Dear Friend,
The House and Senate released their budget reports on Sunday, February 20. The budget can be a complicated and hard to follow process. Throughout the year, I receive a number of questions about different aspects of the budget, how it works, and the process it entails.
Below I have provided some insight into how the budget process works, helpful links to review the budget, and highlights from the House Appropriations Committee budget report as well as other legislative information and community news. If you ever have any questions about specific budget items or questions about the process, you are welcome to contact me at delegate.carr@betsycarr.org.
House Budget Process At a Glance
December 2021: Governor Northam proposed the FY23-24 budget (HB30 and SB30)
January 14: House and Senate members submitted budget amendments (view them here)
February 20: The House Appropriations and Senate Finance committees released their individual budget reports (this includes what they accepted from the Governor’s proposed budget as well as budget amendments from members)
February 21-23: Members have the opportunity to make floor amendments and objections to the budget
Thursday, February 24: The House will vote on uncontested committee amendments to the budget in a block vote and will take up individual objections and floor amendments to vote on as well
March 2: Last day for each chamber to act on the Budget Bills and appoint conferees to the budget. Budget conferees will work on a final budget to be voted on by the House and Senate before sine die (i.e. adjournment, March 12)
April 27, Reconvened Session: Governor Youngkin will send his changes to the budget to be voted on by the House and Senate
Budget Information
The budget bills are HB30 and SB30. Virginia operates under a two-year (biennial) budget cycle. Each year the Governor prepares the proposed budget bills for introduction by the General Assembly. The bill is initially adopted in even-numbered years and amended in odd years.
HB29 and SB29 represent the “caboose budget” meaning amendments are being made to the current fiscal year’s budget (FY22).
Budget amendments can add, modify, endorse or delete items in the Governor’s proposed budget. You can view which budget amendments were approved by the House and Senate Committees here. Before the General Assembly adjourns each year, a conference committee resolves any differences between HB30 and SB30.
House and Senate Committee Reports contain analysis from House Appropriations and Senate Finance & Appropriations staff, comments from the Chairman, committee resources, and reports from each of the subcommittees.
Floor Amendments to the House Committee reports can be submitted by House members and will be voted on February 24. This option requires identifying where in the budget to cut funding in order to fund the floor amendment.
Objections can be made to the amendments in the House Committee Report and also will be voted on February 24.
House Appropriations Committee Budget Report
You can review the House and Senate committee reports and supplemental documents here. The Times-Dispatch has an overview comparing the House and Senate committee reports, which you can read here.
If you would like an easier to read (but not as detailed) overview of the Committee’s actions, here is the presentation from the Appropriations committee on February 20. Keep in mind that there is a long way to go on the budget and the House and Senate will work over the next several weeks to negotiate both budget bills and find compromise to resolve any differences.
Major spending items include adding $498.7 million to the Rainy Day Fund, dedicating $202.8 million to eliminate all Accelerated Sales Tax in June of this year, $500 million deposit to the VRS to help address unfunded liabilities, and $150 million to the Taxpayer Relief Fund for future tax relief.
K-12 funding was increased by $2.3 billion over the biennium and includes a school construction package that funds $2 billion in zero interest and subsidized loans, allowing for the construction of 80 elementary schools. Also the K-12 budget adopts overdue updates to SOQ Standards (providing a principal for every school, increasing the number of assistant principals, and funding reading specialists).
There is also money in the K-12 budget to implement my bill, HB649, which establishes an advisory committee, an annual report, and language acquisition resources for parents of deaf or hard of hearing children ages 0-5 years old.
You can view the Elementary and Secondary Education Report here.
Higher Education funding includes $240.3 million to increase access and affordability to public colleges and universities, allows institutions to limit in-state undergraduate tuition increases in FY23 to no more than 3% (state institutions have frozen increases for the past three years), and $61.8 million in financial aid for in-state undergraduates.
I introduced budget amendments to support the Tuition Assistance Grant program (TAG) for online and graduate students. Both of these initiatives were funded. Additionally, the study to support my bill, HB732, was included in the budget to help the Commonwealth better understand and guide student debt policies at higher education institutions. Finally, I introduced a budget amendment to help the Library of Virginia staff review and identify challenges in restoring historical circuit court records preserved in cellulose acetate, which was also included in the budget.
You can view the Higher Education Report here.
Compensation & Retirement funding includes 4% pay raises and 1% bonuses in each year for all employee groups. This is a change from the Governor’s proposed budget of 5% pay raises.
You can view the Compensation & Retirement Report here.
Health & Human Resources funding maintains the 1,200 additional Medicaid Developmental Disability Waiver slots and provides more than $760 million in rate increases to maintain and build community capacity to ensure these slots are utilized. Additionally, $50 million was included to continue the implementation of STEP-VA services and $90 million for community mental health providers in 2023. Finally, there is an allocation of $101 million in increased funding for nursing homes to ensure quality care for residents and $251 million to enhance provider rates in the Medicaid program to improve access to care.
