“Alongside the Governor’s July announcement of $310.7 Million in FY 2011 surplus revenues, today’s announcement of $234.1 million in agency savings and balances adds up to an overall FY 2011 surplus of $544.8 million.  Since taking office, the House Republican Caucus has worked with Governor McDonnell to responsibly tend to Virginia’s financial health by controlling costs, eliminating unnecessary expenditures and upholding Virginia’s constitutional balanced budget requirement, all without raising taxes,” said Howell.

“While we are pleased to build on last year’s $403 million surplus, we must continue to plan for the future and prepare ourselves for future economic contingencies.  Both the Governor  and our Caucus recognized the importance of frugality and good government long ago and we’ve weathered the recession and recovery better than other states owing to that recognition.  Moving forward, we need to be proactive in safeguarding the Commonwealth’s AAA bond rating and we must make deposits into the Rainy Day Fund to save for unforeseen future contingencies,” said Howell.

Overall FY 2011 agency savings include unspent funds appropriated to various agencies as well as agency savings generated through good management practices.  The $310.7 million surplus announced in July consists principally of higher-than-expected revenues, generated in large part by personal and corporate income tax collections.

Between agency savings and surplus revenues, the Commonwealth has over half a billion surplus dollars, most of which is designated through contingency language in the Appropriations Act.  The surplus will be spent, in part, on the Rainy Day Fund, the Virginia Water Quality Fund, the Natural Disaster Reserve, additional funding for Sheriff’s departments and repayments to the Virginia Retirement System.  Additionally, the Governor has seen fit to create a Federal Action Reserve Fund, which will serve as a financial safeguard in the event that federal spending decisions have a substantial impact on the Commonwealth.

“We thank the Governor for his ongoing efforts to reduce spending and implement common sense management practices, which save money for the Commonwealth and Virginia taxpayers.  While the economy continues to recover, none of us knows what fortune tomorrow brings.  Our Caucus will continue to work with the Governor to prudently plan for all future scenarios,” said Howell.

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"Over the last two years, our Caucus has worked together with Governor McDonnell to cut unnecessary government spending, reform duplicative programs and exercise general fiscal prudence. Frugal, common-sense measures, coupled with better than projected revenue collections, led to a budget surplus of $403.2 million for FY 2010 and another surplus of $311 for FY 2011," said Howell.

The $311 million surplus may be adjusted later in the month to reflect final state agency savings. For the second year in a row, the surplus is attributable to frugal budgeting, low taxes and strategic investments. The surplus revenues are, in large part, previously obligated through state budget language addressing allocations of surplus. Though figures are not final, it is expected that the surplus will include a $146.6 million allocation to the Revenue Stabilization Fund, $32.2 million to the Water Quality Fund, $23.0 million for the Transportation share of the Accelerated Sales Tax, $8.9 million to the Unemployment Compensation Trust Fund, $4.3 million for Tornado Relief, $7.5 million to BRAC Obligations and $7.4 million to supplement Public Safety Funding for Sheriff's Offices. Many of these allocations were pre-designated by the 2011 Budget Bill and any remainder is expected to go into the VRS.

"The House has worked together with and supported the Governor on budgetary issues as well as economic development. The Governor's efforts to bring more jobs to Virginia was one key factor in stimulating vitality and improving revenue flow throughout the Commonwealth. We must continue to spend and save wisely, mindful of the tough challenges ahead. In addition to designating $114 million during the 2011 General Assembly Session for the Rainy Day Fund, we wisely put aside a further $146 million for the FY 2012-2014 biennium to deal with any future contingencies," said Majority Leader Kirk Cox (R-Colonial Heights).

"We are thrilled that the Commonwealth has upheld its balanced budget requirement, posting surplus figures while many other states and the federal government are grappling with dire budgetary challenges. It is more important than ever that the Commonwealth tighten its belt, in light of the continuing recovery and uncertainty in Washington," said Howell. "Since 2008, citizens and legislators have learned that the economy will not always be buoyant, so we must save whenever possible to prepare ourselves for difficulties in the future. I believe the hard work of the Governor and our Caucus has positioned Virginia as one of the most fiscally responsible states in the country and has financially prepared Virginia moving forward."

"As the national economy continues to limp along, state lawmakers must make the same difficult decisions as families which means trimming budgets, saving wherever possible and doing more with less," said Speaker Howell. "Reforming government and reducing costs are high and ongoing priorities for me and my colleagues in the House. We are pleased we've been able to reduce government spending, in turn easing the financial burdens weighing on taxpaying-families, businesses and citizens across the Commonwealth. Perhaps Washington also will recognize that reducing the size, cost and scope of government requires similar actions to those we've taken today."

The Republican-led House of Delegates, under Speaker Howell, has made reduction of costs and increased governmental efficiency a top priority, without undermining fulfillment of the House's constitutional duties.

