GOVERNOR’S VETO OF STANLEY AMENDMENT HELD INVALID, SIGNED BUDGET NOW LAW.
In a sometimes tense evening peppered with drama surrounding Senate reorganization, the now-Republican controlled Virginia General Assembly has undertaken the final measures needed to pass a budget into law. The session began at 5:00 PM in the House, where Speaker Bill Howell (correctly in our view) held that the Governor’s attempted line-item veto of the Stanley Amendment was out of order, and thus not due any consideration by the House. Consequently, the House’s communication to the Senate did not contain that veto, preventing the Senate from taking it up in the ordinary course of the Senate’s business.
The Senate business was delayed by internal GOP wrangling on reorganization precipitated by the resignation of Phil Puckett two weeks ago, which gave Republicans a majority in the chamber. After some tense back and forth (detailed below), the Senate finally reorganized with Tommy Norment (R-James City County) as Majority Leader. This new majority would clearly not take up the Governor’s amendment sui generis, thus putting an end to the Governor’s weak attempt to appease his base. Winning the award for the most disingenuous hyperbole of the night is the Macker himself:
I am continually surprised and disappointed by the lengths to which Republicans in the House of Delegates will go to prevent their own constituents from getting access to health care,” McAuliffe said in a written statement.
“Instead of putting all of my vetoes through the process prescribed by the Constitution of Virginia, House Republicans robbed the voters of their voice by using a procedural gimmick to obstruct the normal legislative process where this veto was concerned.”
Of course, as we detailed this morning, even had the veto been sustained, McAuliffe (as he admitted himself) would have been left without an appropriation to expand Medicaid on his own. Hence, tonight completely validated the #BLACKorBUST movement of two weeks ago that took advantage of the opportunity to strip the Governor of the authority to skirt the legislature, with a grassroots tsunami overwhelming unfounded initial objections by leadership that such a move was “unnecessary.”
There are further details that will emerge around this entire episode, including more of the back story around the #BLACKorBUST movement, the budget language from 2013 that precipitated it, and the unconventional circumstances of the Senate reorganization. We will comment here as these details come to light.
For now, all Republicans should be proud of the Republican unity of effort that produced a great victory for the rule of law. Thanks to the Speaker for standing with the grassroots when it mattered. Thanks to junior House leadership who helped pull along the whole caucus, and all the House leaders who put pressure on the Senate’s Gang of Three. Thanks to Sen. Richard Stuart for his tremendous lawyering on June 12, and to Sen. Bill Stanley for his leadership on carrying the handsomely-named Stanley Amendment. Tommy Norment deserves thanks again as well for helping make it happen (especially in the face of senior opposition within GOP ranks). Most of all, thanks to Sen. Richard Black for having the courage to give a rallying cry for the grassroots…without that, none of this would have happened.
Well done everyone!
06/23/14 9:15 PM: Update on committees: Stosch (R-Henrico) and Colgan (D-Prince William) will co-chair Finance. Norment and Obenshain will co-chair Courts of Justice.
06/23/14 8:55 PM: Republicans carry reorganization vote, 19-18.
06/23/14 8:52 PM: LG Northam is asking Norment if he’s ready to govern?? Norment indignant in response.
06/23/14 8:49 PM: According to Jeff Schapiro: “BREAKING #Va Senate’s restored GOP majority rams thru cmte reshuffle, overruling LG’s ruling that reorganization is improper at this time.”
06/23/14 8:47 PM: There is a dispute on rules governing reorganization. McEachin (D-Henrico) is challenging whether it is properly before the body. Northam upheld his objection, and Norment is challenging the ruling of the chair. Senate is at ease to discuss informally.
06/23/14 8:39 PM: Senate taking up reorganization now. Agriculture Chairman: Hanger. Commerce and Labor Chairman: Watkins. Education and Health Chairman: Martin. Privileges and Election: Obenshain. General Laws and Technology Chairman: Ruff. Rehab & Social Chairman: Wagner. Owing to bad video connection, I did not get Finance, Courts of Justice, Transportation, Rules.
