House and Senate Pass Budgets

The House and Senate passed their respective budget proposals on Thursday, with the House approving its budget by 63-36 and the Senate approving its proposal by 32-8.  The deadline for the budget bills to be placed in conference is Wednesday, February 15.

Following is an overview of the major elements of both proposed budgets of importance to counties.  VACo appreciates members’ advocacy for budget requests submitted by VACo and partner organizations and will continue to advocate for local government priorities as the budget process continues.

K-12 Education – Correction of Calculation Tool Error Regarding Sales Tax Payments

• House: Provides $4.9 million GF in FY 2023 to ensure that the per-pupil amount of basic aid and sales tax payments to school divisions is greater than the per-pupil amount of basic aid and sales tax payments that was originally and erroneously communicated by the Virginia Department of Education in June 2022.  As reported, the calculation tool overestimated the amount of funding school divisions should receive by $58.1 million in FY 2023.  In addition to the $4.9 million, the House budget intends to offset this discrepancy by the net impact of the sales tax reforecast of $84.8 million. (Item 137 #7h)
• Senate: Includes $58.1 million in FY 2023 to hold school divisions harmless. (Item 137 #8s)

K-12 Education – Cap on Recognition of Support Positions in the Standards of Quality

• Senate: Provides $270.6 million in FY 2024 to eliminate the cap on recognition of support positions in the Standards of Quality, a long-sought priority for VACo.  (Item 137 #1s)

K-12 Education – Virginia Literacy Act and Reading Specialists

• House: Provides $6.7 million in FY 2024 from remaining federal pandemic relief funding to expand the Virginia Literacy Act from grades K-3 to grades K-8 (Item 129 #1h) and provides $13.9 million GF in FY 2024 for reading specialists in grades 6-8 (Item 137 #10h).
• Senate: Provides $6.7 million GF in FY 2024 to expand the Virginia Literacy Act from grades K-3 to grades K-8.  (Item 129 #1s)  Provides $27.5 million to fund reading specialists in grades 6-8.  (Item 137 #2s)

K-12 Education – Instructional Assistants

• House: Provides $3 million GF in FY 2024 for instructional assistants for schools that did not meet performance benchmarks for five or more school quality indicators based on the Board of Education’s most recent accreditation calculations.  (Item 136 #12h)  VACo and partner organizations had requested additional funding for this purpose.
• Senate: Provides $38.6 million in FY 2024 for instructional assistants for schools not meeting three or more of the Board of Education’s performance benchmarks for school accreditation.  (Item 137 #3s)  VACo and partner organizations had requested additional funding for this purpose.

K-12 Education – Additional School Staffing

• Senate: Provides $56.9 million in FY 2024 for the state’s share of four specialized support positions per 1,000 students.  (Item 137 #11s)
• Senate: Provides $24.3 million GF in FY 2024 to increase the ratio of English Language Learner positions from 20 per 1,000 students to 24 per 1,000 students.  (Item 137 #13s)

K-12 Education – At-Risk Add-On

• Senate: Provides $37.1 million GF in FY 2024 to increase the At-Risk Add-On maximum from 36 percent to 40 percent.  (Item 137 #12s)

K-12 Education – School Security

• House: Provides $12 million in FY 2024 in Lottery proceeds for school security grants.  (Item 137 #12h)
• House: Provides an additional $8 million GF in FY 2024 for the School Resource Officer Incentive Grant program to support the establishment of additional school resource and school security officer positions, as well as training, programming, and equipment costs in accordance with legislation under consideration this session.  (Item 408 #4h)
• Senate: Provides $50 million GF for school security grants in FY 2024.  (Item 136 #8s)
• Senate: Provides $2 million GF in FY 2023 for the School Resource Officer Incentive Grant Fund and provides that the new funding shall be awarded for expenses related to school resource officers, school security officers, and other relevant school safety personnel, to include training, programming, and equipment costs.  (Item 408 #3s)

K-12 Education – School Capital

• House and Senate: Includes language modifying provisions of the School Construction Assistance Program by adding the principal portion of debt service payments on projects that have not yet been completed as an eligible use; clarifying that any project that began construction after July 1, 2022, may qualify for grant funds; allowing the most favorable year among three years of fiscal stress index data to be used to determine the grant award amounts; and requiring the program guidelines to address joint grant applications for regional school construction projects.  These language amendments were requested by VACo and partner organizations to provide additional flexibility in the use of funds.  (Item 137 #3h and Item 137 #16s and Item 137 #17s)
• Senate: Contingent on FY 2023 revenues, would provide $100 million from unobligated FY 2023 balances for school capital projects.  VACo and partner organizations had requested additional funding for this purpose.  (Item 485 #1s)
• Senate: Includes authority for all counties and cities to impose an additional local sales and use tax at a rate not to exceed one percent with the revenue used only for capital projects for the construction or renovation of schools if such levy is approved in a voter referendum.  VACo has historically supported this legislation.  (Item 4-14 #2s)

