Delegate Mark Cole and Governor Bob McDonnell
It is my honor to represent the citizens of the 88th District in the Virginia House of Delegates. The House of Delegates is one half of the Virginia General Assembly, the other half being the Virginia Senate. The General Assembly is currently in session, so I am in Richmond at the Capitol most days. Please feel free to contact me if you have questions or concerns about legislation or issues before the General Assembly. If you would like to visit the Capitol during session, please call my office so that we may set-up a tour and assist with your visit. I look forward to hearing from you!
February 17, 2013
END OF SESSION APPROACHING
As we enter the last week of the General Assembly Session, House and Senate negotiators are trying to work out compromises on many legislative items including the state budget and transportation. While this is supposed to be the last week of session, it is not unusual for session to be extended at least a few days in order to complete work.
SCHOOL SECURITY
The Governor’s School Security Task Force has issued a report and several new bills have been presented to begin implementing some of its recommendations and are working their way through the General Assembly. I am sponsoring one of the Governor McDonnell’s bills
House Bill (HB) 2344, which would require school divisions to adopt policies and procedures for the establishment of threat assessment teams in each school.
One of my earlier bills,
HB 1582 which would allow private schools and daycares to hire armed security guards, has passed the General Assembly and been sent to the Governor for his consideration.
MEDICAID EXPANSION
The future of Medicaid has emerged as one of the bigger issues facing the General Assembly. Medicaid is a joint federal and state program that provides health care to low-income individuals. For hundreds of thousands of Virginians, it is their primary way to receive needed medical care.
Last year, Virginians spent $7 Billion on Medicaid. The Federal government wants states to expand the program to allow more individuals to qualify for coverage. Medicaid expansion could add over 250,000 new enrollees, further driving up costs if we do not implement reforms. Reforms will allow us to lower costs and dedicate those savings toward providing better care for current and new enrollees.
Our House Budget directs the Department of Medical Assistance to seek authority for reforms from the
Federal government. After those reforms are implemented, DMAS may ask the General Assembly for authority to expand Medicaid.
The Medicaid system is in desperate need of reform. It is the fastest growing program in the state budget and costs are spiraling out of control. Additionally, Federal regulations dictate rigid and inflexible coverage policies that further drive up costs. In 2010, a legislative study confirmed this fact when they estimated that nearly $ 90 million per year of taxpayer dollars are wasted due to fraud, abuse, and error.
If Virginia were able to get a waiver from the Federal government, we would have the flexibility to implement much-needed cost saving reforms. These savings could then be used for the purpose of Medicaid expansion.
Some have called for a “dual track” approach- expanding Medicaid and enacting reforms at the same time. Those calling for the “dual-track” approach believe that expansion would mostly be covered by Federal funding. Given the current state of the Federal government’s finances, I am skeptical of their ability to make good on promised funding.
If we expand Medicaid without enacting cost-saving reforms, Virginia taxpayers could be stuck with a big bill. Even worse, we would be stuck with an inefficient program with no authority or resources to fix it. That is why reforms must come first.
STATE INSURANCE EXCHANGES
A major part of the Federal Healthcare Reform Act is the establishment of Heath Insurance Exchanges. States have the option of setting up and running their own exchanges or, should a state decline to do so, the Federal government will establish and operate its own exchange for the state.
Governor McDonnell’s administration as well as the General Assembly has looked at which approach might be best for Virginians. At this time there are many uncertainties and variables.
We do not have detailed information from the Washington on what a Federal exchange will actually look like, and long term operating costs of a state exchange are not clear. The Federal government is offering funds to help states pay the cost of starting an exchange; however, given the current deficits that the Federal government is running, it is unlikely that Federal funds will be available on a long term basis.
Our decisions must weigh the significant costs to the state along with the impact on the choices and burdens for our citizens and businesses. I am committed to doing what is best for Virginians in the least intrusive and bureaucratic way. There does not appear to be any advantage for Virginia to establish a state exchange so the General Assembly has not passed legislation to set-up and operate one.
