General Summary and Political News
The 2009 Session of the Virginia General Assembly drew to a close on its scheduled sine die adjournment date of February 28th. The short 45-day session will likely be remembered as a tough session for legislators given the hard economic times and complexities that have arisen as a result of President Obama’s federal stimulus package. Besides the budget, 1,850 bills were considered, with only 886 passing both chambers of the legislature.
On April 8th, legislators will return to Richmond to consider any further changes to the budget and the Governor’s vetoes or amendments on legislation that passed the Assembly. Unlike the US President, the Governor has three options when he is presented with legislation that has passed both chambers. He may sign the legislation to enact it into law, veto the legislation, or amend the legislation. If he vetoes or amends the legislation it is returned to the General Assembly. For vetoed legislation, a 2/3 vote from both chambers is necessary to override it. For amended legislation, the Assembly may approve his amendments or reject them. If they are rejected, the Governor may then sign or veto the legislation. The Governor may also make line item amendments to the budget, which must also be approved by a majority in both chambers.
Activity regarding this year’s House of Delegates elections is increasing and there will be many closely watched races. One race that is now on the political observer’s radar will take place in the 80th District, which currently is represented by Delegate Ken Melvin (D-Portsmouth). Last week, he announced his decision not to seek re-election in November. Serving in the House since 1986, Del. Melvin has become a widely respected member on the Courts of Justice, Finance, and Commerce & Labor Committees. There are currently no announced candidates for his seat, considered to be safe for Democrats, but there could likely be a primary contest.
Also announcing a decision not to seek re-election is Delegate William Fralin (R-Roanoke). He is another member of the House who although served a relatively short 5 years, has gained respect from members of both parties. His seat in the 17th District is considered to be a safe Republican seat and there are currently no announced candidates.
There will be many other watched races this year as all 100 seats in the House of Delegates are up for re-election. Democrats have slowly been increasing their numbers over the past several election cycles and could potentially gain a majority of the House. Currently, there are 53 Republicans, 45 Democrats, and 2 Independents. However, the Independents caucus with the Republicans so, the Democrats would need to pick up 6 seats to gain a majority. The political environment has been tense this year with elections on legislators’ minds. The fact that Virginia voted for Obama also does not ease the minds of Republican leaders.
The state’s first seriously contested primary race for Governor since 1977 remains heated. In a recent survey by Public Policy Polling, Terry McAuliffe leads Brian Moran by statistically insignificant 21% to 19%. State Senator Creigh Deeds trails behind with 14% of the likely voters as he continues to try to cut in to the urban and suburban demographics currently captured by McAuliffee and Moran. Given the early statewide advertising and heavy fundraising and spending by McAuliffe, it is surprising that he has not gained higher margins. Governor Kaine, also Chairman of the Democratic National Party, has weighed in on the race and although staying neutral, has asked that the candidates run a respectable race with the right tone. All eyes will be on Virginia this year as it is one of very few states to hold statewide races in 2009.
As expected, the General Assembly confirmed the appointment of Bill Mims as the successor to now former Attorney General Bob McDonnell. Both chambers unanimously voted on the confirmation of the former Delegate and Senator from Loudon to serve the remaining nine months of McDonnell’s term. Attorney General Mimms has stated that he will not be seeking re-election to the post.
The Budget
On the final day of the session, the General Assembly adopted a trimmed, $77 billion budget on a House vote of 90-8 and a Senate vote of 35-5. As the first state to incorporate funds from the American Recovery and Reinvestment Act of 2009, the Commonwealth was spared from some major cuts. However, unless the current economic conditions improve, legislators may have to face tough decisions in future years. But this year, the record breaking $3.7 billion shortfall was alleviated by $1.5 billion in funds from the federal stimulus package. The revised budget plan also included a reserve of $160 million in unappropriated funds to help offset possible future state revenue declines.
Many proposed cuts were averted including $365 million from public schools, $127 million from colleges and universities, and 5 to 10 percent of the budgets of sheriffs and other constitutional officers. The stimulus package also provides $962 million for state obligations to Medicaid over two years and prevents other cuts in the healthcare and public safety areas. Gov. Kaine has said that over 7,000 state jobs were spared thanks to the funds. However, in December, Kaine announced over 2,000 layoffs, most of which will still occur.
