eNews – February 7, 2025
Budget amendments for local governments to support, Updates on important legislation, VML essay contest...and more!
Friday, February 7, 2025/Categories: eNews
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In this issue:
Action Alert
Budget
Transportation
General Laws
Courts & Public Safety
Opportunities
Action Alert
SUPPORT: SB1307 – Sales and use tax to support schools before Monday morning!
SB1307 (McPike) would expand the authority to impose a sales and use tax of up to one percent dedicated solely to school construction and modernization if approved by voter referendum currently granted to nine localities statewide.
Background
According to the School Construction and Modernization Committee, over half of the schools in Virginia are in dire need of repair due to age and lack of funds available to upkeep buildings. Raising a dedicated revenue source is another tool for localities to utilize to continue to modernize and build school buildings. With this optional tax, localities may reduce or not have to increase property taxes and localities can use previously dedicated revenues for construction to fund other local initiatives. The one percent sales and use tax is a local option as it must be approved via ordinance and voter referendum – localities never have to pose a referendum if this tax will not benefit the community.
Immediate action requested!
This legislation will be in the House Finance Committee 15 minutes after the adjournment of the House of Delegates on Monday, February 10. VML urges our members to call or email their representatives now (see below) and/or provide written testimony or testify virtually in favor of this legislation.
Reasons to support
- Can only be imposed if approved by voter referendum and local ordinance.
- This is a local option. No referendum must be called if the locality does not want to pursue this option.
- This is an important tool to modernize school buildings.
House Finance Committee members
Staff Contact: Josette Bulova, jbulova@vml.org
Budget
The budget bottom line: Spending is close, but policy differences will require negotiation and compromise
As noted earlier in the week, proposed changes to the Governor’s introduced budget, reflected in the House and Senate budget plans, are strikingly similar. In fact, the bottom lines are only $106 million apart (see table below). If that still sounds like a lot, consider that in previous years the chasm was around $1.0 billion! That said, there are enough fiscal policy differences to keep the budget conferees busy until Sine Die in two weeks, but they probably won’t have to burn the midnight oil to finish on time this year.
Some of the highlights include funding for K-12 education once again was the big winner in the General Assembly’s fiscal plans as both chambers proposed to eliminate the support cap, resulting in additional funds for school divisions ($223 million), provided additional support for children with special education needs ($53 million), and added a one-time, $1,000 bonus for teachers and support staff ($134 million - $141 million) that doesn’t require a local match. To afford these initiatives in the House and Senate budgets, many of the Governor’s budget priorities in K-12 education fell off the table.
The Finance area was the biggest contributor to the General Assembly’s pool of available funds as the Governor’s proposed $1.1 billion car tax relief program was tossed in exchange for a one-time rebate of $200 for individuals and $400 for dual-filers at a cost of $978 million. If approved, those checks will go out this fall.
Other funding areas that appear to be aligned for prompt agreement include the Stormwater Local Assistance Funds (SLAF), where the House added $50.0 million and the Senate $40.0 million and one-time bonuses for state employees, and state-supported local employees where the House added a 1.0 percent bonus effective December 2025 and the Senate included a 1.5 percent bonus in June 2025.
Overall, the House freed up revenues by moving $400 million in capital projects from general fund cash to debt, while the Senate plussed up their budget by transferring non-general fund revenues from the Department of Environmental Quality to the general fund ($97.4 million), updating the forecast of pari-mutuel wagering license revenues ($60 million) and reverting balances to the general fund ($30 million). These strategies are likely to be employed by the budget conferees when they start to bridge their fiscal differences next week.
VML Contact: Joe Flores, jflores@vml.org
Budget amendments for local governments to support
Ever since the House Appropriations (HAC) and Senate Finance and Appropriations (SFAC) Committees rolled out their respective budgets this past Sunday, VML staff have been poring over the publicly available budget documents, such as Subcommittee Reports, spreadsheets, and assorted budget amendments, to better understand their fiscal plans. Now that the amendments have been posted online, staff have been carefully sifting through the fine print of 402 House Amendments and 394 Senate Amendments to make sure we didn’t miss anything.
While the House and Senate budgets have addressed many, but not all, of the needs that VML has identified as priorities, there are a handful of amendments that we will be advocating for in the days ahead.
Use the links below to read about the amendments by subject area:
Health & Human Services
VML Contact: Janet Areson, jareson@vml.org
Children’s Services Act (CSA) state reimbursements. VML supports Item 268#1h that eliminates language from the introduced budget capping the state’s reimbursement to local governments for CSA special education private-day services if the cost of such placement increases by more than 2.5 percent from the previous year. The Senate did not address this; further, it reduced funding to the CSA program by $9,892,854, which gives you an idea of the cost that would be shifted onto local governments in fiscal year 2026.