I was glad to see funding support for budget amendments that I submitted including Community Action Agencies, mobile vision clinics, and the Virginia Home.
You can view the Health & Human Resources Report here.
Commerce, Agriculture, and Natural Resources funding utilizes American Rescue Plan Act (ARPA) funds to restore balances to the Unemployment Insurance Trust Fund and eliminate the fund builder tax. The subcommittee report includes assistance for small businesses by providing funding for all remaining eligible applications for the Rebuild Virginia program. Finally, to meet water quality obligations under the Chesapeake Bay Agreement, there is significant general fund investment for water quality improvements. Finally, there is $257 million for agricultural best management practices.
You can view the Commerce, Agriculture & Natural Resources report here.
Transportation & Public Safety provides $100 million of ARPA funds for state and local law enforcement officers in their training efforts and equipment needs and $26 million to provide a school resource officer in every public elementary, middle, and high school in the Commonwealth.
Additionally, there is $15 million for funding the Fall Line Trail that goes through Richmond.
I was glad to see $2 million allocated to the Department of Emergency Management (VDEM) to assist with the recovery efforts from the fire at Fox Elementary School. Many of our schools in Richmond and throughout the Commonwealth are more than 50 years old and need serious repair or re-construction. I support helping our schools because children deserve a safe and healthy environment to learn. It is important to note as we talk about school construction in the City of Richmond, that the money to help Fox is not part of the K-12 budget. As this is an emergency situation, it comes through VDEM.
You can view the Transportation & Public Safety report here.
Advocacy and Other Important Meetings Last Week:
Speaker’s Bible Study
Military and Veterans Caucus
League of Women Voters Women’s Roundtable
Indian American Legislative Reception
President of Virginia Union University
Rudy & Kelly Cosmetology Academy
Virginia Museum of Natural History
Coalition for Consumer Choices
Private Day Schools
Richmond Judicial Interviews
Sportsman’s Caucus
Virginia Governmental Employees Association
President of Longwood University
Art for the Journey Exhibition Opening
The Hunt Institute
Virginia National Guard
New Mask Law for Schools
Governor Youngkin signed legislation that bans mask mandates in Virginia schools. You can read more in-depth coverage from the Times-Dispatch here. Richmond Public Schools Superintendent Jason Kamras recently shared important details of how this new law will be implemented for RPS:
Change begins on March 1
Law only applies to students. All adults - staff, partners, and visitors - must still abide by the RPS mask mandate.
A parent/caregiver must formally request that their student not wear a mask by emailing COVIDrps@rvaschools.net and indicate the student’s name and school. They do not need to provide a reason.
No student will be separated, singled out, or disparaged in any way for not wearing a mask.
Students must continue wearing a mask at school unless their parent/caregiver submits a request.
Students are still required by federal law to wear a mask on the school bus.
Celebrating Black History Month
Shared Legacies: The African American-Jewish Civil Rights Alliance (trailer)
On February 27 at 7:00 pm, there will be a virtual panel discussion exploring the legacy of the Black/Jewish alliance in America. A panel of historians and community leaders will discuss the film, “Shared Legacies” and what can be learned from the shared history of the Black and Jewish communities. Film screening is at 5:30 p.m.
You can register here. The film link will be sent upon registration.
City of Richmond Tax Due Dates:
Personal Property Tax Payment: June 5
Real Estate Tax Payment: 1st Half - January 14, 2nd Half - June 14
Tax Relief Application/Recertification: March 31
Rehabilitation Credits: June 30
Business Personal Property/Machinery & Tools: March 31
Admission, Lodging & Meals Tax: 20th of each month following the collection month
Business License Renewal: March 1
City of Richmond Tax Relief for the Elderly & Disabled
The City of Richmond has a tax relief program for the elderly and disabled. Qualifications include being 65 years or older or having a disability, owning and living in your current home, earning less than $60,000 annually, and having less than $350,000 in assets.
If these conditions apply to you then you could have from 25% to 100% of real estate tax relief depending on your household income.
There is also a tax freeze program to allow citizens who meet certain qualifications the opportunity to pay the same amount of tax over a three-year period by freezing the current year’s tax amount.
Applications are located at City Hall, East End and Southside offices, libraries, social services, Senior Connections, City Council offices, on the City website and by calling the Tax Relief line at 804-646-6015. Applications and re-certifications are due by March 31. Applications for first-time applicants and hardship cases will be considered through June 15.
Thank You
It is an honor to serve in the House of Delegates. Please never hesitate to contact me if I can be helpful to you. I look forward to hearing from you about your legislative priorities during the 2022 session.
Sincerely,
Betsy