Overview Of SB 1100 - Virginia
SENATE FINANCE & APPROPRIATIONS COMMITTEEOverview of SB 1100Governor’s Proposed Amendments to 2020-22 BudgetJanuary 11, 2021
Topic OrderEconomicDevelopmentOverview/ResourcesK-12 Education& Other Ed.HigherEducationHealth &Human Res.SENATE FINANCE & APPROPRIATIONS COMMITTEENaturalResources/Ag. & ForestryPublic Safety lay2
Overview/ResourcesSENATE FINANCE & APPROPRIATIONS COMMITTEE3
SB 1100 Revenue Outlook Assumes 1.26 billion in additional GF resources over Chapter 56, 2020 SpecialSession I, including transfers and tax policy adjustments. The increase comes mainly from upward revisions to corporate income, sales and use taxes, andrecordation taxes. Revenues are assumed to grow by 1.2 percent in FY 2021 and increase 3.3 percent inFY 2022.SENATE FINANCE & APPROPRIATIONS COMMITTEEAssumes partial conformity with the Coronavirus Aid, Relief, and Economic Security(CARES) Act, resulting in a GF revenue reduction of 41.7 million over the biennium. Does not account for tax provisions in the recently-enacted COVID-19 Relief bill.Assumes passage of legislation that would combine and expand the existingconservation tillage and advanced technology pesticide and fertilizer application credits,resulting in a 1.3 million reduction in GF revenues.4
SB 1100 GF Revenue Forecast2020-22Biennium( in millions)FY 2021FY 2022Chapter 56 GF Revenue Forecast 21,353.1 22,185.5 43,538.6GACRE Revenue Adjustments689.7552.71,242.4Federal Tax Conformity (CARES Act)(34.2)(7.5)(41.7)-(1.3)(1.3) 22,008.6 22,729.4 44,738.01.2%3.3%Forecast/Policy Adjustments:SENATE FINANCE & APPROPRIATIONS COMMITTEEAgricultural Equipment Tax CreditTotal General Fund RevenuesTotal GF Revenue Growth5
Changes to GF Revenues After Chapter 1289 Chapter 56, 2020 SpecialSession I, reducedanticipated GF revenuesby 2.7 billion. The Governor’s proposedbudget adds backSENATE FINANCE & APPROPRIATIONS COMMITTEE 1.2 billion in projectedGF revenues. With these adjustments,assumed revenues inSB 1100 are 1.5 billionbelow Chapter 1289.6
SB 1100 Changes to GF Resources( in millions)Chapter 56SB 1100Net Change to Beginning BalanceChapter 56 Revenue Estimate 0 43,538.6GACRE/Economic Forecast AdjustmentsPolicy AdjustmentsSENATE FINANCE & APPROPRIATIONS COMMITTEESB 1100 Revenue EstimateTransfersNet Change to GF ResourcesChange 1,222.8 1,242.4 1,242.4( 43.0)( 43.0) 44,738.0 1,199.4 1,280.8 58.0 1,257.47
SB 1100 Resources Available for Appropriation( in millions)2020-22 BienniumBeginning Balance 2,874.1Balance Adjustments(1,254.6)SB 1100 GF Revenue Estimate44,738.0TransfersSENATE FINANCE & APPROPRIATIONS COMMITTEE1,280.8GF Resources Available for AppropriationGF Appropriations, Ch. 56Proposed Operating SpendingProposed Capital Outlay SpendingTotal Proposed GF SpendingUnappropriated Balance 47,638.2 46,078.61,490.418.0 47,587.1 51.18
SB 1100 – Changes to Spending & Savings General fund spending netMajor Spending/Savings( in millions)increase of more than 1.5Revenue Reserve Depositbillion over the biennium.K-12 “No Loss” Funding for School DivisionsRepresents additionalK-12 Sales Tax Update/GF Supplant for NGFspending of 2.4 billionVRS Payment to Reduce Unfunded Liabilitiesoffset by 907.5 million indecreases.2nd Year State & State-Supp. Local Emp. BonusMajor increases include aVDH Mass Vaccination Effortsdeposit to the RevenueSENATE F2INANCEnd Year& K-12APPROPRIATIONSCOMMITTEETeacher & SupportPos. BonusReserve Fund, K-12 funding,COVID-19 Disaster ResponseCOVID-19 response,Other Spendingcompensation actions, andK-12 Enrollment Projection Updatesrestorations (G3, financial aid,school counselors, pre-K, etc.).DMAS Medicaid Forecast – FMAP SavingsSavings include revisedDMAS Health Care Fund Rev. & Cash BalanceMedicaid and K-12 forecasts, Other Savingsenhanced federal MedicaidTOTAL - Net Spending Operating Adjustmentsmatch, and debt savings.Biennial Amount 45.3)(59.1)(221.1) 1,490.79