K-12 Education – Additional Items

• House: Earmarks $3.5 million in remaining federal pandemic relief funds in FY 2024 for school divisions to contract for assistance with outreach and support for disengaged, chronically absent, or struggling students in response to the COVID-19 pandemic. (Item 136 #15h)
• House: Directs the Department of Education to convene a workgroup to develop recommendations for the Department’s existing systems used to distribute direct aid funds to school divisions. (Item 135 #1h)
• House: Provides an additional $1.75 million in Lottery proceeds for recruitment and retention efforts in Accomack County and Northampton County.  (Item 137 #9h)
• Senate: Provides $1.75 million GF in FY 2024 for teacher recruitment and retention efforts in Accomack County and Northampton County.  (Item 137 #15s)

Compensation – Instructional and Support Positions

• House: Eliminates proposed teacher performance bonus that was included in the introduced budget.  (Item 136 #7h)  Eliminates proposed teacher retention bonus from the introduced budget; enhances the 5 percent salary increase adopted in the June 2022 budget (and retained in the introduced budget) for instructional and support positions by an additional 2 percent, for a total salary increase of 7 percent in FY 2024.  Directs the Department of Education to convene a workgroup to determine appropriate metrics for the state’s goals for teacher compensation.  (Item 137 #5h)
• Senate: Eliminates proposed teacher performance bonus and proposed teacher retention bonus that were included in the introduced budget (Item 136 #11s and Item 137 #5s); enhances the 5 percent salary increase adopted in the June 2022 budget and retained in the introduced budget for instructional and support positions by an additional 2 percent, for a total salary increase of 7 percent in FY 2024 (Item 137 #7s).
• Senate: Provides a $1000 bonus for instructional and support positions in December 2023.  Language allows school divisions discretion to determine the amount of bonus per employee.  No local match is required, but localities are encouraged to use additional available funds to provide bonuses to other eligible instructional and support positions.  (Item 137 #14s)

Compensation – State Employees and State-Supported Local Employees

• House: Redirects funding for proposed merit and across-the-board bonus payments for state employees in the introduced budget to enhance the 5 percent salary increase adopted in the June 2022 budget and retained in the introduced budget for state employees and state-supported local employees by an additional 2 percent, for a total salary increase of 7 percent in FY 2024.   (Item 483 #2h)
• Senate: Redirects proposed merit bonus included in the introduced budget for state employees and enhances the proposed 5 percent salary increase adopted in the June 2022 budget and retained in the introduced budget for state employees and state-supported local employees by an additional 2 percent, for a total salary increase of 7 percent in FY 2024  (Item 483 #1s and Item 483 #3s).  Reduces proposed across-the-board bonus for state employees in the introduced budget from $1500 to $1000 (Item 483 #2s).

Judiciary/Public Safety – Juror Compensation

• House: Provides $1.4 million GF in FY 2024 to fund costs associated with legislation increasing juror compensation from $30 to $50 per day.  (Item 44 #2h)
• Senate: Provides $5.3 million GF in FY 2024 to fund costs associated with legislation increasing juror compensation from $30 to $100 per day.  (Item 44 #1s)

Judiciary/Public Safety – Courts

• House: Extends by one year the due date for a judicial caseload study authorized by the 2022 General Assembly.  (Item 42 #1h)
• Senate: Funds a 2 percent salary increase for general district court clerks in addition to proposed statewide salary increases ($2 million GF in FY 2024).  (Item 45 #2s)

Judiciary/Public Safety – Juvenile Justice

• House: Removes $2.9 million GF in FY 2024 that was included in the introduced budget for the Department of Juvenile Justice (DJJ) to directly staff and operate 30 beds in space leased from local juvenile detention centers.  Includes language directing DJJ to assess the impacts of revisions to its length of stay guidelines adopted by the Board of Juvenile Justice, to include assessing the future bed space capacity needs of the Department, and various alternative approaches to meeting its anticipated operating needs.  (Item 427 #1h)
• Senate: Directs the Secretary of Public Safety and Homeland Security, in collaboration with the Secretary of Education and the Secretary of Health and Human Resources, with the cooperation and assistance of the Department of Planning and Budget, VACo, and VML, to submit a report on juvenile detention center cost savings strategies, which is required to include a proposal to reduce state juvenile detention center block grant funding in order to incentivize consolidation of juvenile detention centers.  (Item 392 #4s)
• Senate: Removes proposed $3.7 million GF in FY 2024 for additional capacity at the Bon Air Juvenile Correctional Center and at local detention centers.  Directs DJJ to pause implementation of the Department’s plan to increase the average length of stay for juveniles in state custody.  (Item 427 #1s)

Judiciary/Public Safety – HB 599

• Senate: Provides $2.1 million in FY 2024 in additional HB 599 funding for localities with police departments.  VACo and partner organizations requested additional funding for this program.  (Item 410 #3s)

Judiciary/Public Safety – Fire Services Funding

• House: Provides $125,000 GF in FY 2024 for consultant costs for a review of the adequacy and sustainability of fire services funding in the Commonwealth, pursuant to legislation under consideration this session.  (Item 392 #1h)