A revenue issue that was heavily debated this year was Virginia’s policy that allows retailers to retain a portion of the sales taxes that they collect from consumers as a “dealer discount.” Governor Kaine had proposed eliminating this, as many other states have done. This policy change would have meant that $64.3 million in taxes paid by consumers during sales transactions would be remitted to the state to support state services. The final result was that no action was taken on the issue with the exception of retailers making 2 versus 1 sales tax remittance per month. However, the issue is likely to come up again.
Two of the most contentious issues between House and Senate budget negotiators surrounded local school staffing and whether non-violent criminals should be released from prison early to save money. The local school staffing issue centered on a recommendation from Gov. Kaine to impose a limit on the number of support staff that the state would fund. Lawmakers chose to ask the Board of Education to study the issue and make a recommendation instead of taking action this year. The Senate and Governor’s plan to release non-violent felons 9 months early would have saved the Commonwealth about $5 million annually. In the final budget, the proposal was scrapped.
Another proposal that was eliminated from the final budget was an early retirement plan for teachers proposed by House Republican leaders. The plan would have given school divisions a way to shrink budgets and prevent teacher layoffs as revenues decline. The Senate budget negotiators felt that the plan would have put another financial burden on localities that did not want to participate and that the fiscal impact would have been too excessive for the state and localities. Delegate Lacey Putney (I-Bedford) said, “They were overlooking the fact that localities would save millions if they could retire some of the older [teachers] and keep the younger ones at much lower salaries.” Nonetheless, the plan did not make it into the final budget.
Finally, responding to current tough economic times, lawmakers also approved provisions that will hopefully strengthen Virginia’s economy and create more jobs. Included are seven higher education capital projects worth over $230 million that are now being expedited to help create 3,400 jobs. Also, with the promise of encouraging more tourism and the success of prior economic development partnerships, $3.2 million has been additionally appropriated towards the two areas to help create more opportunities to expand Virginia’s economy.
While this year’s session was mostly about money, there was one landmark piece of legislation that passed both chambers; the ban on smoking in most restaurants. The legislation was the result of compromise between Gov. Kaine and Speaker of the House of Delegates, Bill Howell. Taking effect on December 1st, the legislation will ban smoking in all restaurants with certain, specific exceptions for private clubs, outdoor, uncovered patios, and separately ventilated rooms. Even though some see the ban as not going far enough to protect the health of all Virginians, many see it as a major accomplishment for a state with strong ties to tobacco. Altria, the parent company of Philip Morris, was vehemently opposed to the bill and attempted to water it down. Their efforts to kill the bill were thwarted but they did secure a provision within the bill that still allows for smoking in their own cafeterias and break rooms.
Governor Kaine celebrated passage of several legislative initiatives this year – his last legislative session as Governor, but he will undoubtedly be remembered for failing to fulfill his campaign promise of fixing Virginia’s transportation system. However, he did manage to help start construction of HOT lanes in Northern Virginia and broker an agreement on the extension of the Metro to Dulles International Airport. This session, his legislative accomplishments included successes in the areas of energy, the environment, and healthcare among others. Following is a list including some of those successful initiatives.
Energy
Patroned by Senator Ralph Northam (D-Norfolk), SB 1248 promotes energy efficiency by electric utilities by providing cost recovery for companies’ utility investments in energy efficiency. This will help reduce carbon emissions by changing the bias in current financing rules that makes it more profitable to construct new generating plants than to invest in energy efficiency.
SB 1339, patroned by Senator Mark Herring (D-Leesburg), provides tools to expand energy efficiency and the use of renewable energy sources. The legislation allows utilities to set up dynamic electric rates to allow all customers to shift electric use to times when rates are lower and conserve more energy at peak use times. It also raises the state’s renewable portfolio standard to 15 percent by 2025. The bill also increases the amount Virginians with renewable energy systems on their homes and businesses are paid when they produce more renewable electricity than they use and put the extra electricity back on the grid.
HB 1775, patroned by Delegate Albert Pollard (D-Westmoreland), and SB 1211, patroned by Senator Fred Quayle (R-Suffolk), charge the Secretaries of Natural Resources and Agriculture and Forestry with the responsibility of developing an invasive species management plan to prevent the introduction of invasive species and to control and eradicate those species that are present on Virginia's lands and waters.
With regards to the budget, Kaine secured $20 million for implementation of agricultural best management practices to combat non-point source pollution, specifically agricultural runoff. Non-point source pollution is a significant source of nutrient pollution in Virginia’s streams and rivers and the Chesapeake Bay. He is also on track to preserve more than 400,000 acres of open space by January – an area the size of Virginia’s Eastern Shore.
