Kelly Harris-Braxton's Speech for Better Choices Press Conference

Virginia First Cities Legislative Update

January 24, 2012

Dear VFC Board Members and Legislative Liaisons:

VFC is working hard on issues of import to your city. Feel free to contact us directly with questions. We need speakers interested in the issues below and would appreciate your support. We will be sending out requests for legislative feedback as well and appreciate quick responses. VFC will hold a legislative briefing during VML/VACo Day on Thursday, February 9th, around 10:30 at the Richmond Marriott. Please let us know whether you plan to attend by contacting Jamie Crawford.

Please feel free to send legislative requests and responses to me and/or Jamie Crawford.

Kelly Harris-Braxton, Executive Director

804-307-8183 cell

Jamie Crawford, Program Coordinator

804-643-1166

Linda McMinimy, Legislative Director

804-643-1166

VFC 2012 Budget Amendments

Budget Amendment	House Sponsor	Senate Sponsor
3rd Grade Reading Specialists -$36.3M in FY13 and FY14	Del. Tata; Del. BaCote	Sen. Blevins
Literacy Coaches -$34.5M in FY13 and FY14	Del. BaCote	Sen. Blevins
SOLs -No 3rd Grade history or science SOL test; ($2M) in FY13 and FY14	Del. Tata	Sen. Blevins
Enrollment Loss -$13M in FY13; $7M in FY14	Del. McClellan	Sen. Y. Miller; Sen. Puckett
Enterprise Zones -Any Funds not expended shall go to revitalization efforts	Del. Ingram	Sen. Puckett
Pre-K Rebenchmark -$2M in FY13 and FY14	Del. O. Ware

VFC Requested Budget Amendments: VFC budget requests are targeted to areas with a disproportionate impact on our cities.

3rd Grade Reading Specialists - Since the recent JLARC study on the importance of 3rd grade reading requested by Sen. John Miller, VFC shared this priority with the Secretary of Education last fall. VFC prioritized Reading Specialists (work with struggling students), submitted by Sen. Blevins, Del. BaCote and Del. Tata. Reading Specialists have been approved by the Board of Education, yet they have not been funded in the Standards of Quality.

Literacy Coaches - (train the teachers with best reading practices) was submitted by Del. BaCote and Sen. Blevins.

It appears that the governor is also recognizing the value of 3rd grade reading. A great deal of attention has been focused on its importance. Governor McDonnell recently announced executive amendments to the budget, including $8.2 million to fully fund 3rd grade reading intervention services to students in grades 3 and 4 who demonstrate deficiencies based on the SOL reading test or other reading diagnostic test. VFC supports this effort.

3rd Grade Science and History SOL - VFC supports efforts to delete the 3rd grade science and history SOL testing requirement without eliminating the curricula. Sen. John Miller also introduced legislation, SB 185, that would require only math and English SOLS for 3rd graders (see http://lis.virginia.gov/cgi-bin/legp604.exe?121+sum+SB185). This action creates a savings of $2 million per year and these funds could be added to other at risk education programs like preschool rebenchmarking or 3rd grade reading. Del. Tata and Sen. Blevins introduced budget amendments.

Enrollment Loss - VFC has requested budget amendments to reinstate this program that provided supplemental funding to localities that lost ADM or student enrollment to soften the impact. The impact on some of our cities is significant and localities not on the list this year may find themselves in a deficit later. The funding was eliminated in 2010 because of the impact of the recession. Senators Y. Miller, Puckett and Del. McClellan each submitted budget amendments at our request.

Preschool Rebenchmarking - VFC requested budget amendments to rebenchmark or index VPI payments for inflation. The state's portion of the per pupil amount of $6,000 per pupil has not been increased since 2005. Costs continue to increase and this important program should be properly funded. Del. Onzlee Ware introduced a budget amendment for $2 million/year.

Enterprise Zone Funding - After successfully advocating for a $3 million increase to this successful program last year to address a serious proration problem (business owners were receiving 65 cents per dollar awarded), the program was not fully spent for the first time in many years (there was a $27,000 surplus in June 2011) the governor cut the budget by $1.5 million in each year of the biennium. EZs are extremely successful tools. In fact, 63% of 2009 awards were given to VFC localities. EZs create jobs and a high level of private investment in distressed communities. VFC requested Del. Ingram and Sen. Puckett to introduce budget amendments that require that any remaining funds not distributed by the end of budget year go to revitalization efforts.

Brownfields Funding - Gov. McDonnell included $600,000 per year to support the fund that would provide Level II Assessments of properties that have been deemed brownfields due to their uncertain environmental status. If adopted, 40 properties could be assessed and potentially put into use, generating revenue and creating needed jobs. VFC requested this amendment.

VFC Supported Budget Amendments

Aid to Localities with Police Departments (599 funding) - VFC is working with VML by supporting budget amendments to increase funding by the rate of revenue growth as required by law. Gov. McDonnell's 2012-2014 budget level funded police funding, though state projections require a 3.3% increase in FY13. VML - requested amendments are:

In the House, Budget Item 395 #1h would add $5.7 million in FY13 to the program. The chief patron is Del. Riley Ingram. Co-patrons are Delegates Mamye BaCote, Dickie Bell, Annie Crockett-Stark, Gordon Helsel, Donald Merricks, John O'Bannon, and Joseph Yost.

