The Virginia House of Delegates has passed amendments to the 2014-2016 biennial budget that call for “$1 billion less in general fund spending than the originally adopted two-year budget, eliminate $11.7 million in fees and $33 million in debt proposed by the Governor,” and that purport to reject Obamacare’s Medicaid expansion. The amendment now goes to the Governor for his signature.[read_more] From a House GOP caucus press release:
“While Washington drowns in deficits and debt, weighed down by partisan gridlock, Republicans in Richmond are painting a stark contrast. Not only have we produced a balanced budget as our Constitution requires, but we have done so ahead of schedule and with greater transparency than any time in recent memory,” said Speaker Howell. “By adopting these budget amendments today, the General Assembly is charting a prudent fiscal course for the remainder of this budget cycle and demonstrating how governing is supposed to work. I thank Chairman Jones, Vice-Chairman Landes, Leader Cox and the entire House Appropriations Committee for their leadership and hard work to get us here today.”
Highlights – Budget Conference Agreement
- Spends ~$1 billion less in general funds than originally adopted two-year budget
- Does not raise taxes
- Pre-pays $129.5 million for 2017 rainy-day fund deposit, restoring balance to ~$429 million
- Eliminates $11.7 million in fees proposed by Governor McAuliffe
- Restaurant Inspection Fee
- VDACS Inspection Fee
- Weights & Measures Fee
- Underground storage cleanup deductible
- Saltwater License Fee
- Eliminates $33 million in debt proposed by Governor McAuliffe
- Provides $43 million in funding in order to accelerate funding at 90% of VRS certified rates for the state employee retirement plans.
- Pays cash for all college capital projects
K-12 Education
- State funding for 1.5% teacher pay raise, including support staff
- Overall increase of $60 million for K-12 education compared to Governor McAuliffe’s budget proposal
- Deposits an additional $43 million into teacher retirement fund compared to Governor McAuliffe’s budget proposal, bringing the total deposit to $193 million
Compensation
- Provides 2% across-the-board raise for state police and state employees, including compression for senior classified employees
- $4 million to rollback cuts to state police overtime
- 2% pay raise for state-supported local employees
- 1.5% teacher pay raise, including support staff
- 2% college faculty pay raise
- Total compensation package is $153.5 million
Local Government
- Restores $30 million in funding cuts adopted by the supplemental budget to address shortfall
- 2% pay raise for state-supported local employees
- Deposits $193 million into teacher retirement fund, saving localities over $30 million in required teacher retirement costs
Higher Education
- Includes an additional $42 million for higher education, restoring 94% of cuts adopted by the supplemental budget to address shortfall
- $19.8 million to incentivize enrollment
- $10.1 million for financial aid
- $5 million for research
- 2% faculty pay raise
- $1,000 per student incentive to encourage colleges and universities with low graduation rates to accept transfer students
- $132 million for capital construction projects at James Madison, Virginia Tech, Longwood, Radford, Virginia Commonwealth University and Danville Community College.
Healthcare Safety Net
- $132.9 million for healthcare safety net
- Funding to provide targeted services to ~22,000 seriously mentally-ill patients, including a prescription drug benefit
- Nearly doubles operational funding for free clinics – total of $6 million in funding
- Funds behavioral health community services including three new PACT teams and six new drop-off centers
- Increases funding for children’s psychiatry and crisis services
Other Items
- $27 million in funding for the Governor’s Opportunity Fund; earmarks $4 million for Jefferson Lab Ion Collider efforts
- Authorizes bonds to construct two new Veterans Care Centers, one in Northern Virginia and one in Hampton Roads
- $9 million for housing & homelessness
- $8 million deposit into the Housing Trust Fund
- $1 million for rapid rehousing efforts, including $500,000 specifically for veterans
More here.