Since 2003 when Speaker Howell was first elected to his current leadership position, Virginia has improved its national ranking - dropping from 40th to 46th in the nation in per capita spending on its legislature, according to data compiled by the National Conference of State Legislatures. Virginia is the 12th largest state in population.

In the most recent fiscal year ending June 30, 2010, the budget for the General Assembly and all legislative agencies was less than one-half of one percent - 0.46% - of the total General Fund budget of $14.8 billion.

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“The Republican-led House made real progress during the 2011 Regular Session and on many fronts, especially in passing a fiscally sound and structurally balanced state budget that funds core government services,” said Speaker Howell. “At our insistence, the final budget agreement includes no new fees or higher taxes. It has no earmarks for non-state agencies. There is no funding or debt for a new ‘Taj Mahal’ to replace the General Assembly Building. There is $67 million less in authorized debt. And, the accelerated sales tax is eliminated for 80% of retailers. Yet, there also are prudent investments in economic development, transportation, education, health care and other important services. Overall, we’ve had a very productive legislative session.”

Below is the outcome for a selected list of 100+ measures – grouped by topic – supported by the House Republican Majority. In all, about 1,600 pieces of legislation were approved by the General Assembly this year.

Budget & Taxes

HB 1500 (Putney — Bedford)                       Passed House 97-0                 Passed Senate 40-0

• Includes no new taxes and eliminates $5.7 million in fee increases adopted last year

• Eliminates $66.8 million in previously authorized debt

• Deposits an $64 million into the Rainy Day Fund, on top of that authorized in the Governor’s introduced budget, bringing the total deposit to $114 million

• Eliminates in large part the accelerated sales tax that weighed on retailers across the Commonwealth

HB 1820 (Ware, R.L. — Powhatan)              Passed House 99-0                 Passed Senate 40-0

Imposes a $100 million cap on land preservation tax credits per year and provides for the review of certain real property appraisals performed for the purpose of receiving a land preservation tax credit.

HB 1437 (Cole — Spotsylvania)                    Passed House 94-5                 Passed Senate 38-2

Gives localities some flexibility in determining the basis for calculating business, professional and occupation license taxes within their jurisdiction.

HJ 852 (Cline — Rockbridge)                        Passed House 68-26               Killed by Senate Committee

Encourages the United States Congress to adopt legislation requiring a balanced federal budget and to call a convention to amend the U.S. Constitution to require a balanced federal budget.

Jobs, Energy & Economic Development Opportunities

HB 1500 (Putney — Bedford)                       Passed House 97-0                 Passed Senate 40-0

• Includes over $40 million in various job-creating economic development efforts
• Eliminates the vast majority of the accelerated sales tax that hit retailers throughout the Commonwealth
• Includes no new fees or tax increases
• Invests $32.7 million to capitalize the new Transportation Infrastructure Bank for use by private and public entities in financing necessary transportation priorities

HB 1447 (Cline — Rockbridge)                     Passed House 76-23               Passed Senate 40-0

Grants individual and business income tax credits of 15-20% for expenses related to qualified high-tech research and development in Virginia.

HB 2197 (Comstock — Fairfax)                    Passed House 89-10               Passed Senate 40-0

Grants employers a tax credit for expenses incurred in developing and implementing telework arrangements for employees.

HJ 500 (Bell, R.P. — Staunton)                     Passed House 61-36               Killed by Senate Committee

Incorporates Virginia’s “Right to Work” statutue into the State Consitution.

HB 2052 (Hugo — Fairfax)                           Passed House 63-32               Killed by Senate Committee

Requires the use of secret ballots in any procedure authorizing or selecting a labor organization to represent workers.

HB 2221 (Oder  — Newport News)              Passed House 85-14               Passed Senate 40-0

Creates an exemptipon from the aircraft sales and use tax for businesses headquartered in Virginia that make a minimum of $4 million capital investment in Virginia, create at least 50 new jobs and enter into a memorandum of agreement with the Virginia Economic Development Partnership.

HB 1982 (Kilgore — Scott)                           Passed House 99-0                 Passed Senate 40-0

Reduces the eligibility criteria for making use of the Governor’s Development Opportunity Fund from $10 million in private investment and 100 new jobs created to $5 million and 50 new jobs.

Education

HB 2510 (Cox, M.K. — Colonial Heights)    Passed House 98-0                 Passed Senate 40-0

• Sets a goal of creating 100,000 additional undergraduate degrees in Virginia over next 15 years
• Emphasizes the importance of highly competitive “STEM” degree programs, which include science, technology, engineering and math
• Increases access and affordability for more in-state residents wanting to attend Virginia’s institutions of higher learning
• Improves institutional efficiency by encouraging colleges and universities to analyze the use of state-owned buildings, find opportunities to use buildings year-round and explore technological alternatives for summer and on-line classes

HB 1416 (Loupassi — Richmond City)         Passed House 48-46               Killed by Senate Committee

Requires local school boards to report the percentage of their budget spent on instructional spending, and, if the percentage is less than 65 percent, to develop a plan to increase instructional spending

HB 2314 (Massie — Henrico)                        Passed House 54-45               Killed by Senate Committee

Enables Virginia corporations that have given cash donations to non-profit groups offering tuition assistance for non-public schools to receive a corporate income tax credit equal to 70% of their charitable contribution.