06/23/14 8:36 PM: Standing at ease (not recessed). Unclear why.
06/23/14 8:34 PM: Democrats vote to sustain the only veto from the Governor that was presented to them, dealing with funding of the new ethics commission.
06/23/14 8:30 PM: Sen. Richard Stuart (R-Stafford) is apparently the other absent Senator.
06/23/14 8:23 PM: FINALLY the Senate is back. They are taking up “the only” veto before them, relating to funding of the new ethics commission. Tommy Norment speaking in favor of overriding the veto. Says the underlying bill passed with only one dissenting vote in the Senate.
06/23/14 8:23 PM: FINALLY the Senate is back. They are taking up “the only” veto before them, relating to funding of the new ethics commission. Tommy Norment speaking in favor of overriding the veto. Says the underlying bill passed with only one dissenting vote in the Senate.
FYI: no clue has been given as to whether there is going to be any reorganization tonight.
06/23/14 7:48 PM: It appears there are only 37 Senators there, out of 40 total seats. Setting aside the vacant seat formerly held by Phil Puckett, that means two senators are absent. One is Janet Howell (D-Fairfax), who is on a trip with her daughter to Africa. Unclear who else is absent. Not sure, but this could be underlying a possible attempt by Democrats to thwart reorganization as a means of trying to get the Governor’s vetoes taken up by the Senate—all of them, not just the one communicated from the House.
Such a move would mean that there would be a serious question about which budget at the end of the night is the legitimate, valid budget of Virginia. I hope the lawyers are ready to move quickly on this one.
06/23/14 7:39 PM: Senate in recess until 7:50 PM. Passed by the day the Hanger bill on the Medicaid Innovation and Reform Commission. Perhaps because the House just sustained the Governor’s veto of the MIRC.
06/23/14 7:26 PM: Gavel comes down in the Senate. Sen. Don McEachin gives invocation. The Granicus video system is not working very well for most people, so hard to tell from a distance exactly what’s happening.
06/23/14 7:12 PM: The Senate is late. Again. No official word on why, but we suspect it has something to do with the Republican reorganization.
06/23/14 6:52 PM: The Senate convenes at 7:00 PM. Don’t be surprised if there is delay, as I understand that there is some angst going on backstage. Live video of the Senate can be found here. [NOTE: Video is not working for MANY people…only intermittent for me].
06/23/14 6:51 PM: Speaker Howell quickly released the following statement upon recess of the House:
Today, a point of order was raised on the floor of the House of Delegates regarding the propriety of two purported vetoes issued by Governor Terry McAuliffe. As Speaker of the House, it is my responsibility to make rulings on such questions when they arise.
“The Governor’s vetoes of Item 301, Section TTT, Paragraph 9 and Item 468 L are unconstitutional and therefore not properly before the House. This is a decision consistent with rulings made by past Speakers and opinions issued by the Supreme Court of Virginia.
“In multiple instances, the Supreme Court of Virginia has defined an item as “an indivisible sum of money dedicated to a stated purpose” and added that the Governor cannot veto conditions or restrictions without also vetoing the appropriation. The Court has also stated unequivocally that the Governor may not veto part of an item.
“In the instance of Item 301, Section TTT, Paragraph 9, the section is not connected to an indivisible sum of money and therefore does not constitute an item, as the Court has defined, subject to the Governor’s veto authority. Also, the section by its nature is a condition placed on all “general or nongeneral funds” included in the budget. In other words, the Governor has purported to veto a section that does not constitute an item subject to his veto authority and attempted to veto conditions or restrictions without also vetoing the appropriation.
“In the instance of Item 468 L, the Governor has purported to veto all funding for new judgeships as well as corresponding conditions and restrictions. However, Item 468 L is a supplemental appropriation attached to Items 39, 40 and 41 of House Bill 5002. In other words, the Governor has failed to veto the entire item in question.