Reasons to support:
- Individualized Education Plans (IEPs) determine special education services for a child, including special education private-day education services. IEPs must be adhered to in accordance with federal law.
- Local CSA teams do not create IEPs and they cannot modify them.
- Capping the state’s commitment to CSA costs would constitute a major departure from the foundation of this program and shift part of the state’s funding responsibility onto local governments.
- All cities and counties would be negatively affected; smaller localities with less leverage in negotiating service contracts with private providers would be particularly hurt.
Federal waiver to cover MH and SUD treatment in jails. VML supports Item 297#3s that directs the Department of Medical Assistance Services (DMAS) to apply for a federal 1115 waiver to help fund behavioral health and mental health services, addiction and recovery treatment, and prescription drugs to treat behavioral health related conditions for incarcerated individuals in local and regional jails. DMAS is directed to report to the House and Senate budget committees on this waiver request by Jan. 1, 2026. The House budget does not include such language.
Reasons to support:
- Language in VML’s 2025 legislative program addresses this issue: VML supports state efforts to apply for a Medicaid Reentry Section 1115 Demonstration Waiver to help local and regional jails address certain behavioral health and substance use conditions of inmates prior to release and to help improve their transition into the community.
- Several states have received this waiver and are using it to better serve incarcerated individuals and improve their chances for successful transition back to the community.
Public Safety
VML Contact: Janet Areson, jareson@vml.org
State assistance to localities with police departments – no new funding. Neither the House nor the Senate approved proposed amendments to increase state assistance to localities with police departments (HB599 funding) by $5.7 million in the second year. The introduced budget did not increase funding either, despite the estimated growth in state general fund revenue collections for FY2026 and in accordance with provisions of Virginia Code Sec. 9.1-169 et seq.
However, both bodies approved items – Item 377#1h and Item 377#1s – to strip out a provision in the introduced budget to withhold state payments for local law enforcement agencies for noncompliance with new requirements related to immigration enforcement. Specifically, the language, now removed, would have withheld Compensation Board jail per diem payments and Aid to Localities with Police Departments ("599") funding from: (i) an official of a facility in which an undocumented individual is incarcerated that does not comply with lawful U.S. Immigration and Customs Enforcement (ICE) detainers or does not provide 48-hour pre-release notifications to ICE; or (ii) such officials and local law enforcement agencies who impede cooperation or communication with ICE pursuant to a local ordinance, policy, procedure, or custom.
Education
VML Contact: Josette Bulova, jbulova@vml.org
Support cap. VML supports Item 125 #4h and Item 125 #3s which provide $222.9 million from the general fund in the second year of the biennium to eliminate the cap on funded support positions by reverting to the methodology used before the cap was placed in 2009. The new prevailing ratio is 27.89 positions per 1,000 students – this reflects the current ratio necessary. This is a recommendation of the Joint Subcommittee on Elementary and Secondary Education Funding which is tasked with implementing recommendations from the 2023 JLARC report on school funding. Removing the support cap is one of VML’s top legislative program priority items.
Teacher bonuses. VML supports Item 125 #8h which provides $140.5 million and Item 125 #5s provides $134.4 million in the first using general fund money to provide a one-time bonus of up to $1,000 per funded SOQ instructional and support position on September 1, 2025. There is no local match requirement to access state funds to provide bonuses.
Construction Grant Fund. VML supports Item 125 #9h which increases the School Construction Grant Fund by $10 million in the second year from the non-general fund. The School Construction Grant Fund is currently funded by revenue from casinos, this adds additional funds.
Literary Fund. VML supports Item 125 #10h and Item 125 #10s which replace the previously removed $150 million from the Literary Fund. In the Governor’s introduced budget, he redirected $150 million from the Literary Fund to the School Construction Grant Fund – these amendments undo that action. Redirected funds can be used for teacher retirement.
Sales and use tax of up to one percent dedicated solely to school construction and modernization. VML supports Item 4-14 #3s which is a language-only amendment to expand the authority to impose a sales and use tax of up to one percent dedicated solely to school construction and modernization if approved by voter referendum currently granted to nine localities statewide. This amendment also stipulates that funds cannot be supplanted. This corresponds with SB1307 (McPike) that VML strongly supports (see Action Alert above).
Transportation
VML Contact: Mitchell Smiley, msmiley@vml.org
Washington Metropolitan Area Transit Authority (WMATA) Funding. VML supports Item 433 #1h and Item 433 #1h which increases by $3.3 million in the House and Senate budgets to restore the funding for WMATA operations omitted from the introduced budget.
Exempt transit buses from tolls. VML supports Item 441 #1h which includes language directing the Virginia Department of Transportation (VDOT) and the Department of Rail and Public Transportation (DRPT) to coordinate and ensure that public transit buses are exempt from tolls in Virginia. This will help locally supported transit programs statewide.