Legislation has been passed to govern the regulation of insurance companies and individuals operating under a future Federal Exchange, which some have confused with setting up a state exchange; but in fact, no state exchange is being established. A majority of the General Assembly believes that the businesses and citizens of the Commonwealth would be better served if the state maintained some oversight of the insurance industry rather than ceding all regulatory authority to Washington.
January, 30, 2013
CROSSOVER
Next week will be crossover in the General Assembly, that is the day that the House and Senate must complete action on their own legislation and send it over (crossover) to the other body. The pace of work at the Capitol will increase and the sessions will grow longer as we approach crossover.
EDUCATION REFORM
One of the key ingredients to a strong economy is a well-educated workforce, my colleagues and I are committed to advancing reforms that empower our teachers, bring greater accountability to our schools, and give localities more flexibility over state funding. This week, the House of Delegates passed several important K-12 education reform bills:
- The Teach for America Act (
House Bill 2084) passed the House of Delegates with unanimous support. This bill will bring the Teach for America program to the Commonwealth and allow participants in the program to teach in Virginia schools. Currently, 300 of Virginia’s best and brightest recent college graduates who participate in Teach for America are sent to classrooms in other states. This bill will allow these individuals, along with any other Teach for America participant, to teach here and work to make a difference in our schools.
- Local School Division Charter School Approval (
HB 2076) would reduce barriers to creating charter schools in Virginia. >
- High School to Work Partnerships (
HB 2101) passed with unanimous support. This bill will make sure all high school graduates are college or career ready when they graduate.
- The Educator Fairness Act (
HB 2151) passed with solid bipartisan support. This legislation gives localities the option to extend the probationary window for new teachers from three to five years and clarifies the evaluation and grievance processes for teachers. This legislation has the support from many groups including the Virginia Chamber of Commerce, the Virginia Association of Superintendents and the Virginia Education Association.
TRANSPORTATION
I have received a lot of feedback on Governor McDonnell’s transportation proposal; especially his idea to replace the gas tax with an increase in the sales tax. The Governor proposed replacing the gas tax because it is a declining revenue stream when measured on a per miles basis. The current gas tax has about 45% of its purchasing power that it had in 1986, the year it was raised to its current level. Inflation, increased fuel efficiency standards, and the rise of alternative fuel vehicles are all chipping away at gas tax revenues.
According to the Governor’s office, most families would not see a change in their wallets from this tax swap. For example, a family that purchases 100 gallons of fuel a month would save roughly $17 each month with the gas tax repeal. In order for the family to expend those savings towards the sales tax increase, the family would have to spend an additional $2,000 each month.
One of the issues with the proposal is that a shift to the sales and use tax might hurt Virginians and benefit out of state drivers, but according to information from the Governor’s office this is not true. The best estimates indicate that out of state drivers account for less than 10 percent to the total gas tax collected. As for the sales tax, a 2007 report from the Virginia Tourism Corporation estimates out of state residents account for 9 percent of the revenue generated from the sales and use tax. In the end, the Governor’s office has said the tax shift will not cost Virginia families more and will not benefit of out of state residents.
PAST ACTIONS ON TRANSPORTATION
In prior sessions, the General Assembly, spearheaded by the House, has passed legislation designed to reduce traffic congestion. In 2011, we passed legislation to inject nearly $4 billion into transportation funding that jumpstarted over 900 projects around Virginia. Today, we have $14 billion invested in projects that are in procurement or under construction - the most in Virginia’s history.
In 2005, we increased transportation funding by more than $ 1.4 Billion, the largest increase in nearly 20 years, including $ 850 million in funding to reduce congestion on major thoroughfares like I-95. The following year an additional $ 568 million was directed to transportation.
During the 2007 session, the General Assembly financed largest transportation investment in two decades by providing nearly $ 500 million in ongoing, new transportation funding and authorizing $ 3 Billion in transportation bonds. In 2008 we restored $180 million in transportation funding that former Governor Kaine had diverted to other programs.
