The Company has pledged to continue contributing meaningfully to the communities in which they operate and clear about what will not change: commitment to patients, customers, patient assistance programs and medical safety; and support for health care reform that expands coverage, improves quality and provides value to patients.

In the meantime, further information is available at Pfizer recently announced that it agreed to acquire Wyeth (located in Eastern Henrico and the City of Richmond), becoming the premier global biopharmaceutical company with the strongest assets, pipeline and capabilities within health care. The diversity, agility and scale of the combined company will enable them to more effectively address the health, wellness and unmet medical needs of patients around the world.

The opportunities created by this combination are far greater than either Pfizer or Wyeth could achieve alone. The new company, which will be called Pfizer, will be a leader in human, animal and consumer health; primary and specialty care; and biologics as well as pharmaceuticals.

Importantly, this combination will support Pfizer's mission to apply innovative science to improve world health.

The Company has pledged to continue contributing meaningfully to the communities in which they operate and clear about what will not change: commitment to patients, customers, patient assistance programs and medical safety; and support for health care reform that expands coverage, improves quality and provides value to patients.

In the meantime, further information is available at www.premierbiopharma.com http://www.premierbiopharma.com/

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PEACE’S SIGHT PRESERVATION BILL MOVES FORWARD

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Appreciating that the gift of sight is precious, State Delegate Chris Peace introduced legislation to protect and advance the delivery of vision care services in Virginia. Local area doctors of optometry brought to the Delegate’s attention concern that illegal sale of cosmetic contact lenses by beauty parlors and flea markets were causing sight threatening eye infections, corneal abrasions, and corneal ulcers. The unsuspecting consumer wanting to change the color of their eyes did not realize that even cosmetic contacts require an eye doctor to determine the proper fit and type of contact lens, in addition to providing training on proper contact lens care. Cosmetic contact lenses sold by untrained professionals has caused an increase in these sight threatening problems. Delegate Peace’s sight preservation bill also includes a provision so that doctors of optometry may provide patients with the newest technological advancements in treating eye disease. As an example, in the near future, it is expected that the FDA will approve a contact lens which includes medication in the special type of contact lenses to treat ocular allergies.

The legislation recently passed the Virginia House of Delegates by a vote of 99-0, and is now awaiting consideration by the State Senate.

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Peace Housing Measure Passes House

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--Livable Home Tax Credit Bill to go to Senate----First "Help Housing Now" Coalition Bill Moves Forward--

Delegate Christopher K. Peace (R-Mechanicsville) announces the unanimous passage his "Livable Home" tax credit measure by the House of Delegates. The bill restructures a well established tax credit to require that the taxpayer retrofit a greater percentage of the home to qualify for the credit. Simultaneously, the individual tax credit limit moves from $500 to $2,000. This more attractive incentive would begin on or after January 1, 2010 and goes to homeowners who make accessibility improvements to their residences or purchase new homes. The credit itself was established in 1998. The program is capped at $1 Million annually.

Under the current program, if the owner spends $3,000 on accessibility improvements, they would qualify for a maximum credit of $500. Under these revisions, the owner could receive a credit of $2,000. Since many owners who need to make accessibility improvements have limited incomes, the increase in these limits should encourage the elderly on fixed incomes or the more disabled persons greater access to the program.

"In this time of economic challenge leaders must come together to put Virginia First in bipartisan ways, working together for solutions and in this case to help citizens make their homes or purchase of new homes more accessible," stated Peace.

Livable Home Tax Credit (formally Home Accessibility Credit) is being administered by the Department of Housing and Community Development (DHCD). Applications are to be filed with the Virginia Department of Housing and Community Development (DHCD) by February 28 of the year following the year in which the purchase or retro-fitting was completed. For additional information please contact Kathy Robertson at 804-225-3129.

The livable home tax credit measure is a part of the Help Housing Now package introduced by Peace and a bi-partisan coalition of fellow legislators and representatives of the housing industry- both for-profits and non-profits the day before the opening session of the 2009 General Assembly session.

Virginia Natural Gas introduces energySMART conservation program

NORFOLK, Va. – January 27, 2009 – Virginia Natural Gas (VNG) today launched its new energySMART (Save Money and Resources Today) energy conservation program for customers –– designed to assist customers in using energy wisely and to lower their monthly utility bills. “We are thrilled to introduce the energySMART program designed to make it easy for customers to conserve,” said Jodi Gidley, president, Virginia Natural Gas. “Customers who take advantage energySMART can significantly reduce their monthly natural gas usage and save money.”