Administration – Compensation Board – Constitutional Officers

• House: Provides $1.3 million GF in FY 2024 to consolidate the population-based salaries of Sheriffs in population groups below 40,000, effective July 1, 2023, creating a new population group of 0-69,999.  (Item 72 #1h)
• House: Includes language specifying the funding level and purpose of the $13.9 million included for compression adjustments for sheriffs’ deputies and regional jail officers in the introduced budget.  (Item 72 #2h)
• House: Includes $7.2 million GF in FY 2024 to increase salaries for Assistant Commonwealth’s Attorneys and Career Prosecutors by an additional 15 percent.  (Item 76 #1h)
• House: Provides $3 million GF in FY 2024 for the state share of funding for 227 unfunded deputy Treasurer positions. (Item 78 #1h)  VACo supports state funding to meet Compensation Board staffing standards in Constitutional offices.
• Senate: Provides $1.7 million GF in FY 2024 to fully fund the remaining unfunded positions in offices of Commissioners of the Revenue.  (Item 75 #1s)  VACo supports state funding to meet Compensation Board staffing standards in Constitutional offices.
• Senate: Provides $4.6 million GF in FY 2024 to increase salaries in Commonwealth’s Attorneys’ offices; explanatory information with the amendment indicates that this funding is intended to increase the entry-level attorney salary to $70,000 and adjust higher classifications accordingly.  (Item 76 #1s)
• Senate: Provides $1.1 million GF in FY 2024 to increase circuit court deputy clerk salaries; explanatory information included with the amendment indicates that this funding is intended to align circuit court clerks’ salaries with district court deputy clerk salaries.  (Item 77 #1s)
• Senate: Directs the Compensation Board to conduct a study of compensation and staffing levels in the offices of circuit court clerks.  (Item 79 #2s)
• Senate: Provides $3.6 million GF in FY 2024 to fully fund the remaining unfunded deputy treasurer positions.  (Item 78 #1s)  VACo supports state funding to meet Compensation Board staffing standards in Constitutional offices.
• Senate: Directs the Compensation Board to include an analysis of the feasibility and fiscal impact of consolidating the population-based salaries of Sheriffs in population groups below 40,000 into the existing population group of 40,000 -69,999 into the study of including a locality’s total square mileage when calculating funding for deputy sheriffs that would be directed by a study resolution that has passed the Senate.  (Item 79 #4s)

Administration – Compensation Board – Jails

• Senate: Provides $8.8 million to raise the per diem rate for local-responsible inmates from $4 to $6.  (Item 73 #1s)  VACo and partner organizations had requested an increase in funding for this purpose.
• Senate: Directs the Compensation Board to examine the feasibility of including information in the annual jail cost report that would provide an estimate of fees charged to inmates in local jails.  (Item 79 #3s)
• Senate: Establishes the Virginia Opioid Use Reduction and Jail-Based Substance Use Disorder Treatment and Transition Fund and provides $1 million NGF in FY 2024 from the Opioid Abatement and Remediation Fund for the program, which will support the planning or operation of substance use disorder treatment services and transition services for persons with substance use disorder who are incarcerated in local and regional jails.  VACo supports the legislation establishing this Fund.  (Item 408 #14s)

Administration – Elections

• House and Senate: Both proposals include $1.4 million GF in FY 2024 to increase the amount included in the introduced budget to reimburse localities for costs associated with administering the 2024 Presidential primary.  (Item 485 #3h and Item 485 #4s)  These amendments were requested by VACo and partner organizations.

Agriculture and Forestry

• House: Provides $2 million from the general fund in fiscal year 2024 to support the Blue Catfish Processing, Flash Freezing, and Infrastructure Grant Program, established pursuant to HB 1664. Grants from the fund are awarded to localities as reimbursements for investments in infrastructure in the Blue Catfish fishery. (Item 99 #1h)
• House: Provides an additional $1.3 million GF in FY 2024 to the Agriculture and Forestry Industries Development Fund for grants to individuals and businesses that would increase meat processing capacity.  (Item 99 #3h)
• Senate: Provides an additional $2 million GF in FY 2024 to the Virginia Farmland Preservation Fund for the purchase of development rights program. (Item 98 #2s)
• Senate: Provides $2 million GF in FY 2024 to support the Blue Catfish Processing, Flash Freezing, and Infrastructure Grant Program, established pursuant to SB 897. Grants from the fund are awarded to localities as reimbursements for investments in infrastructure in the Blue Catfish fishery. (Item 99 #1s)
• Senate: Provides an additional $1 million GF in FY 2024 to the Agriculture and Forestry Industries Development Fund for grants to increase meat processing capacity.  (Item 99 #2s)
• Senate: Adds $10 million GF in FY 2024 to the Forest Sustainability Fund that was established in 2022 and supported by VACo.  The Fund provides allocations to localities that have adopted a use value assessment and taxation for real estate devoted for forest use.  (Item 108 #1s)
• Senate: Directs the Department of Forestry to conduct a technical study of changes and trends in forests and the tree canopy statewide to enhance localities’ land use planning and ability to compete for federal grants supporting resilient working forests and urban tree canopy and to accelerate achievement of Virginia’s commitments under the Chesapeake Bay Watershed Implementation Plan and the Chesapeake Bay Watershed Agreement to expand urban tree canopy acres and riparian forest buffers.  (Item 108 #2s)