Soon after coming into office in 2010, Governor McDonnell ordered a performance audit of VDOT that revealed $1.4 billion in previously authorized funds that were not being spent on needed highway maintenance and new construction. These dollars were redirected to long overdue transportation projects.
January 15, 2013
SESSION BEGINS
The 45 day sprint known as the 2013 General Assembly Session began last week with much fanfare including what hopefully is the start of a new tradition- the Richmond Symphony Chorus singing a rousing rendition of the Star-Spangled Banner.
On the first day of session, Governor McDonnell delivered his State of the Commonwealth address. The Governor began his speech by highlighting the progress our Commonwealth has made over the past three years. Our unemployment rate is at 5.6%, lowest in the southeast, and 150,500 net new private-sector jobs have been created. Our public schools continue to rank well nationally. We have balanced our budget without any tax increases on Virginia families or businesses, and have maintained our AAA credit rating.
Governor McDonnell also laid out an agenda for his final legislative session that focuses on the kitchen table issues on which most Virginians are focused. The Governor’s legislative priorities for this year’s session contain reforms that will continue to help our small businesses create new jobs and opportunities, improve our public schools, and ensure we are able to maintain our roads.
GOVERNOR’s TRANSPORTATION PROPOSAL
Governor Bob McDonnell announced an aggressive transportation plan that would provide more than $3.1 billion in transportation funding for the Commonwealth over the next 5 years, using a combination of tax reform and new fees and taxes. The governor’s proposes making these fundamental changes:
- Eliminate the current 17.5 cents per gallon gas tax and replace it with a 0.8 cent increase to the Sales Tax dedicated to transportation
- Dedicate an additional .25 cent of the state’s portion of the existing Sales Tax to transportation
- Increase vehicle registration fees by $15 and dedicate the revenue to intercity passenger rail and transit
- Impose a $100 annual Alternative Fuel Vehicle Fee and dedicate the revenues to transit
- Adopt the Marketplace Equity Act now and dedicate projected revenues to transportation and education. This is probably the most controversial part of the Governor’s proposal. The US Congress will consider the Marketplace Equity Act, which would grant states the legal authority to collect out-of-state sales taxes such as internet purchases. This is not really a new tax in Virginia, just a new way of collecting a current tax. Currently the tax is supposed to be paid as a use tax on your Virginia income tax return. However, compliance is very low. This proposal would conform the Code of Virginia to any changes in federal law at would require the retailer to collect the tax, contingent upon the Marketplace Equity Act being adopted by Congress. Potential revenues will be dedicated to transportation, public education and localities.
While I am not sure that all the provisions of the plan are good ones, I will give the Governor credit for coming up with bold proposal. When I discussed the plan with the Governor, he explained that it is a compromise proposal designed to get through a conservative House and a more liberal Senate.
LEGISLATION
I am sponsoring several pieces of legislation this session. Here is an overview of a few of my bills:
In light of recent events in Connecticut, I have introduced two bills dealing with school security:
House Bill (HB) 1730 would place a School Resource Officer (SRO) – which are specially trained deputies and police officers – in every public school in the Commonwealth. Most high schools and many middle schools already have SROs assigned to them, while most elementary schools do not. Another bill,
HB 1582 would allow public and private schools and day cares to hire certified armed security guards. They are currently prohibited by state law from doing so. It is a shame that we have to consider actions such as this, but I feel we need to do something to protect our school children.
HB 1337 would remove utility bills, bank statements, and paychecks from the list of acceptable voter ID for voting. These items were added to the list last year as a compromise with the Senate in order to get a voter ID bill passed, prior to last year Virginia did not require any ID to vote. I decided to try to tighten up the list after a video surfaced last year of a campaign staffer for Congressman Moran discussing ways to commit voter fraud using such items. They are very weak forms of ID that can be easily faked.
