Governor’s Proposed Amendments to HB 29 and HB 30hac.virginia.gov/Committee/files/2020/4-22-20 VETO...VIRGINIA HOUSE APPROPRIATIONS COMMITTEE Chairman Luke E. Torian 3 Overview •

April 20, 2020

Governor’s Proposed Amendments to HB 29 and HB 30

Prepared by House Appropriations Committee Staff

VIRGINIA HOUSE APPROPRIATIONS COMMITTEE Chairman Luke E. Torian

OVERVIEW

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Overview• We are in unknown territory with regards to the financial

impacts of COVID-19 • Year-to-date revenues still exceed the forecast but we can

expect revenues to decline dramatically based on the massive economic contraction and unemployment levels• Virginia’s unemployment claims over past 4 weeks total almost

411,000, roughly 9% of the state’s workforce• Situation is so unprecedented we cannot make an accurate

reforecast at this time• Assumption is that conditions will stabilize enough to make a

reasonable forecast possible later this summer and General Assembly can convene a Special Session to implement budget reductions

• Current actions are interim measures to provide a hedge until enough information is available to implement longer-term solutions


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Governor’s Proposals for HB 29• The Governor’s proposed changes to HB 29, the “Caboose Bill,”

contain 37 amendments• Seven are financial in nature include:

• Removal of the $601.8 million voluntary deposit to the Revenue Reserve Fund;

• An increased appropriation of $50.0 million in Central Accounts for unbudgeted COVID-19 expenses;

• A balance reduction of $58.0 million to recognize funding for VDEM and DHCD already authorized pursuant to the Governor’s State of Emergency declarations

• The net result is an increase in the assumed July 1, 2020 unappropriated balance from $691.8 million to almost $1.2 billion which will carry forward into the next biennium

• Of the remaining 30 amendments, 26 are language items expanding flexibility and relaxing specific requirements to conduct business during COVID-19 and 4 additional language amendments are for other purposes


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Governor’s Proposals for HB 30• The proposed amendments to HB 30 total 144• 83 amendments are designed to “unallot” new discretionary

spending included in HB 30 as adopted• Set out in stand-alone items each agency’s budget• Specific programs and dollar amounts subject to the

unallotment are detailed in each amendment• Language stipulates that the spending will remain “on hold”

until the General Assembly has adopted a revised revenue forecast and verified sufficient revenues are available

• The unallotments total $874.6 million in FY 2021 and $1.4 billion in FY 2022

• This differs from spending reductions in that the General Assembly will have the opportunity to return in a Special Session and “unfreeze” the spending if the revenue outlook improves, or if the forecast declines further, choose what spending to eliminate for the biennium


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Governor’s Proposals for HB 30• An additional 12 amendments make other spending

changes, totaling $120.2 million. Largest items include:• Maintaining the current school counselor ratio for a savings

of $21.7 million in FY 2021 and $28.4 million in FY 2022• Eliminating the $65.0 million GF appropriation for

maintenance reserve within capital outlay

• The net change in general fund spending, when combined with the increases to the beginning balance resulting from actions taken in HB 29, increases the unappropriated balance from $13.7 million to $627.4 million at the close of the FY 2020-2022 biennium


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Summary of GF Spending Impacts Action FY 2020 FY 2021 FY 2022UnallotmentsUnallotments – Operating $0 $853,619,228 $1,380,344,407

Unallotments – Capital 0 20,956,290 0

Revenue Reductions

Remove Revenue Reserve Deposit (601,845,675) 0 0

COVID-19 Response 50,000,000 0 0

Reduce GF Support for VIPA 0 (6,100,0000) 0

Maintain Current School Counselor Ratio 0 (21,681,426) (28,395,270)

DMAS COVID-10 Response 308,239 1,032,955 0

Remove GF Support for MaintenanceReserve 0 (65,000,000) 0

Total GF Spending Impact (reductions plus unallotments) ($551,537,436) ($966,373,989) ($1,408,739,677)


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Governor’s Language in HB 30• Also included are 49 language amendments

• Of this total, 32 expand flexibility and relax specific requirements to facilitate the conduct of business during COVID-19 • Many of these are duplicates of amendments in HB 29

• Also included are 17 language amendments unrelated to COVID-19• These include 10 technical corrections (Amendments 7,

11, 69, 100, 112, 113, 115, 116, 117, 122)• And 7 non-COVID-related substantive changes

(Amendments 74, 92, 97, 107, 114, 118, 120)


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Governor’s Proposals – Other Legislation

• In addition to the 2 budget bills, the Governor has proposed amendments to 23 other bills that were considered by the Appropriations Committee• In total, the Governor has proposed amendments to 96

bills and vetoed 1 bill

• Among the bills with amendments considered by the Committee, 12 have delayed enactments, 12 have technical changes, and 10 have amendments more substantive in nature (note: some fall into more than one category)

• Staff have compiled a write-up of the amendments to each bill considered by the Committee which is available on the HAC web site


UNALLOTMENTS

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Secretary of AdministrationNew Spending Unallotted FY 2021 FY 2022

