Virginia General Assembly Archives - Senator Creigh Deeds

Session Newsletter (Jan. 31, 2014)

January 31, 2014 by Creigh Deeds

This past week saw significant changes at the Virginia General Assembly. Nearly half way into the 2014 session two new senators were seated. Since both senators, Jennifer Wexton from Loudoun County and Lynwood Lewis from Accomack County, are Democrats, the balance of power shifted in the Senate of Virginia. With 20 Democrats and 20 Republicans, the balance of power tipped to the Democrats now that we have a Democratic Lieutenant Governor in Ralph Northam.

Twice before in Virginia’s recent history, the Senate was evenly divided. In January 1996 the parties agreed to a power sharing arrangement. The committee chairs and majorities were staggered, with both the Democrats and the Republicans having what amounted to an equal say in the business of the Senate. That precedent was not followed when the 2011 elections yielded a 20-20 tie. Rather, the Republicans seized power and, for the first time in the history of the Senate of Virginia, threw members off committees. You might recall that I lost assignments to both the Committee for Courts of Justice and the Committee on Commerce and Labor during that upheaval.

This year, the Democrats followed the precedent from 2012. The Lieutenant Governor broke the procedural ties, and Democrats have claimed majorities on all but two committees and each committee chairmanship.

The result of the transfer of power is that my committee assignments have changed again. I have served on the Transportation Committee of the Senate since 2002, under chairs Marty Williams, Yvonne Miller, and Steve Newman. Earlier this week I was elected chair of the Transportation Committee. The chairmanship will give me a significant voice in the establishment of transportation policy throughout the Commonwealth. I still just have one vote on the Committee, but I will have more control over which bills are heard and the order of business.

I also gained two committee assignments. As a committee chair, I have a seat on the Rules Committee. This committee has a significant role regarding the conduct of business in the Senate and considers a wide variety of issues that are raised primarily with resolutions. Significantly, I have been appointed to the Senate Finance Committee. Without question, this is the most important committee in the Senate because it handles the budget and all legislation with a fiscal impact. A majority of bills and public policy matters require funding, and sometimes bills pass but are ineffective because money is not attached. My vote on the Finance Committee will give me and my constituents a significant voice in the conduct of government in Virginia. This is my 23rd year in the General Assembly and the first time I have been appointed to a money committee.

The work of the Senate Finance Committee is divided up by topic matter into eight subcommittees. I have three subcommittee assignments in the Finance Committee. First, I serve on the Transportation Subcommittee due to my chairmanship of the Transportation Committee and my long standing interest in transportation policy. Specific construction projects are not usually funded by the General Assembly, rather decisions about which projects go forward are made at the local level through MPOs and by the Commonwealth Transportation Board. However, this assignment will give me and my constituents a significant role in determining which policy areas are funded and how we move forward, particularly in the areas of rail and air space, a growing area of economic importance for the Commonwealth.

My second new subcommittee assignment is for Economic Development and Natural Resources. This subcommittee is very important to me because of my long standing interest in conservation and state parks, and my interest and efforts in the area of economic development. Some may recall that I introduced the legislation back in 1996 that codified the Governor’s Opportunity Fund. Any number of economic development projects have been funded through budget amendments I have introduced over the years. Historically, Virginia ranks near the bottom of the 50 states in spending on natural resources and state parks. You can expect me to work to increase funding there and to make sure that our economic development dollars are spent wisely.

My final subcommittee assignment is to the Public Safety Subcommittee. This is the subcommittee that decides what criminal justice or corrections initiatives, whether advanced through the Courts of Justice Committee, or elsewhere, are worth funding. Difficult decisions are made here because many worthy bills pass, but fiscal constraints require us to set priorities. Without question this subcommittee will involve some of the toughest decisions I will have to make.

I suppose many people wished the power sharing precedent of 1996 was followed. In fact, that is the model that would probably produce more collegiality and a better work environment. However, after the events of 2012 when multiple senators were thrown off committees, and the blatant power grab allowed issues such as the invasive ultrasound bill to advance, it was impossible to follow the earlier precedent. I am confident that the Senate can move on and work toward the goals of the people of the Commonwealth of Virginia. We have vital work to do in the remaining five weeks.

A list of all of the bills I am working on this session is available here.

It continues to be my distinct honor to serve you in the General Assembly. This will be a busy session for me, and I look forward to your input throughout the process. Concerns, questions, or requests should be directed to my office at: PO Box 396, Richmond, VA 23218, [email protected], or (804) 698-7525.

Best,

Creigh

Session Newsletter (Feb. 12)

February 12, 2013 by Creigh Deeds

We are at a crisis in transportation. In years past Virginia’s highways were lauded as some of the best in the land. In fact, our system has traditionally been recognized as one of the best in the country. But not anymore. Something in excess of 44 percent of our bridges and tunnels are structurally deficient. Those faulty bridges and tunnels can be found throughout the Commonwealth, not just in Northern Virginia and Hampton Roads. The same can be said for deteriorating roads, traffic congestion, and underfunded public transit options.