HB 1554 (Wilt — Rockingham)                     Passed House 99-0                 Passed Senate 40-0

Delays implementation of certain accreditation requirements to allow school systems to effectively allocate limited financial resources.

HB 1793 (Tata — Virginia Beach)                 Passed House 99-0                 Passed Senate 40-0

Allows local school boards to award diploma seals for Board of Education approved diplomas.

HB 1792 (Tata — Virginia Beach)                 Passed House 95-3                 Passed Senate 40-0

Codifies the flexibility given in the Standards of Quality for use of appropriations act funds for instructional staffing for mathematics, limited English proficiency, reading, technology and assistant principals.

Health Care

HB 1500 (Putney — Bedford)                       Passed House 97-0                 Passed Senate 40-0

• Sets aside an additional $30 million for the Behavioral Health Trust Fund to help intellectually and developmentally disabled Virginians
• Includes $14.3 million for additional staffing and accomodations for the Sexually Violent Predator Program at the Virginia Center for Behavioral Rehabilitation
• Restores a total of $12.5 million in CSA funding for Children’s Mental Health Services

HB 2467 (Greason — Loudoun)                    Passed House 74-24               Passed Senate 27-11

Ensures that health insurance plans in the Commonwealth cover autism spectrum disorders for children ages 2 through 6 up to a yearly cap of $35,000.

HB 1428 (Bell, R.P. — Staunton)                  Passed House 66-33               Killed by Senate Committee

Requires that abortion clinics be regulated in the same fashion as hospitals, ambulatory clinics and dentists offices, including biennial inspections and provision of certain emergency life-saving equipment.

HB 1419 (Byron — Campbell)                       Passed House 61-33               Killed by Senate Committee

Eliminates mandatory, opt-out HPV vaccines given to schoolgirls starting in the sixth grade, and replaces the mandate with an opt-in vaccination program.

HB 2147 (Cline — Rockbridge)                     Passed House 60-36               Killed by Senate Committee

Requires that health insurance plans that will be available through Virginia’s health benefits exchange shall not cover abortions.

HB 1675 (Pogge — James City County)       Passed House 94-0                 Passed Senate 40-0

Provides procedures and standards for agencies or governmental entities applying for variances or exemptions to regulations governing emergency medical services.

HB 1960 (Rust — Fairfax)                             Passed House 94-5                 Passed Senate 40-0

Clarifies that institutions of higher education must be formed, headquartered and have their principal place of business in Virginia in order to be eligible for the Virginia Tuition Assistance Grant Program.

HB 1968 (Robinson — Chesterfield)             Passed House 95-0                 Passed Senate 40-0

Provides that whenever a certification, signature or other attestation is required by a physician, it will also be deemed to include such attestation by a physician assistant.

Law Enforcement & Public Safety

HB 1500 (Putney — Bedford)                       Passed House 97-0                 Passed Senate 40-0

• Includes $400,000 in additional funding for the Line of Duty program, bringing total FY 2012 funding up to $3.4 million
• Includes an additional $8.3 million for sheriffs in FY 2011 and $14.3 million in FY 2012
• Funds 27 new judges in jurisdications with heavy caseloads

HB 1995 (Janis — Henrico)                           Passed House 98-0                 Passed Senate 40-0

Protects victims of child pornography by providing civil restitution as an additional punishment and deterrent to producers of child pornography.

HB 1434 (Garrett — Lynchburg)                   Passed House 98-0                 Passed Senate 40-0

Adds synthetic marijuana, otherwise known as “spice,” to the list of substances that are illegal to possess, buy or sell in Virginia.

HB 1403 (Loupassi — Richmond City)         Passed House 98-0                 Killed in Senate Committee

Protects citizens and law enforcement officers by allowing seizure and sale of vehicles involved in eluding police officers or that otherwise are used to endanger law enforcement officers, with proceeds flowing to the Literary Fund.

HB 1407 (Janis — Henrico)                           Passed House 99-0                 Passed Senate 40-0

Increases penalties for underage drinking and driving, keeping all Virginians safer on our roads.

HB 1590 (Iaquinto — Virginia Beach)          Passed House 99-0                 Passed Senate 40-0

Expands the jurisdiction of Virginia’s General District Courts by raising the maximum claim limit from $15,000 to $25,000.

HB 1573 (Cleaveland — Botetourt)              Passed House 75-23               Killed by Senate Committee

Codifies the common law “castle doctrine” by allowing the use of deadly force in defense of self or others when an individual is threatened with seriously bodily injury intheir own home.