Compensation Board Additional funding for SAVIN $600,000 $600,000Adjust entry-level salary increases for regional jail officers 2,668,059 2,910,609Adjust salary for circuit court clerks 1,820,339 1,985,824Adjust salary of constitutional office staff 260,230 260,230Establish a three staff minimum for Circuit Court Clerk's offices 358,578 391,176Fund 25% of the staffing need for Sheriffs' 979,399 1,113,082Fund 25% of the staffing need for Commonwealth's Attorneys 1,350,989 1,433,928Fund position to address agency information technology needs 119,775 119,775Provide salary adjustment for Commissioners of Revenue 950,656 1,037,069Provide salary adjustment for Treasurers' offices 821,028 1,642,054Provide technology funding to Circuit Court Clerks' offices 1,000,000 1,000,000


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Secretary of Administration

New Spending Unallotted FY 2021 FY 2022

Department of General Services (DGS)

DGS review of DBHDS capital outlay operations $350,000 -

Department of Elections (ELECT)

Increase funding for local election officials 2,534,575 2,534,575

TOTAL FOR SECRETARY OF ADMINISTRATION $13.8 million $15.0 million


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Secretary of Commerce and TradeNew Spending Unallotted FY 2021 FY 2022

Economic Development Incentive Payments

Additional funding for the Governor's Motion Picture Opportunity Fund $1,000,000 $1,000,000

Additional support the Virginia Jobs Investment Program 2,000,000 2,000,000Department of Housing and Community DevelopmentAffordable Housing Pilot Program in Falls Church 2,000,000 0Eviction Prevention and Diversion Pilot Program 3,300,000 3,300,000Increased funding for Enterprise Zone Grants 250,000 250,000

Increased funding for the Southeast Rural Community Assistance Project 600,000 600,000

Increased funding for the Virginia Housing Trust Fund 23,000,000 23,000,000Increased support for Planning District Commissions 294,000 294,000

Increased support for the Virginia Telecommunication Initiative (VATI) for broadband deployment 16,000,000 16,000,000

Industrial Revitalization Fund 500,000 500,000


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Secretary of Commerce and Trade

New Spending Unallotted FY 2021 FY 2022

Department of Labor and Industry

Funding to support compliance positions in the Virginia Occupational Safety and Health program $1,483,850 $1,483,850

Department of Mines, Minerals and Energy Office of offshore wind 387,500 387,500

Department of Small Business and Supplier Diversity Funding to establish a statewide strategic sourcing unit 370,565 741,130

Virginia Economic Development Partnership Expanded the Custom Workforce Incentive Program 0 4,679,613

Expanded the Virginia Business Ready Sites Program 12,500,000 0

Virginia Tourism Authority Increased funding for the Coalfield Regional Tourism Authority 100,000 100,000

Provided funding for Birthplace of Country Music expansion 50,000 0

TOTAL FOR SECRETARY OF COMMERCE AND TRADE $63.8 million $54.3 million


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Secretary of Finance• The Governor’s proposed amendments unallot $300.0

million in FY 2022 proposed for deposit to the Revenue Reserve Fund and also unallot a new position for the Department of the Treasury (HB 30 Amd # 70 & 71)

• The budget retains: • Revenue generating activities at the Department of

Taxation related to worker misclassification and field audit staff

• Mandatory deposits to the Rainy Day Fund of $77.4 million GF in FY 2021 and $17.5 million GF in FY 2022

• Debt service payments of $57.8 million GF in FY 2021 and $113.9 million GF in FY 2022


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Elementary and Secondary EducationNew Spending Unallotted (in millions) FY 2021 FY 2022

Direct Aid to Public Education – School DivisionsIncrease salaries for funded Standards of Quality instructional and support positions $94.7 $192.5

Maximize pre-kindergarten access for at-risk three- and four-year-old children 35.0 48.4

Increase support for at-risk students 26.2 35.2

Cost of Competing Adjustment 9.6 10.0

Expand access to school meals 5.3 5.3

Enrollment loss 2.5 2.1

Provide no loss funding to localities 1.8 2.0

Alleghany-Covington consolidation 0.0 0.6

Direct Aid to Public Education – Grants & Aid to OrganizationsRecruit and retain early childhood educators 3.0 5.0

Increase support for Jobs for Virginia Graduates 1.7 1.7

Increase support for Communities in Schools 0.8 0.8


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Elementary and Secondary EducationNew Spending Unallotted (in millions) FY 2021 FY 2022

Direct Aid to Public Education – Grants & Aid to Organizations (continued)

Black History Museum and Cultural Center $1.3 $0.0

American Civil War Museum 1.0 0.0

Blue Ridge PBS 0.5 0.5

Increase support for YMCA Power Scholars Academies 0.5 0.5

Chesterfield Recovery High School 0.3 0.3

Brooks Crossing Innovation and Opportunity Center 0.3 0.3

Literacy Lab - VPI Minority Educator Fellowship 0.3 0.0

Emil and Grace Shihadeh Innovation Center 0.3 0.0

Active Learning grants 0.3 0.0

Bonder and Amanda Johnson Community Development Corp. 0.1 0.0

Western Virginia Public Education Consortium 0.1 0.1

Soundscapes - Newport News 0.1 0.0

TOTAL DIRECT AID UNALLOTMENTS $185.3 $305.0


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Elementary and Secondary EducationNew Spending Unallotted FY 2021 FY 2022

Department of Education, Central Office Operations

Address increased workload in the Office of Teacher Education and Licensure $136,514 $136,514

Develop the Virginia Learner Equitable Access Platform (VA LEAP) 0 7,131,000

Increase support for Virginia Preschool Initiative class observations and professional development 650,000 650,000

Support annual Education Equity Summer Institute 135,000 135,000

TOTAL $921,514 $8,052,514


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Higher EducationSpending Category Unallotted FY 2021 FY 2022Colleges & Universities $119,166,183 $120,197,061