We need a sustainable source of new funding for transportation. Experts tell us we need in excess of one billion dollars a year. The General Assembly has delayed action for years, and if we continue to do so, we run the risk of losing federal transportation funds. Those dollars must be matched, which we will not be able to do by 2017. Clearly, we have to do something.

This year, right before the session, the Governor put forth a plan. I have not been terribly critical of the plan for a couple of reasons. First, I lost to the governor in 2005 and 2009. Any criticism I make of his plan is likely to be seen as sour grapes or at least taken with a grain of salt. Second, I think the Governor’s prioritization of transportation is a huge step forward. While his plan is imperfect in my view, at least it is a plan and a starting point for working toward compromise and developing ideas that would force a solution. Now, in the closing days of the session, we are closer than ever to achieving a lasting transportation solution. In fact, we are poised to pass a plan out of the Senate. We do not need to have this discussion again in a year or two, or even five or ten. The final compromise should sustain our system for at least a generation.

Deeds with Baldi, Wells, Bertram, Harris

Creigh Deeds with students from Piedmont Community College

Two major components of the Governor’s plan are flawed in this respect. The Governor’s proposal eliminates the 17.5 cent gas tax and replaces it with a 0.8 percent increase in the sales tax. He also has recommended taking around $200 million a year out of the general fund to pay for transportation.

The highway system was created under Harry Byrd’s leadership and funded initially with a three cent gas tax. It was the first step in the 20th century toward modernizing Virginia’s economy and creating opportunity in every corner of our Commonwealth. The gas tax was last raised in 1986. The 17.5 cents a gallon tax generates about $700 million a year.

The sales tax was created under Mills Godwin’s first term as governor to fund the new community college system. Over the years, the revenue has been used primarily for other general fund purposes: to fund higher education, K-12 education, health care, and public safety. The transportation package adopted in 1986 also increased the sales tax by 0.5 percent to fund our roads.

In the last four years, the Commonwealth of Virginia has cut funding for public education by over $1 billion. At the same time we have reduced direct aid to localities for K-12, we have required more of local governments and school boards. For example, just last year we increased the local responsibility for paying for teachers’ retirements which resulted in school systems in every corner of the Commonwealth having to look at cutting costs. Alleghany County considered closing two elementary schools. Through the leadership of the Board of Supervisors, the County came up with the funding to keep those schools open for a year. This year, Alleghany County is looking at closing three elementary schools. Alleghany is not alone. Rockbridge County has shut down schools. Albemarle County is considering closing schools. The same can be said for dozens of counties around the state.

All localities are facing significant fiscal pressure due to reduced funding from the state coupled with increased responsibilities. In that atmosphere, it just makes no sense to me to take upwards of $200 million a year from the general fund, money that could be flowing back to local schools, and spend it on roads. The bottom line is that when Virginia is shortchanging its general fund obligations, we have no business opening the general fund spigot to an area of endless need. By the same token, it makes no sense to me to raise a tax that has historically been used for general fund purposes for transportation. If the sales tax is to be raised, some or all of that money needs to go to education to take pressure off of the real estate tax at the local level.

In addition, it makes no sense to abolish the gas tax, a significant portion of which is paid by nonresidents who use our roads, and replace it with a sales tax, which is largely paid by Virginians. A more commonsense approach would be to replace the existing gas tax with a sales tax on gasoline, which will at least provide for some growth in revenues from year to year to help keep up with growing expenses relating to road maintenance and construction. If we are going to raise the sales tax, we should divide the money between higher education, K-12 education, and transportation, as proposed by Senator Dick Saslaw of Fairfax.

If we are going to use any portion of the general fund for transportation, the funds should be used for transit and rail. These modes of transportation are intended to move large numbers of people both short and long distances. Many public transit users lack access to private automobiles and reside in congested areas, where a reduction in private automobile use will lead directly to a reduction in costs related to highway maintenance and construction. Advocates for transit and rail have been demanding a fixed source of revenue for years. I propose that we agree to use general fund dollars.

Finally, the Governor’s plan does not produce enough revenue to do more than fund maintenance of highways. Those who wish for new construction projects will be disappointed in the plan. If we adopt the transportation proposal as written, not only would we be making bad policy decisions, we would inevitably be revisiting the subject of transportation funding within the next five years. We should not act simply to act. We must develop a meaningful compromise that will provide sustainable revenues for decades to come.

The Senate will consider a plan this week. Likely, an imperfect bill will pass. Then the real work will begin. Negotiations with the House and the Governor will determine the final product. Stay tuned.

