What the Constitutional Change Questions on Today's Ballot Say

By Stephen Groves, of Virginia Statehouse News Tuesday, November 02, 2010

ALEXANDRIA, Va.- As voters head to the booths today, they won’t just be deciding on who to send to the U.S. House of Representatives – three proposals to amend the Virginia Constitution will also be on the ballot.

The General Assembly would like to increase the cash cap on the “rainy day fund” by 50 percent, as well as offer more leniency in granting property tax exemptions to seniors and disabled veterans.

The “rainy day fund” is an account the budget can rely on in tough economic times, but lawmakers are limited as to how much they can deposit into it when times are good.

“The big benefit of it is the next time we have a recession,” said Sen. George Barker, D- Alexandria.

The fund stood at $1.19 billion in 2007 but has steadily declined to $295 million during the recession. Increasing its cash cap could build the fund back up more rapidly.

Conservatives are getting behind it because “it also stops government from growing,” said Del. David Albo, R- Springfield.

When the General Assembly has excess money, lawmakers tend to put it toward government programs, but when that money runs out, it causes funding problems, Albo said. The rainy day fund is a good way to save money.

Both Democrats and Republicans seem to be supporting the proposal. It passed the House and Senate unanimously.

Albo said, “Both conservatives and liberals like the idea, but for different reasons,” - conservatives for its government-curbing effect, liberals for its cash safety net.

The other two initiatives deal with property tax exemptions for senior citizens and disabled veterans. One measure would allow localities to grant real estate tax exemptions to low-income seniors without having to go through the General Assembly.

Lawmakers hope to give a break to people on fixed incomes.

“They’re getting taxed out of their house,” Albo said.

Right now, localities must go through the General Assembly to pass a program giving tax breaks to low-income or disabled senior citizens.

“This would allow localities to set their own rates,” said Del. Mark Cole, R- Fredericksburg.

It also lets localities determine if they need the program in their area.

“It’s such a different world if you’re in Danville or if you’re in Fairfax,” said Mary Jo Fields of the Virginia Municipal League, a lobbying organization for localities.

The other initiative would help veterans who are completely disabled from their time in the service — or their surviving spouses — by exempting them from taxes on their homes.

Sen. Toddy Puller, D-Mt. Vernon, sponsored the senate bill to amend the constitution. Her late husband Lewis Puller was completely disabled while serving in the Vietnam War. She said many other states provide this exemption to help veterans.

“All of the veterans here … in Virginia that I’ve talked to are in support of it,” said Kim DeShano, the quartermaster at the Virginia Veterans of Foreign Wars. “They know how tough it is, especially if you’re disabled, can’t work, and on a fixed income.”

Over 700,000 veterans live in Virginia, but Puller said the new law would only apply to 7,300 of them.

But the proposal has met resistance from the Virginia Municipal League. Although the league said it was a good cause to help veterans, they always advocate for local authority.

“We felt the state should not be using local taxes to give tax breaks,” Fields said. “There were other ways to grant that.”

All three proposals must garner a simple majority on Nov. 2 in order to amend the constitution.