Economic Development – Business Sites

• House: Provides $250.0 million to the Virginia Business Ready Sites Program Fund and $200.0 million to the Virginia Business Ready Sites Acquisition Fund over the biennium. Funding provided in the second year of the biennium for each of these site development programs is contingent on the Commonwealth meeting or exceeding its fiscal year 2023 revenue forecast. (Item 113 #2h).
• House: Creates Virginia Business Ready Sites Acquisition Fund and program, which will allow the state to acquire land for economic development purposes.  (Item 4-14 #2h)
• Senate: Expands eligibility for the Business Ready Sites Program Fund to include smaller sites of at least 50 acres and makes smaller sites statewide eligible for the fund, rather than just sites in GO Virginia Regions 1 and 2.  (Item 113 #2s)
• Senate: Removes the proposed Site Acquisition Pilot Program from the introduced budget, including $200 million in FY 2023 and $250 million in FY 2024 for the proposed program.  (Item 113 #4s)
• Senate: Provides $100 million in FY 2023 and $150 million in FY 2024 for the Virginia Business Ready Sites program; allows match requirement to be reduced or waived in economically distressed localities. (Item 113 #3s)

Economic Development – Inland Port in Mount Rogers Planning District

• House: Includes $55 million GF over the biennium for construction of an inland port in the Mount Rogers Planning District.  (Item 113 #3h)
• Senate: Provides $10 million GF in FY 2024 for planning for an inland port in the Mount Rogers Planning District.  (Item 465 #2s)

Economic Development – Workforce

• House: Reduces proposed workforce development funding provided through GO Virginia by $5 million in FY 2024 (retains approximately $31 million). (Item 115 #1h)
• Senate: Reduces the proposed $1.3 million in agricultural technology workforce funding in the introduced budget by $650,000 in FY 2024.  (Item 115 #5s)
• Senate: Redirects $10 million provided for workforce development through GO Virginia to a grant program administered by the State Council of Higher Education for Virginia for initiatives in high demand areas that further align educational and training curricula, incorporate work-based learning, and demonstrate a partnership with high schools, higher education, and private sector partners. (Item 115 #7s and Item 487.50 #1s)
• Senate: Provides $2 million GF in FY 2024 for the New Economy Workforce Credential Grant program to support enrollment growth and the increase in the maximum reimbursement rate from $3,000 to $4,000.  (Item 142 #2s)
• Senate: Provides $25 million GF in FY 2024 for workforce development programs at the Virginia Community College System.  (Item 212 #1s)

Broadband

• House: Authorizes DHCD to use federal funding received by Virginia from the Broadband Equity, Access, and Deployment (BEAD) Program of the federal Infrastructure Investment and Jobs Act.  (Item 115 #2h)
• House: Directs DHCD to use VATI administrative funding and federal broadband funds to support localities and others in the permitting and siting of broadband projects supported with VATI funds, American Rescue Plan Act funds, and the funds Virginia receives for broadband from the federal Infrastructure Investment and Jobs Act.  (Item 115 #4h)
• House: Directs the allocation of American Rescue Plan Act State and Local Fiscal Recovery Funds previously appropriated to the Line Extension Customer Assistance Program such that $8 million would be used for construction grants to extend existing broadband networks to residential buildings where residents have low to moderate income and $8 million would be used for construction grants to extend existing broadband networks to residential buildings without regard to a resident’s income.  (Item 115 #9h and Item 486 #1h)
• Senate: Directs the allocation of American Rescue Plan Act State and Local Fiscal Recovery Funds previously appropriated to the Line Extension Customer Assistance Program (LECAP) such that $8 million would be used for construction grants to extend existing broadband networks to residential buildings where residents have low to moderate income and $8 million would be used for construction grants to extend existing broadband networks to residential buildings without regard to a resident’s income.  Appropriates $16 million in ARPA funding in FY 2024.  Requires DHCD to direct at least $16 million in funds received by Virginia from the Infrastructure Investment and Jobs act for broadband access to the LECAP program.  (Item 115 #2s and Item 486 #3s)

Housing

• House: Includes $500,000 GF in FY 2024 for the Department of Housing and Community Development to support housing studies directed by the General Assembly and Virginia Housing Commission, a statewide housing needs assessment and plan, and the expansion of the Livable Homes Tax Credit.  (Item 114 #2h)
• Senate: Establishes the Manufactured Home Parks Affordable Housing Pilot Program and provides $3 million GF in FY 2024.  Allows incentive grants to entities owned by at least 25 percent of the residents of a manufactured home park or organizations exempt from taxation under § 501 (c) (3) of the Internal Revenue Code for the purchase or exchange of a manufactured home park, provided that the terms of the sale or exchange  require or guarantee maintenance of the property as a manufactured home park for a period of at least 30 years.  (Item 114 #1s)
• Senate: Provides $400,000 GF in FY 2024 to DHCD to implement legislation requiring a statewide comprehensive housing assessment once every five years, an annual housing plan and goals, and collection and publication of certain local zoning information.  (Item 114 #2s)
• Senate: Provides $350,000 GF in FY 2024 to DHCD to implement legislation that directs the establishment and operation of the Virginia Residential Sites and Structures Locator, a web-based platform to assist localities in marketing parcels and existing structures that the locality has deemed suitable for residential or mixed-use development or redevelopment.  (Item 114 #3s)
• Senate: Contingent on FY 2023 revenues, would deposit $150 million in the Housing Trust Fund from unobligated FY 2023 balances.  (Item 485 #1s)