In the Senate, Budget Item 395 #1s would also add $5.7 million to the program in FY13. The chief patron is Sen. Frank Ruff.

Aid to Localities - ATL - VFC also supports eliminating this requirement that requires localities to write a check to the state. While the governor reduced the amount from $60 million per year to $50 million per year in his budget, we support eliminating it altogether. VML has requested budget amendments to remove this requirement. We strongly support it as it has a disproportionate impact on our members because the programs in the base are widely used by our cities.

Legislative Summaries - Our full summary list is attached and below are a few items for your review.

Receivership Legislation - The City of Richmond's bills that allow localities to serve as a receiver from the circuit court to make improvements made on vacant, derelict houses deemed eligible for the spot blight program. The owner of the property may redeem the property subject to receivership during the receivership process or prior to sale and will be awarded any profits gained through sale at public auction. This legislation was recommended by the Virginia Housing Commission. The House Bill 491(Del. Dance) passed out of Counties, Cities and Towns on Friday and the Senate Bill 122 (Sen. Watkins) will be heard in Senate Local Government today.

Predatory Lending - Four (4) predatory lending bills have been introduced. SB 98 (Edwards) caps finance charges that may be charged on open-end credit plans to 36%; SB 28 (Locke) and SB186 (J. Miller) put a 36% maximum on payday loans. Del. David Yancey (HB 725) introduced a bill capping title loans and other open ended credit loans. In the House, Del. Wagner will chair a subcommittee in Commerce and Labor specifically for these bills. VFC strongly supports this legislation.

Eminent Domain - Constitutional Amendment bills resolutions will likely be taken up in the House next Monday morning in the constitutional amendment subcommittee of Privileges and Elections. Local governments, businesses, economic developers and others have serious reservations about the impact of this legislation on our ability to attract business, create jobs and enter into public-private partnership efforts. Particularly concerning are references to lost profits (too speculative) and lost access (courts currently allow for lost reasonable access but not decreased access). The bills and resolutions currently introduced are: HJ 3 and HB 5 (Bell); HB 597 (Crockett-Starke); SJ 117 (Deeds); SJ 67 (McDougle); SJ3 and SB 437, SB 240 (Obenshain).

Party ID - numerous bills have been introduced requiring or allowing candidates for local office (cities and towns) to be identified by party labels. The bills were heard in P and E's subcommittee on January 23. The subcommittee supported requiring party labels over allowing a locality to choose. If you have not yet let me know your locality's position, please do so as soon as possible. To date responses have been neutral.

Key Findings of JLARC Report on 3rd Grade Reading

Update on Legislation VFC is Tracking

Enrollment Loss Spreadsheet from Jim Regimbal

2012 VFC Legislative Agenda

Legislative Information & Updates

2011 General Assembly Session Update

The General Assembly adjourned Sine Die a day later than expected, on Sunday, February 27. The legislators will return for the Veto Session on April 6. The General Assembly is currently in session for Redistricting and plans to reconvene on April 4.

Fortunately for our members, many of the Senate priorities were included, though impacted through the budget conference committee process. We are pleased to point out that all VFC budget requests received substantial funding.

Attachments/links:

1) A link to the budget conference report adopted by the General Assembly, which provides details in a clear format:

Overview of Senate and House Budget Conference Report

2) VFC spreadsheet showing the impact on K-12 education and 599 funds (Fiscal Analytics)

3) VFC Legislative Tracking Document

Brownfields Restoration Fund ($1 million) receives funding for the first time, providing 20+ phase II assessments (VFC request).

Enterprise Zone Funding ($3.5 million) added $2.5 million to the Governor's $1 million (VFC request).

599 Funding - Aid to Localities with Police departments was increased by $12.5 million; FY12 will be reduced by only 3.5% from FY 11 levels (VFC support).

CSA/Social Services - Restored funds for non-mandated services ($5 million) and therapeutic foster care ($7.5 million); restored 50% of local DSS funding and most funding for TANF, Healthy Families and community action agencies.

Regional Jails/Sheriffs - $6 million restored.

Juvenile Diversion and Crime Control - $800,000 restored.

Virginia Pre-School Initiative (VPI) - Pre-school funding was impacted by a $2 million cut from participation savings. These funds had not been used in the program because certain eligible localities do not draw down all of their funds for various reasons. Thus, there are no programmatic cuts to pre-K programs. Originally, the House proposed a $14 million cut that would reduce the per-pupil amount from $6,000 to $5,000.

K-12 Education Funding - While Virginia First Cities makes up 10.8% of the K-12 ADM, we received 18.2% of the conference K-12 funding! The state is providing an additional $87.7 million for Supplemental Support for Operations Costs to all school divisions based on the state's share of $130 per pupil, combined with another $16.6 million in Local Composite Index (LCI) hold harmless funds (VFC request); the funds are one-time funds. The new funds for public education will be "taken out of the base expenditure totals for the purposes of calculating the cost of the FY 2012-2014 biennial budget and for future rebenchmarking considerations."

Councilman Bruce Elder, City of Staunton,(representing VFC) fires up the crowd with his outstanding speech about the constitutional guarantees of a quality education at the "Repair the Damage Rally" for education funding. The rally was held at the Bell Tower in Capitol Square on Monday, February 14.