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Posts Tagged ‘Budget’
Delegate Keam quoted in Fairfax Times re Budget
http://www.fairfaxtimes.com/cms/story.php?id=2045
Virginia ends the budget year with $400M surplus
Legislators approve about $82 million in bonuses for state employees
Virginia ended the budget year with about $400 million more than expected, Gov. Robert F. McDonnell (R) announced last week, reflecting the first overall revenue growth in the state since 2007.
Most of the surplus funding, which came from state agency cutbacks and higher-than-expected sales tax revenues, is spoken for, said McDonnell, who urged legislators to “not get too excited.” The state collected $228 million more in revenue than budgeted and spent $175 million less than expected, McDonnell said.
After replenishing reserves and fulfilling other approved spending, state leaders have about $71 million to spend. Any spending decisions not already included in the fiscal 2011 budget will not be made until the next General Assembly session in January.
State employees will all receive a bonus equivalent to 3 percent of their salaries on Dec. 1, costing the state about $82 million. Legislators approved the bonuses, a McDonnell initiative, contingent on surplus dollars being available.
“Our employees knew there would be a financial reward for saving taxpayer dollars and returning unspent balances to the general fund,” McDonnell said last week. “This notion of gain sharing or economic rewards for getting results is a concept widely used in the private sector, and long overdue in practice and implementation within state government operations.”
Vienna Del. Mark Keam (D-Dist. 35), a member of the House of Delegates Finance Committee, said the “surplus” is more of an accounting mechanism, not extra funding to replenish state programs that were cut earlier this year.
“It’s positive news in that we are not in a deficit … but I don’t want anybody to think that it is all sunshine and good news,” Keam said. “That money is already allocated to various obligations we already have.”
School divisions have received a bit of extra cash because of increased sales tax collections — about $19 million was distributed statewide. Other designated portions of sales taxes include $37.5 million for local governments and $28 million for the state’s transportation trust fund.
McDonnell must decide by Nov. 1 whether the discretionary $71 million should be retained in state agencies or if it should be reallocated. He will make his budget recommendations in December.
Keam said he would like to see some of that money go to restore Medicaid cuts and fund additional Medicaid-supported services for people with disabilities.

Delegate Keam’s article published in Fairfax County Times
http://www.fairfaxtimes.com/cms/story.php?id=1280
Tuesday March 30, 2010
Mark Keam: Reflections on the 2010 General Assembly session

On March 14, the General Assembly adjourned after approving about 850 bills during the 61-day session. The most important bill was the budget for the 2010-2012 biennium.
It was certainly challenging to balance a budget that would fill a $4.5 billion shortfall over the next two years based on reduced revenues and the anticipated gap when federal stimulus funds run out for enhanced Medicaid match program. While the final budget is nowhere near perfect, I believe it had improved from the earlier House version that had draconian cuts to education and safety net programs and made major structural reforms in the way some programs are funded.
After negotiations, the bipartisan and bicameral conferees came back with a product that I thought was as good as it could be under the circumstances. I voted for the final budget because it included no new general tax increases while adequately funding what I believe are the core functions of state government. Specifically, I believe Fairfax County schools received a fair shake in the process.
In December, outgoing Gov. Tim Kaine (D) had proposed a misguided cost-saving idea to “freeze” the Local Composite Index to data from two years earlier. This would have resulted in Fairfax County’s share of school funding remaining at a higher rate based on outdated statistics that reflect higher real estate and income levels.
The LCI freeze issue was a bright line test for me as it would have meant an unprecedented loss of about $61 million in state funding for Fairfax schools. I introduced a bill to fix the formula, and I joined other lawmakers from Northern Virginia in seeking budget amendments to reverse this proposal.
Fortunately, Gov. Robert F. McDonnell (R) and the appropriators all agreed with my colleagues and provided the full amount due to Fairfax schools.
The budget also included $50 million for the governor’s “Jobs & Opportunity Agenda” which included my bipartisan “Green Jobs” tax credit bill. I am proud to have passed this significant clean energy job creation bill in my first year.