VIMS & Extension 2,040,356 2,140,054

SCHEV (retains student ombudsman funding) 6,395,375 11,195,375

EVMS, Higher Ed Ctrs, & Jefferson Labs 2,266,043 1,949,300

Online Virginia Network 1,000,000 1,000,000

Tuition Moderation Funding 54,750,000 25,000,000

State Library & Museums (retains Comm for Arts administrative cost funding) 5,060,069 5,254,688

Total Higher and Other Education $190,678,026 $166,736,478


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Health Dept.New Spending Unallotted FY 2021 FY 2022

Increase to Drinking Water State Revolving Fund grant $482,400 $482,400Drinking water program data management system 150,000 250,000Shellfish Safety Division positions 168,270 168,270Support for Office of Health Equity 150,000 150,000Wastewater infrastructure manager 131,880 131,880Rent for Local Health Departments 75,889 75,889New Behavioral Health Loan Repayment Program 1,600,000 1,600,000New Nursing Preceptor Incentive Program 500,000 500,000New Position for loan repayment & nursing incentive prog. 88,914 88,914Hampton Roads Proton Therapy Institute 1,500,000 1,500,000Poison Control Centers 1,500,000 0New Virginia Sexual & Domestic Violence Prevent Fund 750,000 750,000New Sickle Cell Patient Assistance Program 250,000 250,000New Community health worker pilot program 0 289,168Mel Learman Free Clinic 30,000 30,000Special Olympics 10,000 10,000

Total $7.4 million $6.2 million


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DMASNew Spending Unallotted FY 2021 FY 2022

Medicaid RatesIncrease Developmental Disability (DD) Waiver Provider Rates $25,034,884 $35,785,930Allow overtime for Personal Care Attendants 9,609,223 9,609,223 Increase rates for psychiatric residential treatment facilities 7,599,696 7,599,696 Increase Medicaid nursing facility reimbursement 6,794,541 6,984,788 Increase rates for skilled and private duty nursing services 6,245,286 6,245,286 Increase mental health provider rates 2,374,698 2,458,479 Increase rate for adult day health care 796,755 833,109 Modify nursing facility operating rates at four facilities 733,303 754,247

Increase rate by 9.5% for nursing homes w/special pops. 493,097 506,903 Supplemental payments for Children's National Medical Center 354,766 354,766 Medicaid MCO reimbursement for Durable Medical Equipment 345,621 352,534 Increase Medicaid rates for anesthesiologists 253,376 262,491 Modify capital reimbursement for certain nursing facilities 119,955 119,955


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ServicesAdd Medicaid adult dental benefits $8,743,420 $25,304,935

Enhance behavioral health services 3,028,038 10,273,553

Fund home visiting services 0 11,750,159

Add 250 DD Waiver Slots in FY 2022 0 4,133,500

Fund required medical residency slots 1,350,000 2,600,000

Extend FAMIS MOMS' postpartum coverage to 12 mos. 1,114,936 2,116,376

Fund costs of Medicaid-reimbursable STEP-VA services 486,951 2,293,826

Expand opioid treatment services 421,476 1,273,633 Provide care coordination prior to release from incarceration 347,803 465,440 FAMIS MOMS - Add inpatient substance use disorder treatment 307,500 356,775

Expand Medicaid Works for individuals with disabilities 114,419 228,838

Expand tobacco cessation coverage 34,718 34,718


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EligibilityEliminate 40 quarter work requirement for legal permanent residents $1,172,091 $3,289,890

Administrative Items

Fund managed care contract changes 812,600 1,014,350

Exempt Live-in Caretakers from EVV Program 507,500 373,000

Medicaid rate setting analysis 300,000 0 Implement episodic payment models for certain conditions 75,957 124,707

Total DMAS Unallotments $79.6 million $127.5 million


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DBHDSNew Spending Unallotted FY 2021 FY 2022

Central OfficeIncrease statewide discharge assistance plans $7,500,000 $12,500,000

Pilot programs for facility census reduction 7,500,000 7,500,000

Expand the Virginia Mental Health Access Program 4,224,388 4,224,388

Administrative costs of STEP-VA 726,807 1,222,908

Provide grants to recovery residences 250,000 250,000 Alternative transportation from state hospitals to community 150,000 150,000

Adverse Childhood Experiences Initiative 143,260 143,260 Train workforce in preparation for behavioral health redesign 129,253 129,253

Jewish Foundation for Group Homes 89,396 35,818

Total Central Office DBHDS Unallotments $20.7 million $26.2 million


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DBHDSNew Spending Unallotted FY 2021 FY 2022

Grants to LocalitiesContinued implementation of STEP-VA* $19,704,173 $30,151,414 Increase permanent supportive housing capacity 8,500,000 17,000,000 Expand forensic discharge planning programs in jails 1,400,000 2,100,800 Total $29.6 million $49.2 million

Mental Health HospitalsIncrease funding for safety and security in state facilities $2,299,637 $3,066,182 Provide for increased pharmacy costs at state facilities 966,638 966,638 Add critical clinical staffing at the Commonwealth Center for Children and Adolescents 765,428 765,428 Total $4.0 million $4.8 million

VA Center for Behavioral RehabilitationSupport expanded facility and census growth $536,003 $5,393,750

Total $0.5 million $5.4 million Grand Total for DBHDS $54.8 million $85.6 million *Language eliminates requirement that CSBs increase increase STEP-VA services beyond those funded in Chapter 854, 2019 Acts of Assembly, unless an appropriation and allotment of funds is made.


