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Headlines Ratcheting up the Rhetoric on the Budget Expansion of UI Clears Stymied in House Subcommittee Kaine Mulls Over Senate Run | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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SAVE THE DATE THE CHAMBER'S ANNUAL LEGISLATIVE
WRAP-UP Confirmed Attendees: Budget
Negotiations Begin, Partisan While much of the heavy lifting on crafting a
budget compromise will be done by a small circle of legislators (see
below) behind closed doors, other lawmakers were eager to publicly
contrast the substantive differences between the House and Senate
spending plans. House Republicans used a series of daily of floor
speeches this week to critique what they labeled as the Senate's
'culture of spending.' The highlight came on Wednesday when Delegate
Todd Gilbert (R-Shenandoah County) argued that a Senate budget
proposal to spend several hundred million dollars on a new state
office building across the street from Capitol square was comparable
to kings and tyrants plundering public funds to construct the Great
Pyramid, the Palace of Versailles and the Taj Mahal. Rhetorical
bluster aside, budget conferees will have to reconcile several
substantive differences, particularly on spending on core government
services like K-12 education, health care and public safety, state
earmarks, the early phase-out of the accelerated sales tax, and
changes to the Virginia Retirement System. House Budget Conferees Lacey
E. Putney (I-Bedford, chairman of House Appropriations
Committee) Steve
Landes (R-Augusta County) Johnny Joannou (D-Portsmouth)
Senate Budget Conferees Charles
Colgan (D-Prince William, Chairman of Senate Finance) Senate Finance Committee Budget Comparison House Appropriations Committee Budget Comparison
Private Education Tax Credit Bill Dies in Senate Following nearly an hour of robust debate, the Senate Finance Committee passed by indefinitely legislation (HB2314)that would have established a tax credit for corporate donations to non-profit foundations that provide scholarships to low-income students. A corporation would have been eligible to receive a tax credit equal to 70% of its donation. The program would have been capped at $25 million in total tax credits. The patron of the bill Delegate Jimmie Massie (R-Henrico) argued that some students need an alternative to the public school system. He also introduced Florida Delegate Terry Fields who testified on the success of similar legislation introduced in Florida a decade ago. Opponents of the bill, including representatives from the Virginia Education Association, the Virginia Association of School Superintendents, the Virginia School Boards Association, and the Virginia Association of Counties, argued that this legislation would take $25 million from the state's General Fund. Pointing out that he could not remember another instance in his 36 years in the General Assembly where corporations asked for a tax credit for charitable giving, Senate Majority Leader, Dick Saslaw scolded Delegate Massie for introducing this legislation and pointed out that schools have fixed costs that will not go away even if fewer students are enrolled. The chair of the Senate Finance Committee, Charles Colgan (D-Manassas), reminded Delegate Massie that his legislation would conflict with several principles of a new policy on tax credit legislation recently adopted by the Finance Committee. The final vote against this legislation was 9 to 6. Governor McDonnell later issued a press release criticizing Senate Democrats for killing this legislation. See more here
Economic Recovery Plodding Along Governor McDonnell provided further evidence that Virginia's economic climate continues to improve as January's revenue numbers, driven by an upswing in income and sales tax collections, were up 12.6% over the same time last year. In his January Revenue Letter, Secretary of Finance Ric Brown also pointed out that a number of economic indicators continue to improve. For more information, click here and here.
Update: Unemployment Insurance Defeated in House Subcommittee On Tuesday, legislation that would have permanently expanded the number of individuals who qualify for unemployment compensation in exchange for approximately $125 million in federal stimulus funds was narrowly defeated in a House Commerce and Labor subcommittee. Sponsored by Senator Donald McEachin (D-Richmond), SB1401 would have provided benefits to those who voluntarily leave work for "compelling family reasons" and/or to those enrolled in "approved" job training programs. McEachin argued that the General Assembly could later repeal these changes but several members of the committee expressed uncertainty over McEachin's claim. This was the last year to draw down federal stimulus funds in exchange for expanding eligibility requirements. Position: The Chamber spoke in opposition to this legislation during the subcommittee hearing and remains opposed to permanently expanding unemployment eligibility criteria for a one time, short term benefit.
Bi-Partisan Redistricting Commission Legislation Fails (again) In what has become an annual ritual, a House Privileges and Elections subcommittee quietly tabled a constitutional amendment (SJ321) to create a non-partisan redistricting commission. Senator Creigh Deeds (D-Bath) has navigated similar legislation through the Senate in past sessions only to see his efforts stall in the House. Also this week, less-sweeping legislation (SB932) sponsored by Senator John Miller (D-Newport News) that would have created a five-member non-partisan redistricting commission but allowed the General Assembly to veto the commission's plan was also rejected in a House subcommittee. Earlier in the session, Governor McDonnell signed an executive order that established an eleven member, bipartisan redistricting commission that will review the House and Senate redistricting plans. The Governor's panel, however, is more of as advisory panel and legislators are not obligated to follow its recommendations. Position: The Chamber supports steps to make the redistricting process less partisan.
Kaine Encouraged to Run Speculation continues over whether former Governor Tim Kaine will seek the Democratic nomination to replace retiring U.S. Senator Jim Webb. Kaine is reportedly consulting with President Obama this week about jumping into the race. Kaine will also be a featured speaker at this weekend's Jefferson-Jackson Dinner, an annual Democratic fundraiser in Richmond. On Wednesday, Senator Webb indicated that he would like to see Kaine to run for his seat. Other prominent Virginia Democrats, including Senator Mark Warner, State Senate Majority Leader Dick Saslaw, and Virginia House Minority Leader Ward Armstrong have also encouraged Kaine to seek the party's nomination. See more here and here
2012 Presidential Primary Date Set With the passage of legislation in both the House and Senate, Virginia's presidential primary will take place on March 6, 2012. The sponsor of the Senate legislation (SB1246), Jill Holtzman Vogel (R-Winchester), indicated that several other states are likely to pick March 6th as their primary date.
Important Session Dates
February 26 - Adjourn Sine Die
Video
To view live video or hear live audio from the House and Senate floor sessions, click here.
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