HB 1589 (Iaquinto — Virginia Beach)          Passed House 75-23               Killed by Senate Committee

Requires installation of an ignition interlock after a single DUI conviction.

HB 1651 (Cosgrove — Chesapeake)              Passed House 99-0                 Passed Senate 40-0

Requires the DMV to cancel licenses and other identification cards issued to indivudals who are later discovered to be illegally present in Virginia.

HB 1777 (Gilbert — Shenandoah)                 Passed House 98-0                 Passed Senate 40-0

Provides that those who create or sell fake birth certificates are guilty of a Class 6 Felony.

HB 1859 (Anderson — Prince William)         Passed House 81-8                 Passed Senate 40-0

Requires state agencies entering into contracts to require E-Verify use by contractors on projects over $50,000.

HB 1421 (Albo — Fairfax)                            Passed House 73-26               Killed by Senate Committee

Prevents agencies, political subdivisions and localities from limiting enforcement of federal immigration laws or establishing “sanctuary cities.”

HB 1465 (Peace — Hanover)                         Passed House 75-24               Killed by Senate Committee

Requires all public post-secondary institutions in the Commonwealth to develop and implement rules prohibiting the enrollment of illegal aliens.

HB 1468 (Albo — Fairfax)                            Passed House 83-16               Killed by Senate Committee

Requires that all local departments of social services verify the legal presernce of an individual applying for public assistance benefits.

HB 1934 (Miller, J.H. — Manassas)               Passed House 78-20               Killed by Senate Committee

Directs Virginia’s State Police to enter into a memorandum of agreement with federal immigration enforcement officers thereby allowing Virginia’s State Police to perform immigration enforcement duties within the Commonwealth.

HB 2333 (Lingamfelter — Prince William)    Passed House 81-18               Killed by Senate Committee

Establishes E-Verify users and in-state businesses a preference for purposes of breaking a tie bid during the public procurement process.

HB 1757 (Wilt — Rockingham)                     Passed House 99-0                 Passed Senate 40-0

Heightens protections afforded victims of domestic violation by expanding Address Confidentiality Program.

HB 2225 (Wright — Lunenberg)                   Passed House 98-0                 Passed Senate 40-0

Requires the Department of Corrections to establish individual inmate trust accounts including sources of inmate income up to $1,000 payable upon parole or discharge.

HB 2063 (Bell, R.B. — Albemarle)               Passed House 99-0                 Passed Senate 40-0

Expands the scope of protective orders available to citizens of the Commonwealth to address the issues of dating violence and stalking.

HB 1449 (Crockett-Stark — Wythe)             Passed House 99-0                 Killed by Senate Committee

Updates the evolving list of substances, used to manufacture methamphetamines, whose possession coupled with intent to manufacture are punishable as a Class 6 Felony.

Government Reform & Savings

HB 2076 (Landes — Augusta)                       Passed House 96-2                 Passed Senate 40-0

Establishes the Office of the Inspector General, which will investigate allegations of fraud, waste, abuse and corruption by state and non-state agencies and officers.

HB 2435 (Habeeb — Salem)                          Passed House 97-0                 Passed Senate 40-0 Requires the Virginia Department of Corrections to eliminate an outdated mandate requiring correctional facilities to make duplicate reports to the Department of Corrections and Compensation Board.

HB 2376 (Habeeb — Salem)                          Passed House 98-0                 Passed Senate 40-0

Requires the Department of Social Services to eliminate an unnecessary mandat related to office space requirements.

HJ 542 (LeMunyon — Fairfax)                      Passed House 59-34               Killed by Senate Committee

Calls for an Article V Constitutional Convention to ratify the Repeal Amendment, a measure which would strengthen federalism by allowing a majority of states, acting in tandem, to repeal federal laws and regulations.

HJ 852 (Cline — Rockbridge)                        Passed House 68-26               Killed by Senate Committee

Encourages the United States Congress to adopt legislation requiring a balanced federal budget and to call a convention to amend the U.S. Constitution to require a balanced federal budget.

HB 1457 (Marshall, R.G. — Prince William) Passed House 95-3                 Passed Senate 40-0

Increases the civil penalties imposed for intentional violations of Virginia’s Freedom of Information Act.

HB 2095 (Jones — Suffolk)                           Passed House 85-14               Passed Senate 34-6

Provides for the loss of benefits provided through the Virginia Retirement (VRS) System for any individual convicted of a felony arising out of misconduct in any position covered by VRS retirement programs.

Transportation

HB 2527 (Howell, W.J. — Stafford)             Passed House 65-33               Passed Senate 32-7

• Creates the Transportation Infrastructure Bank, for use by public and private entities pursuing transportation projects across the Commonwealth
• Enhances VDOT’s popular revenue sharing program to incentivize localities to provide matching funds for transportation priorities
• Accelerates previously authorized debt to take advantage of low interest rates and a competitive bidding climate

HB 2051 (Carrico — Grayson)                       Passed House 94-4                 Passed Senate 40-0

Establishes procedures for enforcement and the issuance of citations for certain large vehicles violating size and weight limits on Virginia’s roadways.