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DSSNew Spending Unallotted FY 2021 FY 2022

Child Welfare ServicesFund foster care and adoptions cost of living adjustments $2,262,173 $2,262,173 Fund the child welfare forecast 722,339 722,339 Continue Linking Systems of Care program 187,443 467,116 Create a driver's license program for foster care youth 100,000 200,000 Emergency approval process for kinship caregivers 75,000 75,000

Family First Prevention Services Act InitiativeFund local departments of social services prevention services $12,455,329 $17,437,461 Provide prevention services for children and families 3,410,050 8,410,050 Implement Family First evidence-based services 1,074,500 1,074,500 Fund an evaluation team for evidence-based practices 801,328 765,187

Benefits/OtherIncrease TANF cash assistance benefits by five percent $1,159,901 $1,159,901 Allocate one-time funding for the Laurel Center 500,000 0


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DSSNew Spending Unallotted FY 2021 FY 2022

Administrative Initiatives

Adjust local staff minimum salary to stabilize workforce $5,592,707 $5,592,707

Fund the replacement of the agency licensing system 2,220,134 431,638

Fund adult licensing and child welfare unit licensing 0 2,130,394

Fund emergency shelter management software and application 492,800 154,000

Improve planning and operations of state-run emergency shelters 188,945 152,117

Fund child welfare systems improvements 250,000 0

Fund 2-1-1 VIRGINIA contract costs 153,614 153,614

Total DSS Unallotments $31.6 million $41.2 million


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Other HHR AgenciesNew Spending Unallotted FY 2021 FY 2022

CSARate study of Special Education Private Day Progs. $250,000 $0Training funds 50,000 50,000

DARSBrain injury services $1,000,000 $1,000,000

Centers for Independent Living 425,000 425,000

Dementia case management 150,000 150,000

Align personal care attendant rates with Medicaid 99,320 99,320

Jewish Social Services Agency 50,000 50,000

Wilson Workforce & Rehab. Ctr: Vehicle Purchase 80,000 0DBVI

Vocational rehabilitation services $1,583,020 $1,583,020Backfill federal funds for teachers 397,842 397,842



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Unique HHR Unallotments• DMAS & DSS

• Amendments #13 and #16 (HB 29) and #80 and #89 (HB 30) require an estimate and report on the general fund savings that would be available due to the increase in the federal Medical Assistance Percentage (FMAP) from 50% to 56.2% during the COVID-19 emergency• Reported estimate must be by fiscal year, fiscal quarter,

service areas and fund detail• DPB is required to unallot the general fund savings• Preliminary estimate for DMAS is $331 million GF in FY 2020

for non-expansion Medicaid expenditures • Preliminary estimate for DSS is $5.6 million GF in FY 2020 for

Title IV-E foster care and adoption subsidy programs


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Ag & ForestryNew Spending Unallotted FY 2021 FY 2022

VDACSEnhance economic growth and food safety in the Commonwealth $267,201 $256,701 Fulfill Virginia's phase III watershed implementation plan 240,021 185,021

Holiday Lake 4-H Center Improvements Project 250,000 0

Department of ForestryFulfill Virginia's phase III watershed implementation plan 433,016 433,016

Establish hardwood forest habitat program 154,000 521,842

Establish apprenticeship program 51,888 51,888

Plan for replacement of the agency's mission critical business system 44,250 0



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Natural Resources – Major Items

New Spending Unallotted FY 2021 FY 2022WQIF Supplemental Deposits $3,800,000 $25,400,000Virginia Land Conservation Fund 5,500,000 5,500,000Battlefields Preservation Fund 250,000 250,000Dam Safety Funding 15,000,000 0Total $24.3 million $31.2 million


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DCRNew Spending Unallotted FY 2021 FY 2022

Support state park operations $556,000 $556,000

Provide for preventative maintenance needs at state parks 500,000 500,000

Natural Bridge State Park Operations 376,364 376,364

Riverfront Park Danville 740,000 $0

Provide funding for management of Green Pastures Recreation Area 342,678 209,509

Increase dam safety floodplain management positions 229,637 229,637

Establish a dam safety lead engineer position 170,758 170,758

Environmental Literacy Program 170,000 170,000

Mason Neck State Park Staffing 160,800 160,800

Pocahontas State Park New Cabin O&M 152,273 152,273



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DEQ• Governor’s amendment unallots all new spending from

the Department of Environmental Quality not tied specifically to legislation• Unallotments total $18.1 million GF over the biennium

New Spending Unalloted FY 2021 FY 2022Water Protection $3,142,973 $8,309,747 Air Protection 1,386,451 1,978,451 Land Protection 1,659,834 1,659,834 Total $6.2 million $11.9 million


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Historic ResourcesNew Spending Unallotted FY 2021 FY 2022

Provides funding to the City of Alexandria to support cultural initiatives $2,443,000 $0

Provide funding for the Center for African-American History and Culture at Virginia Union University 1,000,000 0

Provide additional funding for Montpelier 1,000,000 0 Provides funding to the City of Richmond for cultural initiatives 1,000,000 0

Other one time funding 775,000 0Provides funding to the City of Charlottesville for cultural initiatives 500,000 0

Provide additional funding and positions for underwater archaeology program 159,479 159,479

Provides funding to the City of Staunton for the Woodrow Wilson Presidential Library 250,000 0