“These are not decisions I make lightly. As I have said before, I am committed to upholding the procedures, rules, traditions and integrity of the office of Speaker and the Virginia House of Delegates. I cannot idly allow unconstitutional actions to be considered by this body. To do otherwise would be an unacceptable acquiescence of legislative branch authority.”
06/23/14 6:31 PM: Here’s where it could get really interesting tonight. Although Senate Republicans resumed the majority after the resignation of Phil Puckett two weeks ago, the Senate has yet to be reorganized under the new majority. We are hearing there may be fireworks in store if soon-to-be-Majority Leader Tommy Norment tries to reorganize at this session, with some dissent among the GOP ranks about elevating certain individuals to leadership roles.
06/23/14 6:22 PM: House in recess until 7:30. Senate convenes at 7:00. The big news so far is that the Speaker ruled two of the Governor’s vetoes out of order: the one aimed at the Stanley Amendment, and the one relating to judicial funding.
06/23/14 6:20 PM: No one objects to the veto on settlement/forfeiture money, or the FACT funding. Speaker says the only thing that will be communicated to the Senate is the ethics reform veto, as that is the only thing that is either not improperly before the body or where the veto is not already sustained. This is important, as that means the Senate CANNOT set up a division between the houses on the Stanley Amendment.
06/23/14 6:17 PM: Chris Jones stands to question the propriety of the veto of judgeships. This is a bit of a surprise, but apparently there are other appropriations affected. Speaker says there are a number of other sections that should have been vetoed as well, and says the veto is out of order.
06/23/14 6:15 PM: Speaker Howell DETERMINES VETO OF STANLEY AMENDMENT IS OUT OF ORDER. Well done, Mr. Speaker!
06/23/14 6:12 PM: Veto of MIRC is introduced. Then the Stanley Amendment veto is introduced. Chris Jones rises to question appropriateness of veto on Stanley Amendment. Unless I missed it, no one contested the MIRC veto. That’s good as far as I’m concerned…I agree with McAuliffe that it’s a sham, and has been from the beginning.
Howell speaks to propriety of the veto on the Stanley Amendment. Says the Governor could have amended, but instead chose to line-item veto in a manner that the Speaker believes is outside the Governor’s authority. Cites the very clear language in the case law that defines what the Governor can veto.
06/23/14 6:09 PM: Rosalyn Dance (D-Petersburg) argues against overriding veto of Petersburg-Chesterfield School Partnership. No contest to the veto…it is sustained.
06/23/14 6:06 PM: Chris Jones (R-Suffolk) moves to override Governor’s veto on ethics funding. Overruled 70-27.
06/23/14 6:04 PM: Looks like all of the procedural niceties are out of the way. Clerk reading introduction of vetoes to House.
06/23/14 5:59 PM: Rep. Vivian Watts (D-Fairfax) argues that arguments about “undergutting” legislative prerogative are misplaced. Says, “I’ve had the privilege in my service to sit in the Governor’s Mansion with that heavy silver being amazed that I’m sitting at the Governor’s table having lunch, having dinner.” Wow. Then says she’ll know the dignity of dining on her sister’s food stamps next week, too. This is cited as evidence of the need for Medicaid expansion?
06/23/14 5:55 PM: Hugo really lays into lack of civility on display Friday by Governor McAuliffe in calling GA members cowards, among other things. Hugo calls out veterans like Howell, Col. Lingamfelter, and others as evidence of the Governor’s misplaced rhetoric. Asks the Governor to remain civil, and refers to an example earlier in the day of tough but civil discourse that Sen. Tim Kaine held up at a business forum as the right way to do business in Virginia.
06/23/14 5:52 PM: Del. Tim Hugo (R-Fairfax) is amused by Toscano’s citation to the Federalist Papers. Uses that as a segue to talk about the Governor’s very public commitment to do an end-run around the legislature. Calls on his colleagues to protect the prerogative of the legislature, and to avoid setting a worrisome precedent.
06/23/14 5:50 PM: Del. Bob Marshall (R-Prince Wlliam) argues that expansion of Medicaid would be harmful to existing Medicaid beneficiaries. Argues back against Toscano on what constitutes an “item” (i.e., what can be subject to a veto) under relevant judicial precedent.