HB 1993 (Janis — Henrico)                           Passed House 67-31               Killed by Senate Committee

Gives discretion to law enforcement officers to charge individuals running red lights with either the underlying infraction or reckless driving based on the surrounding circumstances.

HB 1432 (Greason — Loudoun)                    Passed House 90-8                 Passed Senate 26-14

Extends for one year access to High Occupancy Vehicle (HOV) lanes for clean fuel vehicles, regardless of the number of occupants

HB 1692 (Stolle — Virginia Beach)               Passed House 99-0                 Passed Senate 40-0

Permits Virginia Beach to set variable speed limits on highways within its jurisdiction to account for various conditions that impact road safety.

HB 1558 (Scott, E.T. — Madison)                 Passed House 99-0                 Passed Senate 40-0

Prohibits certain overweight farm and agricultural machinery from operating on the Interstate Highway System.

HB 2508 (Morgan — Gloucester)                  Passed House 99-0                 Passed Senate 40-0

Adds wharfs, piers and docks to the list of landings controlled, for purposes of legal control or transfer, by the Commonwealth Transportation Board.

HB 1947 (Cox, J.A. — Hanover)                   Passed House 90-7                 Passed Senate 34-6

Removes certain requirements related to notice of intent to enter onto a landowner’s property.

Veterans & Military

HB 1862 (Cosgrove — Chesapeake)              Passed House 98-0                 Passed Senate 40-0

Extends the licenses, certifications and other identification documents of spouses accompanying a member of the military abroad.

HB 1645 (O'Bannon — Henrico)                   Passed House 99-0                 Passed Senate 40-0

Codifies the constitutional amendment adopted by voters providing a real property tax exemption for the primary residence of veterans who have a 100 percent, service-related disability.

HB 1861 (Anderson — Prince William)         Passed Houe 97-0                   Passed Senate 40-0

Waives the one-year residency requirement for veterans attending institutions of higher learning in Virginia, allowing veterans to immediately qualify for in-state tuition.

HB 1761 (Cox, M.K. — Colonial Heights)    Passed House 99-0                 Passed Senate 40-0

Provides supplemental coverage for members of the armed services through Virginia’s cafeteria plan for retirees and dependents eligible for TRICARE supplemental benefits.

HB 1557 (Cox, M.K. — Colonial Heights)    Passed House 98-0                 Passed Senate 40-0

Requires the Department of Veterans Services maintain a certain ratio of staff to veterans in the Commonwealth.

HB 1774 (Sherwood — Frederick)                Passed House 98-0                 Passed Senate 40-0

Authorizes the Governor to allocate funds for the Virginia National Guard and State Defense Force for purposes of preparedness in the absence of an official state of emergency.

HB 1535 (Merricks — Pittsylvania)               Passed House 94-0                 Passed Senate 40-0

Provides that the Boards of Medicine and Nursing may accept relevant medical experience towards certain civilian, medical certifications.

HB 1848 (Stolle — Virginia Beach)               Passed House 98-0                 Passed Senate 40-0

Provides that an established Virginia domicile, and attendant in-state tuition, of an active duty military spouse is not affected by the maintenance of a second residence, due to military service, outside the jurisdiction.

HB 1697 (Athey — Warren)                          Passed House 99-0                 Passed Senate 40-0

Exempts all Department of Veterans Services facilities from requirements related to certificates of public need.

Federalism

HB 1438 (Cole — Spotsylvania)                    Passed House 65-33               Killed by Senate Committee

Asserts Virginia's authority under the 10th amendment to be free from federal regulation of goods manufactured in, sold in, and consumed in Virginia

HJ 542 (LeMunyon — Fairfax)                      Passed House 59-34               Killed by Senate Committee

Calls for an Article V Constitutional Convention to ratify the Repeal Amendment, a measure which would strengthen federalism by allowing a majority of states, acting in tandem, to repeal federal laws and regulations.

HJ 577 (O’Bannon — Henrico)                      Passed House 63-33               Killed by Senate Committee

Urges the U.S. Congress to limit the FCC’s authority over regulation of the Internet.

HJ 578 (O’Bannon — Henrico)                      Passed House 63-33               Killed by Senate Committee

Urges the U.S. Congress to recognize the separation of powers enshrined in the U.S. Constutiton and encourages Congress to refrain from expanding the rulemaking authority of the FTC.

HB 1397 (Marshall, R.G. — Prince William) Passed House 68-30               Killed by Senate Committee

Exempts qualified residential and manufactured buildings in Virginiafrom requirements stemming from federal energy efficiency standards, provided that such buildings meet certain standards articulated in the Statewide Uniform Building Code.

Other Improvements to Virginia’s Quality of Life

HB 1621 (Knight — Virginia Beach)             Passed House 97-0                 Passed Senate 40-0

Expands the defintion of open-space land to include agricultural and forestal production areas.