Provide additional funding to support staff salaries 123,360 123,360 Provide funding to support a cemetery preservationist position 108,337 108,337

Provide funding to increase the Director's salary 15,968 15,968



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VMRC

New Spending Unallotted FY 2021 FY 2022Provide funding for the removal of a derelict barge in Belmont Bay $250,000 $0

Provide funding for a coastal resiliency manager position 78,250 78,150

Provide funding for a position in the fisheries observer program 81,795 57,695

Provide funding for outboard motors 96,436 0

Virginia Aquarium and Marine Science Foundation 50,000 0

Provide funding for unmanned aerial vehicles 18,672 0

Total $575,153 $135,845


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Judiciary

New Spending Item Unallotted FY 2021 FY 2022General District Courts

Fund additional district court clerk positions $5,732,280 $7,596,300 Fund additional judgeship for 19th Judicial District 323,437 323,437

Indigent Defense CommissionProvide funding for additional public defenders 3,798,726 5,698,089

Virginia State BarAdditional funding to hire additional housing attorneys to combat Virginia's housing crisis 1,500,000 1,500,000



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DOCNew Spending Item Unallotted FY 2021 FY 2022

Adjust salaries for correctional officers $6,831,121 $7,864,561

Fund pilot programs between the Department of Corrections and university health systems to provide offender medical care

3,646,925 5,935,253

Implement an electronic healthcare records system in all state correctional facilities $0 8,935,649

Transfer funding for the Department of Corrections' electronic health records system 3,000,000 3,000,000

Provide additional operating funds for Lawrenceville Correctional Center 994,331 994,331

Provide funding to study offender medical service delivery in state correctional facilities 500,000 0

Provide funding and two positions to support Board of Corrections jail investigations 170,125 226,832



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DCJSNew Spending Item Unallotted FY 2021 FY 2022

State Aid to Localities with Police Departments $8,628,574 $8,628,574

Provide funding to expand pretrial and local probation services 2,300,000 2,300,000

Provide security grant aid to localities 1,500,000 1,500,000 Increase funding for pre-release and post-incarceration services 1,000,000 1,000,000

Immigration Legal and Social Services Grant Funding 250,000 250,000

Post Critical Incident Support for Law Enforcement Personnel 200,000 200,000



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Other Public SafetyNew Spending Item Unallotted FY 2021 FY 2022

VDEMProvide funding to migrate software and agency-owned servers to the cloud $1,505,760 $1,043,336

Department of Fire Programs

Provide general fund appropriation to support one position 24,886 24,886

Department of Forensic Science

Fund information technology analyst positions 185,160 246,880

Fund laboratory equipment maintenance contracts 248,000 368,000

State Police

Fund record sealing reform legislation 108,800 0

Parole Board

Provide funding for part-time investigators 406,392 406,392 Provide funding for a part-time release planning coordinator position 42,319 42,319



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Veterans and Defense AffairsNew Spending Item Unallotted FY 2021 FY 2022

Department of Veterans Services

Provide funding for the National Museum of the United States Army $3,000,000 $0

Support mental health and benefits positions and fund maintenance and information technology needs 1,045,040 1,276,753

Virginia Women Veterans Program 106,139 106,139

Department of Military Affairs

Increase funding for state tuition assistance 250,000 250,000 Total $4.4 million $1.6 million


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Compensation• Amendments would unallot all funding provided for

compensation adjustments including bonuses and raises and funding to reduce the amortization period for state employee retiree health credit benefit by 5 years

New Spending Item Unallotted ($ in millions) FY 2021 FY 2022

Compensation Actions in Central Appropriations For State Employees and State Supported Local $118.2 $147.0

Funding for Teacher Salary Increase (DOE) 94.7 192.5

Targeted Salary Actions Within Agencies 17.1 18.6

Reduce Amortization for Retiree Health Credit 3.9 4.0

Total $233.9 $362.1


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Central Accts & Independent Agencies

New Spending Item Unallotted FY 2021 FY 2022

Adjust Funding for Changes in the Cost of Rent for Enhanced Security $1,742,906 $2,518,778

Upgrade the Integrated Flood Observation and Warning System (IFLOWS) 1,000,000 1,000,000

Provide funding for Slavery and Freedom Heritage Site in Richmond 1,000,000 0

Adjust General Fund Support to Agencies for Increased Internal Service Fund Rates 161,465 223,189

Adjust funding to Agencies for Information Technology Auditors and Security Officers 180,746 180,746

Worker's Compensation: Additional Perk Kit Funding 4,708,576 4,708,576

Total $8,793,693 $8,631,289


Capital Outlay

New Spending Item Unallotted FY 2021 FY 2022Accomack Hanger (Amd. #128) $1,000,000 $0Capital Planning (Amd. #132) 9,956,290 0Virginia Beach Project (Amd. #133) 10,000,000 0Total $20,956,290 $0


COVID-19 LANGUAGE AMENDMENTS

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• Virginia Employment Commission (HB 29 Amd #4 and HB 30 Amd #22): Language in House Bills 29 and 30 would authorize the Governor to override the administrative components of the Virginia Unemployment Compensation Act in response to public health emergencies

• Department of Housing and Community Development (HB 30 Amds #15 & 16): Language in House Bill 30 provides flexibility for DHCD to use Housing Trust Fund dollars to respond directly to housing issues related to COVID-19 and waive match requirements for federal and state homelessness dollars