Natural Resources
VML Contact: Mitchell Smiley, msmiley@vml.org
Stormwater Local Assistance Fund (SLAF). VML supports Item 365 #2h and Item C-53.80 #1s which provide additional SLAF funding. The House appropriated $50 million while the Senate appropriated $40 million. VML’s 2025 Legislative Program requested SLAF funding at $50 million. It is a positive sign that the House and Senate are so closely aligned on continuing to fund this important grant fund that helps Virginia’s local governments invest in projects to improve local water quality.
Water Quality Improvement Fund (WQIF). VML supports Item C-53.50 #1h which increases WQIF funding by $36 million in general funds to account for water quality project costs increases in addition to the $400 million in non-general funds already appropriated for the fund and replaces previously appropriate non-general funds from bond proceeds previously authorized by prior appropriations.
Stormwater Local Assistance Fund (SLAF) Workgroup. VML supports Item 358 #1h and Item 358 #1s create a 2-year workgroup to include VML and other stakeholders to study the historical implementation of the water quality improvement fund and provide a report on any recommendations no later than November 1, 2026.
Department of Motor Vehicles (DMV) Select Study. VML supports Item 426 #1h which includes language directing DMV to study the DMV Select program to evaluate administrative and associated costs to localities and requires a report on any findings by December 1, 2025.
Transportation
Photo speed enforcement: Senate to hear House bill with amendments that may create problems for localities
HB2041 (Seibold) was approved by the House this week and has been assigned to the Senate Committee on Transportation where it will be heard next week.
As passed by the House, HB2041 diverts locally collected civil penalties collected from photo speed enforcement programs to the Virginia Highway Safety Improvement Program.
HB2041 also:
- Expands where photo speed enforcement programs can be located through expanded local ordinance authority in priority pedestrian safety zones as designated by VDOT or other locations subject to criteria that the Commissioner of the Highways will create.
- Creates new requirements for vendors and localities operating a photo speed program.
Recent news reports have indicated that there are additional significant and substantive amendments to come when the bill is heard next week in committee. Some of these amendments may include restricting the use of any funds from civil penalties collected under a local photo enforcement program to local pedestrian and road safety improvements. This amendment would address some of the most significant concerns VML has about this bill.
Other amendments are likely to include reducing the civil penalty from $100 to $50. VML is particularly concerned that reducing the civil penalty by half would jeopardize locally administered photo enforcement programs and raise significant questions about any future expansion of photo enforcement programs.
Members are encouraged to contact any Senators in their delegation who sit on the Senate Transportation Committee (below) with any concerns about how HB2041 will impact your locality.
Senate Transportation Committee members
VML Contact: Mitchell Smiley, msmiley@vml.org
General Laws
Legislation that has survived committees in both chambers
Passed the House and Senate local government committees.
HB1992 (Askew) Department of Public Safety and Homeland Security; work group; report. Directs the Secretary of Public Safety and Homeland Security to establish a work group to study existing emergency management needs and analyze sustainability of current funding.
Passed the House and Senate Counties, Cities, and Towns committees
SB1267 (Aird) Zoning; enhanced civil penalties, certain residential violations. Makes repeat violations of a zoning ordinance for multifamily residential purposes to be not more than $1000 for a second violation and subsequent violations also are more with a cap of $6000 for all violations within a 12-month period.
SB932 (Salim) Counties, cities, and towns; comprehensive plan may include tiny homes or accessory dwelling units. Requires localities to consider accessory dwelling units in their comprehensive plans as well as tiny homes.
SB974 (VanValkenburg) Subdivision ordinance; plan review by designated agent, definition of “designated agent”. Requires the review of a subdivision plat, site plan and plan of development to be completed administratively unless your population is under 5,000 then the planning commission can conduct the review.
SB997 (Williams Graves) Local officers; oath of office. States that localities must take the oath of office and give bond if appropriate on or before the day on which the term of office begins.
SB1118 (Roem) Cemeteries on private property; registration by localities. Requires localities in Planning District 8 to adopt an ordinance creating a register of identified cemeteries, graveyards, or other places of burial on private property.
SB1254 (Bagby) Comprehensive plan; environmental justice strategy. This would add to the comprehensive plan consideration of being an “environmental justice community” as defined in 2.2-234
SB1263 (Bagby) Water and sewer connection fees; new residential development. Allows a locality to provide for the full or partial reimbursement of water and sewer connection fees, capital recovery charges, and availability fees remitted by an applicant in connection with any new residential development
SB1313 (McPike) Affordable housing; local zoning ordinance authority, comprehensive plan. This proposed legislation amends Virginia Code Section 15.2-2304 to include all localities. It also adds implementation tools that can be included in your affordable dwelling unit ordinances.