HB 1954 (Villanueva — Virginia Beach)       Passed House 98-0                 Killed by Senate Committee

Clarifies that educational, artistic and theatrical exemptions to obscenity laws do not extend to child pornography and other offenses involving children.

HB 2372 (Edmunds — Halifax)                    Passed House 97-0                 Passed Senate 40-0

Allows certain state vehicles performing environmental functions to be equipped with flashing amber warning lights.

HB 2425 (Ingram — Hopewell)                     Passed House 99-0                 Passed Senate 40-0

Gives property owners notice and the opportunity to pay a tenant’s unpaid water or sewer fees before shut off.

HB 1712 (Wright — Lunenberg)                   Passed House 98-0                 Passed Senate 40-0

Clarifies that those fishing in interjurisdictional inland waters are subject to the laws of the jurisdiction in which he is fishing.

HB 1928 (Marshall, D.W. — Danville)          Passed House 95-4                 Passed Senate 39-0

Amends the process for independent external review of health carrier’s adverse decisions regarding the scope of health benefits offered to an individual.

HB 1929 (Marshall, D.W.  — Danville)         Passed House 99-0                 Passed Senate 40-0

Provides that during the public procurement process, if an out of state entity is the lowest responsive bidder, and a resident of a state that permits in state price matching preferences, Virginia will allow in state businesses a second chance to match or beat the out of state bid.

HB 1440 (Marshall, R.G. — Prince William) Passed House 62-36               Killed by Senate Committee

Recognizes that unborn children, from conception onward, enjoy the rights and privileges of any other citizen in the Commonwealth.

HB 2024 (May — Loudoun)                          Passed House 99-0                 Passed Senate 39-0

Requires applications to the State Corporation Commission for large electrical transmission lines must include a description of efforts to minimize environmental, historic and other adverse effects.

HB 1718 (Merricks — Pittsylvania)               Passed House 99-0                 Killed by Senate Committee

Updates sections of the Uniform Commercial Code addressing negotiable instruments, bank deposits and collections to reflect new case law and technological advances.

HB 2519 (Morefield — Tazewell)                  Passed House 96-3                 Passed Senate 40-0

Clarifies that when an agency has an opportunity to comment on a Virginia Water Protection Permit and fails to do so within 45 days, the permit will be deemed approved without further possibility of comment.

HB 2251 (Nutter — Montgomery)                 Passed House 95-2                 Passed Senate 40-0

Provides that when electronic pollbooks fail and no other options are available, elections officers shall maintain a written list of those voting and provide provisional ballots.

HB 1608 (Orrock — Caroline)                       Passed House 94-0                 Passed Senate 40-0

Establishes the Temporary Assistance for Needy Families Fund and designates the Department of Social Services as the state agency responsible for state efforts relating to public agencies and charitable groups assisting low-income families.

HB 2471 (Poindexter — Franklin)                 Passed House 98-0                 Passed Senate 40-0

Updates the Coal Mine Safety Act, bringing it in line with federal and industry standards.

HB 1874 (Purkey — Virginia Beach)             Passed House 99-0                 Passed Senate 38-0

Brings Virginia’s tax code into greater conformity with federal tax code.

NOTE:  The above list of over 100 bills and resolutions is not intended to be a complete record of all legislation sponsored and passed by the 60-member strong House Republican Majority in the 2011Regular Session.  The short summaries above are provided only for convenience and are not meant to be a complete description of the highlighted legislation.  For more details about a bill or resolution, contact the delegate who patroned the measure or click on the number, which links to the General Assembly’s Legislative Information Service (LIS).  LIS provides the entire legislative history and actual text of all bills and resolutions, amendments and conference reports, as passed by both the Virginia House of Delegates and the Senate of Virginia.

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– Structurally Balancing Budget This Year Helps Avoid Calls for Higher Taxes Next Year –

– State Spending Revenues Remain below Fiscal Year 2007 Level –

RICHMOND, VA – Virginia House of Delegates Speaker William J. Howell (R-Stafford) today issued the following statement on the agreement by House and Senate negotiators on House Bill 1500, amendments to the state budget:

“Like all Virginians, I am pleased that delegates and senators have reached agreement on differences over how best to amend the existing state budget. Balancing budgets is never easy, especially when the economic recovery is still uncertain and taxpayers, businesses and families continue struggling to live within their means. State finances are no different. Unlike Washington, Virginia has a constitutionally required balanced budget requirement. By setting clear priorities, the General Assembly has produced responsible and fiscally sound budget amendments. Today’s budget conference report funds core government services while also enacting sensible structural reforms in state spending that strengthen the state’s ledger and Virginia’s competitive position for more jobs and prosperity.

“Key priorities advanced by our House Republican Majority are reflected in the final budget accord, including:

· No new fees or higher taxes: The Senate budget proposed several million in fee increases, while the House budget actually reduced fees by about $5 million. The final agreement includes no new taxes, no new fees and actually eliminates $5.7 million of fee increases adopted last year.

