The Honorable M. Kirk Cox Comments to the House of Delegates On The Committee Recommendations to House Bill 30

Mr. Speaker and Members of the House, as you have heard from Chairman Putney, two specific concerns raised by Members during the small group meetings relate to providing relief to local governments and increasing funding for public education. Clearly, we all know that localities budgets are stretched thin and that they too are grappling with declining real estate values and increased costs of providing services to our citizens.  Overall, nearly 65% of local budgets go to pay their share of the cost of K-12 education.

The budget recommendations that the Committee will consider on Sunday will address local aid from two fronts.

First, as it relates directly to public education, we will put forth recommendations to increase funding for our public schools by an additional $140 million over the amounts recommended by Governor McDonnell.  I want to thank the Governor for his budget proposals that added nearly $438 million in new funding.  With our recommendations, schools will see a total of nearly $580 million in net new money to support classroom instruction and to pay for teacher retirement.

Specifically, our amendments will provide $106.1 million in non-personal services inflation – using the most up to date inflation figures reported by Global Insight.

Second, we support adoption of the Governor’s amendments that will provide an additional $47 million over the biennium to fully fund the K-3 class size reduction program.

Third, we fund House Bill 1181, which expands the Early Reading Intervention Initiative for the 3rd graders.  By adding $6.2 million we will increase the portion funded from 25% to 62% in the first year, and then fully fund 100% of the initiative in the second year.

As we examined the various policy adjustments in the introduced budget, there has been some discussion on the deduction of the federal stimulus dollars in the rebenchmarking calculations.  You may recall, several years ago Governor Kaine recommended a policy to establish staffing standards for non-instructional positions.  This change was common sense in that the Standards of Quality establishes staffing for instruction positions.  As a result of this recommendation, both state and local governments would realize substantial cost savings.

After the adoption of this prudent policy change, federal stimulus funding became available to assist our school divisions in making up for the shortfall in state and local revenues.  Because the federal funding was tied to prior year funding levels, school divisions were allowed to offset reductions associated with the policy change in the short-term.  However, it was made very clear that the stimulus money was one-time in nature and would not be recognized in the next rebenchmarking cycle.  The introduced budget rightly reflects that decision and includes the federal stimulus money in the federal revenue deduct calculation.

In addition to increasing funding for public education, we have focused on mitigating pressures on local government more broadly.  The amendments we will propose address this side of the equation by reducing the $60.0 million local reversion that has been included in the budget since proposed by Governor Kaine during the 2008 Session.

For the last four years we have reduced local aid by $60.0 million each year.  While this tool was necessary to balance the budget during the recession, it is not an acceptable long-term solution.  Governor McDonnell’s proposed budget reduced this local aid reduction by $25 million over the biennium.  Clearly, this is a priority of the Governor’s.  The amendments offered by the Appropriations Committee will not only embrace the Governor’s recommendation,  but we will seek additional amendments to further reduce this reversion by nearly half over the current biennium, making substantial strides in phasing-out this structurally unbalanced practice.

Mr. Speaker, I want to echo the Chairman’s remarks in that the amendments that the Committee will deliver on Sunday are not only bi-partisan, but reflective of the thinking of all 100 members

The Honorable Lacey E. Putney Comments to the House of Delegates On The Committee Recommendations to House Bill 30

Mr. Speaker and Members of the House, over the last several days, I have heard remarks on this Floor and read articles in various newspapers that suggest that the only business being conducted by this House deals with either guns or abortion. So today, I rise to talk about the real business that we on the Appropriations Committee, and ultimately the House of Delegates, will be grappling with over the next week.  Mr. Speaker, I am referring to the state budget for the 2012-14 biennium.

Since we arrived here some 36 days ago, the 9th floor has been in full gear evaluating the most important document this House will vote on.  While taking place on the 9th floor, these discussions have involved all 100 Members of this body.

Over a 3 week period, I, along with the conferees, have conducted 7 small group briefings, in which members from both sides of the aisle participated in an in-depth discussion of the Governor’s proposed budget.

The 90-minute briefings were structured by functional area of the budget, allowing for questions and answers after each segment; followed by a general discussion at the end of the briefing.  Because of everyone’s busy schedules a make-up session was provided for each caucus.