The energySMART program offers several ways to make it convenient for customers to conserve.

$25 Rebate on a Seasonal Heating Equipment CheckupA simple way to stay in control of heating bills is by having a seasonal HVAC system checkup. Customers can reduce their energy usage and save money by ensuring their heating systems are running at full capacity and efficiency. As an incentive to customers to schedule a seasonal checkup, Virginia Natural Gas is offering a $25 energySMART rebate to offset the cost.

*This offer is good on seasonal heating equipment checkups completed between Jan.1, 2009, and March 31, 2009. See www.virginianaturalgas.com for additional details and terms.

FREE Customized Programmable Thermostat Customers can better control their expenses by regulating their heat with a programmable thermostat. According to the U.S. Department of Energy, by using the recommended manufacturer settings, consumers can save up to $180 a year. Virginia Natural Gas is offering a free programmable thermostat to residential customers with a gas furnace. Customers can also save with a $25 rebate on the purchase of any programmable thermostat.

High-Efficiency Natural Gas Equipment Rebates A high-efficiency natural gas heating system will keep you warm and draft-free, even on the coldest of days. Natural gas heat is up to 97 percent efficient. That means you can enjoy the warmth without paying for wasted energy. According to the Natural Resources Defense Council, water heating is typically the third largest energy expense in your home, accounting for about 14 percent of your energy bill. If your water heater is more than 10 years old, it probably operates at less than 50 percent efficiency. Customers can reduce their energy consumption and save money by installing high-efficiency natural gas appliances.

Virginia Natural Gas customers who purchase or have purchased one of the high-efficiency natural gas appliances listed below, on or after Jan. 1, 2009, are eligible for an energySMART rebate.

Rebate Appliance $500 Furnace (90 percent+AFUE) $500 Tankless Water Heater (.82 percent +EF) $150 Tank Water Heater (.62 percent +EF)

Low-Income Home Weatherization Program For customers with an income at or below 175 percent of the federal poverty level, Virginia Natural Gas has partnered with state-certified weatherization agencies to provide the direct installation of cost-effective energy efficiency measures in customers’ homes (determined on a home-specific basis). Besides weatherization measures, the agency may determine that equipment and appliance repair or aid with appliance replacement is needed. Participants are asked to partner with the program to develop and carry out a household energy-savings Action Plan. All efficiency measures and energy education services are provided free to the customer.

How Do Customers Participate in the EnergySMART Program? For Rebates or FREE Thermostats:

1. Go to www.virginianaturalgas.com and complete VNG’s easy-to-use rebate form or request a FREE thermostat. 2. For rebates, customers should mail in their original receipt and a copy of the completed rebate form to the address on the form. 3. Customers should allow eight weeks to receive their rebate or thermostat.

For Low-Income Home Weatherization:Southside and Hampton residents should call the Southeastern Tidewater Opportunity Project at (757) 858-1397, and Peninsula residents (other than Hampton) should call the Williamsburg/James City County Community Action Network at (757) 229-9389.

Additional programs and initiatives will be phased in throughout 2009. For more information, visit www.virginianaturalgas.com

About Virginia Natural Gas Virginia Natural Gas, a wholly owned subsidiary of AGL Resources (NYSE: ATG), provides retail natural gas sales and distribution services to more than 270,000 customers in southeast Virginia. For more information, visit www.virginianaturalgas.com.

About AGL ResourcesAGL Resources (NYSE: ATG), an Atlanta-based energy services company, serves more than 2.3 million customers in six states. The company also owns Houston-based Sequent Energy Management, an asset manager serving natural gas wholesale customers throughout North America. As a 70 percent owner in the SouthStar partnership, AGL Resources markets natural gas to consumers in Georgia under the Georgia Natural Gas brand. The company also owns and operates Jefferson Island Storage & Hub, a high-deliverability natural gas storage facility near the Henry Hub in Louisiana. For more information, visit www.aglresources.com.

