The 2015 Session of the Virginia General Assembly is underway. This is a short session, scheduled to adjourn on February 28, 2015, so the work will be fast and furious. We will deal with some hefty matters this session, but as usual, budgetary issues will control much attention. Virginia’s economy is changing in fundamental ways, which affects Virginia’s revenue stream. If we fail at this time to meet the changing economy, diversify and do the best we can to insure that Virginians for generations will have the opportunity to succeed, our legacy, regardless of the issues we address this session, will fall short.
The Governor is rightfully focused on the economy and job creation, as reflected in his State of the Commonwealth address. While Virginia faces many challenges, there are certainly successes that have occurred in his first year in office. In the past year, he has closed over 200 economic opportunities bringing thousands of jobs to Virginia and $5.58 billion in capital investments to the Commonwealth. That is more than twice as much as any past administration during the Governor’s first year in office. That is certainly good news.
However, the reality is that in the face of sequestration at the federal level, the loss of defense contracts in Northern Virginia and Hampton Roads, we have no choice but to remain dedicated to bringing new investment to the Commonwealth. An important tool the Governor has used to bring jobs to Virginia is the Governor’s Opportunity Fund. I am proud to have written that Fund into the Code of Virginia in 1996. We have to strengthen the Fund and make certain it is available for opportunities throughout Virginia. The Agriculture and Forestry Industries Development Fund is another key tool that supports a critical part of Virginia’s economy. The Governor announced in his speech that agricultural exports are at an all-time high.
Despite the fiscal climate, the Governor made a point of not cutting K-12 spending or making further cuts in higher education this year. I have always likened cuts to education to eating your seed corn. The cuts simply do not make sense if one wants to have a promising future. We must continue to invest in education so that the next generation of Virginians has the tools they need to succeed in the workforce or at the next level of education. Likewise, we need to make sure that the Standards of Learning are realistic and a tool to help our children and schools succeed. We began a reform movement last year and will take that another step this year.
Although we are in a new year, the issue of Medicaid expansion continues to play a role in our economy. By refusing to expand Medicaid or adopt the alternative approach offered last year, Marketplace Virginia, we gave up about $2.1 billion in federal funding for 2014. Under the Affordable Care Act, 100 percent of the costs of Medicaid expansion will be borne by the federal government in 2015 and 2016 should we expand. Up to 400,000 Virginians who currently are without insurance and ineligible for existing Medicaid – primarily the working poor – could benefit. Unlike a lot of federal programs, Medicaid expansion is already paid for through new taxes or fees embedded in the ACA, including a tax increase on those who earn more than $200,000 annually.
Virginia has offered a number of reforms, which have ensured accountability and individual responsibility, lessening the likelihood of fraud and requiring co-payments. We have even written into the law that if the federal share of Medicaid expansion drops below 90 percent after 2016, Virginia will drop out. Nevertheless, the Virginia General Assembly continues to refuse to expand Medicaid. Expanding Medicaid this year would reduce our budget deficit by over $100 million, provide much needed insurance to hundreds of thousands of people, and improve the long-term health of our workforce. As I have said before, it is just the right thing to do in my view.
In spite of the intransigency of the House of Delegates with respect to Medicaid expansion, the Governor has administratively found a way to provide a level of healthcare to about 20,000 people who struggle with severe mental illness. While this program is important, it’s a drop in the bucket. There are estimates that as many as 77,000 Virginians who struggle with serious mental illness would be eligible if the legislature expanded Medicaid. The inability to fully access services or treatment leaves this population vulnerable and puts them and the community at risk. It is simply irresponsible for us not to find a way to provide more coverage to people with significant health care needs.
Session will be busy for me. I will continue my work on mental health issues this year with a bill that originates from the University of Virginia Law School and deals with advanced directives for people who have a mental illness and with a couple of bills from the Governor’s Mental Health Task Force. My legislative package also includes initiatives to follow up on SB 261, which passed last year. The primary work on mental health reform will generate from the Joint Subcommittee to Study Mental Health Services in the 21st Century, created last year by Senate Joint Resolution 47. The Subcommittee is scheduled to report to the General Assembly in December 2015 and 2017. The process of reform will be deliberate because we want to get it right. And it is my hope that in spite of the measured nature of this work, we do not lose our sense of urgency, because people’s lives are literally at stake.
I am carrying a number of bills this session and will report on those in the coming weeks. It continues to be my high honor to serve you in the General Assembly. If we can of service or assistance during the legislative session, or if you would like to visit Richmond to see the legislature in action, please feel free to contact us at: PO Box 396, Richmond, VA 23218, [email protected] , or (804) 698-7525.