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• Virginia Innovation Partnership Authority (HB 30 Amd #24): Proposed amendment to House Bill 30 would allow the Commonwealth Center for Advanced Manufacturing to use its incentive grant dollars to attract federal funds related to COVID-19 research


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Elementary & Secondary Education

• Department of Education: (HB 29 Amd #5 and HB 30 Amd #26) Language would authorize the Superintendent of Public Instruction to grant flexibility and waivers to Appropriation Act and Code provisions as needed due to COVID-19 related school closures• Examples of potential waivers include codified

requirements for SOL testing, certain coursework required for graduation, and renewal of teaching licenses

• Superintendent would be required to provide justification of waivers to the Secretary of Education, and report waivers granted to Board of Education and on agency website


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Elementary & Secondary Education

• Direct Aid to Public Education:• Language in HB 29 would permit suspension or proration

of Supplemental Lottery Per-Pupil payments in the event of Lottery revenue shortfall (HB 29 Amd #6)

• Language in HB 29 would waive local match requirements for SOQ and other K-12 funding for the 2019-20 school year, due to school closures (HB 29 Amd #7)

• Reverses $21.7M (FY 21) and $28.4M (FY 22) allocations to provide additional school counselors, and includes language in HB 30 to maintain current counselor staffing ratio, superseding HB 1508/SB 880 (HB 30 Amd #28)


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Higher Education• SCHEV (HB 30 Amd #30) – clarifies TAG eligibility and

allows for students potentially displaced in Fall 2020 due to COVID

• NSU & VSU (HB 30 Amds #39 & 51) – allows year-end OCR balances from state funds to be used for E & G or auxiliary enterprise needs

• Auxiliary Indirect Cost (HB 29 Amd #26 and HB 30 Amd #135) – provides flexibility from recovering the full amount of indirect cost to E & G due to refunds resulting from dorm & dining hall closures


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Higher Education• Higher Education Reserves (HB 29 Amd #29 and HB 30

Amd #139) – increases the amount allowable for higher education institutions to carry forward from unexpended E & G balances as a reserve from three to six percent

• Higher Education Treasury Loans (HB 29 Amd #31) –allows higher education institutions to request a treasury loan to address cash flow issues in auxiliary enterprise activities resulting from closure of certain auxiliary operations from COVID-19• Guidelines are to be developed by Secretary of Finance


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DMAS • Provides funding for the cost of federally allowed policy

changes such as expanding use of telemedicine, waiving service authorizations and eliminating cost sharing (HB 29 Amd #9 and HB 30 Amd #76)• $308,239 GF and $815,481 NGF in FY 2020• $1.0 million GF and $2.7 million in FY 2021

• Increases nursing home and specialized care rates by $20 per day per patient (HB 29 Amd #10 and HB 30 Amd #77)• Estimated at $5.9 million GF and $7.6 million NGF in FY 2020• Cost will be absorbed by Medicaid managed care plans who

must spend 85% of their Medicaid revenue on medical care or quality activities (medical loss ratio or MLR)

• Rules to prevent the spread of the coronavirus have resulted in lower medical costs to the plans, therefore the added spending for nursing homes will prevent the plans from incurring future liability for medical loss ratio’s below 85%


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DMAS • Provides temporary authority to make changes to medical

assistance programs (Medicaid, FAMIS, CHIP) in response to COVID-19 (HB 29 Amd #11 and HB 30 Amd #78)• Subject to approval by the Governor• Must be reported within 15 days of implementation to the Director

of DPB and the Chairs of the money committees• Example of possible action:

• Suspend replacement requirements for durable medical equipment, prosthetics, orthotics and supplies that are lost, destroyed, irreparably damaged, or otherwise rendered unusable such as, a face-to-face request, new physician’s order or new medical necessity documentation

• Provides authority to adjust payment dates in order to maximize available enhanced federal matching funds (HB 29 Amd #12 and HB 30 Amd #79)• For example, DMAS could advance capitation payments to MCOs at

the close of the enhanced FMAP eligibility period to ensure the maximum allowable federal funds are realized


53

DBHDS• Provides temporary authority (HB 30 Amd #82) to:

• Relax requirements for annual unannounced licensing inspection of providers

• Extend the period of conditional licenses beyond 12 months until December 1, 2020

• Issue licensing status letters to prevent the lapse of children’s residential licenses due to inability to conduct an onsite inspection and extend the renewal period of licensed services


54

DSS• Provides $66.0 million from the federal Child Care Development Block Grant (CCDBG) pursuant

to the federal CARES Act for incentive grants to child care providers, emergency child care, to eliminate co-payments for child care subsidy program participants, and to extend absence days to temporarily closed centers (HB 29 Amd #14)

• Can use funds to:• Continue payment and assistance to child care providers in the case of decreased enrollment or

closures related to the coronavirus to assure they are able to remain open or reopen as appropriate

• Provide child care assistance to essential workers without regard to income eligibility requirements• Available to eligible child care providers even if they were not receiving CCDBG assistance prior to

the public health emergency for cleaning and sanitation, and other activities necessary to maintain or resume the operation of programs

• Payments may be obligated in this fiscal year or the succeeding two fiscal years

• Provides $2.0 million from federal Child Care Development Fund balances to provide full-day child care for school age children and sibling enrollment for families already approved for child care in response to COVID-19 pandemic (HB 29 Amd #15)

• Balances totaled $106 million as of December 31, 2019

• Exempts child day care programs from licensure if they serve children of essential personnel in need of child day due to the pandemic (HB 29 Amd #17 and HB 30 Amd #91)