We also passed several economic development bills to expand the base of revenues for future budgets. I cosponsored many of these bills, such as providing entrepreneurs capital gains tax exclusion for investing in early stage science and technology companies and establishing a biotechnology research performance grant program.
As a new delegate, I had a very rewarding and thoroughly enjoyable experience during two months in Richmond. I found that most members truly want to get things done for their constituents, and have a sincere attitude about public service. And most delegates reached out to help a freshman learn the ropes.
There were certainly times when committee and floor debates were heated and unnecessarily sharp in tone, and partisan interests sometimes trumped policy. And like in any organization, there are work horses and show horses. But my experience has shown that these unpleasant aspects of politics were the exceptions and not the rule in Richmond.
I look forward to returning on April 21 for the “veto session.”
Del. Mark L. Keam (D) represents the 35th District in the Virginia House of Delegates.
Delegate Keam quoted in Sun Gazette
This article summarizes some key legislative issues debated in this General Assembly session. Delegate Keam is quoted at the end of the article.
http://www.sungazette.net/articles/2010/03/24/fairfax/news/fe227.txt
Despite Stormy Seas, Legislators Come Back Generally Satisfied With Session

Del. Mark Keam (D-35th) was among newcomers to the General Assembly this session. (File photo by Brian Trompeter)
by BRIAN TROMPETER, Staff Writer
(Created: Wednesday, March 24, 2010 7:23 AM EDT)
Northern Virginia’s legislators say they are pleased that the General Assembly ended this year’s session close to its 60-day schedule and balanced the commonwealth’s budget while raising few fees and no general taxes.
“It was a very businesslike session,” said State Sen. Janet Howell (D-32nd), one of the most senior local lawmakers. “The major concern was the budget. We knew we had to cut $4 billion more. It was very intense. We minimized the damage, but there’s no denying the cuts are severe. All state programs are impacted.”
Local legislators were elated with efforts that undid outgoing Gov. Kaine’s proposed freeze of the Local-Composite-Index formula, which would have cost Fairfax County Public Schools about $61 million had it stood intact.
Legislators cut about $250 million from state funding for public education, but this was far less than the $600 million in cuts originally proposed by the House of Delegates.
“There is a lot of pain hidden in those numbers,” Howell said. “The quality of education is likely to decline throughout Virginia.”
Howell enjoyed some legislative successes, and suffered some failures, during the session. One of her victories was Senate Bill 13, which adds critical-care specialists to the roster of medical professionals who can determine when patients are brain dead. The bill is designed to facilitate organ donation, she said.
Another success, Senate Bill 14, requires General Assembly members and their immediate family members to disclose wages or salaries in excess of $10,000 paid by state or local governments or advisory agencies.
“A number of legislators were working for colleges and not disclosing it, and I thought that that was something the public had a right to know,” Howell said.
Howell’s biggest disappointment was that her bill requiring benefits for people with autism passed the Senate, but was killed in a House subcommittee.
“Other states [provide benefits] and help these families,” Howell said. “I’m very resentful that Virginia doesn’t, and I will try again next year.”
State Sen. Chap Petersen (D-34th) echoed Howell’s sentiments on the Local Composite Index and the state’s budget, but said he was disappointed that Gov. McDonnell did not outline a clear vision for tackling Virginia’s transportation problems.
Petersen said he has written to the governor and asked him to fast-track a proposed bus-rapid transit (BRT) project along the Interstate 66 corridor. The project, which would need a $250 million investment, could help commuters in Gainesville, Manassas and Centreville reach the Vienna Metrorail station without using the congested interstate, he said.
“It’s a nightmare now with the gridlock,” Petersen said. “Rather than sitting around waiting for a 10-year project like Dulles Metro, I’d like to see something done now.”
Petersen racked up several legislative successes during the session. Senate Bill 110 will allow localities to bring in third-party investors to facilitate loans to homeowners for energy-efficiency improvements.
