Thursday, April 23, 2020

Virginia General Assembly 2020 Reconvened Session Report


The Virginia General Assembly met for the 2020 Reconvened Session on Wednesday, April 22. Each year, lawmakers meet in the reconvened session to consider legislative vetoes and recommendations by the Governor to legislation passed in the regular session of the General Assembly. During the Reconvened Session, the VSBA Government Relations team monitored developments to legislation pertinent to school boards across the Commonwealth. 

The unprecedented times facing Virginia during the COVID-19 pandemic presented lawmakers with difficult decisions regarding the Governor’s recommendations to the budget, which included a delay from May to June for local elections, as well as, legislation that would have lasting impact on financial matters of the Commonwealth.

Earlier this month, Governor Northam made the several recommendations to both the “Caboose Bill” HB29 (Torian) and the Biennium Budget HB30 (Torian) The following budget recommendations of interest to school board members were considered during the Reconvened Session:

H.B. 29 “Caboose Bill” Recommendations (These changes go into effect immediately as soon as the bill is signed by the Governor and will remain in effect until June 30, 2020.)
  • The General Assembly approved the recommendation authorizing the Superintendent of Public Instruction to grant temporary flexibility and issue waivers in areas such as accreditation, testing, and reports.  Similar language is included in the amendments to the biennial budget. (Amendment 5)
  • The General Assembly approved the authorization of the Virginia Department of Education to temporarily suspend Supplemental Lottery Per Pupil Allocation payments made to school divisions in the event of a shortfall in lottery proceeds.  (Amendment 6) 
  • The General Assembly approved the waiver of required local effort and requiring local match obligations for FY 2020 due to the state of emergency and school closures. (Amendment 7) 
  • The General Assembly approved the recommendation to allow public bodies to hold meetings by electronic means under certain circumstances during a state of emergency, when it is impracticable or unsafe to assemble a quorum in a single location, provided certain notice and record-keeping provisions are met. (Amendment 28) This language is also included in the biennial budget amendments approved by the General Assembly.
  • The General Assembly failed to approve the Governor’s recommendation for delaying the May 5, 2020, general and special elections until November 3, 2020.  (Amendment 36)
H.B. 30 2020-2022 Biennial Budget Recommendations/Unallotments  (Once signed by the Governor, these changes go into effect July 1, 2020 and will remain in effect until June 30, 2022.)

  • The General Assembly approved the recommendation authorizing the Superintendent of Public Instruction to grant temporary flexibility and issue waivers in areas such as accreditation, testing, and reports. (Amendment 26)
  • The General Assembly approved the unallotment of $7.1 million GF in FY 2022 that would develop the Virginia Learner Equitable Access Platform, an online depository of curriculum and other educational resources to be used and shared among school divisions to aid in classroom instruction (Amendment 27)
  • The General Assembly approved the unallotment of $650,000 GF in each year of the biennium for Virginia Preschool Initiative classroom observations and professional development.  (Amendment 27).
  • The General Assembly approved the unallotment $21.7 million GF in FY 2021 and $28.4 million in FY 2022 to retain school counselor ratios at FY 2020 levels. (Amendment 28)
·         The General Assembly approved the unallotment $185.3 million GF in FY 2021 and $305 million GF in FY 2022 in discretionary spending amounts related to Direct Aid to Education. (Amendment 29)
o    $35 million GF in FY 2021 and $48 million GF in FY 2022 that would increase the Virginia Preschool Imitative (VPI) per pupil allocation, provide additional support for students on waitlists, and create a pilot program for at-risk three-year-olds.
o    $1.8 million GF in FY 2021 and $2 million GF in FY 2022 for no-loss funding to localities to ensure that no school division loses state funding in FY 2021 or FY 2022 as compared to that school division’s FY 2020 state distribution.
o    $5.3 million GF in each year of the biennium for school meals expansion to reduce or eliminate the cost of school breakfast and school lunch for students who are eligible for reduced price meals under the federal National School Lunch Program and School Breakfast Program.
o    $94.7 million GF in FY 2021 and $192.5 million GF in FY 2022 for 2 percent salary increases in each year for the state share of funded Standards of Quality instructional and support positions.
o    $26.2 million GF in FY 2021 and $35.2 million GF in FY 2022 for At-Risk Add-On funding disbursed to local school divisions based on the estimated number of federal Free Lunch participants, in support of programs for students who are educationally at risk.
o    $2.5 million GF in FY 2021 and $2.1 million GF in FY 2022 for relief to school divisions with fewer than 10,000 students experiencing unexpected enrollment loss greater 2 percent over the summer between school years.
o    $9.6 million GF in FY 2021 and $10 million GF in FY 2022 for Cost of Competing Adjustment (COCA) to partially restore funds to eligible school divisions (nine school divisions in Planning District 8 and nine adjacent school divisions).