Community Development

• House: Reduces proposed increase to Virginia Main Street Program by $500,000 GF in FY 2024.  The introduced budget had increased funding by $2 million, with $500,000 for the base budget and $1.5 million directed to the City of Petersburg.  The House budget retains the $1.5 million for the City of Petersburg.  (Item 115 #3h)
• House: Provides $7 million in additional funding for the Industrial Revitalization Fund. (Item #6h)
• House: Provides $5.3 million GF in FY 2024 to recapitalize the Community Development Financial Institutions Fund.  (Item 115 #7h)
• House: Provides $355,000 GF in FY 2024 for the Center for Rural Virginia.  (Item 115 #8h)
• House: Adds stipulations regarding the use of funding from the $10 million included in the introduced budget to expand capacity in local building permitting offices; requires DHCD to develop appropriate criteria and guidelines for the deployment and use of the funding for the program based on a competitive scoring process that considers the need and fiscal stress of the locality or region and gives preference to projects that are regional, realize economies of scale, and prioritize solutions that address challenges with short-term state assistance.  (Item 117 #1h)
• House: Provides $5 million GF in FY 2024 for the Virginia Brownfield and Coal Mine Renewable Energy Grant Fund to redevelop coalfields and brownfields as renewable energy generation sites.  (Item 121 #1h)
• House: Stipulates uses of the proposed $10 million Virginia Power Innovation Fund that was included in the introduced budget such that $5 million would be used to create the Virginia Nuclear Innovation Hub and up to $250,000 could be used to implement legislation under consideration by the legislature that would  require efforts to further develop and encourage private sector initiatives to capture, process, compress, and transport coal mine methane. (Item 122 #1h)
• House: Provides $2 million GF in FY 2024 for the Virginia Brownfields and Economic Redevelopment Assistance Fund and requires program funding to be allowed to be used to remove concrete slabs.  (Item 125 #4h)
• Senate: Provides $88,750 GF in FY 2023 and $355,000 GF in FY 2024 for the Center for Rural Virginia.  (Item 115 #1s)
• Senate: Provides $5 million GF in FY 2024 for the Community Development Financial Institutions Fund.  (Item 115 #3s)
• Senate: Eliminates the $10 million included in the introduced budget to expand capacity in local building permitting offices.  (Item 117 #1s)
• Senate: Provides $50,000 GF in FY 2024 for the Electric Vehicle Rural Infrastructure Program and Fund to assist private developers in rural localities with non-utility costs associated with the installation of electric vehicle charging stations.  (Item 121 #2s)
• Senate: Reduces the proposed $10 million Virginia Power Innovation Fund that was included in the introduced budget by $8 million.  (Item 122 #2s)
• Senate: Eliminates proposed $1.2 million in the introduced budget for a study of expanding airline services in the Commonwealth.  (Item 125 #2s)

Child Care/Early Childhood

• House: Directs the Commission on Early Childhood Care and Education to evaluate the future of the child care workforce, considering: (i) severing regulations for programs serving school-aged children from early childhood education program regulations, (ii) examining requirements for early childhood education site directors and individuals in the classroom for all licensed programs, and (iii) initiating a holistic review of early childhood education regulations addressing health and safety matters, with a particular emphasis on eliminating duplicative regulations.  (Item 128 #1h)
• House: Directs the Commission on Early Childhood Care and Education to develop recommendations to prevent the loss of federally funded Head Start classrooms across the state.  (Item 128 #2h)
• Senate: Provides an additional $20 million to support early childhood mixed delivery programs and allows the funds to be used statewide.  (Item 136 #7s)
• Senate: Contingent on FY 2023 revenues, would provide $80 million in child care provider subsidies from FY 2023 unobligated year-end balances.  (Item 485 #1s)

Aid to Local Public Libraries

• House: Provides an additional $2 million GF in FY 2024 in state aid to local public libraries.  (Item 240#1h)
• Senate: Provides an additional $5 million GF in FY 2024 in state aid to local public libraries.  (Item 240 #1s)

Finance – Local Audits

• House and Senate: Includes language directing the Auditor of Public Accounts to include in the annual audit specifications requirements to ensure that localities comply with statutes dealing with opioid abatement funding, and any guidelines, procedures, and criteria set forth by the Opioid Abatement Authority relating to opioid abatement funds.  (Item 2 #1h and Item 2 #1s)
• House: Includes clarifying edits to the language in the introduced budget allowing the Secretary of Finance to determine whether a plan for state technical assistance is necessary to help remediate a situation in which a locality is 18 months late in submitting its audited financial report to the Auditor of Public Accounts.  (Item 4-8.03 #1h)

