General Assembly Update

February 28, 2010

Dear Friends:

As we approach session adjournment, we have some important deadlines to meet in the next two weeks.  This coming week, committees responsible for the revenue bills of the other house must complete their work by midnight on Tuesday, March 2nd.  Wednesday, March 3rd is the last day for each house to act on the Budget Bill and revenue bills from the other and appoint conferees by midnight, as typically each body rejects the other’s budget and the details are ironed out by the budget conferees. 

I have had many inquiries and concerns about the budget and its impact on K-12 education, Medicaid and the Virginia Retirement System.  I have addressed the education and Medicaid inquiries, but caution that what we know now regarding funding cuts is far from certain.  We have recently heard that there will be more Medicaid money from the stimulus package coming from Washington and additional Medicaid MR waivers have been added to both the House and Senate budgets on the state level. 

A critical issue for the Hampton Roads area, of course, is the cut to the BRAC funding.  The Senate Finance Committee did remove the state’s portion of the $30 million used to eliminate encroachment on the Master Jet Base at Oceana for 2010-2012.  The City of Virginia Beach and the state have made an ongoing 50-50 effort, since 2006, to purchase land in the crash zone to reduce encroachment on the base, each investing $7.5 million.  Please rest assured that Sen. McWaters, Mayor Sessoms and the Virginia Beach City Council, and I are working with Governor McDonnell to restore this funding.  This funding is critical, as it is a commitment we have made to the Navy that we cannot break.

The necessary cuts were made to retain car tax relief and the budget was balanced through extensive cuts rather than any tax increase.  In so doing, there have been cuts to non-state agency funding, including the Virginia Arts Commission and Virginia Tech extension agency programs, such as 4-H and Master Gardeners.  There were no easy decisions to be made in what to cut and how much.  The budget conferees have a great deal of hard work to do before we know the final outcome.

I voted for the budget on the floor of the Senate, because it did retain car tax relief and included structural changes to VRS.  The retirement plan has a major structural deficiency in that it does not require employees to contribute anything towards their retirement.  While this has been a major well-deserved reward to our state employees, Virginia can no longer sustain the costs.  This has not been helpful, either, when bond rating agencies consider our financial position.  Let me emphasize that these changes do not have any effect on compensation for current state employees, but make much needed reform going forward for employees hired on July 1, 2010 or later.  This budget is also based on realistic revenue estimates, which has not been the case recent budget cycles.  I voted against the budget in previous years when I felt the revenue estimates could not be sustained, as in the Kaine budget that was based on a 6% personal income growth.  Needless to say, this estimate was overly optimistic and subsequently fell woefully short of that goal.  So, while we will never produce a budget where I agree with every expenditure and revenue, I feel that this Senate budget is a good attempt at solving our budgetary issues.  

A bright spot this week was the passage of Delegate Chris Stolle’s HB 756, which designates royalties from offshore drilling.  This bill is a companion bill to my Senate Bill 601, which was continued to 2011 in the Senate Finance Committee.  Both of these bills were generated by the Governor’s office and I could not be more pleased that the House version passed.  Kudos on this excellent effort in his first term by Delegate Stolle!

All of my remaining bills have passed the Senate and House except one, which will be heard in House General Laws this week.  To follow my bills, or other bills of interest, please click on the legislative website:  http://legis.state.va.us. 

Last week I had the pleasure of greeting constituents from Old Dominion University, the Mid-Atlantic Federation of Turkic-American Associations, the Virginia Association of Insurance Underwriters, local representatives of Virginia Natural Gas and Dominion Power, and David Abraham, Executive Director of Beth Shalom Village. 

Please contact our office if you want to schedule a tour of the Capitol or Governor’s Mansion.  If you wish to be seated in the Senate gallery, please contact us so that I may reserve space and recognize your presence during the session “morning hour.”

I hope you will contact my office with any concerns you may have.  I depend upon you, my constituents, to keep me informed on the issues of the day.  If you visit the Capitol, please come by Room 312 to say hello.

Sincerely,

Frank Wagner

Contact Information Jan. 13, 2010 – Mar. 13, 2010: 

804-698-7507-Richmond Office

District07@senate.virginia.gov

PO Box 396, Richmond VA  23218