Below is an overview of legislation acted upon by the General Assembly in the Reconvened Session that will impact public schools in Virginia.

SB7 (Saslaw)/ HB395 (Ward) Increases the minimum wage from $7.25 per hour to $9.50 per hour, effective January 1, 2021; to $11.00 per hour, effective January 1, 2022; to $12.00 per hour, effective January 1, 2023; to $13.50 per hour, effective January 1, 2025 (subject to General Assembly approval by July 1, 2024); and to $15.00 per hour effective January 1, 2026 (similarly subject to General Assembly approval).  For January 1, 2027, and thereafter, the annual minimum wage shall be adjusted to reflect increases in the consumer price index.  The General Assembly approved the Governor’s recommendation to delay the first increase in Virginia’s minimum wage until May 1, 2021.

SB939 (Saslaw)/ HB 582 (Guzman) Permits counties, cities, and towns to adopt local ordinances authorizing them to (i) recognize any labor union or other employee association as a bargaining agent of any public officers or employees, except for Constitutional officers and their employees, and including public school employees and (ii) collectively bargain or enter into any collective bargaining contract with any such union or association or its agents with respect to any matter relating to them or their employment. The bill provides that for any governing body of a county, city, or town that has not adopted an ordinance or resolution providing for collective bargaining, such governing body is required, within 120 days of receiving certification from a majority of public employees in a unit considered by such employees to be appropriate for the purposes of collective bargaining, to take a vote to adopt or not adopt an ordinance or resolution to provide for collective bargaining by such public employees and any other public employees deemed appropriate by the governing body. The bill provides that the prohibition against striking for public employees applies, irrespective of any such local ordinance. The General Assembly approved the Governor’s recommendation to delay the enactment of this legislation until May 1, 2021.

SB36 (Lucas)/ HB4 (Knight) Authorizes casino gaming in the Commonwealth to be regulated by the Virginia Lottery Board. The bill specifies the requirements for licensure of casino gaming operators and the conduct of casino gaming and imposes criminal and civil penalties for violations of the casino gaming law. The location of casino gaming establishments shall be limited to eligible host cities that meet specified criteria: the Cities of Portsmouth, Richmond, Norfolk, Danville, and Bristol. The bill requires each eligible host city to hold a referendum on the question of whether to allow casino gaming in the city and, with the exception of the City of Richmond, to hold such referendum at the November 2020 general election. The bill imposes a tax ranging from 18 to 30 percent of the adjusted gross receipts of licensees, based upon a licensee's annual adjusted gross receipts, and provides for disbursement of the tax revenues. The bill requires the Board to establish a voluntary exclusion program allowing individuals to voluntarily list themselves as being barred from entering a casino gaming establishment or other facility under the jurisdiction of the Board. The bill establishes the Problem Gambling Treatment and Support Fund, administered by the Commissioner of Behavioral Health and Developmental Services, and the Virginia Indigenous People's Trust Fund, both of which are funded by proceeds from the casino gaming tax revenues. The bill also establishes the Regional Improvement Commission, consisting of a representative of each jurisdiction composing the transportation district in which the City of Bristol is located, to receive disbursements of gaming tax revenues and to prioritize and fund improvements in those jurisdictions. The bill requires the Virginia Racing Commission to authorize an additional 600 historical horse racing terminals each time a local referendum held by an eligible host city is approved, provided that the total number of additional machines does not exceed 2,000 statewide, and includes other provisions relating to the placement of historical horse racing terminals in the Commonwealth. The General Assembly approved the Governor’s recommendations which unappropriated gaming proceeds to be appropriated by the General Assembly to address public school construction, renovations, or upgrades.

SB588 (Hanger)/ HB785 (Watts) Gives additional authority to counties to collect taxes on meals, transient occupancy, cigarettes, and admissions. The General Assembly approved the Governor’s recommendation to delay the effective date of the provisions governing transient occupancy taxes until May 1, 2021 and clarifying that provisions dealing with cigarette taxes take effect July 1, 2021.