Finance – Valuation of Data Center Equipment

• House: Cites Code section dictating the method of valuation for fixtures in a data center when classified as real estate (Virginia Code 58.1-3295.3 requires fixtures to be value based on the cost approach) and states that fixtures classified as real estate must be assessed at 100 percent fair market value as determined by the cost approach.  (Item 3-5.29 #1h)

HHR – Adult and Aging Services – Area Agencies on Aging

• House and Senate: Provide $700,000 GF in FY 2024 in one-time supplemental funding to offset losses to local Area Agencies on Aging due to the impact of 2020 census changes on the distribution formula for federal Older Americans Act funding.  This funding would ensure that 11 AAAs would not experience funding losses.  (Item 331 #1h and Item 331 #1s)

HHR – Adult and Aging Services – Auxiliary Grant

• House: Adds $1.2 million GF in FY 2024 to increase the monthly personal care allowance for Auxiliary Grant recipients from $82 per month to $115 per month.  (Item 344 #1h)
• House: Provides $3.7 million GF in FY 2024 to increase the Auxiliary Grant rate by $150 per month beyond the increase in the introduced budget (from $1,682 to $1,832 per month).  Counties contribute a 20 percent local share to this program.  (Item 344 #2h)
• Senate: Adds $1.2 million GF in FY 2024 to increase the monthly personal care allowance for Auxiliary Grant recipients from $82 per month to $115 per month.  (Item 344 #2s)
• Senate: Provides $29 million GF in FY 2024 to increase the Auxiliary Grant rate by $891 (from $1,609 per month to $2,500 per month). The 20 percent local share would be $6.7 million per year.  (Item 344 #1s)

HHR – Children’s Services Act

• House and Senate: Eliminate the requirement that the Office of Children’s Services implement rate-setting for private special education day placements and redirects the $100,000 included for a contract to assist in rate-setting implementation to provide technical assistance to localities with private day placements above the statewide average.  (Item 285 #1h and Item 285 #1s).  Senate includes language directing the Office of Children’s Services to report certain information annually on its website regarding usage of private day placements.  (Item 285 #1s)

HHR- Health

• House: Reduces proposed Earn to Learn Nursing Education Acceleration program by $5.4 million GF in FY 2024; language allows the program to be implemented through contracts with private as well as public higher education institutions.  (Item 287 #1h)
• Senate: Directs the Joint Commission on Health Care (JCHC) to conduct a review and evaluation of health care workforce development programs on a continuing basis.  (Item 32 #1s)
• Senate: Reduces proposed Earn to Learn Nursing Education Acceleration program by $10 million GF in FY 2024 and transfers funding to higher education institutions to increase nursing faculty salaries at nursing schools to encourage more nurses to move into teaching.  (Item 287 #2s)
• Senate: Designates $150,000 each year from nursing scholarship funds to help school-employed Licensed Practical Nurses to become Registered Nurses. (Item 287 #3s)

HHR- Behavioral Health – CSB Oversight and Compensation

• House: Directs the Department of Behavioral Health and Developmental Services (DBHDS) to identify current documentation and reporting requirements for CSBs and eliminate requirements of direct care staff that are not essential, duplicative, or conflicting.  (Item 311 #2h)
• House: Directs DBHDS to report annually on CSB performance in improving consumer functioning.  (Item 311 #3h)
• House: Provides $36.5 million GF in FY 2024 for salary adjustments to CSB staff.  The amendment explanation states that this funding equates to approximately 5 percent of total CSB payroll.  (Item 313 #1h)
• Senate: Directs DBHDS to complete a comprehensive review of the performance contracts with community services boards and revise all performance measures, with a report due to the Behavioral Health Commission by December 1, 2023, and changes to be implemented before the finalization of the FY 2025 performance contract.  (Item 311 #13s)
• Senate: Directs DBHDS to report CSB performance information, including any substantial underperformance or non-compliance and associated enforcement actions, annually to each CSB governing board, the Behavioral Health Commission, and the State Board of Behavioral Health and Developmental Services.  (Item 311 #14s)
• Senate: Directs DBHDS and DMAS to assess the extent to which community services boards (CSBs) are billing for Medicaid-eligible services they provide; provide technical assistance and training on appropriate Medicaid billing and claiming practices to relevant CSB staff; and evaluate the feasibility of a central billing entity that would handle all Medicaid claims for the entire system.  (Item 311 #17s)
• Senate: Directs DBHDS to identify and eliminate duplicative and non-essential documentation and reporting requirements for CSBs. (Item 311 #18s)
• Senate: Directs DBHDS to report annually to the State Board of Behavioral Health and Developmental Services and the Behavioral Health Commission on average salaries, turnover, and vacancy rates by position type across community services boards.  (Item 311 #20s)
• Senate: Directs DBHDS to contract with one or more higher education institutions to establish training and technical assistance centers to provide training and technical assistance to preadmission screening clinicians.  (Item 312 #4s).
• Senate: Directs DBHDS to amend CSB performance contracts to require that any funding appropriated by the General Assembly to CSBs for staff compensation only shall be used for staff compensation and to require that CSBs report annually to DBHDS on any staff compensation actions taken during the prior fiscal year.  (Item 312 #5s)
• Senate: Provides $50 million GF in FY 2024 for CSB compensation adjustments.  Language provides that DBHDS, in collaboration with CSBs, will develop the criteria for allocating the funds and allows DBHDS to fund up to 100 percent of the costs of the compensation increases.  (Item 313 #5s)