Contact: Virginia Natural Gas/AGL Resources Tami Gerke Office: (404)-584-3873 24-Hour Media Line: 1-866-757-6646 tgerke@aglresources.com

Governor Kaine's Revenue Revisions and Budget Proposals HB 1600

The Appropriations Committee Staff, along with the staff of the Senate Finance Committee, prepared jointly an analysis of the Governor's proposed budget amendments as contained in HB 1600. In an effort to assist you with questions, the Appropriations Committee Staff has prepared the summary below by Secretarial area of the major highlights of the Governor's proposals. HOUSE BILL 1600 AS INTRODUCED

Proposed Tax Policy Changes Embedded in the Governor’s budget recommendations are a series of tax policy changes, each of which will be accompanied by stand-alone legislation. In combination, these changes are anticipated to generate an additional $140.6 million GF and $154.9 million to the Health Care Fund in the second year. The major provisions are listed below:

Tobacco Products Tax Increase. Proposes to increase the cigarette tax from 30 cents to 60 cents per pack and increase the other tobacco tax to 25 cents per ounce effective July 1, 2009. generating approximately $155 million in FY 2010 with the revenues being used to offset general fund appropriations for the state’s share of Medicaid costs.

Elimination of Dealer Discount on Sales Tax. The Governor proposes to eliminate the “dealer discount” which allows retailers to retain between 2 and 4 percent of the sales taxes they collect (based on volume of sales) generating $64.3 million each year. North Carolina, Kentucky and Tennessee do not provide a dealer discount and Maryland caps the discount they provide.

Subject Captive REITs to Corporate Income Tax. Currently a REIT is subject to income tax but is allowed to deduct dividends it pays its shareholders. Dividends received by shareholders are taxed except that they do not qualify for the corporate dividends received deduction. As a result of differences between federal and Virginia exemption definitions, income attributable to ownership of real estate in Virginia escapes Virginia income tax. The proposed change would generate $10.0 million each year beginning in FY 2010. Similar provisions have been adopted by nine other states including Maryland, Kentucky and North Carolina. Another 20 states require corporate income tax returns to be filed on a unitary combination basis which prevents tax avoidance through captive REITs. Unlike legislation proposed by the Administration last year, bank-held mortgage REITs are excluded from this change.

Land Preservation Tax Credit Annual Cap. Proposes to reduce the amount of Land Preservation Tax Credit that may be claimed on income tax returns from $100,000 to $50,000 per taxpayer and would extend the period during which a taxpayer can claim the credit. This would generate $50.0 million in FY 2010.

Higher Education The savings strategies adopted by the Governor for higher education and state museums total $323.5 million for the biennium of which $98.8 million are in FY 2009 and $224.7 million are in FY 2010. Public colleges and universities comprise the majority of the reductions at $86.1 million the first year and $212.1 million in the second year. Affiliated education entities (SCHEV, VIMS, extension, higher education centers, EVMS and Jefferson Labs) account for reductions of $7.6 million in FY 2009 and $7.2 million in FY 2010. State museums and the Library of Virginia have $5.1 million in reductions in FY 2009 and $5.5 million in FY 2010.

Reductions to colleges and universities were either five percent or seven percent in the first year. Institutions received a five percent reduction if they (1) were either below 93 percent of their funding guideline as of June 2008 or (2) have more than 50 percent of their students applying for financial aid. The remaining institutions were assessed a seven percent reduction. Second year reductions were about 15 percent for all institutions except for Richard Bland and the VCCS which received a ten percent reduction.

The $17.5 million in funding for the Tuition Moderation Incentive Fund (TMIF) was eliminated in the second year after allocating about $5.0 million to the 11 institutions who kept FY 2009 tuition increases moderate and qualified for the continuation funding.

The Governor’s budget does propose $25.9 million in increased financial aid funding for 12 of 17 institutions and $13.3 million of restructuring incentive funds related interest earnings and credit card rebates.

Public Education The Governor’s proposed Direct Aid for public education budget includes a total of $10,962.4 million GF for the biennium, a net biennial decrease of $691.9 million GF. The majority of the GF savings, $583.7 million, occur in the second year of the budget. These adjustments are due to: technical and mandated adjustments attributable to the projected slowing of enrollment growth, a proposed policy change for support positions, elimination of a salary adjustment, and the elimination of construction grants.

The largest proposed amendment changes the current policy for how the state funds education support positions – personnel not in the classroom. This action applies a funding cap of one funded support position to every 4.03 funded instructional positions and saves $340.9 million GF the second year. Along with the cap, the Governor recommends a new funding loss cap allocation of $60.9 million to help mitigate some of the loss of funds for those localities that are most affected by the policy change. The new funding cap ensures that localities will not lose more than $403.9 per student due to the policy change.

