LEGISLATIVE CONNECTION

March 12, 2010

SAVE THE DATE

THE CHAMBER'S ANNUAL LEGISLATIVE WRAP-UP
April 1, 7:30 to 9:00 AM
Holiday Inn - Valley View
3315 Ordway Drive (Map)
For more information or to register, click here.

Finish Line in Sight?

Reading the tea leaves on House and Senate budget negotiations can be a maddening exercise. Rays of optimism can  be darkened quickly by an unforeseen obstacle. The pressure to produce a conference committee report on the budget will increase throughout the day as negotiators labor to meet a printing deadline for Saturday's floor session. 

House and Senate budget negotiators remain divided on fee increases and  funding for K-12 education. The Senate budget contains around $500 million more for public education and makes several revenue assumptions the House finds excessive.  

On Wednesday, Secretary of Finance Ric Brown notified budget writers that state revenues slid in February, noting that inclement weather had a dampening effect on economic performance, especially in Northern Virginia. According to Brown's report, total general fund revenues for February were down 5.9 percent over the same period last year. In addition, unemployment grew to 6.9 percent, up 1.2 percent from January.  If revenues continue to fall below already negative expectations, legislators would have to make additional cuts on top of the already deep reductions being meted out this week. A copy of Brown's report can be found here. 

Another wrinkle to this week's budget talks is a constitutional question posed by Delegate Bob Marshall (R-Prince William). Marshall sent a formal letter to Attorney General Ken Cuccinelli requesting an opinion on whether or not fees embedded in the budget would violate Virginia's 'one subject rule.' Over the years, the 'one subject rule,' which generally prohibits budget writers from appropriating revenues in the budget that have not also been approved through separate legislation, has been widely debated in the General Assembly. House and Senate budget negotiators are currently working towards a compromise on fee increases. The Senate budget includes around $325 million in fee increases over the next biennium.  

House Budget Conferees

Lacey E. Putney (I-Bedford, chairman of House Appropriations Committee)
Kirk Cox (R-Colonial Heights) 
Beverly Sherwood (R-Frederick County

Steve Landes (R-Augusta County)  
Chris Jones (R-Suffolk)

Johnny Joannou (D-Portsmouth) 

Senate Budget Conferees

Charles Colgan (D-Prince William, Chairman of Senate Finance)
William Wampler (R-Bristol)
Ed Houck (D-Spotsylvania) 
Janet Howell (D-Fairfax County)
Richard Saslaw (D-Fairfax County)
Walter Stosch (R-Henrico County
Tommy Norment (R-James City County)

Other Notable Legislation

Cooperative Procurement

On Tuesday, the Senate passed legislation sponsored by House Majority Leader Morgan Griffith that will prohibit local governments from piggybacking on another locality's contract for construction projects where the cost of the project(s) is in excess of $200,000 and the other locality is more than 75 miles in straight line distance from the territorial limits of the locality holding the contract. The Senate vote was 26-14, an especially strong vote considering the legislation emerged from committee on a razor thin vote of 8 to 7.  The Chamber worked with several business groups and Chambers in support of this legislation

Motion Picture Tax Credits

Currently, forty-one states have film incentive programs. Supporters of this legislation estimate that every dollar invested in incentives could produce an economic impact of $14.30. 

  Health Care and the 10th Amendment
On Wednesday, the General Assembly became the first state to formally declare  that its residents cannot be forced to purchase health insurance, setting up a potential legal challenge should Congress succeed in passing its highly publicized overhaul of the nation's health care system. Sponsored by Delegate Bob Marshall (R-Prince William), the House of Delegates passed HB10 by a vote of 80 to 17, including 21 House Democrats. Governor Bob McDonnell has already signaled his intention to sign the bill. Currently, 34 other state legislatures are considering similar measures.  

Offshore Oil Revenues Update

Earlier this week, Governor McDonnell signed into law  legislation (HB756)  that would allow Virginia to become the first state on the East coast to collect future royalties from offshore oil and natural gas resources. McDonnell stated that this bill sends a message to the Interior Department that a proposed 2011 sale of oil and natural gas leases in a tract 50 miles off of the Virginia coast should proceed as scheduled. Interestingly, in a March 5th letter addressed to 'Governor McDonald,' Virginia Congressman Jim Moran stated that drilling would not begin for at least eight years and that any royalties would go to the federal government and not into Virginia's coffers. Moran also claimed that offshore drilling could  jeopardize Virginia's fishing, recreational, and tourism industries and negatively impact military interests along the coast. See more here. 

Important Session Dates 

March 13th - Adjourn Sine Die

Video

To view live video or hear live audio from the House and Senate floor sessions, click here.

This format allows you to check bills and their status at a glance, by category. If you have questions along the way, please feel to contact or Tori Williams at twilliams@roanokechamber.org or 540.983.0700 x 229 or 540.819.7713. 

Click here to contact your legislators.

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