HHR – Behavioral Health – Crisis Services, Temporary Detention Orders, and State Hospitals

• House: Provides $25 million for Crisis Stabilization Units in addition to the units proposed in the introduced budget and directs DBHDS to prioritize the placement of new crisis receiving centers and crisis stabilization units based areas where (i) the population has a large percentage of emergency custody orders and temporary detention orders, (ii) the area is not within an hour’s drive from the closest crisis receiving center or crisis stabilization unit, and (iii) the area is underserved in regards to mental health treatment.  (Item 312 #1h)
• House: Separates the funding streams for alternative transportation and alternative custody (the introduced budget proposed to combine the two).  (Item 312 #3h)
• House: Provides $14.8 million GF in FY 2024 for detailed planning for renovation of two buildings as part of the project to transform Catawba Hospital into a state-of-the-art facility at which to receive a continuum of substance abuse treatment and recovery services in addition to other behavioral health services currently provided at this facility.  (Item C-2.60 #1h)
• Senate: Transfers the $4.1 million GF in FY 2024 that was included in the introduced budget to help sheriffs’ and jail offices with workloads related to TDOs and ECOs to the Department of Behavioral Health and Developmental Services (DBHDS) and consolidates with the existing DBHDS program to reimburse off-duty law enforcement for time spent on TDOs.  Directs DBHDS to allow for the payment of overtime for on-duty officers as well as compensation for off-duty officers.  (Item 72 #2s, Item 311 #5s)
• Senate: Directs DBHDS to contract with a vendor to implement a secure HIPAA-compliant online portal for community services boards to upload and share patient documents with inpatient psychiatric facilities.  (Item 311 #2s)
• Senate: Directs the Commissioner of Behavioral Health and Developmental Services to convene a stakeholder workgroup to develop a shared understanding of the roles and responsibilities of Community Services Boards, law enforcement, private hospitals, and state hospitals to appropriately manage and transfer patients during periods when severe capacity constraints threaten to delay access to care for prolonged periods of time.  (Item 311 #11s)
• Senate: Directs DBHDS to develop and begin implementation of a plan to restore the bed capacity of the state hospital system that was taken offline in recent years due to workforce shortages.  (Item 311 #19s)
• Senate: Provides $30 million for additional crisis receiving centers and crisis stabilization units.  Adds language directing DBHDS to prioritize funding based on need.  (Item 312 #1s)

HHR – Additional Behavioral Health Items

• House: Provides an additional $8.4 million GF in FY 2024 for children’s behavioral health services and revises language to allow flexible uses of funds.  (Item 313 #3h)
• Senate: Provides $7.9 million GF in FY 2024 to support the of the expansion of the Virginia Mental Health Access (VMAP) program to early childhood.  (Item 312 #2s)
• Senate: Provides $50 million GF in FY 2024 for additional Permanent Supportive Housing slots.  (Item 313 #1s)
• Senate: Provides an additional $8.4 million GF in FY 2024 for children’s behavioral health services.  (Item 313 #3s)
• Senate: Increases funding for the first three steps of STEP-VA (same-day access, primary care screening, and outpatient services) by $8.7 million GF in FY 2024 to address inflation.  (Item 313 #4s)

HHR- Medicaid

• House: Adds $3.3 million GF and $12.5 million NGF in FY 2024 to support associated costs with a contract to support local Departments of Social Services during the unwinding of Medicaid continuous coverage requirements.  (Item 304 #17h)
• House: Revises language in the introduced budget directing the Department of Medical Assistance Services to convene a workgroup to examine the impact of including children’s psychiatric residential treatment services in the Medicaid managed care program by broadening the scope to include children’s residential and group home services and modifying language to include representatives of public and private providers as workgroup members.  (Item 308 #1h)
• Senate: Adds $2.8 million GF and $13.4 million NGF in FY 2024 to support costs for a contract to provide additional eligibility redetermination capacity.  (Item 308 #1s)  Moves ARPA funding provided to assist local departments of social services with redetermination from FY 2024 to FY 2023.  (Item 486 #2s)
• Senate: Directs the Governor to include funding in his 2024-26 biennial budget for sufficient slots to eliminate the Priority One waitlist for the Developmental Disability waivers by the end of the biennium.  (Item 308 #13s)
• Senate: Contingent on FY 2023 revenues, would provide $15.2 million from unobligated FY 2023 balances for an additional 500 Developmental Disability waiver slots.  (Item 485 #1s)

HHR- Social Services

• House and Senate: Directs the Department of Social Services to expand the application period for the Low-Income Home Energy Assistances Program (LIHEAP) to allow applications to be submitted in any month during the year and to award grants retroactively for the 2022-2023 heating season.  (Item 346 #1h and similar language in Item 346 #1s)
• House: Moves $4.1 million in funding for child welfare efforts that was adopted in the June 2022 budget from FY 2023 to FY 2024 and directs that this funding be used for support for the child welfare workforce ($2.1 million); information technology improvements ($750,000); and support for kinship caregivers ($1.25 million).  (Item 340 #1h)
• House and Senate: Includes $250,000 GF in FY 2024 to support foster youth in obtaining drivers’ licenses.  (Item 345 #3h and (Item 345 #2s)
• Senate: Provides $180,000 GF and $60,000 NGF in FY 2024 to expand Virginia’s Title IV-E Child Welfare Stipend Program to include individuals preparing to work in Child Protective Services (CPS) slots as well as several additional child welfare position slots.  (Item 345 #1s)

