Budget Progress

If the news has not spread already, yesterday, June 28th, the House of Delegates and the Senate voted a final time to pass the budget. The budget was adopted and government will remain functional.

Budget Progress

The House voted today at 12:45 p.m. to pass the conference report on the budget.

While this is not the final step, significant progress was made today. With both the Senate and the House approving this version of the budget it now goes to the Governor's office. He will have slightly over a week to review the report and make recommendations before it comes back before the members of the General Assembly to get final approval.

Once the General Assembly approves the budget with the Governor's amendments or vetoes the budget for fiscal year 2006-2008 will take effect.

At this point it is believed that this can be done before the close of the current fiscal year.

Budget Progress

Yesterday the Senate passed the Budget. The House will be meeting today at 12 noon to go over the budget.

I have included an article from the Richmond Times Dispatch highlighting the progress below.

Senate OKs state budget

Two-year plan moves to House as deadline of June 30 looms

BY JEFF E. SCHAPIRO
TIMES-DISPATCH STAFF WRITER
Tuesday, June 20, 2006

Having tarried 159 days, Virginia lawmakers suddenly are in a hurry to pass a budget.

The state Senate yesterday -- the 160th day of the struggle with the House of Delegates over taxes and spending -- needed only 21 minutes to approve a compromise budget that ducks the issue that caused the impasse in the first place: new dollars for transportation.

The two-year, $74 billion plan, approved by the Senate 37-0, is on the House floor today.

The budget includes pay raises for public employees, many of whom live in the Richmond area; additional dollars for public education and social services; about $1 billion for construction, most of it on college campuses; and what may be the Virginia equivalent of controversial congressional earmarks -- almost $40 million for local cultural and tourist attractions.

In a separate vote, senators approved, 24-9 with two abstentions, a long-sought rollback of the estate tax, effective July 2007, as well as a $75 million cap on tax breaks for Virginians who pledge to never develop their open land.

To assure an uninterrupted flow of services to taxpayers, the General Assembly now has 10 days to complete a budget.

Between today and June 30, when the current budget expires, three events must occur beforethis chapter of the 2006 fiscal saga closes: the House vote; vetoes and revisions by Gov. Timothy M. Kaine; and another legislative session, probably June 28, to act on Kaine's recommendations. Only then can Kaine sign the budget into law.
"This has not been an easy exercise, as you know," Senate Finance Committee Chairman John H. Chichester, R-Northumberland, said in brief remarks to the Senate.

The protracted overtime that forced a three-month delay in enacting a budget will continue into summer, if not longer, with legislators attempting to fashion a long-term fix for highways and mass transit.

"It won't get done," predicted Sen. John Watkins, R-Powhatan. "That pot is going to have to boil for about two more years."

To cobble the 2006-08 budget, the Senate and the House agreed to put off transportation financing until next month or later. But differences endure: The Senate favors about $750 million in new taxes, while the House wants to use a chunk of the $1.4 billion surplus and issue more bonds, which would be repaid with interest.
Sen. Jay O'Brien, R-Fairfax, said the transportation fight will be guided by the 2007 elections to decide continued Republican control of the General Assembly.

"It will be interesting, as we get close to the election, how any single person changes his views," said O'Brien, an opponent of higher taxes who may be vulnerable to a

Democratic challenge in his traffic-clogged Washington suburb.
The compromise budget is outlined in a 379-page report, which many senators -- perhaps out of frustration over the protracted stalemate that dates to the chilly days of January -- only briefly perused.

Chichester depicted the budget as a victory for the Senate because it embraces many of the chamber's priorities, including a cash-only construction program and use of surplus funds for one-time expenses.

Sen. R. Edward Houck, D-Spotsylvania, a budget negotiator, said the plan substantially boosts appropriations for three programs that the House wanted to cut to free dollars for its road-and-transit plan: public schools by $51.7 million, higher education by $25 million and human services by $26 million.

Those increases, said Houck, underscore the Senate's claim that investments in education and social services -- programs on which Virginians depend daily -- are threatened if they have to share dollars for transportation projects that are bankrolled and built over many years.

"Yes, transportation is important, but not at the expense of education, health care and other essential services," Houck said.

Contact staff writer Jeff E. Schapiro at jschapiro@timesdispatch.com or (804) 649-6814.

This story can be found at: http://www.timesdispatch.com/servlet/Satellite?pagename=RTD%2FMGArticle%2FRTD_BasicArticle&c=MGArticle&cid=1149188611364&path=%21news&s=1045855934842

Budget Progress from the Senate

This article from the Daily Press shows that some progress is being made on the budget.

Va. Senate to take vote on spending plan
Budget offers $2.5 million for Staunton school, keeps Hampton school for disabled open

Daily Press

June 19, 2006,

2:31 PM EDT RICHMOND -- -- With a budget compromise finally in hand, the General Assembly today began taking steps to enact a spending plan before the fiscal year begins on July 1.