• Waives background checks if completed within the prior two years• Allows for background check portability• Allows schools to operate emergency child care programs for essential personnel


55

DSS • Provides temporary authority to make any changes to

relevant State Plans, request waivers from federal agencies, change eligibility criteria for benefits and services and payment levels for applicable programs in response to COVID-19 (HB 29 Amd #18 and HB 30 Amd#91)• Subject to written approval by the Governor• Must be reported within 15 days of implementation to the

Director of DPB and the Chairs of the money committees• Examples of possible action:

• Extend renewal dates for April, May and June for six months for SNAP, TANF and child care subsidy programs

• Increase the grant amount to the Federation of Virginia Food Banks


56

Public SafetyDepartment of Corrections

• Authorizes the Director to release inmates or transfer them to lower levels of supervision (HB 29 Amd #21, HB 30 Amd #101)• Limited to duration of declared emergency in response to a communicable

disease or public health threat• Limited to inmates with will less than one year of sentence remaining, and

excludes inmates convicted of Class 1 felonies or sexual violent offenses• Authority expires July 1, 2021


57

Transportation• Amendment to HB 30 (Amd #110) would suspend, for

FY 2021, the requirement for the Commonwealth Transportation Board (CTB) to update 6-Year Program on an annual basis• SYIP adopted in June 2019 would stay in force for an

additional year

• Amendment to HB 30 (Amd #111) would give the CTB the authority to transfer appropriations between programs and Transportation Agencies as needed to ensure core services are provided regardless of revenue shortfalls


58

Central Appropriations• Language in House Bills 29 and 30 would authorize the

Governor to appropriate federal relief funds for COVID-19 and any monies in the COVID-19 Relief Fund (HB 29 Amd #23 and HB 30 Amd #123)• The House Bill 29 amendment includes a $50 million GF

appropriation in FY 2020 for any required state matches to receive federal COVID-19 money or more general COVID-19 response efforts


59

Capital Outlay• Capital Outlay General Conditions (HB 29 Amd #24 and

HB 30 Amd #126) – requests authority to delay the initiation or continuation of any capital project supported by state revenues

• C-61.60 Dept of Veterans Services (HB 30 Amd #129) –provides $1 million in VPBA bonds as state match for federal CARES act grants for renovations to Sitter-Barfoot (Richmond) and Roanoke Veterans Care Centers to prepare for COVID response

• C-64 Maintenance Reserve (HB 30 Amd #130) –supplants $65 million GF with bond proceeds


60

Part III• Language amendment (HB 29 Amd #27) and (HB 30

Amd #136) extends the deadline to pay final state income taxes and sales taxes which were originally due March 20 without being charged interest• Eliminates interest charges for late income tax payments

due on or after April 1, 2020 if they are paid in full by June 1, 2020

• Eliminates interest charge on sales tax payments which were due March 20, 2020 if they are paid in full by April 20, 2020

• A technical amendment to Part III in House Bills 29 and 30 allows the State Comptroller to transfer end of the year federal (FEMA) cost recovery balances to the GF (HB 29 Amd #25 and HB 30 Amd #134)


61

Part IV• Amendments to House Bills 29 and 30 provide the authority

for public bodies to conduct electronic meetings during a state of emergency when it is unsafe to meet in a single location (HB 29 Amd #28 and HB 30 Amd #137)• Outlines several steps a public body must take when convening

an electronic meeting, including public access and notice

• Amendments to House Bills 29 and 30 allow agencies or the Governor to change cost factors for services, and provide new services in response to COVID-19 without the direct authorization of the General Assembly (HB 29 Amds #32 & 33 and HB 30 Amds #141 & 142)• The Governor would have to authorize any change that relates

to the general fund


62

Part IV• Amendments to House Bills 29 and 30 provide the Governor

with the flexibility to delay any report required by the Code of Virginia or the State Budget by a year (HB 29 Amd #35 and HB 30 Amd #143)• Agencies must directly request a delay from the Governor’s

office within 30 days of the report deadline

• An amendment to House Bill 29 delays elections scheduled for May 5th to November 3, 2020 (HB 29 Amd #36)• Permits any voter registered to vote in the November 3rd

election to vote for May 5th races included on the ballot• Extends the terms of office for current elected officials until

their successors are elected• Requires general registrars to destroy any absentee ballots or

requests to vote absentee for the delayed May 5th race


63

Part IV• Expand Authority to Withhold Spending (HB 30 Amd #138) –

requests an expansion of the authority already contained in § 4-1.02 to withhold and unallot appropriations by eliminating the current 15 percent cap• Current language provides the Governor with the authority to

withhold agency appropriations under a specific process that requires a re-estimate of revenues and the creation of a written reduction plan

• Under current language, the Governor’s reduction authority is limited to 15 percent for any agency or institution and certain items such as debt service, employee benefit contributions and contracts for capital projects are excluded altogether

• Lastly, the current process provides that if the permissible actions under § 4-1.02 are not sufficient, then the General Assembly is notified so that a Special Session can be convened


64

Part IV• Authorize Temporary Borrowing (HB 29 Amd #37 and

HB 30 Amd #144) – requests the issuance of $500 million of 9(a) bonds and $250 million of 9(d) bonds to participate in the new federal Municipal Liquidity Facility (MLF) through the Federal Reserve Bank• Notes are intended to assist state and local government

to manage cash flows impacted by income tax deferrals, potential reductions of tax revenues, and expenses related to COVID-19