It continues to be a high honor to serve you in the Senate of Virginia. If I can answer any questions or be of service in these last two weeks, please contact me. I can be reached at [email protected] or (804) 698-7525.

Session Newsletter (Jan. 11)

January 11, 2013 by Creigh Deeds

The 2013 Session of the General Assembly began on an unseasonably mild January 9. This is the short session, meaning that the legislature will be in session only 46 days. Adjournment is scheduled for the 23rd of February. We are charged with adopting amendments to the 2012 – 2014 budget and dealing with over 2000 bills. Needless to say, it will be a busy session. It has been my experience that delegates and senators try to do as much work in a short session as in the longer 60-day session.

This year’s session will not lack big issues. Chief among them is whether we lift the 31 year moratorium on uranium mining. The moratorium was put in place in 1982, following a 1979 discovery of a large uranium deposit in Pittsylvania County. Geologic surveys have shown that uranium deposits exist throughout the Piedmont of Virginia. A group of Southside businessmen interested in mining uranium are spearheading an effort this year to lift the moratorium. The introduced bill is limited to the Pittsylvania County deposit, but as uranium exists elsewhere in the Commonwealth, it will certainly have a precedential value and be of interest to all Virginians. I remain concerned about the proposal to lift the moratorium, and you can expect I will be paying close attention as the legislation is debated.

Transportation remains a big issue for Virginia. Because state law requires that we cover maintenance costs before we build, the state dollars designated for construction have been flowing in ever increasing amounts to the maintenance fund. The dwindling construction dollars are used to obtain federal matching funds, which are derived from the federal gas tax we pay at the pump. The construction fund is expected to be depleted in just a matter of years, which means we will forfeit Virginia’s share of federal gas taxes. Already, the significant construction projects for the past several years have been funded either by federal stimulus dollars or through bonded indebtedness. I expect a number of bills to be filed in the area of transportation. Historically, very few bills of significance, especially those that come with a price tag, have been adopted by the General Assembly in a state election year.

On the eve of this session, the Governor made a dramatic proposal to raise new money for transportation. The Governor’s plan would:

eliminate the gas tax and replace it with a 0.8 percent sales tax increase
divert 0.25 percent of current sales tax revenue from the General Fund to the Transportation Trust Fund (TTF)
take advantage of a proposed change in federal law to allow states to tax out-of-state internet sales to further supplement the coffers of the TTF
establish a $15 annual vehicle registration fee to support rail
create a $100 fee for alternative fuel vehicles

Altogether, he says that his plan will generate over $3.2 billion for transportation over the next five years. This sounds like a significant investment.

The gas tax is projected to generate $3.5 billion by FY 2018. Currently, about a third of that is paid by non-residents, because it is paid by those who buy gasoline and use Virginia highways. The new sales tax revenue generated by the .8 percent increase is almost $5 billion. Less than one-fifth of that revenue would come from non-residents. So, to a large extent, the bulk of the revenue in this most significant portion of the Governor’s plan would be paid for by residents of the Commonwealth of Virginia.

The $811 million in additional sales tax money diverted from the General Fund would come from other core services, such as public education, higher education, public health, and public safety. The Governor would generate a billion dollars for the TTF and about $138 million for localities by taxing all internet sales. Unfortunately, the federal legislation to enable Virginia to do this has been defeated in the U.S. Congress before. If Congress fails to pass this legislation, a third of the Governor’s new dollars evaporate.

The vehicle registration fee would generate about $545 million. Many people have been concerned that alternative fuel vehicles do not contribute their fair share to the use of the highways. However, the alternative fuel vehicles only amount to 1.2 percent of registered vehicles in Virginia. This fee would generate about $67 million for mass transit. Certainly any transportation plan needs to encompass more than just our highways, and I support the Governor’s effort to identify dedicated funding sources for transit and rail.

The Governor’s proposal will compete with bills introduced by other legislators, and it is difficult to know at this point which ideas will advance. But it is important to understand that the Governor, albeit very late in the process, has put significant ideas before the General Assembly. I certainly cannot support the idea of putting the prime responsibility for funding transportation on the consumer rather than on those who use the highways. In my view, the sales tax is a regressive tax, and I do not believe it is a good idea to increase it for transportation. My position remains unchanged with respect to taking money out of the General Fund and away from other core services for transportation.

However, I applaud the Governor for coming up with a series of ideas. It is my hope that we can work together to develop a long-term, sustainable plan for funding transportation. As I discussed in this column in past years, I honestly believe the future vitality of Virginia’s economy rests on smart investments in transportation.

It is my honor to serve you in the Senate of Virginia. If I can be of service to you, or if you would like to share your thoughts or ask a question, or if you would like to visit Richmond and see the legislative process in action, please contact us at [email protected] or (804) 698-7525.