The Senate was set to convene at 3 p.m. for a floor vote.

The House of Delegates will come in Tuesday at noon.After passage, the legislation goes to Gov. Timothy M. Kaine for his review. Then lawmakers must consider his amendments or line-item vetoes.

It's a process that normally takes five to six weeks, but the state will have to act in two weeks to meet its deadline.

Senators spent the morning in a budget briefing. Afterwards, Sen. Emmett Hanger, R-Augusta, said he was pleased that an issue of importance to Hampton Roads has apparently been solved.

The budget sets aside $2.5 million to begin planning for a consolidated school for deaf, blind and multi-disabled children in Staunton.

Meanwhile, budget language allows the state school for disabled children in Hampton to be run by an existing, as-yet-unamed organization.

The state has debated for years why it needs two schools, or if one should close.

Hanger worked closely with Hampton legislators. On the House side, Del. Phil Hamilton, R-Newport News, compromised when he dropped his insistence that the New Horizons Regional Education Center be involved in running the Hampton school.

"It's exciting," Hanger said. "We still have a lot of work to do to resolve it."

Reporter Hugh Lessig may be reached at 804-225-7345.

Budget Stalemate

It looks like the budget stalemate may be finally coming to a holt. On Friday evening the Budget Conferees came to an agreement on the budget.

The Senate is scheduled to vote on the proposed budget toady and the House will vote on the budget tomorrow. If all goes well it will be sent to the Governor and he will have about a week to look it over and send back to the House and Senate for final adoption.

I have included an article from the Associated Press on the agreement below.

House, Senate conferees agree on budget draft

By BOB LEWIS
AP Political Writer
June 16 2006

RICHMOND, Va. -- State legislators reached a tentative agreement Friday on a new state budget, ending an unprecedented stalemate just two weeks ahead of what would have been a fiscal and constitutional crisis.

The compromise, 96 days late, sets up a frantic scramble to push the $72 billion, two-year spending plan through the full House and Senate, gubernatorial review and legislative reconsideration of vetoes and amendments by June 30.

After weeks of dickering and bickering, false starts and abrupt halts, the deal fell into place after rival House and Senate negotiators agreed to continue new transportation funding later this year.

The agreement no longer has approval of new, permanent taxes, fees or both for road, rail and transit projects as a condition for the allocation of
$339 million in general funds for transportation projects next year.

The proposal now goes before the full Senate for approval on Monday and before the House on Tuesday. Gov. Timothy M. Kaine will have up to seven days to amend or veto line items in the budget.

Looking haggard but relieved, the six House members and five senators announced their agreement at 6:45 p.m.

"We're tired but happy," Sen. John H. Chichester said.

"Once it's all put together and everyone reflects on it, it's a very fine document, one of the best I think we've seen for a long time," said Chichester, R-Stafford.
House Appropriations chairman Vincent F. Callahan Jr. said relations between the House and Senate after their protracted five-month debate were "cordial."

"We respect each other. We fight like cats and dogs sometimes, but we do that internally also," said Callahan, R-Fairax.

The accord ended a clash over efforts by the Senate and Kaine to boost transportation taxes by about $1 billion annually and the unbending resolve against any new taxes by the House's majority Republicans.

"This is what this was all about, who are we kidding," said Del. M.
Kirkland Cox, R-Colonial Heights. "I think this forever discredits the practice of trying to put tax increases in the budget."

House GOP leaders insisted that imbedding taxes into an appropriations bill is unconstitutional. Tax bills have to be separate measures, they argued.
Transportation was the marquee legislative issue of 2006. Kaine successfully campaigned on it in the governor's race last year and held two dozen town hall-style forums across the state to whip up support for it.

Kaine was relieved to see a budget in place, but is not conceding the unlikely possibility of increased fees or taxes for transportation when lawmakers take up the issue, said press secretary Kevin Hall.

"No one is claiming the discussion is over," Hall said. "House leaders have said in recent weeks they wanted to take care of the two-year budget and return to transportation and we take them at their word."

Other key agreements in the new budget include:

-- Fully repealing the estate tax--a posthumous levy on the estates of millionaires--at a cost of $35 million over the next two years, but at an estimated annual revenue reduction approaching $130 million after that.

-- Pay increases of 4 percent over the coming year for all state employees, state-supported local employees and public school teachers; the following year, state workers and state-subsidized local workers would get 3 percent raises with 1.5 percent boosts reserved for teachers.

-- $25 million over two years to help preserve the Oceana Naval Air Station in Virginia Beach, targeted for closure by the federal Base Realignment and Closure Commission, as a military base.