Petersen’s Senate Bill 116, which passed unanimously, gives houses of worship legal standing under Virginia’s consumer-protection laws. Petersen said several Washington-area pastors approached him after their churches had been caught up in a marketing scheme and lost money.
Another successful Petersen initiative, Senate Bill 712, authorizes George Mason University to create a branch campus in a new free-trade zone established in South Korea. The campus still must be approved by the State Council for Higher Education.
Petersen, out of constitutional concerns, withdrew Senate Bill 402, which would have allowed localities to prohibit delivery of unsolicited newspapers on private property.
The legislation would have applied in cases where the newspapers posed safety or health hazards and the residents had written to the papers’ publishers asking for delivery to cease.
“There were lots of First Amendment issues,” Petersen said of the bill. “When you try to restrict [newspaper] delivery, U.S. courts aren’t keen on that.”
Freshman Del. Mark Keam (D-35th) said he was satisfied with the legislative session’s outcome.
“I was honored to be there and enjoyed the process,” he said. “I really enjoyed meeting a lot of the other delegates from all corners of the commonwealth and learning about their districts.”
Keam said he was glad the General Assembly’s budget cuts were not too draconian and did not harm the commonwealth’s AAA bond rating.
“Considering the economic situation we faced, my goal was ‘first, do no harm,’” Keam said. “The budget we passed was about the best we could do under the circumstances.”
Many of Keam’s bills were killed – hardly unusual for a freshman legislator – but his renewable-energy jobs initiative was incorporated into House Bill 803, which was signed by the governor. The law allows businesses to receive $500 income-tax credits for each “green” job created (up to 350) that pays at least $50,000 per year.
Keam said he learned much about the General Assembly’s inner workings during the session.
“Next year, I’ll go in there with a bit more sophistication,” he said.
My votes on the 2010-2012 Budget
Coming into this year’s General Assembly session, we faced two serious challenges in drafting the budget.
First, we had to meet a $4.5 billion shortfall in the two-year base budget. We had to address a $1.6 billion cut that outgoing Governor Tim Kaine proposed to eliminate for reimbursing local governments with car tax relief. We also had to fill the $2.9 billion gap for when the federal stimulus funds run out for enhanced Medicaid match program.
Second, we were told in no uncertain terms by our new Governor, Bob McDonnell, that “if you pass a bill in this recession that raises taxes on the hardworking families of Virginia, I will veto it. And if you pass a budget embedded with those same tax increases, I will not approve it.”
Delegate Keam interviewed on local TV
CBS-6, a local television news station, interviewed Delegate Keam about the status of the budget. In this video clip (and quoted below), Delegate Keam argues for more funding for public education and healthcare programs.

http://www.wtvr.com/news/wtvr-balancing-the-budget-100226,0,1011787.story
Can They Finish in Time?
State Lawmakers weigh in on whether they can reach an agreement on the budget before the session ends and prevent an expensive extended session.
Sam Brock Staff reporter
February 26, 2010
CAPITOL SQUARE – The clock is ticking. Lawmakers have to figure out how to balance a budget with a $2 billion shortfall and they only have about two weeks left to do it.
If they don’t, the state is going to end up spending money it doesn’t have on an extended session.
Delegate Keam quoted in Fairfax County Times
As the General Assembly considers the state budget this week, Delegate Keam spoke with Fairfax County Times about the proposed cuts to public education in the House version of the budget.
http://www.fairfaxtimes.com/cms/story.php?id=1105
‘Hardships’ in House, Senate budget
Education, Medicaid among areas likely to see cuts from state
by Kali Schumitz | Staff Writer
Education and Medicaid are the primary victims of a $4.2 billion state budget deficit as legislators begin to solidify the fiscal 2011 and 2012 biennial state budget.
Both chambers of the Virginia General Assembly unveiled their proposed amendments to former Gov. Timothy Kaine’s (D) executive budget Sunday.