The proposed budget also eliminates the use of Lottery funds for school construction grants, adds six programs (Alternative Education, ISEAP, Special Education – Regional Tuition, NCLB, Project graduation) to the Lottery fund and removes two programs (Enrollment Loss and Remedial Summer School), resulting in total GF savings of $55.8 million the second year. In addition, the Governor’s budget reflects reduced estimates for Lottery revenue of $30.5 million in FY 2009 and by $30.8 million in FY 2010. Further, the budget also recommends eliminating the $27.5 million from the school facilities construction grant program in the second year.

Other proposed actions include supplanting a net of $42.6 million NGF in FY 2009 and $11.8 million NGF in FY 2010 from the Literary Fund into the general fund to pay for a portion of teacher retirement payments.

The budget proposes to eliminate the second year 2.0% pay adjustment and makes a slight reduction to the contribution rates for retiree health care credit and group life which saves $71.6 million and $2.7 million the second year respectively.

The Governor’s recommended budget also reflects adjustment to the sales tax forecast as follows: 1.) Reflects the revised sales tax forecast which reduces revenue by $30 million in FY 2009 and $44.2 million in FY 2010; 2.) reflects two proposed policy changes related to the elimination of dealer discounts and an increase in cigarette sales tax, adding about $9.2 million to the estimate in the second year; 3.) reflects the 2008 triennial school census data which adds $4.6 million to basic aid payments the second year.

Additional technical adjustments related to updated student membership, student participation and test scores decreases funding to the SOQ, incentive and categorical programs by $35.7 million in FY 2009 and $47.4 million in FY 2010.

Lastly, the proposed budget saves $1.9 million the second year by closing the adolescent unit at Southwest Mental Health Institute and the Commonwealth Center for Children and Adolescents.

Employee Pay Raises The Governor proposes eliminating all pay raises included in Chapter 879 for all employee groups for a savings of $242.3 million.

Capital Outlay The savings strategies proposed by the Governor utilize about $360.7 million in general fund savings from capital outlay, including supplanting $350 million GF with VCBA and VPBA bonds for existing projects. The Governor also proposes reverting $10.7 million in capital project balances the majority of which is the reversion of $7 million of planning funds for the Charlotte prison project appropriated as part of the 21st Century Capital Improvement Program. In addition, the Governor proposes sweeping about $56.0 million in nongeneral fund cash from projects at UVA ($8.9 million from the Alderman Housing Renovation), Radford ($7.1 million from the Heth Hall Renovation) and UVA Medical Center ($40.0 million from the Medical Center Renovation) and supplanting the cash with Virginia College Building Authority bonds.

Public Safety Amendments proposed for public safety include general fund reductions totaling $38.8 million the first year and $107.3 million the second year. Among these budget reductions was the closure of two prisons, two field units, two detention centers, and eleven day reporting centers within the Department of Corrections. Due to costs associated with the Workforce Transition Act, these closures produced general fund savings totaling $6.1 million the first year; and the second year these eductions produce savings of $31.0 million.

Other significant savings include a reduction in HB 599 payments to localities with police departments of $7.7 million the first year and $14.4 million the second year. The first year reduction reflects the decline in general fund revenue collections, while the second year reduction represents a seven percent reduction. This seven percent reduction is similar to those proposed by the Governor in the second year for the Virginia State Police and sheriffs’ offices. While sheriffs and other Constitutional officers’ funding was not reduced in the first year, in the second year support for the operations of sheriffs’ offices and jail per diems is reduced by $35.3 million.

The Governor’s also proposes some additional spending items, including: $6.0 million each year in additional support for sheriffs’ office dispatchers, which is transferred from the Virginia Information Technologies Agency’s E-9111 fund; $3.4 million in additional funding the second year for local pre-trial services programs and additional probation and parole caseload growth; $1.0 million the first year and $3.5 million the second year to staff new or expanded local jails, and $1.2 million for the costs of utilities at the Northern Virginia forensic laboratory.

