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Feb. 26, 2023
2023 Session - Week 7
The General Assembly adjourned the 2023 Session sine die yesterday as scheduled. However we did so without finalizing budget negotiations. When it was clear the budget conferees were not going to reach agreement, we put forward a “skinny” budget that accomplishes four basic things.
The proposal corrects the error made by the administration that shorted our public schools by $201 million. The funding will hold school divisions harmless by providing the level of funding each division had anticipated.
We provide $100 million to supplement existing capital projects that are experiencing significant cost overruns because of inflation and supply chain issues. We must meet those obligations.
The budget makes a necessary payment into the Virginia Retirement System. We owe it to our retirees, and to our future retirees, to ensure the health of VRS and to reduce unfunded liabilities.
Finally, we made the required deposit into the Rainy-Day Fund. This action sends a signal to the rating agencies about Virginia’s fiscal health. Those balances reflect our ability to meet our obligations and should protect our AAA bond rating, which allows Virginia to borrow money at the lowest rate possible for capital projects.
The divisions between the House and Senate budget conferees are clear. The funding gap has narrowed, because everyone realizes that politics is not the art of the perfect but the art of the possible. Compromise is necessary. At this point, the House and the governor insist on prioritizing tax cuts. The Senate conferees are insisting on our priorities, including fully funding K-12 education and making investments in mental health services. While reaching a budget is going to require compromise, we do not intend to compromise our principles.
The General Assembly also left the vacancies on the State Corporation Commission unfilled. The SCC is composed of three commissioners who hear cases related to electric utilities and most other regulated business entities. Given the power of the SCC, the House and Senate have failed to identify consensus candidates to fill those spots. This year, I think the House of Delegates is influenced mightily by the governor, who can make interim appointments when the legislature is not in session. Of course, those appointments still need to be confirmed by the General Assembly. Everything hinges on the November elections, when control of the House and Senate will be determined. In the meantime, the SCC cannot fully do its work.
The filling of these vacancies is particularly important given the significant legislation that passed during the 2023 Session relating to electric utility regulation. Going into the Session, one of my priorities was to reduce energy costs for consumers and increase oversight of electric utilities by the SCC. In the final days of the session, the legislature passed Senate Bill 1321, which Senator (and Congresswoman-elect) Jennifer McClellan and I introduced, ensuring a fair review of the two major electric utilities, Dominion and Appalachian Power by the SCC. The bill will protect consumers against overcharges. The passage of SB 1321 increased the likelihood that a Dominion-backed bill, sponsored by Sen. Dick Saslaw, would need to incorporate significant changes to be successful. Early on, the patrons of those bills wanted to fold our bill into theirs, however Jennifer and I insisted that our bill remain separate, which kept pressure on Dominion to continue negotiating with stakeholders. In the end, the governor also got involved. The result is candidly one of the most pro-consumer pieces of utility legislation that has passed in a long time.
A final legislative success I wanted to highlight involves the bill I introduced after conversations with representatives of the Albemarle County Public Schools about the bus driver shortage. The bill sought to shorten the time frame someone has to be retired in order to return to work in positions that were facing high vacancy rates. Sen. Louise Lucas and Del. Carrie Coyner introduced bills similar to mine to address teacher shortages. In the end, the three bills were conformed to allow teachers and other essential school personnel, including school bus drivers, to come back to work six months after they retire rather than the existing twelve months. The legislation that passed will be effective this July and will sunset in five years. My original bill would have allowed a return to work three months after retirement, but that was modified over concerns the Internal Revenue Service would reject the standard. The bill also directs the State Board of Education to research the issue further and shorten the time frame if the IRS allows it.
The final week of session, especially during an election year, is often marked by retirement announcements and goodbye speeches. On the last day of session, Del. Rob Bell of Albemarle County announced he would not run for reelection. While Rob and I are polar opposites on every divisive issue, he has been a critical partner since 2014 in my work to reform our mental health system. He served as the vice chair of the Joint Subcommittee to Study Mental Health Services in the 21st Century and has played a key role in the Behavioral Health Commission. I have valued his friendship and willingness to work across the aisle with me. I thank him for his service.
Of course, all of the retiring members will still be back for the veto session in April. And we still have a budget to finish. The conferees will be working to develop consensus over the next few weeks. I anticipate that I will be in Richmond with the other conferees one or two days a week until we reach an agreement.
Thank you for allowing me to serve you. When I’m not in Richmond, I will be practicing law or campaigning. If I can be of service to you, please do not hesitate to contact me at [email protected] or (434) 296-5491. If you wish to get involved with my campaign, please email [email protected].