-- $200 million for Chesapeake Bay cleanup; $17 million to clean up Virginia rivers outside the Chesapeake Bay Watershed; $55 million for the Water Quality Improvement Fund.

This year's impasse marks the third time in five years that the General Assembly, which once prided itself on budgetary punctuality, has failed to finish work on a budget during their regular winter session.

Callahan said this year's delay, the longest ever, does not set a precedent for 11th-hour budgeting and fiscal brinksmanship.

"I think this was an aberration, very frankly," he said. "It's something out of the normal that I don't think we'll be seeing in the next couple of years."

Legislative Update: June 19, 2006

Well as I am writing this update the budget conferees are finishing the final details of the compromise budget to be submitted to the House and Senate hopefully for a vote on Tuesday June 20th. Additionally, the House meets this afternoon – Friday June 16th in a pro forma session to meet the minimum requirements of the state constitution which means that there is no legislation to vote on. This session was scheduled in anticipation of having a budget to vote on by Friday but now instead it will be Tuesday before we get to vote on a budget. This budget adoption process has been a long and eventful effort which has included many highs and lows. It would appear at times as though there was significant progress only to have the next day filled with hesitation and doubt. This process has had the unwanted distinction of being the longest in Virginia’s history.

The budget adoption process begins now for both bodies of the Legislature with the consideration of the conference report from the budget conference committee. This conference report is the compromise budget that has been worked out by the budget conference committee. This committee is made up of six Delegates and five Senators. The House and Senate will vote on the compromise budget on Tuesday June 20th. At this time there will have to be several procedural moves to speed up the adoption process so that both bodies can complete their work. On Tuesday after procedures have been adopted to allow a vote on the budget both Delegates and Senators will only be able to vote yes or no on the budget. There will likely be some comments about the budget but no amendments are allowed only a straight yes or no vote. The budget document is quite complex and will involve a significant amount of time for all legislative members to review.

After the legislature passes the budget it then goes to the Governor. The Governor who usually has five to six weeks to review the budget and make suggested amendments will now only have 7 days to so since it will take until the end of next week to get to the Governor the adopted budget document. This will require a significant amount of effort from the Governor and his staff. After the Governor sends the budget back to the legislature with his proposed changes the Legislature will meet to consider these amendments. At that point the Governor’s amendments will either be agreed to or not. The budget then becomes final.

When the budget becomes final state government agencies and local governments will know with certainty the amount of money they have for the coming year. Depending upon the assumptions local governments used in adopting their budgets they will be faced with making adjustments to coincide with the funds they receive from the state. Under this scenario all government functions continue at both the state and local government level.

I am very happy that all appears as though we will avoid the need for legislation to fund government without a budget. The idea of using this continuing funding resolution that is used by the U.S Congress is one that I do not believe is appropriate for Virginia. Budget decision making is never easy and the use of continuing resolutions just puts off the tough decisions that must be made at some point. The Virginia Legislature has always been up to making these tough decisions. In listening to folks in the 99th district I heard loud and clear that they expect their legislature to do the job for which we were elected and that includes adopting a budget without the use of continuing resolutions or facing potential government shutdowns. I am continuing to communicate with the budget negotiators on a daily basis and will do so until we have passed this budget.

In the district this past week, I started off on Monday, June 12th, speaking to the Westmoreland Ruritan Club. Then the next morning, Tuesday, June 13th, I enjoyed a tour of Fort A.P. Hill. After that tour was completed I headed over to Reedville to meet another Delegate for a tour of the Omega Protein fisheries. With so much attention being placed on this plant I feel that it is important for legislators outside of this region to be able to see the work done to gain a better understanding.

On Thursday, June 15th, I visited with the Virginia Association of Soil and Water Conservation Districts at Stratford Hall. This gave me the opportunity to inform them of legislative proceedings as well as an opportunity for me to hear from them how state policies impact their day to day work.

Over the weekend I plan on speaking at an Electoral Board Luncheon and from there stopping by to visit with folks at the Historical Marker Dedication at Westmoreland State Park. Additionally, I will also be visiting with the Little Ark Church congregation for their Juneteenth service and ceremony. The week has been one filled with good times and great opportunities to speak with people from throughout the district.

I would love the opportunity to speak with each of you about how state government could better serve you. Please do not hesitate to contact me at my district office. I can be reached by telephone, 804-493-0508, or email, robwittman@verizon.net.

Legislative Update; June 9, 2006

There have been a number of happenings this week concerning budget matters. First, on Tuesday, June 6th, the House and Senate considered the Governor’s proposed amendments to the caboose budget which is the budget that completes the current fiscal year ending on June 30th. There were some changes to the Governor’s amendments made by the House and Senate. These changes passed and were sent back to the Governor.