Health and Human Resources The Governor’s introduced budget for Health and Human Resources agencies reduced spending by a net total of $287.3 million GF over the biennium. This total reflects new biennial spending of $296.1 million GF offset by reductions of $583.4 million GF. The largest of these reductions come offsetting general fund costs in the Medicaid program through a 30-cent per pack increase in tobacco taxes which generates $154.9 million GF. Other targeted reductions in Medicaid involve delaying provider payments for a one-time savings of $126.5 million in FY 2009, reducing provider payments saving $24.4 million GF, capping enrollment and services in long-term care waivers saving $18.9 million GF, and closing Southeastern Virginia Training Center for a one-time savings of $8.4 million in FY 2010. In addition, Medicaid savings of $7.1 million GF are realized by implementing a provider assessment fee on intermediate care facilities for the mentally retarded (ICF-MRs). Other significant reductions include $7.6 million GF in savings from the closure of the children and adolescent unit at Southwestern Mental Health Institute and the closure of the Commonwealth Center for Children and Adolescents located on the Western State Hospital campus. A savings of $12 million GF is included in the Comprehensive Services Act program from lower utilization of services.

The introduced budget also includes spending items. The budget provides $280.1 million GF over the biennium for Medicaid and children’s health insurance program enrollment and utilization increases. An additional $1.8 million is provided for medical services due to increases in temporary detention orders. The budget also includes an additional $1.7 million GF for a 3 percent increase in rates for consumer-directed personal care for individuals enrolled in Medicaid home- and community-based waivers

Natural Resources Proposed amendments for Natural resources include GF reductions of $11.7 million in the first year and $12.3 million the second year. Among these reductions is $3.0 million in state match for the wastewater revolving loan fund program due to declining federal funds and the elimination of about 59 positions within the Department of Environmental Quality. These position reductions generated GF savings of 808,438 the first year and $4.4 million the second year. Other reductions included $2.2 million each year for state park operations, and $403,697 the first year and $607,394 the second year in reduced support for soil and water conservation districts.

The Governor’s proposed amendments also contain some additional spending items, including: $10.0 million from the general fund and $10.0 million in nongeneral fund sources for the Natural Resources Commitment Fund, which supports implementation of agricultural best management practices and an additional $1.5 million from the general fund to provide a statutorily-required deposit into the Water Quality Improvement Fund. $1.1 million of this amount is designated for the Department of Conservation and Recreation for nonpoint source pollution control and $0.4 million is provided to the Department of Environmental Quality for point source pollution control projects.

Agriculture and Forestry Amendments for the Agriculture and Forestry secretariat include GF reductions of $9.1 million over the biennium. At the Department of Agriculture and Consumer Services GF savings total $4.9 million, or about 7.5% of the agency’s GF budget. Targeted reductions include $890,000 GF and elimination of seven FTE positions from the Division of Charitable Gaming and the reduction of $500,000 GF in the state match for local purchase of development rights programs.

General Fund reductions for the Department of Forestry total $4.2 million of 11% of the agency’s GF budget. Targeted reductions include $589,000 GF generated by consolidating from six regional offices to three and savings of about $1.0 million from eliminating 23 positions throughout the agency.

Commerce and Trade Proposed amendments for Commerce and Trade generate a net reduction of $17.6 million GF when compared to Chapter 879, a 6.7 percent GF reduction over the biennium. The largest reduction reflects the elimination of an $8.8 million incentive payment to Qimonda because the company has not met performance targets. Other major reductions include: $1.1 million in the first year and $2.25 million in FY 2010 from the Enterprise Zone Grant program, $1.6 million each year from the indoor plumbing program, $1.0 million in unspecified reductions each year at the Virginia Economic Development Partnership, $800,000 in undesignated reductions each year at the Virginia Tourism Corporation, and approximately $500,000 the second year in combined reductions to water projects in southwest Virginia.

The Governor also has proposed a number of new initiatives and spending increases in Commerce and Trade, including $2.0 million the second year for a new Clean Energy Manufacturing Grant Program, a $5.0 million increase for the Governor’s Opportunity Fund, and $1.6 million in the second year for the Fort Monroe Federal Area Development Authority.

Transportation The Governor’s recommended amendments for Transportation agencies result in an appropriation of $82.0 million GF and $9.095 billion NGF for the biennium, a nongeneral fund revenue reduction of $670.1 million compared to Chapter 879. These adjustments reflect reduced growth in a number of transportation revenue sources, in particular motor vehicle titling, gasoline and recordation taxes. With some very minor exceptions, the budget does not include any transfers of transportation funds to the general fund to address the GF budget shortfall. The reductions are contained in a single item in each agency and are not integrated into the specific programs. There is no language specifying how the agencies intend to implement the reductions by program, roadway system or geographic area.