Health and Healthcare
HB 1703, patroned by Delegate John Cosgrove (R-Chesapeake), and SB 1105, patroned by Sen. Northam banned smoking in restaurants as detailed above.
HB 2044, patroned by Delegate Sam Nixon (R-Chesterfield), allows the Information Technology Investment Board to establish an advisory committee, consisting of persons with expertise in health care and information technology, to advise it on the adoption of nationally recognized health information technology technical and data standards.
HB 2456, patroned by Delegate John O’Bannon (R-Henrico), and SB 1112, patroned by Sen. Northam expanded the role of the Virginia Tobacco Settlement Foundation to use private funds and federal grants to promote the prevention of childhood obesity. The bills also changed the name of the Foundation to the Virginia Foundation for Healthy Youth.
For more information on Governor Kaine and his legislative agenda can be found at http://governor.virginia.gov.
Speaker Howell and the House Republican Caucus had several successes with their legislative initiatives this year. Following are some of the notable intiatives that received passage from both chambers.
HB 2285, patroned by Delegate Ben Cline (R-Rockbridge), and SB 936, patroned by Senator Ken Cuccinelli (R-Fairfax), improve state spending transparency through Virginia’s searchable database website to include information of state revenues, appropriations, and expenditures.
HB 1878, an omnibus election reform bill and HB 1877, a bill allowing firefighters, EMS personnel and other first responders to vote absentee were both patroned by Del. Cosgrove. Included in the provisions were changes that eliminate the prohibition on wearing apparel with political slogans or candidates’ names at the polls on Election Day. The bill also clarifies residency requirements for voters, which had become an issue during the 2008 November elections with the registration of hundreds of students on college campuses.
HB 2175, patroned by Delegate Clarke Hogan (R-Halifax), breaks down barriers in the regulation process for completing small renewable energy projects to more projects can be built faster and at a lower cost, helping to reduce electric grid consumption.
HB 2371, patroned by Delegate Dave Nutter (R-Montgomery), encourages consumer-driven choices for commercial customers generating renewable power by providing real-time, dynamic energy rates so utilities can bring that renewable power into their overall grid to lower overall costs and satisfy demand.
HB 1868, patroned by Delegate Bill Janis (R-Henrico), permanently increases the penalty for underage drinking and driving to a Class I Misdemeanor.
Energy conservation bills HB 2531, patroned by Delegate Terry Kilgore (R-Gate City), and SB 1348 from Senator Wagner (R-Virginia Beach), are important because they take an approach that is grounded in scientific fact and economic reality. Under these measures, the State Corporation Commission (SCC) is authorized to conduct an evidentiary proceeding to determine “achievable, cost-effective energy conservation and demand response targets that can realistically be accomplished in the Commonwealth.” In making that determination, the Commission is required to undertake a cost-benefit analysis and take into consideration both the public interest and the potential impact on economic development. The Commission is to report its findings to the Governor and the General Assembly by November 15, 2009.
SB 1035, patroned by Senator Emmett Hanger (R-Mount Solon), has been promised a veto from Governor Kaine. The bill would allow holders of concealed weapons permits to bring their guns into restaurants as long as they do not consumer alcohol. The bill passed both chambers, but without the 2/3 majority needed to override the Governor’s veto.
Also promised a veto from the Governor is SB 961, patroned by Senator Mark Obenshain (R-Harrisonburg) and HB 2358, patroned by Delegate Todd Gilbert (R-Shenandoah). The bills would expand Virginia’s “triggerman rule,” which reserves capital punishment to the person who actually commits the murder. Under this legislation anyone who is an accomplice to murder and shares the murderer’s intent to kill can receive the death penalty. Of note, is the opposition from Senator Ken Cucinelli, who is currently in a primary contest to become the Republican candidate for Attorney General. The bills, backed by a greater majority of Republicans than Democrats did not receive enough votes in the Senate to overturn the a gubernatorial veto.
HB 2578, patroned by Delegate Algie Howell (D-Norfolk), makes the sale of novelty lighters (that often resemble toys) to juveniles illegal and punishable by a fine of $100.
Delegate Cosgrove’s HB 1876 will prohibit sending or reading text messages while driving. Although it will only be considered a secondary offense (driver must be stopped for another offense), violators will be fined $20 for their first offense, and $50 for all subsequent violations.
