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M. Wayne Huggins Government Relations Director Legislative Update March 15, 2010 All Members, At 5:52pm last evening the 2010 Session of the General Assembly adjourned “sine die”, (the traditional manner in which the GA says “we’ve finished”) Their last act of business was to adopt a proposed budget for the next biennium and amendments to the current budget. Their proposed budget now goes to the Governor who may accept, amend or veto. Any actions taken by the Governor will be considered by the General Assembly on April 21st during the “veto session”. As such the final biennial budget will not be known until then. However the following is a summary, as we currently understand it, of the conference budget adopted last evening by the General Assembly. As you read through this summary you will see the term, “introduced budget”. This refers to the proposed budget introduced by Governor Kaine back in December. COMPENSATION & RETIREMENT, GENERAL GOVERNMENT · Restores funding for deferred compensation cash match program which was removed in the introduced budget. This includes partial restoration in FY11 of $10 per pay period and full restoration in FY12 to $20 per pay period. · Eliminates proposal in introduced budget to require current state employees to contribute towards the cost of their retirement. In other words, there will be NO change to the retirement system for current state employees. · New employees, (those hired after 7/1/10) will be required to pay a 5% contribution toward their retirement. · Reduces the assumed premium increases for the state employee health insurance program for both the state and the employees. Introduced budget assumed 5% increase in FY11 and 10% increase in FY12. Proposed budget assumes 3% increase in FY11 and none in FY12. · Furloughs – Adopts the proposal for one furlough day before June 30th, 2010, however includes NO furlough days in FY11 or 12. It is not clear if the one furlough day to be taken before 6/30/10 affects the VSP. · Includes language for a 3% bonus for state employees in FY11 if FY10 revenues exceed the revenue assumptions by $82.2 million. If revenue assumptions exceed forecast but by an amount less than $82.2 million, the bonus will be pro-rated. STATE POLICE · Provides for 2 basic schools, one in FY11 and another in FY12. · Includes $6.8 million each year to restore funding for counter terrorism efforts and criminal investigations which was removed in the introduced budget. · Provides $4 million in FY11 to provide maintenance for the STARS radio system. REVENUE ENHANCEMENTS · Increased the “4 for Life” program fee (this is the program that much of the “Med-Flight” funds comes from) from $4.25 to $6.25. · Borrowed approximately $620 million from the VRS fund (the fund is currently valued at approximately $50 billion). The state will have to begin paying it back in 2013 at 7.5% interest. As stated above, this is a summary of the adopted budget as we currently understand it. While the budgets of many state agencies, K-12 education and higher education, were severely reduced requiring many layoffs it is not readily apparent if any layoffs will be required at the Department of State Police. As more information is obtained we will be passing it along. Have a great week! Wayne |