Across the Secretariat, the proposed amendments reduce the agencies’ maximum employment level by 1,163 fulltime equivalent positions. All but 13 of the eliminated positions are at VDOT which is reducing its MEL from 9,500 to 8,350 by the end of the biennium.

General Government Savings amendments proposed in the General Government arena include: a proposal to generate $22.8 million in additional revenues from the hiring of 55 additional Tax staff to enhance its compliance and audit programs; $43.5 million in savings at the Compensation Board through across-the-board reductions in FY 2010 to the offices of constitutional officers. The reductions are 7% for Sheriffs and Commonwealth’s Attorney’s and 10% for Commissioners of Revenue, Treasurers, Directors of Finance, and the Clerk of Circuit Courts.

Statement of Attorney General Bob McDonnell on Lee-Jackson Day

Richmond- Attorney General Bob McDonnell issued the following statement today in recognition of the Lee-Jackson state holiday in Virginia. “Today, the Commonwealth of Virginia pauses to remember two great Virginians, Robert E. Lee and Thomas J. “Stonewall” Jackson.

Robert E. Lee and Thomas J. “Stonewall” Jackson were men of honor, duty, faith and humility. Today, they are remembered foremost for their leadership on the battlefield. They served our nation, and when duty called, our Commonwealth, with courage and valor.

However, the legacies of Lee and Jackson extend beyond the battlefield. They are found in Lexington, where Lee taught his students after the War to be Americans again, and to pursue lives of honor and obligation, and where Jackson taught future heroes at Virginia Military Institute. Both men set personal examples that continue to be remembered to this day.

As Virginians we share a long, and sometimes difficult, history. In that history, Virginia has produced many great men and women. The lives of Robert E. Lee and Thomas J. “Stonewall” Jackson remain worthy of study and commemoration.”

Article on General Assembly Housing Initiatives

by Bob Holsworth January 14, 2009 Virginia Tomorrow is very proud to have published (below) Chris Peace’s thoughts on how the General Assembly might address crucial issues about housing in this year’s session. The work that Peace, his Assembly colleagues, state and local agencies, and the housing, realtor and nonprofit groups put into crafting a comprehensive legislative package shows just how much effort and preparation goes into an Assembly session.

Peace and his colleagues are to be commended for offering a problem-solving, cost-effective set of recommendations that help to address one of the major problems arising in the economic downtown.

Visit the following site for session updates and commentary: http://virginiatomorrow.com/

Peace Remarks: Help Housing Now Press Conference

Good morning, My name is Chris Peace and it's my honor to represent the people of the 97th District of the House of Delegates which includes the counties of Spotsylvania, Caroline, King William, King and Queen, Henrico, Hanover and New Kent. In this time of economic challenge elected leaders must come together to put Virginia First in bipartisan ways, working together for solutions and in this case to Help Housing Now. In that spirit I am so encouraged to have with me today at the lectern Senator Donald McEachin, our other fellow legislators, and representatives of the housing industry-both for profits and non-profits.

More than six months ago, after Congress passed the Economic Recovery Act of 2008, I approached the Richmond Association of REALTORS and asked them "What should Virginia do to help the housing industry and address consumer confidence."

Knowing that Virginia must have a balanced budget and cannot print money, I knew the our stimulus options were limited; nevertheless I presented them with the idea of establishing in Virginia an incentive program that included a first-time home buyer tax credit, similar to that federal credit.

Since that initial meeting, the realtors (state and local), state homebuilders, and other interested parties conducted several work sessions. This workgroup asked many others including legislators, industry representatives, and non-profits for input. What developed were broad discussions about what the Virginia General Assembly could do not only to reach out to a the sagging housing sector, but also what we could do now to ensure that in the future all of Virginia's citizens would access well-designed, quality constructed housing in safe neighborhoods with good schools and close to good paying jobs. Housing is not simply a pivotal economic engine, but also a key component in our quality of life.

As we stand here today as legislators and citizens, we know that there is no silver bullet for a speedy recovery for our national and state economies. And yet we also know that when the recovery begins, how quickly it happens, and how strong it is depends--in large measure-- upon the recovery of the housing industry. The measures we present today have been thoughtfully considered and will prove to be assets for both the housing industry, homeowners, and for those who are displaced from a home now needing access to housing as renters.

