The 2006 General Assembly is now in session
Week 6 Update—February 17, 2006
The General Assembly has passed its halfway point toward a scheduled March 11 adjournment. House and Senate versions of the two-year budget for fiscal years 2007 and 2008 will be released on Sunday.
The House Education Committee meets on Mondays at 9:00 a.m. in House Room C and Wednesdays at 8:30 a.m. in the Appropriations Room. The Senate Education and Health Committee meets on Thursdays at 9:00 a.m. in Senate Room B. Sub-committees will meet periodically throughout the session. Click here for a schedule of weekly meetings (Meetings).
The Budget
The House and Senate versions of the 2006-08 budget will be released this Sunday, February 19. Earlier in the week, Secretary of Finance Jody Wagner told lawmakers that increased revenue through January of the current fiscal year had pushed year-to-date collections ahead of last year’s by 11.2%. Growth for the month of January alone was 10.5%. Once again, the volatile corporate income and nonwithholding taxes drove the latest increases.
This latest news will add another $163 million to the revenue forecast, with $124 million of that occurring in the current fiscal year and the remaining $39 million in the next biennium. This is on top of the $53 million added in January as a result of higher than expected corporate income taxes. Secretary Wagner also cautioned legislators that the impacts of the federal budget, further housing market corrections, the energy market and federal monetary policy changes could have an impact on state revenues as we move into the next biennium.
While transportation issues are expected to dominate the budgets released this weekend, the House could include one new education-related funding initiative in its version. The full House earlier this week unanimously approved HB 3, which increases the health insurance credit for retired teachers with at least 15 years of service to $4/month for each year of service with no monthly cap. Under current law, such teachers are allowed a $2.50/month credit for each year of service with a cap of $75 per month. Over the next biennium, this provision would cost the state nearly $35 million, and localities over $53 million. Recall, that when the state established this program in the late 1990’s, it agreed to pay 100% of the costs of this credit; several years later, the state started sharing the costs with localities. It is possible that the House will use part of the funds proposed by Governor Kaine for an additional 1% teacher pay hike to pay for the state costs of this enhanced health care credit. The bill does contain language that it becomes effective only if funds are included in the budget to pay for it.
The differing versions of the budget will be presented respectively by the House Appropriations Committee at 1 p.m. and the Senate Finance Committee at 3 p.m. on Sunday.
Legislation
In action from earlier this week, on a 57-42 vote, the full House approved HB 1294, which creates the Public/Private Education Investment Tax Credit. The bill creates income tax credits for businesses and individuals who contribute to certain scholarship foundations. A portion of the bill provides for a scholarship foundation to distribute most of its contributions for qualified educational expenses to any public, private or home-schooled student. Meanwhile, the Senate has approved SB 544, which makes several changes to the Neighborhood Assistance Act program, including to provide that $1 million of a $4 million cap increase would be dedicated for education programs, and that $3 million is provided for grants to private schools for students with disabilities.
The Senate unanimously approved SB 61, which provides the framework for funding four additional standards (in the Standards of Quality) endorsed by the Board of Education in 2004 but not yet funded. The measure would take effect only if funded in the budget to be approved this session. It also passed SB 324, directing the state, in its biennial review of compensation for teachers and other occupations requiring similar education and training, to consider Virginia’s teacher pay as it compares with other Southern Region Education Board states.
The House and Senate Education Committees have begun hearing education-related bills approved by the opposite chamber. The following Senate bills were reported by the House Education Committee and subsequently approved by the full House.
SB 71 Changes the BOE’s required review of the SOQ from odd-numbered years to even-numbered years (HB 1058 is the House version approved in Senate committee).
SB 75 Requires schools to implement a "medical emergency response plan" as part of their school crisis and emergency management plan.
SB 502 Allows elected school boards with an even number of members to appoint a tiebreaker in case of a tie vote.
Senate Education and Health approved HB 58, which requires acceptable Internet use policies to include an instructional component on Internet safety for students. It also reported HB 348, which authorizes the BOE to initiate a review of any alleged test administration violations by a school board employee (SB 39 is an identical measure that has passed the House). The Senate Courts of Justice Committee reported HB 70, which adds school bus drivers to the protected class of persons not deemed guilty of assault and battery for incidental or minor contact with a student in an attempt to maintain order.
Both committees have reported the other chamber’s bill to provide that a parent who holds a high school diploma, rather than a baccalaureate degree, may provide home instruction to their children (a similar measure was approved, but vetoed two years ago).
Both chambers are moving forward with similar bills that establish a sales and use tax exemption for certain school-related items purchased during a three-day period in early August each year. HB 532 is the House version assigned to Senate Finance, while SB 571 is the Senate version that awaits final approval on the Senate floor.
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