Next, on Wednesday, June 7th, the budget negotiators held a meeting as Governor Kaine, Senator Chichester and Delegate Callahan flew to New York to meet with the various financial institutions that determine the state’s credit rating. The folks from these institutions indicated that they were not overly concerned about the state being nearly three months late in completing a budget but they would closely monitor the situation if a budget was not passed before July 1st.

The question now being asked is what will happen to state services if there is not a budget passed by July 1st ? I believe strongly that we need to complete the budget now before the July 1st deadline. I have communicated these thoughts to the budget negotiators in the strongest terms I know how. If the state is faced with no budget on July 1st the Governor will act to continue state services and provide payments to our local governments. While the Attorney General has ruled that the Governor does not have the authority to spend money without a budget from the legislature most folks agree that the Governor has the authority to exercise certain powers to protect public health, safety and welfare of Virginia citizens. It takes money to do that and while the budget that authorizes the spending of that money may not exist I do not believe anyone is going to stop the Governor in exercising his powers.

Both the Senate Finance Chairman – Senator Chichester and House Appropriation Chairman – Delegate Callahan have indicated they are prepared to offer legislation that would continue to fund state government. In fact Delegate Robert Marshall has just submitted a bill that would fund state government and its obligations to local governments if we do not meet the July 1st deadline.

If the legislation to fund government without an adopted budget is passed it will be the first time in the history of Virginia that the legislature has not met its obligation to pass a budget. This also sets the precedent that instead of making the tough decisions needed to pass a budget we will opt for the temporary funding mechanism similar to what is called a continuing resolution that is used by the U.S. Congress. This would be a significant event in the course of Virginia’s legislative history. I have considerable concern about using this mechanism as opposed to upholding our responsibility to adopt a budget through the regular course of the legislative session.

The budget negotiators are meeting as I write and are deciding if they should meet over the weekend. It is my hope they do and that this leads us to a budget to consider at our next legislative session which will occur at 5 p.m. on Tuesday June 13th.

Back in the district this week I had the opportunity to speak at the Woodland Academy’s graduation. I also gave the commencement address for Colonial Beach High School’s graduation on Sunday, June 11th.

I would like to take this opportunity to congratulate all of the graduates in the district and throughout Virginia. I applaud the hard work you have put forth to accomplish your goals to this point and wish you great success as your journeys continue.

As always, if I can be of assistance please do not hesitate to contact me. I can be reached at my district office by phone, 804-493-0508, or email, robwittman@verizon.net.

Legislative Update: June 5, 2006

This is week eight of the special session of the General Assembly and budget negotiations continue. The House and Senate budget conferees have been meeting this week and there has been slow but steady progress on creating a compromise budget.

The budget discussions now center upon capital expenditures. Capital expenditures include the money to be spent on construction of state buildings which include college buildings, hospitals, state office buildings and other material items. They say that the devil is always in the details and these discussions are no different. The differences in these discussions are over how these dollars for capital projects are to be spent. Should there be expenditures to plan then wait to build or should the planning and building take place at one time? Then there is the discussion about which building projects should or should not be included in the budget.

The budget negotiations have been testy at times with patience running thin knowing that there is the desire to have a proposed compromise budget done by Tuesday, June 6th. The Governor, Senator Chichester and Delegate Callahan will be meeting next week in New York with the various companies that rate the state’s financial capabilities. These companies want an update as to whether the state will have a budget adopted by July 1st. It is my strong desire that the budget work be completed so that we have a budget to vote on this coming week. I believe that this can happen.

I have passed on my comments to the budget negotiators on a number of budget items that affect our district. They include a request to restore funding taken away from the Northern Neck Regional Jail, next is to restore funding for the Land Conservation Tax Credits and also to restore funding for high speed internet planning in the district. I am hopeful that these items will get back into the budget and remain there. I know that many folks are waiting anxiously for the budget to be adopted including local governments and teachers who have to make decisions on contracts with salaries that are conditioned upon the adoption of a state budget.

I began this past week in the district by speaking at a Memorial Day service at Historic Christ Church in Weems and attended the service at Bethel United Methodist Church in Lively. This was a great opportunity to honor those service men and women who have given so much for our country.

On Tuesday, May 30th, I attended a Lancaster County Volunteer Recognition Ceremony hosted by Bay Aging. Thursday, June 1st, I had the opportunity to give the Commencement Speech for the Northern Neck Technical Center’s graduation. I wish those young men and women who worked so hard to earn their certificates great success.

This past weekend was packed full of great events. On Saturday, June 3rd, I began my day at a community breakfast in Bowling Green. From there I headed to the Northumberland Relay for Life walk. Then later that evening I headed to Upperville where I and other environmentally conscious delegates were honored by the Virginia League of Conservation Voters. I also attended two Eagle Scout Ceremonies over the weekend.

I would like to urge you to contact me if I can ever be of assistance. I can be reached by phone at 804-493-0508, or email at robwittman@verizon.net.