GA Members Talk Transportation, Budget, Role of Federal Gov't

Saturday, January 08, 2011

At a pre-legislative meeting Friday morning, the four members of the General Assembly representing the Triangle discussed the upcoming legislative session with a focus on transportation, state budget amendments, redistricting and federal encroachment on states’ rights.

Sen. Tommy Norment (R-3rd), Del. Robin Abbott (D-93rd), Del. Bill Barlow (D-64th), and Del. Brenda Pogge (R-96th) agreed that transportation was a key issue to the state, but were split on whether the Governor’s idea to issue billions of dollars in bonds to fund transportation projects was a good idea. They also disagreed along party lines over whether raising the sales or gas tax to fund this area would be beneficial.

As for issues with the Governor’s budget amendments, the legislators had mixed feelings on Bob McDonnell’s plan for the state retirement system, which calls for all employees to begin paying for a percentage of their retirement. They also had differing opinions on whether the Governor’s plan to privatize the sale of liquor to fund transportation was a good one.

As for the upcoming redistricting set for the General Assembly now that the census is complete (a project also facing localities and the nation as a whole), members of the General Assembly at Friday’s meeting also disagreed over whether the current state system is a good one or whether a bipartisan advisory committee should be formed to guide the process. Abbott admitted she expects to be drawn out of her current district, and said she’s waiting to see what happens.

Panel members generally agreed that they weren’t happy with some recent decisions on the part of the federal government, but they wouldn’t commit to supporting a symbolic bill giving the state the power to invalidate some federal laws until they had read the proposed legislation.

The legislature reconvenes next Wednesday for its brief but busy session.

Transportation

The Governor has suggested accelerating the sale of $3 billion in authorized bonds for transportation projects and proposes issuing up to $1.1 billion in tax-exempt bonds that are backed by federal dollars, which will not affect the state’s debt capacity.

Barlow said he supports the idea of raising the gas tax or sales tax to fund transportation, instead of issuing already-approved bonds. “With this … we’re putting it off to our children and grandchildren,” he said.

Based on what she’s heard from her constituents, Abbott says she also supports raising gas or sales taxes versus issuing bonds, but said she felt it would take other ideas such as user fees and privatization in some areas to get the needed projects done.

Norment and Pogge support the Governor’s idea. “We underuse our debt capacity,” Norment said, “and this is the pragmatic approach.”

Pogge agreed, pointing out that the bonds are “already commissioned, just unused… they’re ready and able to be utilized.”

Norment, Barlow and Pogge agreed that likely some legislation regarding transportation would be passed during the upcoming session.

Virginia Retirement System

Last year, the state chose to underfund the Virginia Retirement System. That, combined with reduced investment returns, leaves the state pension system underfunded by $17.6 billion. The governor recently suggested a two percent increase in state contributions to VRS, and a five percent contribution to be paid by state employees hired prior to July 1, 2010 (this is already required for hires after that date). To offset this detriment to employees, he also suggested a three percent raise starting July 1.

Norment said he supports the Governor’s recommendation. “I’m not a fan of borrowing for [retirement payments]... and we have a statutory obligation to repay” what was not paid, he said. “VRS is not solvent now,” he pointed out, and in the 1980s and before, state employees did have to pay into the system, so the plan isn’t without precedent.

Barlow didn’t like the VRS budget plan last year, he said, and while he’s glad the Governor recognizes the problem, “this solution is not what we need” because it adds “additional hardships to [local] governments.”

Abbott agreed, saying “I’m concerned about… state employees paying for a mistake the General Assembly made [last year].” She will vote against the plan, she said.

ABC Plan

Under the Governor’s new plan to privatize liquor sales in the state, retail licenses would be auctioned off to generate about $500 million in revenues to fund transportation. Opponents argue the plan would lose the state money in the long run.

While Norment agrees the government should not be in the liquor business, he said liquor sales generate roughly $350 million in revenues every year, and the profit margins run close to 68 percent. “How do you replace those revenues?” he asked, saying there would be a significant hole in the budget in future years should this plan proceed.

Pogge said she didn’t support the plan to privatize, either.

Redistricting and elections

Now that the U.S. census is complete, districts in Virginia need to be redrawn; also, all General Assembly seats will be open for upcoming elections.

The state House is Republican controlled, while Democrats hold sway in the Senate, so Pogge argued the redistricting will necessarily be bipartisan since both sides need to come to agreement. “This is the way we do it,” she said, “and it’s worked so far.”

Barlow disagreed, saying he feels the General Assembly should create a bipartisan, independent advisory committee to guide the process this year. College students this year are having a contest to propose their own redistricting plans, and he said he’d like to see those ideas considered, too.

“Frankly, I’m not optimistic” that there will be a committee created, he said. “It’ll probably be done the same old way.”

Abbott said she expected to be drawn out of her district, though she has only just completed her first year as delegate. She said she’d heard the Governor is considering establishing a committee, and she hopes he follows through.

“I’m prepared to see where the chips fall,” she said, but hopes to see a bipartisan group lead the process. Abbott also said she’d like to see term limits set, and would like to see campaign expenses get controlled.

Norment said he did expect that the legislature would fill judicial vacancies this year, including the open judgeship in the York/Poquoson Circuit Court that has been filled by substitute judges since N. Prentis Smiley died in 2008. The General Assembly couldn’t agree last year on various judgeships across the state and thus decided to defund the vacant positions, but Norment expects that the positions will be funded this session.

Norment and Del. Tom Gear supported different candidates for the York/Poquoson judgeship, but now that Gear has resigned a permanent judge would likely be chosen once funding is reestablished.

State versus federal government

The meeting moderator asked panel members if they would support a new proposal to allow the state to invalidate some federal laws. The bill would be intended as a symbolic message to the federal government that the state disapproves of plans such as the new national healthcare bill which are seem as overstepping constitutional bounds.

While the members said they hadn’t read the proposed legislation yet, Pogge said she felt “the [federal] government has overstepped its bounds… and encroached on state rights,” and said she would likely support such a bill.

Abbott cautioned, “this could be a dangerous move,” but said she would certainly look closely at the language and she would make her decision at that time.

Barlow got a hearty round of laughs when he said, “it’s been a long time since Virginia has considered such a measure… nullification didn’t do too well.” He said he thought states need to counterbalance federal government power, but that the proposed bill was really meant to be a symbolic message.

Norment said he’s pretty irritated by “the government trespassing on state [rights],” and that “the federal government needs to have a message sent,” not just to the administration but also to the House and Senate. Norment said he’d form his opinion on the bill once he’d read it.