So what did we learn in these meetings?  Well, we heard concerns that we should thoroughly examine the Governor’s policy proposal that removed the inflation adjustment for public education.

We heard that the continuation of the Aid to Localities cuts in HB 30 will create hardship for our local governments as they search for ways to balance their budget in light of declining real estate values.

We also heard that reductions to the health safety net will negatively impact our most vulnerable citizens; and that adequate funding to our hospitals and nursing homes is not only important for the delivery of quality health care to the aged and disabled, but it also recognizes that our health providers are major employers in much of rural Virginia.

We also heard that transportation is a core service of government and that using general funds has been done for 25 years.  Investments in our transportation system help create and retain the jobs that grow our economy.

Finally Mr. Speaker, while our economy continues to grow, as we heard from Secretary Brown yesterday, uncertainty still exists.  As a result, I believe we will need to continue to show restraint if we are to match our budget to the constraints of our ongoing revenue stream.

Leadership is measured by looking beyond today.

I believe that the Committee’s budget amendments will meet that test and put forth a common sense road map that embraces the bold initiatives and vision of Governor McDonnell, along with the collective wisdom of an independently elected House of Delegates.

Mr. Speaker over the last several years this House has made a priority commitment to the long-term structural balance of our finances.

This budget will be no different.

With the Governor’s leadership, this budget will include nearly $300.0 million in Rainy Day Fund deposits, replenishing the fund, which was used, as intended, to weather the recession.  The Fund balance at the end of FY 2014 will be in excess of $600.0 million, or about half of the level it was prior to the withdrawal.

Last Session, the General Assembly began to phase-out the accelerated collection of sales tax revenues that required nearly 9,000 retailers to pay July’s sales tax in June.

Our recommendations immediately began the phase-out, resulting in 80% of the impacted retailers not having to accelerate their sales tax remittance last June.

Mr. Speaker, I want to applaud the Governor for proposing $50 million to continue the phase-out.  This action, which will be in our budget, will remove another 1,407 retailers from accelerating the tax collections.  With this budget, and last year’s actions, 95.6% of all retailers will be removed from this requirement.

Finally Mr. Speaker, I believe that it is imperative to ensure that we have adequate cash reserves on hand as we continue to emerge from the worst recession in memory.  To that end, we will set aside a couple of reserve funds. The first is designed to meet any negative impact of federal budget reductions on the Commonwealth over the next several years.

The second reserve fund will serve two purposes; first, as a revenue reserve in the event that our economy does not perform at the levels that we anticipate.  If our economy does perform, then these appropriated dollars will be earmarked for a pay raise in the second year of the budget -- fiscal year 2014 -- for state employees, college faculty, and our state supported Constitutional Officers and their employees, such as deputy sheriffs, Commonwealth Attorneys, and such.

On Sunday, the Appropriations Committee will meet at 1:00 p.m.  At that time the full details of our fiscal plan will be unveiled.

However, like a movie “trailer”, I would like to give you a sneak preview of the coming attraction.  Specifically, our amendments will:

Provide additional funding for both our public schools and our local governments so that they can keep local taxes low,

  • Use one-time savings to fund non-recurring costs such as capital projects, and minimize the amount of new debt,
  • Provide full funding of the VRS contribution rates,
  • Reduce the burden on Virginia’s businesses with fewer and lower fees,
  • Provide additional support to attract new industry and promote tourism, and
  • Make the largest investment in over a decade to our colleges and universities.

In closing, Mr. Speaker, not only did we receive the input from all 100 members, but I believe we are heeding much of what they told us. In keeping with the old adage --- the Governor proposes and the Legislature disposes.

The product I will submit to this body next Thursday will reflect the bi-partisan work of all 22 members of the Committee, and reflect the thinking of all 100 members of the House.

Thank you.

 

Statement of Governor Bob McDonnell on House Passage of Teacher Contract Legislation

RICHMOND – Governor Bob McDonnell issued the following statement today following passage this morning by the House of Delegates of HB576, legislation that changes teacher contracting to help recognize exceptional teachers in Virginia’s public schools.  

