City of Alexandria, Virginia
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MEMORANDUM
DATE: JANUARY 19, 2013
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
FROM: RASHAD M. YOUNG, CITY MANAGER
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Consideration of Recommendation and Status Report on Legislation Introduced in the 2013 General Assembly Session.
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ISSUE: Recommendations and status report (No. 1) on legislation introduced at the 2013 General Assembly Session.
RECOMMENDATION: That City Council approve the following recommendations in separate votes (since the second recommendation is to approve a Resolution, which requires a recorded vote):
(1) Approve the legislative positions included in Attachment 1 (Recommended Positions on Bills of Importance to the City), as recommended by City Council's Legislative Subcommittee (Mayor Euille and Councilman Smedberg); and
(2) Approve the Resolution in support of measures to address gun violence included as Attachment 2 (Resolution Supporting Further Restrictions on Firearms and Other Related Issues).
DISCUSSION: The 2013 General Assembly Session began on January 9 and is scheduled to adjourn on February 23. The deadline for the introduction of legislation was Friday, January 18. As of that day, at least 1,669 bills and 396 resolutions had been introduced (it is probable that additional bills and resolutions were introduced but have not yet appeared on the State's Legislative Information System).
City Package. The following bills and budget amendments seek the enactment of proposals from the City's legislative (Attachment 3 is a status report on "City Package" bills):
· The Governor's budget proposes to end the Local Aid to the State program. This budgetary manipulation, used to balance the State budget, required localities to write a check to the State each year, or reduce State aid a like amount. If the Governor's proposal is adopted, it will save the City about one million dollars-money that we would have been required to give the State in FY 2014.
· More than half a dozen bills have been introduced to allow school boards to set the opening day of school on the day they determine to be best for their schools. Current law prohibits schools from opening prior to Labor Day, unless a school system gets a waiver from the State Board of Education. The State Board of Education can only grant waivers for reasons set out in statute by the General Assembly. All of these bills are awaiting consideration by committees of the General Assembly.
· Constitutional amendments have been proposed in both the House and Senate to provide a new procedure for the restoration of civil rights for persons who have been convicted of nonviolent felonies, but completed their sentence, probation, and parole. Some of these would automatically restore such rights, while others would authorize the General Assembly to adopt simplified procedures (currently, only the Governor can restore these rights). Even though Governor McDonnell endorsed the automatic restoration of rights in his State of the Commonwealth address earlier this month, the House of Delegates has already defeated the House Joint Resolutions introduced to amend the Virginia Constitution. If such legislation is approved by the Senate, it will likely be killed when considered by the House.
· Another popular topic for legislation is unrestricted absentee, or early, voting. Several bills have been introduced to allow early or unrestricted absentee voting, as requested by the City. As in the past, the House of Delegates has already rejected all House bills to allow for early or unrestricted absentee voting. If any such legislation is approved by the Senate, it will likely die when it reaches the House.
· The City Package also includes a provision to oppose any legislation that will make it more difficult to vote. Last Session, the General Assembly enacted more stringent requirements for voters to present identification before they could vote, and limited the forms of identification that could be used by voters. This Session, several bills have been introduced that will limit even further valid forms of voter identification. These bills, if passed, will make it more likely that voters will be turned away at the polls. All such bills are still awaiting committee consideration.
· Bills have been introduced in the House and Senate to allow access to higher education by undocumented persons if they can meet certain requirements similar to those proposed by Governor Warner in 2003 (e.g., graduation from a Virginia high school, payment of Virginia taxes by a family member, pursuing permanent residency in the United States). Action has not been taken on any of this legislation.
· The City recommended that legislation be passed requiring nursing homes to have backup power (e.g., generators) sufficient to support critical patient needs when normal power fails. In the first days of Session, City staff and members of the City's legislative delegation met with representatives of the State Health Department and the nursing home industry to discuss this issue and how to best address the problem. Since the solution appears to be very complex (many facilities do not even have the wiring needed to accept powerful generators), the meeting participants agreed to support a budget amendment requiring the State Department of Health to study the issue and report back to the General Assembly later this year. Local governments and the nursing home industry will also be invited to participate in the study.
· Budget amendments have been proposed to keep beds open at the Northern Virginia Mental Health Institute for persons with psychiatric emergencies; to allocate sufficient resources to support community placements of individuals leaving State Training Centers; and to provide additional funding for early intervention services for infants and toddlers. All three of these are requests included in the City Package.
· SB 1224 would make it unlawful to discriminate against someone who wishes to purchase or lease a home, based on the source of income they propose to use (e.g., public assistance or child support). Alexandria supports such legislation in its City Package.
· Bills have been introduced to change the way State transit funding is provided to localities; the City and almost all other local governments oppose this legislation, which is based on questionable data and distribution formulas, and lessens the predictability and reliability of funding.
· A number of bills have been proposed to increase funding for transportation. Some of the major ones are discussed below.
Transportation Funding. There appears to be a consensus among General Assembly members that something must be done to increase funding available for transportation. Unfortunately, no consensus has emerged on how to address this problem. Bills have been introduced in both the House and Senate. Some of the ones likely to receive the most attention include the following:
· The Governor has proposed a package (HB 2313) that will, if adopted, eliminate the gasoline tax (but keep the tax on diesel fuel); increase the sales tax by eight-tenths of a percent, and use the additional funds for transportation; earmark taxes from internet sales (which must be authorized by Congress before they can be collected) primarily for transportation; increase certain vehicle registration fees, and impose a new one on electric and alternative fuel vehicles; and take some of the revenue from the existing sales tax (used currently for programs such as education, public safety, and mental health) and earmark it for transportation.
