By a vote of 71-25, the Virginia House of Delegates passed a spending plan allocating (HB 7001) roughly $3.5 billion dollars in funds received by the state from the American Rescue Plan Act of 2021 (ARPA). Included in this budget bill is $250 million dollars for qualified ventilation projects in public schools:
Education - Ventilation
1) $250,000,000 to Direct Aid to Public Education (197) for qualifying ventilation improvement projects in local public schools. Funds shall be allocated to local school divisions based on fiscal year 2022 projected March 31 average daily membership with a minimum allocation of $200,000 per division. Funds shall be paid to school divisions on a reimbursement basis. Localities shall provide a match for these funds from any available fund sources equal to 100 percent of the grant amount. A school division may elect to accept a grant amount less than its formula allocation. Before receiving any funds, local school divisions must provide a description for each of the projects to be completed with these funds, including estimated costs and date of completion, and certify to the Department of Education no later than November 15, 2021, that these funds will be used to improve ventilation systems in public facilities in accordance with guidelines issued by the U.S. Department of the Treasury for the American Rescue Plan Act Coronavirus State and Local Fiscal Recovery Funds. Following certification from a school division that it will not participate in the grant program or elects to accept an amount less than its formula allocation, the Department of Education is authorized to reallocate any program balances based on actual demand. No later than December 15, 2021, the Department of Education shall compile the school division certifications and submit a report to the Chairs of the Senate Finance and Appropriations and House Appropriations Committees, the Secretary of Education, the Secretary of Finance, and the Director, Department of Planning and Budget.
In addition to the ventilation funds, HB 7001 makes a clarification regarding The Virginia Overtime Wage Act which went into effect July 1. The Virginia Overtime Wage Act was presented as a change which would allow workers to pursue overtime claims against their employers in state court instead of federal court.
The provisions of the Virginia Overtime Wage Act became problematic to some school divisions when in a frequently asked questions page on its website, the state Department of Labor and Industry posted its interpretation of the law, stating that employers cannot provide compensatory time instead of pay. Under language found in HB 7001, public agencies can use compensatory time in lieu of of wages for overtime pay;
That for the purposes of the Virginia Overtime Wage Act §40.1-29.2 the terms “Wages” and “Pay” shall also mean overtime compensatory time in lieu of wages for overtime pay by public agencies as provided by the Fair Labor Standards Act, 29 U.S.C. §207(o). Employees covered under 29 U.S.C. §213(b)(10)(A) shall be exempt from the overtime requirements set out in Code of Virginia §40.1-29.2.
House Bill 7001 will now move to the Senate. Senators are considering 142 budget amendments to SB 7001, which at the time of filing, was identical to the House legislation.
The VSBA Government Relations Team will continue to provide updates on the actions of the Senate regarding SB 7001 as they develop. The Senate is in recess until 6:30 p.m.