· No earmarks for non-state agencies: The Senate budget included funding for such non-government entities as the Virginia Sports Hall of Fame, Foodbank and OpSail, among others, while the House budget heeded the Attorney General's opinion that such funding is prohibited by the state constitution.

· No funding or debt for a new "Taj Mahal" to replace the General Assembly Building: The Senate budget proposed $300 million for new/renovated seat of government buildings, while House budget had zero.

· $67 Million Less in Authorized Debt: The Senate budget proposed over $700 million in debt, while the House budget reduced authorized debt by $120 million. The conference report reduces the amount of previously authorized debt by $66.8 million.

· Additional $64 million deposit into the Rainy Day Fund, totaling $114 million: The Senate budget included only $20 million on top of the $50 million included in the Governor’s introduced budget, while the House budget added an additional $64 million. The $114 million total ensures that 50% of the amounts due pursuant to the state constitution in the FY 2013-2014 biennium are set aside now. That’s fiscally prudent.

· Eliminating Accelerated Sales Tax (AST) for 80% of retailers: The Senate budget did not address this structural deficiency, while the House budget eliminated this accounting act for 98% of businesses.

· Investing in Core Government Services: The House prevailed in its insistence of setting aside an additional $30 million for the Behavioral Health Trust Fund to help intellectually and developmentally disabled Virginians. This funding will begin the process of discharging individuals in state training facilities back into our communities. There’s also $32.7 million to capitalize a new transportation infrastructure bank, $66.3 million for higher education and at least $40 million for job-creating economic development efforts. Health care, law enforcement and K-12 education also receive funding, with $104 million in the budget conference report being a one-time supplemental payment of $130 per pupil to help students and local school divisions.

“In these still tight economic times with uncertainty clouding job prospects and business opportunities for growth, I’m especially heartened that by being fiscally responsible this year, House Republicans have helped put state finances in a much stronger position so we can resist the inevitable calls by big-spending Democrats for higher taxes next year.

“Majority Leader Kirk Cox, Appropriations Committee Chairman Lacey Putney and all House budget conferees have served the Commonwealth, their fellow delegates and all Virginians well under tight budget circumstances. I congratulate them on their accomplishment today and look forward to the passage of House Bill 1500 as one of the last items of business before tonight’s scheduled adjournment sine die of the 2011 Regular Session.”

# # #

It is my pleasure Mr. Speaker to tell the body that the vote to report HB 1500 as amended was 22-0. A unanimous verdict on amendments to the budget that I believe looks beyond today and recognizing that we must seize the opportunity and begin to correct many of the deficiencies in the budget that we adopted last year.

Since we left last spring, the Commonwealth has continued to experience tremendous job growth resulting in general fund revenue performing slightly better than the economic indicators that formed the basis of our revenue forecast last Session.

While I remain cautiously optimistic that the nation and Virginia’s economy continues to strengthen, I also believe that our actions today should not be a signal that this is a return to business as usual.

Instead, I believe that our actions today should recognize many budget challenges lie ahead and that the decisions we make regarding our finances will better position us for next year, as we undertake the development of the 2012-14 biennial budget.

In adopting the two-year budget last Session, we made some real spending cuts. We went through the budget and made painful choices between the “got-to-do’s” and the “nice-to-do’s”. We eliminated programs, consolidated state agencies, and closed inefficient facilities.

At the same time we enacted fees to cover the cost of services, allowed our colleges and universities to raise tuition, altered revenue collections, and delayed reimbursements.

While these latter actions helped mitigate the impact of programmatic cuts, they also create an imbalance between ongoing revenues and ongoing costs as we move forward.

Simply put, our budget while technically balanced is not “structurally” balanced.

While our economy continues to grow, as reflected in the mid-session reforecast that gives us an additional $152 million dollars to work with, the reality is that we will need to continue to show restraint if we are to match our budget to the constraints of our ongoing revenue stream.

Leadership is measured by looking beyond today.

The Committees budget amendments meets that test and puts forth a common sense road map that better aligns our general fund revenues in Fiscal Year 2012 to our on-going revenues based on the current economic forecast.

Specifically, are amendments will:

• Use one-time savings to fund non-recurring costs or to unwind structural deficits,

• Address the funding of the VRS, while keeping our promise to state employees,

• Minimize state debt,

• Scrutinize any new spending and sets aside more funding for the Rainy Day Fund, and

• Reduce the burden on Virginia’s businesses

I believe that the recommendations that are before you adhere to that philosophy and have delivered what I consider a prudent budget that does not kick the can down the road. Specifically, the budget amendments that you adopt today will reduce the amount of previously authorized debt by nearly $120 million.

The budget amendments also will roll back over $5.7 million of previously authorized fees. The largest is the nearly $300 annual fee that hit our hospitality industry particularly hard.