SB1476 (Pillion) Vacant and blighted or derelict property; locality allowed to sell. A locality which has a vacant property for 5 years or more and is declared blighted or derelict may petition the circuit court to appoint a special commissioner to convey the real estate to the locality in lieu of a public auction. The bill includes technical steps and options for the locality to sell the property including requiring that repairs and renovations are made and that within 2 years the building be compliant with the building code.
Charters:
- SB836 (Diggs) Poquoson, City of; amending charter, powers of city council.
- SB872 (Lucas) Charter; City of Portsmouth
- SB1300 (McPike) Dumfries, Town of; amending charter, town powers, etc.
- SB1150 (Obenshain) Shenandoah, Town of; new charter (previous charter repealed)
- SB1176 (Suetterlein) Roanoke, City of; amending charter, appointment of director of real estate valuation
VML Contact: Michelle Gowdy, mgowdy@vml.org
Bills that have passed one chamber and the committee of the opposite chamber
HB1706 (Bulova) Virginia Residential Property Disclosure Act; required disclosures for buyer to beware; aircraft noise. (Pekarsky’s bill passed out of House General Laws). This bill is the same SB1210 (Pekarsky); they both require the Department of Aviation to create a general public access website showing noise exposure maps. Also, in the disclosures regarding the sale of residential property there will be a provision that suggests reviewing these maps and local ordinances that deal with noise and airports.
HB1638 (Hayes) / SB1128 (Lucas) Va. Residential Landlord and Tenant Act; affordable housing, criminal record screening model policy. (Lucas’ bill passed out of House General Laws). This legislation supported by VML was conformed to SB1128 (Lucas) with the difference being that Lucas’ bill had a delayed enactment date of January 1, 2026 and Haye’s did not.
Requires the Department of Housing and Community Development to create a model policy that ensures that a criminal record is not the reason for denying a person housing unless the policy is followed. It also creates a workgroup that includes VML. This law is not effective until January 1, 2026.
VML Contact: Michelle Gowdy, mgowdy@vml.org
Courts & Public Safety
Bills that made it past crossover of concern to localities
Following crossover, the following bills are issues in the courts and public safety area for Virginia’s cities and towns.
Employer liability for employee’s bad acts
SB894 (Russet Perry) / HB1730 (Delaney) deal with employer liability for tort actions of its employees, provide that if an employee causes the death or injury to a “vulnerable victim”, the employer, whether it is a private or public entity, in many cases can be vicariously liable for the employee’s conduct.
Both bills have passed their respective houses and SB894 was reported by the Senate Courts of Justice Committee with a healthy majority. There now remains only a slim chance to amend or defeat this bill.
Collective bargaining for local government employees
Collective bargaining is making its way through the General Assembly, likely headed for the Governor’s pen. At this point, what the Governor will do with that pen is unknown. Republicans in both houses voted against the bills, with few exceptions.
HB2495 (Askew) authorizes firefighters and EMT employees of local governments to engage in collective bargaining through labor organizations or other designated representatives. The bill establishes the Fire Service Cooperation Board to administer it. HB 2495 passed the House and is assigned to the Senate Commerce and Labor committee.
HB2764 (Tran) / SB917 (Surovell) repeal the prohibition on collective bargaining by public employees. Like HB2495, these bills create the Public Employee Relations Board, which shall determine appropriate bargaining units of state and local government employees.
Both bills passed their respective houses. HB2764 was sent to the House Commerce and Labor committee. SB917 is assigned to the House Labor and Commerce Committee.
Wrongfully-convicted persons right to sue the police
HB1914 (Sullivan) deals with the right of persons who are wrongfully incarcerated to make claims against the police for their wrongful convictions. Today, if such a person seeks compensation from a state fund for the purpose, he must sign a release of everyone involved in his conviction, especially police. The original bill removes that release requirement for state and local officials. On the House floor, to avoid a trip through the Appropriations Committee, state officials were struck, leaving only local police subject to suit. Sovereign immunity will provide useful defenses, even with the bill.
VML Contact: Mark Flynn, markkflynn@gmail.com
Opportunities
Deadline to submit entries for VML’s “If I Were Mayor” essay contest is March 17
The Virginia Municipal League (VML) invites all eligible Virginia 7th and 8th Graders to join its “If I were Mayor” essay contest.
Regional winners selected from around the state will each receive a $150 gift card and a plaque. One statewide winner chosen from the regional winners will receive a $250 gift card and a plaque. The runner-up from the region that receives the statewide award will become that region’s winner.
Winning essays will be featured in the May/June issue of VML’s magazine Virginia Town & City.
Learn more about the contest and how to submit entries here >.
VML Contact: Manuel Timbreza, mtimbreza@vml.org