Labor – Unemployment Insurance Trust Fund

• House: Eliminates proposed $100 million deposit to the Unemployment Insurance Trust Fund in FY 2023 that was included in the introduced budget.  (Item 370 #1h)
• Senate: Reduces proposed $100 million deposit to the Unemployment Insurance Trust Fund by $60 million.  (Item 370 #1s)

Natural and Historic Resources – Stormwater Local Assistance Fund

• House: Deposits $10 million GF in FY 2024 in the Stormwater Local Assistance Fund.  (Item 380 #6h)  VACo has historically supported investments in this program.
• Senate: Provides $20 million for the Stormwater Local Assistance Fund (earmarks $850,000 for projects in York County and $9 million for a project in the City of Falls Church).  (Item C-80 #1s)  VACo has historically supported investments in this program.

Natural and Historic Resources – Workgroup on Funding Needs for Agricultural Water Quality Obligations

• House and Senate: Directs the Department of Conservation and Recreation to convene a work group to examine the necessary baseline funding and other needs for the Commonwealth to meet its agricultural water quality obligations under the Chesapeake Bay Watershed Implementation Plan.  (Item 374 #9h and Item 374 #5s)

Natural and Historic Resources – Other Items

• House: Removes the proposed $100 million FY 2024 revenue-contingent deposit included in the introduced budget for the Resilient Virginia Revolving Loan Fund (retains the $100 million deposit for FY 2023).  (Item 374 #1h)
• House: Includes $1 million GF in FY 2024 for cyanobacteria mitigation and remediation at Lake Anna.  (Item 374 #5h)
• Senate: Provides $12.9 million GF in FY 2024 for incentives to farm operators for the adoption of highly cost-effective nutrient management practices.  (Item 374 #4s)
• Senate: Increases operating funds by $1.9 million GF in the second year for the 47 Soil and Water Conservation Districts to include support for education and outreach programming. (Item 374 #6)
• Senate: Provides $500,000 GF in FY 2024 for cyanobacteria mitigation and remediation at Lake Anna.  (Item 374 #9s)
• Senate: Provides an additional $10 million GF in FY 2024 for the Virginia Land Conservation Fund.  (Item 375 #2s)

Transportation – Interstate 81

• House: Provides $150 million GF in FY 2024 to support the widening of Interstate 81 to three lanes between exit 143 and exit 150 in Roanoke County and Botetourt County.  (Item 452 #3h)
• Senate: Includes language stating the intent of the General Assembly to provide for safety and performance improvement projects along the Interstate 81 corridor, as identified in the Interstate 81 Corridor Improvement Program and Plan.  (Item 452 #1s)
• Senate: Contingent on FY 2023 revenues, would provide $250 million from unobligated FY 2023 balances for improvements on Interstate 81 in the Staunton area.  (Item 485 #1s)

Transportation – Other Items

• Senate: Directs the Commonwealth Transportation Board to report on the impact on transportation revenues of the elimination of the one-half percent state sales tax imposed on groceries.  (Item 434 #1s)
• Senate: Clarifies that the Commonwealth Transportation Board is directed to transfer one-time funding of $100.0 million (NGF) to the Transportation Partnership Opportunity Fund.  (Item 452 #2s)

Virginia Retirement System

• House: Provides $750,000 GF in FY 2024 in accordance with legislation that has passed the House that would provide a cost-of-living adjustment for the monthly retiree health care credit benefit for constitutional officers and their employees who retire with at least 30 years of service.  (Item 483 #3h)
• House: Includes $20 million GF in FY 2024 to increase the lump sum payments to VRS for the retiree health care credit (from $55.1 million to $75.1 million).  (Item 483 #4h)
• Senate: Contingent on FY 2023 revenues, would provide $250 million from unobligated FY 2023 balances for a lump sum deposit to address the unfunded liability for the statewide plans.  (Item 485 #1s)

Potential relocation of Washington Commanders

• House: Retains proposed $500,000 in the introduced budget for evaluation of potential economic development incentives related to the relocation of the Washington Commanders to Virginia.  Includes language specifying elements to be included in this review and requires collaboration with the members of the Major Employment and Investment Project Approval Commission.  (Item 485 #6h)  Creates the Virginia Football Stadium Authority and establishes a process for review by the Major Employment and Investment Project Approval Commission of any proposed economic development incentives or financial arrangement related to the relocation of a NFL football team to the Commonwealth.  (Item 4-14 #1h)
• Senate: Eliminates proposed $500,000 in the introduced budget for evaluation of potential economic development incentives related to the relocation of the Washington Commanders to Virginia.  (Item 485 #6s)

VACo Contacts: VACo Legislative Team