At some point in time we must recognize that the best economic development incentive we can give is just getting out of the way and reducing the burdens on our businesses. I am pleased that we have done just that in our amendments.

Likewise, last year out of necessity to balance the budget, we accelerated the collection of sales tax revenues that required nearly 9,000 retailers to pay July’s sales tax in June.

While retailers recognized that this acceleration of taxes represented monies already collected, the fact remains that this one month acceleration was not the normal business practice and was yet another burden on our businesses. In adopting this measure, the General Assembly also adopted language that phases-out this practice beginning in fiscal year 2013.

I am pleased that our recommendations will immediately begin the phase-out this June, resulting in 98% of the impacted retailers not having to accelerate their sales tax remittance.

Last fall the voters of Virginia increased the amount of money that can be set aside in the Rainy Day Fund. While this cap does not change the calculation of the required deposits, their vote on this matter does serve as a reminder to us that the voters expect us to be prudent.

Well, prudence suggests that when you know that you have a pending obligation you should recognize it and take the steps to prepare for it. Our recommendation takes that important step by setting aside $114 million toward the required $228 million deposit the General Assembly will have to make in the next budget.

Addressing this issue now with some of the new resources reduces our burden when developing the 2012-14 budget.

Moving on to the Virginia Retirement System, I cannot think of any one issue that has been more misreported than this. The cumulative actions contained in our amendments building on last year’s successful adoption of HB 1189, which reformed the pension benefits for new hires. This year, Delegate Jones and I, with the unanimous approval of this committee, have put forth an optional defined contribution plan for state employees. This plan has the support of the Virginia Government Employee Association and the State Police Association.

Long-term, this plan will mitigate unfunded liabilities, while providing more options to meet the individual needs of our public servants.

State employees clearly recognize that the unfunded pension liabilities ultimately compete with funding that could otherwise be used for salary increases.

In order to be credible in our work, state employees must also have confidence in our actions. Not many of us were here in 1983 when the General Assembly suspended the scheduled pay raise and instead elected to pick-up the employees 5% contribution to the retirement system.

This proposal was put forward by then Chairman of the Appropriations Committee Dick Bagley. At that time, the action was a win-win for the state and the employees, in that the state did not pay the cost of fringe benefits and employees received a true 5% increase in take home pay.

Some 28 years later I’m still here and as Yogi Berra said “the future ain't what it used to be".

I believe that all employees should have a material stake in their retirement, as evident in last year’s decision in HB 1189 requiring all new hires to pay 5%. I also believe that the actions of 1983 must be recognized and that we should treat our employees in a fair manner. Thus the Committee amendments recommend balancing the employee 5% contribution with a 5% salary offset.

Turning to our colleges and universities, I want to commend Governor McDonnell for his commitment to raising awareness of the importance of higher education to Virginia’s economic future. His “Top Jobs” legislation, spearheaded by Delegates Cox and Dance, brings to the forefront the need to address access and affordability. The Governor generously recognized that absent higher tuition increases, additional state funding was needed to meet these objectives.

Working within the parameters of the Governor’s Higher Education Commission, the budget amendments focus nearly $100 million in general funds to:

• Improve affordability for in-state undergraduates

• Increase access for in-state students at UVa, Tech, JMU, and William and Mary

• Increase the number of STEM degrees, and

• Improve R&D opportunities

While the guiding principle of our budget was to minimize new spending, our budget recommendations do reflect the long standing commitment of this Committee toward the families that have a loved one in need of waiver services. Specifically, the recommendations in Delegate Morgan’s Health and Human Services subcommittee will affirm this commitment by providing 275 additional MR and 270 additional DD waiver slots to help meet the waiting list. In addition, funding will be provided for community based support and services that will allow for the discharge of 100 individuals currently in our training facilities. For those that attended the public hearings, waivers and community support for families was by far the number one priority for those that spoke.

In closing, the budget recommendations that will follow clearly and strategically focus our resources on keeping our promises to fund the core services of government. I believe, quite frankly, that these amendments underscore the fiscal acumen of all 22 members.

Frankly, Mr. Speaker on behalf of the other 21 Appropriations Committee members, I am very proud to deliver these amendments to the budget.

Hopefully, you and the members of the House will agree and will accept our recommendations.

Filling in for Jimmy, guest host Congressman Randy Forbes and the Speaker discussed the lessons Washington can learn from Virginia:

• The no-tax-increase way from a $4.2 Billion deficit to a balanced budget
• How to foster a pro-business, pro-jobs economy

As well as the sure-fire method to stop job creation—create uncertainty for business with the Obama/Congressional Democrat unclear agenda of bloated government, new taxes, and increased regulation.

During his tenure as Speaker, Howell has led the way in reducing Virginia's per capita expenditures in the legislature from 40th in the Nation to 46th. And, with Senate Democrats running up a tab on the other side of the Capital, you can't expect much better than that.

See the full press release at the Speaker's website.