• The maturity date for the 9(a) bonds is 12 months and for the 9(d) bonds up to two years


OTHER AMENDMENTS

65


66

Secretary of Administration• Reverses the transfer of the Executive Mansion staff

from the Governor’s Office to the Department of General Services in House Bills 29 and 30 (HB 29 Amds #2 & 3 and HB 30 Amds #5 & 8)• Transferring Mansion staff to DGS would allow them to

earn overtime, which is currently barred by their “at will” status as Governor’s Office employees

• This is a net neutral budget action

• Technical amendment in House Bill 30 in DGS that corrects the Tax Parcel ID number related to the conveyance of land to the Mount Rodgers Community Service Board and Smyth County (HB 30 Amd #7)


67

Agriculture and Natural Resources

• Authorizes the Virginia Department of Agriculture and Consumer Services to adjust its hemp research program to continue compliance with federal farm bill (HB 30 Amd #11)

• Changes to the federal program occurred after budget development

• This is a technical amendment


68

Secretary of Commerce and Trade• Virginia Innovation Partnership Authority (HB 30 Amd #25)

• Reduces GF appropriations in the first year for the Authority by $6.1 million dollars

• Removes the NGF appropriation in the first year for the Commonwealth Cyber Initiative and the Commonwealth Commercialization Fund• These funds are related to the sale of CIT’s building in Northern

Virginia• Proposes more general language allowing the agency to invest in

the Commonwealth Commercialization Fund as well as use the money to help start-ups impacted by COVID-19

• This action reduces the first year appropriation for the Commonwealth Cyber Initiative to $7.5 million from $17.5 million

• Appropriations in the first year are zeroed out for the Growth Accelerator Program, Regional Innovation Fund, Technology Industry Development Services, and the Commonwealth Commercialization Fund


69

Health and Human Resources• CSA

• Requires the Office of Children’s Services (OCS) to provide preliminary study findings of rates for private day special education services to JLARC (HB 30 Amd #72)• Requires OCS to provide a final report by June 1, 2021 to the

Governor and Chairs of the money committees

• Health Department• Removes the requirement that funding for Long Acting Reversible

Contraceptives (LARCs) be used solely for hormonal LARCS (HB 30 Amd #74)• Mirrors the language contained in HB 30, as introduced, that was

modified by the General Assembly

• DSS• Duplicates language included in the Dept. of Education to

convene a work group to establish a plan to transfer the Child Care Development Fund grant from DSS to DOE by July 1, 2021 (HB 30 Amd #92)


70

Finance• Delays the report due from a workgroup convened by

the Secretary of Finance and the Secretary of Administration to study collective bargaining for state employees to November 1, 2021 (HB 30 Amd #68)

• Offers a technical amendment related to the deposit of $20 million from the general fund to the Hampton Roads Regional Transit Fund from recordation tax revenues to clarify that the amounts provide in this expenditure are not subject to the sum sufficient provisions of Item 273 (HB 30 Amd #69)


71

Transportation/Natural Resources

• HB 29 includes 3 companion amendments (Amds #19, #20, #22) related to a proposal to protect migratory birds being impacted by the Hampton Roads Bridge Tunnel Expansion Project• Amendment #22 authorizes $12.0 million in available

balances within the Department of Transportation to support the construction of alternative nesting locations and the removal of up to 25,000 birds from South Island

• Amendments #19 (the Secretary of Natural Resources) and #20 (Department of Game and Inland Fisheries) provide technical expertise and administrative support for the project

• Identical DGIF amendment is included in HB 30 Amd # 97)


72

Public Safety• State Police: Authorizes Department to provide DJJ de-

identified data to support public safety research being conducted by UVA on a subcontracted basis with Duke University (HB 30 Amd #107)

• Veterans and Defense Affairs: Technical, clarifying amendments to existing Camp Pendleton Lease Agreement language (HB 30 Amd #117)

• Amd. #118 and #120 (HB 30) reverses the transfer of one position and $70,000 each year from the Department of Veterans Services to the Veterans Services Foundation


73

Transportation• Amendment (HB 30 Amd #114) would authorize the

use of toll revenues generated on I-64 to be used to support projects related to but not directly on I-64• Current language in budget would limit use of any toll

revenues strictly to increasing capacity on I-64• Use of funds for other projects must be agreed to by the

Hampton Roads Accountability Commission and the Commonwealth Transportation Board


74

Central Appropriations• Proposes a technical amendment to House Bill 30 that

will allow the Department of Planning and Budget to transfer redistricting funds to the Division of Legislative Services to begin the process of redistricting prior to the November 3, 2020 election (HB 30 Amd #122)• Funding included in the budget will still support the

Virginia Redistricting Commission if approved by the voters in November


75

Capital Outlay• C-55.10 Dept of Corrections (HB 30 Amd #127) –

requests $6.8 million in VPBA bonds to expand capacity at the Nottoway Wastewater Treatment Plant• DOC has $30 million of bond authority in HB 30 for

blanket repair & renovation projects

• C-65 Southwest Virginia Higher Education Center (HB 30 Amd #131) – requests $65,000 in bonds for equipment funding related to the building expansion

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Governor’s Proposed Amendments to HB 29 and HB 30hac.virginia.gov/Committee/files/2020/4-22-20 VETO...VIRGINIA HOUSE APPROPRIATIONS COMMITTEE Chairman Luke E. Torian 3 Overview •

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