· Senator John Watkins and Delegate Tom Rust have proposed legislation SB 717 and HB 2179, which would levy a five percent tax on motor fuels sales based on the statewide average wholesale price of a gallon of self-serve unleaded regular gasoline; the revenue from this tax would be used for transportation. The bill would also charge an extra registration fee on electric vehicles, but would allow hybrid electric vehicle owners to claim a refund of the sales tax they pay on motor fuels. The legislation seeks to repeal certain sales tax exemptions currently available for some transportation-related services, such as auto repairs, taxis and limousines, armored cars, and other travel and transportation services. In order to make the legislation revenue-neutral (so that it can make it through the House of Delegates), the legislation proposes to lower individual income tax rates.
· Delegate David Albo has introduced HB 2253, which makes a number of changes to the state tax code in order to provide additional money for transportation. It seeks to tax income from out-of-state corporations that is not taxed now; it repeals the land preservation tax credit, the long-term care insurance tax credit, and the coalfield employment enhancement tax credit. It imposes a five percent sales tax on motor fuels, and earmarks this money for transportation. Like the Watkins/Rust legislation, the Albo bill would charge an extra registration fee on electric vehicles, but allow hybrid electric vehicle owners to claim a refund of the sales tax they pay on motor fuels. HB 2253 imposes a two percent state transient occupancy tax, and an initial one percent state motor vehicle registration fee. A new $0.20 per $100 recordation fee will be assessed in any county in Northern Virginia (except Arlington) that levies a four percent meals tax (which the bill enables them to do without a referendum), and any Northern Virginia city (as well as Arlington) that imposes an additional half cent sales tax. The revenue from these taxes would have to be used for transportation. The bill reduces individual income tax rates, and eliminates the sales tax on food. The bill also repeals the sales tax exemption for nonprofit entities, and increases the amount of state sales tax distributed to localities from 1 percent to 1.23 percent. Finally, it authorizes localities in Hampton Roads to impose an additional 1 percent sales tax and use the funds from this tax to reduce traffic congestion.
· Delegate Vivian Watts has patroned HB 2333, which would impose the sales tax on motor fuels and charge an extra registration fee on electric vehicles (but allow hybrid electric vehicle owners to claim a refund of the sales tax they pay on motor fuels). This bill reduces the sales tax on food by half a percent, allows the extra commercial property tax available to Northern Virginia localities (the City has not enacted this tax) to be increased, and establishes a procedure that would allow the levy of additional sales and recordation taxes within a planning district to fund regional transportation projects.
Restrictions and Regulations on Firearms and Related Issues. Late last year, following the tragic mass shooting at Sandy Hook Elementary School in New Town, Connecticut, then Vice Mayor Kerry Donley asked Council to take several positions related to gun control and the funding of mental health services. In addition, Mayor Euille, who has been a member of Mayors Against Illegal Weapons since the founding of this national organization several years ago, has requested that the City support proposals by the Mayors. Attachment 2 is a Resolution for Council's consideration that suggests City positions on firearms and related issues; it incorporates proposals from both Mayor Euille and Mr. Donley. In addition, a number of bills are included in Attachment 1 that pertain to restrictions on weapons.
State Budget. The Governor introduced amendments to the current biennial budget last month. Among those of interest to the City are the following:
1. He recommended termination of the Local Aid to the State Program. If approved by the General this will save the City approximately $1 million in FY 2014.
2. The Governor has also recommended removing any State Cost of Competing funds for K-12 support (non-instructional) positions in Northern Virginia schools. If the General Assembly approves this proposal, it will cost Alexandria City Public Schools nearly half a million dollars. Northern Virginia localities and school systems are working to defeat this proposal.
3. The Governor is recommending additional money for the Early Intervention Targeted Case Management Program for Infants and Toddlers with Disabilities (City Package item).
4. The Governor has recommended an additional $700,000 to keep 13 beds open at the Northern Virginia Mental Health Institute for Northern Virginia localities to use for persons with psychiatric emergencies. Budget amendments have been introduced to fully fund the City Package request to provide $1.4 million to pay for 19 beds.
5. A small amount of funding is included to increase salaries for Deputy Commonwealth's Attorneys. How much of this will come to the City is unknown at this time.
6. As noted above, the Governor has recommended shifting sales tax revenues out of the general fund to pay for unmet transportation needs.
7. The Governor included a 2 percent salary increase for teachers in his budget. This proposal does have some strings attached (other legislation regarding teacher tenure and grievances must be passed), and requires a local match (significant for the City, since the State pays a small portion of our K-12 education expenses). The amount coming to the City is unknown at this time, but ACPS staff is working on an estimate.
The House Appropriations and Senate Finance Committees will reveal their recommended budget amendments on February. Final agreement on the budget is not usually reached before the last day or two of Session, and sometimes later.
Virginia Railway Express. The McDonnell administration has once again sought to wrest power from local officials on a Northern Virginia transit system Board. SB 1210 and HB 2152 seek to give the Chairman of the Commonwealth Transportation Board (the State Secretary of Transportation is the Board Chair) a seat on the Virginia Railway Express Board, with a vote equal to that of the largest locality vote on the Board (the Board's procedures call for weighted voting is some cases). The Director of the Virginia Department of Rail and Public Transportation (DRPT) is already a voting member of the VRE Operations Board, so this statutory change, if enacted, would significantly dilute the vote of the VRE member localities. On January 18, the VRE Operations Board (chaired by Councilman Smedberg) passed a resolution opposing these two bills. All board members except the DRPT Director voted in favor of the Resolution.
ATTACHMENTS:
Attachment 1. Recommended Positions on Bills of Importance to the City, January 19, 2013
Attachment 2. Resolution Supporting Further Restrictions on Firearms and Other Related Issues
Attachment 3. Current Status of City Package Bills, January 19, 2013
STAFF: Bernard Caton, Legislative Director