The House of Delegates Appropriations Committee stripped the budget of all tax and fee increases Kaine proposed. The Senate Finance Committee restored the funding to localities that offsets car tax payments but kept in some other “user fees,” according to Sen. Charles Colgan (D-Dist. 29) of Manassas.
Both proposals restore some unpopular cuts, such as the proposed freeze of a local education funding formula that would have cost Fairfax County $61 million. Overall, the Senate budget would put Fairfax County Public Schools ahead by $56 million, according to Sen. J. Chapman Petersen (D-Dist. 34) of Fairfax.
The House version proposes altering a different funding stream that supplements teacher pay to reflect the higher cost of living for teachers in Northern Virginia, which could cost Fairfax County about $11 million, according to Del. Mark Keam (D-Dist. 35) of Vienna.
“The General Assembly giveth and the General Assembly taketh, I guess,” Keam said.
Northern Virginia delegation sends letter to Gov. McDonnell
In an ongoing effort to seek fairness in funding for Northern Virginia schools by “unfreezing” the LCI formula, Delegate Keam signed on to this group letter sent to Gov. McDonnell by bipartisan Delegates and Senators who represent Northern Virginia.
Delegate Keam has also joined Republican Delegates Dave Albo (amendment #132-19h) and Scott Limgamfelter (#132-16h) in introducing budget amendments to use the LCI index for 2011, instead of the previous year’s formular as proposed in the current budget. This change would provide Northern Virginia with the $140 million that is rightfully due to the region’s schools.
Town Hall meeting with State Senator Chap Petersen
On Saturday, January 23, I held my first town hall meeting with Senator Petersen, in the heart of the Town of Vienna. Big thanks to the American Legion Dyer-Gunnell Post 180 and it’s Auxiliary for hosting the event, as well as to Mayor Jane Seeman and other leaders of the Town of Vienna for inviting citizens to join us. We had a great turnout of almost 100 constituents who were eager to learn the latest happenings in our State government and who came with lots of good questions for us.
As summarized on Chap’s blog (http://oxroadsouth.com/2010/01/24/town-hall-in-vienna.aspx), the two of us gave an overview of the economy and political climate in the Commonwealth, and focused on the critical budget process we’re about to take on. There is really no good news on any front. The national and state economic indications are still somewhat gloomy, with unemployment numbers and housing markets still far behind. The new Governor and the General Assembly must cut almost $4 billion in our biennial budget for 2010-2012 to meet our balance, and there are no easy answers to where we will find the savings.
The biggest cost factor for Fairfax County is what happens with our local composite index (LCI) which determines how much state support our schools receive (http://www.doe.virginia.gov/school_finance/budget/compositeindex_local_abilitypay/index.shtml). The background on this complicated issue has been written extensively by other Northern Virginia lawmakers so I’ll just cite these sources here to save repetition:
http://delegatedavealbo.wordpress.com/2009/10/14/school-funding-local-composite-index/
http://scottsurovell.blogspot.com/2009/12/richmonds-attack-on-middle-class.html
http://oxroadsouth.com/2010/01/19/fighting-the-lci-freeze-on-the-senate-floor-2.aspx
Bottom line is that we are now facing a shorfall of over $61 million for Fairfax County schools because the outgoing Governor’s budget would “freeze” the downward adjustment of our LCI at a time when the index finally recognizes that Fairfax is not as ”wealthy” as we once were.
I have introduced 2 bills (HB 1128 and HB 1129) to address this patently unfair treatment of Fairfax students, parents and taxpayers, and I hope to have my bills considered soon. I’ve also co-patroned budget amendments to fix the LCI formula for this upcoming budget cycle.
The town hall was a great opportunity for me to reconnect with constituents after the holiday season which was followed by a hectic move down to Richmond. After spending 10 days in the Capitol and getting used to the arcane ways of the legislature, I was very happy to return home and see some friendly local faces. It is truly an honor to be able to represent the fine citizens of Vienna, Oakton, Dunn Loring and Fairfax. I look forward to returning every weekend to see the great folks of the 35th District.





