House Republican Caucus—The 2010-2012 Biennial Budget

Conference Updates

After waiting for most of a week for the Senate conferees to agree to a meeting, Del. Cox began to provide daily updates to the House on the progress of the conference committee.

First Update: Del. Kirk Cox (R-Colonial Heights) Encourages Quick Resolution; Announces Plan to Make Offer to Senate

March 5, 2010 Transcript

Del. Cox detailed the first meeting of the Conferees and their discussions about priorities, including agreement on car tax relief as a critical priority. He laid out the House Conferees concern about the Senate's revenue numbers based on fees and faulty estimates. He announced plans for the House Conferees to make a significant offer to the Senate Conferees later in the day.

Del. Cox also addressed the importance of deadlines and the willingness of the House Conferees to work though the weekend to meet the Tuesday, March 8, deadline.

Second Update: Del. Kirk Cox (R-Colonial Heights) Expresses Disappointment in the Senate's Response to House Offer

March 8, 2010 Transcript

Del. Cox reported on the serious offer made by House Conferees on Friday and the Senate Conferees unwillingness to work over the weekend. When the Senate finally responded on Sunday, they made almost no movement towards the House and failed to respond to its offer.

The House offer, characterized by the Richmond Times Dispatch as "high-dollar conessions," included (1) accepting $76 million in fees with a tight nexus to the activity funded, (2) reducing the revenue reserve to $100 million, and (3) accepting the Senate position on funding 20 percent of the unfunded liability rate for VRS. In response, the Senate made no offer on any fees and made no offer on any amount of revenue reserve.

Third Update: Conference Report Delivered

March 14, 2010

The House Appropriations Committee has prepared a briefing on the Conference Report highlights.

The conference report itself is available at the State Budget website

Fourth Update: Conference Report Adopted

March 14, 2010

The House adopted the State Budget by a vote of 73-23 and the Senate adopted it by a vote of 34-6.

Chairman Putney issued a press release with his prepared remarks on the conference report.

The House Budget

House Appropriations Committee members explained and defended the House Budget in a series of speeches on the House Floor.

Del. Lacey Putney (I-Bedford) Introduces the Budget

February 25, 2010 Transcript

House Appropriations Committee Chairman Lacey Putney outlines the challenges presented by the economic conditions, the worst in his 49 years as a member of the House; notes the key decision on the budget—not raising taxes—was made when the House rejected former Gov. Kaine's 17 percent income tax hike was unanimously rejected; and sets out the five key objectives of the Committee's amendments:

  1. Mitigate law enforcement and public safety cuts
  2. Invest in job creating economic development
  3. Minimize the impact of cuts for the health safety net;
  4. Provides school divisions maximum flexibility in implementing education budget reductions
  5. Establish a substantial reserve to replenish the Rainy Day Fund and help ensure a more structurally balanced budget going forward.

Del. Chris Jones (R-Suffolk) Discusses VRS Reform

March 1, 2010 Transcript

Del. Jones, chairman of the Compensation & Retirement Subcommittee, outlined the cost-saving measures related to the Virginia Retirement System (VRS) included in the budget and in Chairman Putney's House Bill 1189, which modifies the state's pension program for new state and local employees.

In the budget, Jones explains the decision to fund only a portion of the rates set by the actuary. Due to the lack of economic growth, the Committee so no reason to fund the default Cost-of-Living-Adjustment rate as cost of living did not change. Due to the dramatic increase in fund performance—an 18 percent return in 2009—since the actuary's determination, the Committee decided not to fund the so-called "unfunded liability" rate.

Jones also explains the changes in the retirement system contained in HB 1189 for state employees hired after July 1, 2010, including requiring employees to pay the 5 percent employee share of the VRS contribution, changing the calculation of average final compensation, changing the cost-of-living adjustment, and other reforms.

Del. Kirk Cox (R-Colonial Heights) Discusses K-12 Funding

March 2, 2010 Transcript

Del. Cox, vice-chairman of the House Appropriations Committee, details the funding for K-12 education in the House Budget, specifically refuting grossly exaggerated claims by the Virginia Education Association (VEA). Del. Cox also outlines the flexibility contained in the Budget for local school divisions.

Del. John M. O'Bannon, III, MD (R-Henrico) Discusses Health Care Funding

March 3, 2010 Transcript

Del. John O'Bannon, a physician and a member of the House Appropriations Committee, details the health care program in the House Budget and the recommendations made by the Committee to maintain the health safety net by striking or modifying provisions introduced by former Gov. Kaine, as well as expanding Medicaid waiver slots for home- and community-based care.

Del. Steve Landes (R-Augusta) Compares House and Senate Revenue Estimates

March 3, 2010 Transcript

Del. Landes, chairman of the Economic Development, Agriculture and Natural Resources Subcommittee, compares the responsible revenue estimates used by the House in formulating its recommendations to the Senate's over-inflated estimates. Del. Landes also details the fiscal prudence of the House in establishing a responsible reserve in contrast to the Senate, which spends all revenues and provides for no reserve.

Del. Beverly Sherwood (R-Frederick) Discusses Public Safety Funding

March 4, 2010 Transcript

Del. Sherwood, chair of the Militia, Police, and Public Safety Committee, as well as the Public Safety Subcommittee of Appropriations, detailed the House's ongoing commitment to responsible funding for public safety and law enforcement. Del. Sherwood describes the recommendations to restore funds for sheriffs, commonwealths attorneys, and police departments that had been cut dramatically from prior levels in former Gov. Kaine's budget proposal.

The Process

As part of Virginia's biennial budgeting, former Gov. Kaine presented a budget proposal on December 18, 2009 (view his proposal at the Department of Planning and Budget website). That proposal was introduced in the House of Delegates as House Bill 30 (and in the Senate as Senate Bill 30). As usual, Gov. Kaine introduced a so-called "caboose" bill to make adjustments in the remaining months of the 2008-2010 biennial budget.

On January 11, 2010, the House Appropriations Committee and the Senate Finance Committee published a staff analysis of the Governor's proposal, available at the Legislative Information Systems' State Budget page.

The "Money Committees" (the informal term used to refer to the House Appropriations Committee and the Senate Finance Committee) faced a deadline of February 21, 2010, to report amendments to former Governor Kaine's proposal.

On February 17, Gov. McDonnell announced revisions to the Commonwealth's revenue estimates and sent a letter to the Money Committees outlining his proposals for amendments to former Gov. Kaine's budget.

On February 21, the House Appropriations Committee reported its amendments to the House. On February 25, the House considered the amendments and adopted a House budget. The Senate followed the same schedule with its version of the budget. Following several additional procedural steps, on March 3, the House and Senate agreed to appoint a conference committee to prepare a bill that both Houses can consider.

The Budget Conferees are Delegates Lacey Putney, Kirk Cox, Beverly Sherwood, Steve Landes, Chris Jones, and Johnny Joannu on the part of the House, and Senators Chuck Colgan, Edd Houck, Janet Howell, Dick Saslaw, Walter Stosch, and William Wampler on the part of the Senate.

On March 14, at 1 am, the Conferees reach an agreement, and the House and Senate convened at 5 pm to consider the conference report.