06/23/14 5:45 PM: Toscano says that Republicans in the Senate said Stanley Amendment was subject to veto consideration when they passed it. THAT IS PLAINLY NOT TRUE. Toscano recalls the Speaker saying that the amendment was not necessary, which Toscano says supports applicability of the veto. Calls on the Speaker not to rule on constitutionality of the vetoes, which he says should be left to a judge.
06/23/14 5:39 PM: Third Democrat in a row (Toscano) using a point of personal privilege to engage in debate on the merits. Pushes an alternative bill on judges put forward by the Governor. BUT, rightly and proudly points out that at least we have a signed budget. Calls on everyone to respect the process to allow vote on all vetoes, which by his estimation means the House should be able to vote on every one of the Governor’s vetoes.
06/23/14 5:33 PM: Surovell complains about logrolling. That’s a separate issue from whether the vetoes are constitutional. He complains about how the Stanley Amendment DID NOT decouple Medicaid reform from the budget. Wha? In what universe is that correct?!? That’s the only thing that does decouple!
06/23/14 5:28 PM: Rep. Scott Surovell (D-Fairfax) says he’s not going to get into policy debate, but will talk about constitutionality of vetoes. He says Democrats believe the Governor has power to line-item veto in the way the Governor has done. Cites Dodson and Brault, and points to hypothetical in one of the cases about not “damaging the legislative tissue” of the portions of the bill interrelated to it. Rails against putting legislation (as opposed to appropriations) in the budget. Hmmm…where have we heard that before? Didn’t House GOP argue for keeping the whole thing out of the budget? Huh…Surovell must have missed that month of the session.
06/23/14 5:18 PM: Rep. Kirk Cox (R-Colonial Heights) says as long as the other side is going into substance with their personal privilege, he’s going to rebut what Morrissey had to say. Reads off a laundry list of ideas and innovations Republicans in the legislature have been responsible for. Says that with respect to our budget woes, a lot of blame lies at the feet of President Obama’s policies. On Medicaid expansion, expansion isn’t all fairy tales and rainbows…it’s a budget balloon and fraud factory. Can’t expand a broken system, especially without reform.
06/23/14 5:11 PM: Rep. Joe Morrissey (D-Henrico) being a jerk directly to Speaker Howell…an uncool way to use personal privilege. Referring repeatedly to a Times-Dispatch article about philosophical differences. Skewers the Speaker on his statements about trying to take care of 40,000 “truly needy.” The Speaker dismisses him politely.
06/23/14 5:09 PM: Speaker Howell refers to the gentleman from Russell, “Senator” Chafin. Drew laughter and groans.
06/23/14 5:03 PM: House Clerk Paul Nardo reads a communication from “His Excellency” the Governor.
06/23/14 5:01 PM: Gavel down. Lee Ware giving invocation. Incidentally, I met Lee backstage at the RPV Convention, where he did an excellent job serving as Chairman.
06/23/14 4:58 PM: One of the concerns expressed by certain Republicans opposing Medicaid expansion is that Sen. Emmett Hanger’s SB 5004 might somehow be revived and pass the Senate. This is a bill that essentially expands Medicaid with a little bit of a fig leaf: it instructs the MIRC to vote for Medicaid expansion when the Governor’s staff have told them that all the conditions have been met. I hope no one votes for this. Why can’t we just get an open debate on the merits? If you support Medicaid expansion, then do it in the open. Stop being so cowardly by trying to escape accountability.
06/23/14 4:48 PM: House goes in session at 5:00 PM. You can access live video of the proceedings by clicking here. The Senate convenes at 7:00 PM.
06/23/14 4:43 PM: Priorities:
For those stuck at Va Capitol tonight, tell Paul Nardo to put #UVa game on the screen. Budget impt, but a national title on line!