Two bills,
HB 1378 and
2170, deal with public notice requirements. Currently local governments are required to purchase ads in newspapers to inform the public of certain legal notices. In order to save taxpayer funds, these bills shift the notice requirement from purchasing newspaper ads to posting the notice on the internet. Each year fewer people subscribe and read newspapers, so I think it is reasonable to shift the notice requirement from newspapers to web pages. Newspapers would still be free to publish the notices in their papers if they wish, but localities would not be required to purchase ads in newspapers. Of course the newspapers are opposed to anything that might mean less ad revenue for them.
HB 1401 would prohibit local government from being able to take your home, if it is your sole dwelling, for non-payment of taxes. When people are unable to pay their bills, I do not think government makes the situation better by also making them homeless. Local government would still be able to garnish wages and income or place a lien against the dwelling in order to get payment, but they would not be able to take your home. The legislation only addresses delinquent taxes and has no impact on mortgages – if you fail to make your mortgage payments the lender would still be able to foreclose.
HB 1402 would adjust state income tax brackets and deductions for inflation every two years. This is designed to keep inflation from pushing you into a higher tax bracket and from eroding the value of your deductions.
January 6, 2013
TRANSPORTATION
Transportation continues to be a high priority, especially for our area. In recent years the General Assembly, spearheaded by the House of Delegates, had significantly increased transportation funding to try to address traffic issues.
In 2005, we increased transportation funding by more than $ 1.4 Billion, the largest increase in nearly 20 years, including $ 850 million in funding to reduce congestion on major thoroughfares like I-95. The following year an additional $ 568 million was directed to transportation.
During the 2007 session, the General Assembly financed largest transportation investment in two decades by providing nearly $ 500 million in ongoing, new transportation funding and authorizing $ 3 Billion in transportation bonds. In 2008 we restored $180 million in transportation funding that former Governor Kaine had diverted to other programs.
Soon after coming into office in 2010, Governor McDonnell ordered a performance audit of VDOT that revealed $1.4 billion in previously authorized funds that were not being spent on needed highway maintenance and new construction. These dollars were redirected to long overdue transportation projects. Another positive development came when Governor McDonnell announced $1.1 billion in construction and maintenance projects for the first six months of Fiscal Year 2011.
In 2011, the Governor unveiled an ambitious $4 billion transportation initiative as part of his budget and legislative package. With interest rates and construction costs at record lows, this was a good opportunity to get roads built in modern Virginia history.
While we rarely get credit for it, the General Assembly and the current administration have made significant efforts to address our transportation problems.
What is frustrating is that it seems that no matter what we do; traffic problems persist and even worsen. Part of the problem is that as cars get better gas mileage and with the increasing use of hybrids and electric cars, the gas tax generates less money per mile driven each year.
Every session we see new legislation to try to address the issue including raising the gas tax to new taxes and fees. The 2013 session will be no different.
Already we have heard proposals to increase fees on hybrids and alternative fuel cars, replace the gas tax with a sales tax, and to increase the portion of the current sales tax dedicated to transportation.
There is never a good time to raise taxes, given the weak state of the economy, now would be the worst time to raise taxes. Tax payers and businesses are about to be hit with significantly higher taxes from Washington, including a bunch of new taxes, fees, and regulations associated with President Obama’s healthcare reform - which alone will be enough to push our stagnant economy into recession; doubling up on that by raising taxes at the state level would just make a bad situation even worse.
Just like every business and family, government needs to live within its means and set spending priorities. Given our significant traffic problems, transportation needs to be at the top of the General Assembly priority list.
I have proposed increasing the percentage of the current sales tax that is dedicated to transportation. To be clear, this is NOT a proposal to raise the sales tax, but simply increase the portion of the current sales tax dedicated to transportation.
Currently, a half percent of the current sales tax is dedicated to transportation. I have proposed increasing that allocation to a full percent over a period of five years. The legislation includes provisions to delay the transfer if it would result in an actual decrease of money available to the General Fund.
This would provide nearly $ 700 million in additional transportation funding without raising taxes. This amount would grow with the economy and inflation, something that the current gas tax fails to do.
While setting spending priorities and reallocating resources is difficult, it is something that we must do to ensure that core functions of government, like transportation, are addressed.