“I have long said that a child’s educational opportunities should be determined by her intellect and work ethic, not her zip code. It is critical that we are preparing our young people for the highly-skilled, high-paying jobs of the 21st century – and that starts with getting a good education. A good education starts in the classroom, with great teachers instructing our children. Here in Virginia, we are fortunate have a world-class educational system with world-class teachers. However, until we can guarantee every student in Virginia a quality education, our work is not done. That is why, this year, we are advancing legislation through our ‘Opportunity to Learn’ agenda that establishes a three-year term contract and evaluation process for teachers and principals to enhance professional development opportunities and reward good teachers. This legislation will recognize our teachers for their success; provide teachers and administrators with benchmarking and performance measures; and, in the end, yield better results for our students. I am pleased that the House of Delegates recognizes the importance of this legislation that will ensure our students have access a world-class education taught by Virginia’s best teachers. I also want to thank Delegate Dickie Bell for his leadership in guiding this legislation through the House of Delegates.”

 

HB576 is part of Governor McDonnell’s “Opportunity to Learn” K-12 education reform legislative agenda. For more information on Governor McDonnell’s “Opportunity to Learn” agenda, please visit: http://www.governor.virginia.gov/News/viewRelease.cfm?id=1076.

 

Resolution to Express Virginia General Assembly Support for 287(g) Passes

Measure passes with bi-partisan support

Central Virginia- The House passes House Resolution 10, with bi-partisan support, by a vote of 73-23.  Delegate Christopher K. Peace (R-97th District), was a co-patron of HR 10, a measure to urge the President of the United States and the Secretary of Homeland Security to honor Virginia's request to enter into a § 287(g) memorandum of agreement extending specific, limited federal immigration training and enforcement authority to the Virginia Department of State Police.

According to the ICE website: “U.S. Immigration and Customs Enforcement (ICE), the largest investigative agency in the Department of Homeland Security, enforces federal immigration laws as part of its homeland security mission.  ICE works closely with federal, state and local law enforcement partners in this mission.”

The 287(g) program, is one of ICE’s top partnership initiatives, it allows a state and local law enforcement entity to enter into a partnership with ICE, under a joint Memorandum of Agreement (MOA).  The state or local entity receives delegated authority for immigration enforcement within their jurisdictions.

In August of 2010, Governor Bob McDonnell sent a letter to Secretary of Homeland Security, Janet Napolitano officially requesting the Commonwealth 287(g) training and authorization for State Police under the Task Force Model.  Since that letter, DHS has not approved Virginia’s request.

“Due to the Obama Administration’s ‘foot dragging’, this resolution is needed to express our emphatic support of this program and Virginia’s desire to participate,” commented Delegate Peace.

Peace continued, “House Republicans believe that playing by the rules and abiding by the law is important.  Countless immigrants to this great nation have come here to embrace the American dream and we very much honor legal immigrants by ensuring that when people enter our country for legal purposes and they observe the rules, we welcome them. It’s that simple.”

Read Governor McDonnell’s letter to Secretary of Homeland Security, Janet Napolitano:

http://www.governor.virginia.gov/News/viewRelease.cfm?id=310

For more information on ICE or 287(g): http://www.ice.gov/287g/

Peace Supports Measure to Remove Local Government Mandate

Urban Development Area component of Comprehensive Plan made optional

Central Virginia- As a co-patron of House Bill 869, Delegate Christopher K. Peace (R-97th District), is delighted the measure passed the House by a vote of 74-24 and is now headed to a hearing in the Senate.

HB 869 is a measure that makes designation of urban development areas optional for all localities.  Currently urban development areas are mandatory for many higher growth localities.  However, the measure does not change the Comprehensive Plan review process.

“I supported this bill, as a co-patron, because I believe that governing is best when closest to the people.  This measure allows local government to plan for future development which is in the best interest of their community. Additionally, the protection of private property rights is vital to our citizens,” asserted Delegate Peace.

The Comprehensive Plan review process is a long established five-year cycle that governing bodies are mandated to follow.  It works well and is an affordable process – Comprehensive Plan reviews can be time consuming and costly in terms of staff time, Planning Commission and Governing Body public meetings and required public hearings; they typically take many months and can easily take years.  The issues can be controversial and require considerable research, study and effort to work through the differences of opinion.

