Legislative Update From Delegate Lynwood Lewis/ Virginia

LEGISLATIVE UPDATE

By Delegate Lynwood Lewis

Both the House of Delegates and State Senate took up their amended versions of the Governor's introduced budget on Thursday, February 23. It is a long and sometimes cumbersome process by which we consider and object to amendments proposed by the Appropriations Committee. In addition to objections to various amendments, there are also floor amendments often proposed to the Committees version of the Governors Budget. Constructing a budget for the Commonwealth is the most important thing we do.


While in many respects the House Appropriations Committee improved upon Governor McDonnell's proposed budget, the shifting of General Fund monies from General Fund core government functions such as K-12 Public Education and Public Safety to Transportation, which has historically been a self-funding function of Government, was a fundamental philosophical problem which many of us could not accept. The version of the Governors budget produced by the Senate Finance Committee did not include this shift from our General Fund to Transportation Activities. It is my hope that as the budget process unfolds in the remaining days of the 2012 General Assembly Session that the General Fund piece of the budget can be resolved and that we can find transportation related means of funding transportation, maintenance, and construction.


The Appropriations task was made somewhat easier by the last minute availability of additional funds. Part of this was obtained by closing the "Amazon loophole" in our sales tax law with the location of a new fulfillment center in Virginia. Amazon has a physical presence in Virginia and therefore, would typically become subject to our State sales tax. This has been a big issue for our Commonwealth's retailers who compete with Amazon and other large internet merchants who, if they do not have a point of presence in Virginia, are not subject to the State sales tax. The compromise reached with Amazon will subject them to the Virginia State Sales Tax beginning in September of 2013. This would yield several million dollars of additional state revenues in the second part of the two year budget. In addition, the Commonwealth had earlier set aside approximately 24 million dollars for construction of a new Veterans center but we were just informed by the Federal Government that they would not be in position to move forward on that project until at least 2013. So that made additional money which we had committed for that project available. I will provide some budget highlights (and lowlights) in my next report.


It is likely that we will experience another year of budgetary stalemate at least for a time. The 20-20 tie in the Senate and the politics which comes with it makes very unlikely the Senate will be able to produce a budget. Where that leaves us procedurally is a bit uncertain.


Last week we also considered Senate Bill 550 in my subcommittee which established a methodology of shifting the Baylor Survey on the seaside of the Eastern Shore. I referenced this Bill and my position on it in last weeks report. It was for the reasons expressed in that report that I made a motion in the Chesapeake Subcommittee of the House, Agriculture and Natural Resources Committee, to carry over SB 550 under House Rule 22. It is my hope that in the coming months I can work with all stakeholders to have an extensive discussion about the potential for this policy to be a win situation for all concerned. It was simply too large a move without adequate public discussion.


Please feel free to contact me on any issue as it is important to me in my representation of our district to hear from the people that I represent. We will be in Richmond until March 10. Please feel free to contact my office at (804) 698-1000 or delllewis@house.virginia.gov.