— Tucker Martin (@jtuckermartin) June 23, 2014
06/23/14 4:40 PM: Since McAuliffe issued his attempted vetos on Friday, most of the attention has been paid to those dealing directly with Medicaid or, more accurately, the Governor’s attempt to close the “coverage gap” created by Obamacare. But there were a number of other attempted vetoes as well, which will all be dealt with by the General Assembly tonight. They are as follows:
Veto #1 – Medicaid Innovation Review Commission (MIRC)
The MIRC is a product of a deal between then-Governor McDonnell, Republican leaders in the General Assembly, and Democrat legislators in order to pass McDonnell’s signature tax hike and transportation bill last year. Democrats balked at approving what they thought was too timid of a tax hike without also getting assurances that Medicaid would be expanded. The Governor assured them the MIRC would be given very definite reform benchmarks which, when met, would require the MIRC to expand Medicaid. After the #BLACKorBUST amendment on June 12, the Governor and other Democrats felt betrayed. They had been assured that the MIRC was still going to do its job, only to have grassroots Republicans force elected Republicans to yank the appropriation for expansion by MIRC (or the Governor). On Friday, the Governor called the MIRC a “sham” and attempted to veto the language in this year’s budget giving it the power to vote to expand Medicaid. He also directed all executive branch personnel to cease cooperation with the MIRC.
Because this amendment tries to sever an inseperable portion of the budget item governing Medicaid, Republicans believe it is invalid under the Virginia Constitution, and will likely refuse to act on or incorporate the veto.
Veto #2 – Stanley Amendment
The #BLACKorBUST 2.0 amendment carried by Sen. Bill Stanley (R-Franklin) on June 12 had the effect of stripping out any appropriation for Medicaid expansion from the budget. The appropriation language was replaced with language prohibiting any appropriation or expenditure of funds to expand coverage to those individuals identified by the Affordable Care Act as being newly eligible to receive Medicaid benefits. In other words, this doesn’t just stop the Governor from implementing Medicaid expansion unilaterally, but also requires him to come back to the General Assembly for any expenditure that covers those in the “coverage gap.” As we detailed this morning, this is a huge impediment to the Governor’s efforts to appease his base after breaking his number one campaign promise not to sign a budget containing Medicaid expansion.
This is a good amendment that requires an open, transparent deliberative process before the state commits to any expanded health coverage. We believe there is significant Republican support for a compromise in this area, where Virginia can attempt to do more with existing dollars without committing the state to federal funding that the country cannot afford. This is why the Stanley Amendment is so important.
Like with Veto #1, this attempted veto is likely unconstitutional, and will probably be ruled out of order this evening.
Veto #3 – New Judgeships
McAuliffe vetoed all funding for new judgeships. Is this a smack at Republicans in retaliation for the sense that perhaps a judgeship for Phil Puckett’s daughter was explicitly traded for Puckett’s resignation? Probably. It certainly doesn’t hurt the Democrats for people to believe that’s what happened with Puckett.
It looks like this veto will be given full consideration, as it appears to have been constitutionally sound. Likely that the House will override it, unclear what the Senate will do.
Veto #4 – Petersburg/Chesterfield School Partnership Project
The Governor thinks this is a boondoggle, and says neither school system asked for it. We do not know the likely fate of this veto, but question whether the House will hear it at all given the constitutionality concerns.
Veto #5 – $4.6 Million cut from FACT Fund
The budget cuts these funds from a program designed to help ease the impact of the federal budget sequester. The Governor calls the cuts an assault on military families. Unlikely the veto will be heard, just like most of the rest.
Veto #6 – Ethics Funding
The Governor says this legislation doesn’t go far enough. (He’s right). But the solution isn’t to make the perfect the enemy of the good. He should have left this alone, and taken up the issue next session.
Veto #7 – Monies from Forfeitures and Settlements
The budget places limits on how the AG may use money from forfeitures and lawsuit settlements. The AG doesn’t like that, and asked the Governor to veto.
Completely separately from the budget (and thus not on the schedule to be addressed this evening) is the Governor’s announcement that he is instructing his administration to refrain from commencing construction of a new General Assembly office building. A direct slap, of course.