Before I turn the podium over to Senator McEachin I would like to emphasize that we are cognizant of how the downturn in the housing market has helped increase Virginia's budget shortfall. Fewer home sales equal fewer recordations, grantor and other taxes which equal less revenue for the state. So we believe it is imperative that the General Assembly take whatever prudent steps it can to incentivize activity in the housing market.

Second, in light of the difficult financial situation in which the state finds itself, the measures we are presenting today will not result any net increase in spending or dedication of existing General Funds.

I look forward to working with all of my colleagues and Senator McEachin as we work to pass this Help Housing Now legislation.

Va. lawmakers tout tax credits for purchases of new homes

By Garren Shipley -- Northern Virginia Daily Staff Writer Buy a house, get free money. Or at least a hefty tax credit.

Some state lawmakers hope that reasoning will get Virginians thinking about new homes again, and boost the state's slowing economy at the same time.

Del. Chris Peace, R-Mechanicsville, and Sen. Walter Stosch, R-Glen Allen, have both offered bills that would create tax credits for people purchasing homes in 2009.

While they vary in their details, both pieces of legislation would allow taxpayers who purchase a new home to take a tax credit of anywhere from $1,250 to $5,000.

Both have garnered bipartisan support in the House of Delegates and Senate.

"There was a significant decrease of jobs in the construction area," Stosch said. "Anything you can do to help stimulate home buying would be a step in the right direction."

Building permits issued in the Richmond area in 2008 were scarcely a third of what they were in 2006.

Virginians as a whole simply aren't buying homes at the pace they once were, a point dramatically illustrated by statistics compiled by the Virginia Association of Realtors.

Statewide, home sales took a solid lick in the third quarter of 2008, dropping 9.2 percent, while median prices climbed 1 percent.

Locally, the numbers were much worse. In Shenandoah and Page counties, total sales were down 34 percent over the same period in 2007 with prices down by 16.3 percent.

In Winchester, Frederick, Clarke and Warren counties, sales climbed by 10 percent, but prices fell by 24.9 percent.

Virginia's $3 billion budget shortfall could make a tough sell of the idea of sending more money out of the treasury in the form of tax credits.

Nonetheless, "realizing what's really happened in that industry, even though we're in a budget crunch, it seemed to me that it would be an appropriate time and to try to recover some of those jobs in Virginia," Stosch said.

"My argument is going to be that it's positive, not negative," Stosch said. About 80 percent of the state's revenue comes from individual income taxes or sales taxes -- two areas that would benefit from higher employment in the housing industry and home-related spending.

Budgetary impacts could be minimal as well.

Unlike Stosch's credit, Peace's would have to be repaid over years. But floating that money to home buyers for 10 years gives the state a chance to collect the grantor's tax and recordation taxes.

It also has the potential to get home buyers spending again on things like furniture and other home goods.

"When you build a house, 55 local businesses are involved," Peace said. "You could come out as a wash."

Home builders, Realtors, nonprofits and others agreed that encouraging home purchases could be a help for an industry in serious trouble.

"It's not a silver bullet," Peace said. "None of them are silver bullets, but it's something that will help housing now."

Giving home buyers an additional $2,500 in tax credits might not seem like much, but it could have a very powerful psychological impact when coupled with an existing $7,500 federal tax credit for first-time buyers.

Legislators return to Richmond on Wednesday.

* Contact Garren Shipley at gshipley@nvdaily.com

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Henrico School Artwork on Display at General Assembly

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Cashell Donahoe Elementary School and Elko Middle School Students: Talent on Display Students from Henrico County’s Cashell Donahoe Elementary School and Elko Middle School will have their artwork on display at the General Assembly during the 2009 session. Delegate Christopher K. Peace (R-Mechanicsville) annually reserves the wall space outside of his Capitol office for display of artwork created by the talented students of the 97th District.

“Citizens from all over the state of Virginia visit the General Assembly Building each year and I think this is a great opportunity for students from Henrico County schools to demonstrate their talents,” stated Delegate Peace. “I receive many compliments from Capitol visitors about the beautiful artwork; many are amazed at the remarkable talent of such young artists.”

Delegate Peace hosts a reception at the Capitol, for students whose artwork has been on display, their parents and the school art teacher at the end of session. Students and parents will meet with the Delegate and have the opportunity to tour the Capitol and observe session live.