In 2007, the General Assembly added Section 15.2-2223.1 to the Code of Virginia requiring high growth localities to designate Urban Development Areas in their comprehensive plans by July 1, 2011 (counties).  Designated Urban Development Areas (“UDA”) are to be areas of reasonably compact development that can accommodate 10 to 20 years of projected growth.

 

Peace Education Reform Measure Clears House of Delegates

College Lab Partnership Bill Passes Unanimously, Provides Educational

Options at the Commonwealth's Private Colleges and Universities

Central Virginia- Delegate Christopher K. Peace (R-97th District) announces passage of his House Bill 765 today by a vote of 98 - 0. House Bill 765 is a measure which would allow any institution of higher education in Virginia to operate a college partnership laboratory school. The measure is part of Governor McDonnell’s “Opportunity to Learn” initiative, Phase II. Peace carried the original legislation creating these collaborative partnerships at public colleges and universities in 2010. As in 2010, Del. Jennifer McClellan (D-City of Richmond) served as a co-patron. Del. McClellan attended a lab school at Virginia State University as a young woman.

"In 2010, the General Assembly passed legislation, as a part of Governor McDonnell’s ‘Opportunity to Learn’ package, enabling public colleges and universities in Virginia to team with approved teacher-preparation programs in an effort to establish college partnership laboratory schools throughout the Commonwealth.  With this legislation we will see more partnerships between Virginia's higher educational institutions and K-12 public divisions, in turn increasing choices for K-12 students statewide," said Peace.

A College Partnership Laboratory School is a public, nonsectarian, nonreligious school established by a public institution of higher education operating in the Commonwealth which maintains and operates a teacher education program approved by the Board of Education.  Virginia currently has 14 approved sites including but not limited to James Madison University, University of Virginia, Old Dominion University, and George Mason University.

Lab partnerships offer options and innovation for all Virginia school children, but especially those who are disadvantaged or at-risk. These schools have worked in the past and there is currently interest within the higher education community to open College Partnership Laboratory Schools.  In fact, last year the legislature approved $600,000 for planning grants to establish lab schools. 6 schools have applied and awards will be made in March.

"Laboratory schools allow local divisions to offer greater opportunities for innovative instruction and assessment methods - customizing and improving the educational experience for all of our students. Providing educational options through utilizing the strengths and talents at the Commonwealth's colleges and universities are necessary steps toward assuring academic success for our youngest citizens,” continued Peace.

The measure will now crossover to the Senate for consideration.

STATEMENT OF LIEUTENANT GOVERNOR BOLLING ON CASTING TIE-BREAKING VOTE PROHIBITING FORCED UNION CONTRACTS

RICHMOND – Lieutenant Governor Bill Bolling today issued a statement on casting the tie-breaking vote in support of SB242 which prohibits the Commonwealth of Virginia from entering into public projects that involve Project Labor Agreements:

“Today, I was pleased to cast the tie-breaking vote in support of SB242 which prohibits the Commonwealth of Virginia from entering into public projects involving Project Labor Agreements. Public dollars should not be diverted to projects involving Project Labor Agreements that favor union shops over merit shops. This critical legislation protects our right-to-work law and continues to promote a pro-business environment. Virginia’s strong right-to-work law has been one of the cornerstones of its prosperity. By further protecting Virginia’s status as a right-to-work state, we will help create jobs for our citizens and better position our state to compete in the global marketplace of the 21st century.”

Bill to Protect Health Care Consumers Passes House

Defines the term surgery in the code Works toward further patient safety and professional competence in the performance of surgery.

Central Virginia- Delegate Christopher K. Peace (R-Hanover) is pleased to announce his bill House Bill 266 passed the House this week with unanimous support. HB 266 is a measure to define "surgery" so that no person other than a licensed doctor of medicine, osteopathy, or dentistry, a licensed nurse practitioner, or a person who is acting pursuant to the orders and under the appropriate supervision of a licensed doctor of medicine, osteopathy, or dentistry shall perform surgery.

With the changing landscape of health care nationally it is important that Virginia join with 20 other states to assure patients in Virginia that only medically trained surgeons are permitted to operate on them.  We do not want the federal government telling Virginia what surgery is or isn't.  Surgery performed by under-trained or inappropriately trained health practitioners can result in irreversible consequences. As federal and state policies promote team care approaches to health care delivery, there is a need to clearly define the roles and standards for surgical and other invasive treatments.

"Protecting the health, safety and well being of residents of the Commonwealth is important to me. I will continue to work to pass health care legislation such as this that further protects patients and assures continued access to quality health services," stated Peace.

HB 266 passed by a vote of 98-0 and will now be heard by the Senate committee on Education and Health.

House Republican Caucus Discusses Government Reform Agenda for the 2012 Session

RICHMOND, VA - This morning the House Republican Caucus held their weekly Policy Work Group press conference, this week discussing various government reform proposals the Caucus has introduced this session. Following the press conference, the Policy Work Group issued the following statement:

"As Vice-Chairman of the Governor's Commission on Government Reform, I have worked with Governor McDonnell and the House Republican Caucus over the last few years developing and implementing common-sense reforms to improve Virginia's government. Increasing efficiency, eliminating waste and developing innovative solutions are critical to the ongoing improvement of our government," said Speaker William J. Howell (R-Stafford).

The press conference featured various proposals from the McDonnell administration and members of the House Republican Caucus, including a government reorganization plan introduced by Delegate Todd Gilbert (R-Shenandoah). The government reorganization plan proposes the elimination or consolidation of various boards, commissions and agencies.

"House Bill 1291 lays the groundwork to eliminate or merge over 40 boards, commissions and agencies, and proposes the deregulation of three industries in the Commonwealth," said Gilbert. "Many of these agencies are outdated, unnecessary or duplicative. Amalgamating the functions of these groups with pre-existing government entities reduces costs, increases cooperation and improves overall administration. Other boards and commissions have simply outlived their usefulness and will be eliminated to simplify government and reduce taxpayer costs," he continued.

The McDonnell Administration estimates the reorganization plan submitted with save at least $2 million annually. While the executive reorganization plan addresses statewide efficiency, Delegate Kathy Byron (R-Bedford) has a bill that would eliminate various mandates on Virginia's localities.

"As Conservatives we believe in small, effective, streamlined government. While we work towards eliminating various unfunded federal mandates weighing down the Commonwealth, we must also eliminate mandates on our localities. House Bill 1295 eliminates a variety of requirements our localities labor under," said Byron. "From procurement requirements to land use regulations, localities carry a heavy burden. Doing away with all but the most necessary mandates is the first step in a series of legislative, regulatory and administrative actions to reduce these burdens, save money and simplify government."

Freshman Delegate Peter Farrell (R-Goochland) is building upon 2011 legislation that created a new Office of the Inspector General. "House Bill 520 strengthens and clarifies the duties of Virginia's Inspector General. Under this bill, every executive agency in the Commonwealth will undergo a performance audit, at least every four years, administered by the Inspector General. Such deliberate and consistent oversight will enable the General Assembly to ensure citizens that government agencies are performing as efficiently as possible," said Farrell.

Speaker Howell also discussed his plans for reforming the Virginia Retirement System. "Various analysts, including the Joint Legislative Audit and Review Commission have made it clear that Virginia's Retirement System has significant structural issues which require serious attention, today," said Howell. "To combat these issues, the Governor has proposed legislation to improve the long-term funding and administration of VRS."

The proposed changes to VRS are expected to net $160-170 million in annual cost savings and additional contributions. Alongside the Governor's proposed $2.2 billion employer contribution, a total of $5.8 billion in additional funding and savings would flow to VRS in the coming years.

"Keeping government lean, efficient and innovative are the keys to prosperity," said Delegate Chris Peace (R-Hanover), who hosts the weekly Policy Work Group press conference. "The proposals we're discussing today cut unnecessary government programs, strengthen oversight measures and propose innovative strategies to improve the provision of core government services. As always, we look forward to working with the Governor and our colleagues in the Senate on these important issues."

The House Republican Caucus Policy Work Group will hold a press conference each Monday at 11:00 am.