Status of Total Reserves SB 1100 proposes a 650 million GF deposit inthe second year. This does not fully restorewhat was allocated duringthe 2020 Session for thispurpose. The planned depositSENATE FINANCE & APPROPRIATIONS COMMITTEEwould take total reservesto approximately 8% of GFrevenues; 1.9 billion bythe end of the biennium. Reserves are important tomaintain Virginia’s tripleAAA bond rating.Source: Secretary of Finance Presentation, 12-16-202010
Additional Federal Coronavirus ReliefProgram Areas ( in millions)Governor’s FundK-12 FundVaccinesTestingSubstance Abuse Prevention & Treatment Block GrantMental Health Block GrantEmergency Rental AssistanceSENATEFINANCE with& APPROPRIATIONSCOMMITTEEFTA – Enhanced Mobility of Seniors& IndividualsDisabilitiesFAA – Airport Improvement ProgramFHWA – Surface Transportation Block GrantChildcare Development Block GrantHead StartPromoting Safe & Stable FamiliesChafee Foster Care Program for Successful Transition to AdulthoodChafee Education & Training VouchersCongregate & Home Delivered MealsTOTAL (these are estimates from the Federal Funds Information for States and are subject to change)Amount 11.43.50.54.1 2,664.711
Changes to CARES Act AllocationsAgency/DescriptionSB 1100 - New AllocationVDH - Vaccination ProgramDBHDS - Hazard PayVDH - Additional testing needs - One LabVDH - Agreement with Unite UsVDH - DocuSign subscriptionVDH - COVID-19 communications StrategyVDH - Sample testing costs, staffing, overtimeSENATEFINANCE &ClinicsAPPROPRIATIONSCOMMITTEEVDH - Virginia Association of Freeand Charitable(VAFCC)VDH - Community mitigation effortsVCCS - Training vouchers for unemployedDSBSD - Small business assistance grants; Rebuild VirginiaDVS - COVID-19 expenses for PPE, sanitization, medical overtimeSCHEV - Payment to private institutions of higher educationVDH - Reimburse salaries for "public health employees"DBHDS - Support for state facilities, central office, and CSBsDMAS - Include DDW residential providers; increase fundingABC - PPE, sanitization, safe operationsTOTAL 1922,000,0007,948,800936,29215,000,0001,033,119 162,945,04912
Changes to CARES Act Allocations (continued)Agency/DescriptionDHCD - Emergency Housing for HomelessDOC/DJJ - PPE, medical observation units, overtimeElections - Voter Safety , Equipment, PPEDMAS - Hazard pay for home health workersHigher Education - PPE, Virtual Education, Cleaning , Telework, Other COVID CostsSENATE FINANCE & APPROPRIATIONS COMMITTEEState Museums & HE Centers - PPE, Virtual Education, Cleaning , Telework, OtherDSS - Childcare Provider Stabilization Funds /local capacity to provide care for school-age childrenStatewide - State agencies telework, PPE/sanitizing, DOLI regulation compliance, otherDSBSD - Small business assistance grants supplementVDEM - Technical assistance, public education, preparedness for COVID-19UVA Medical Center – Capital, PPE, testing, educationVCU Hospital – Capital, PPE, testing, educationDBHDS - Hospital census supportTotalGrand Total of New Allocations and ChangesSB 1100 - Changeto Chapter 56Allocation( 769,113(6,557,717)1,333,37453,215( 77,434,065) 85,510,98413
Commerce & Trade –SFACEconomicDevelopmentENATE INANCE &PPROPRIATIONSOMMITTEE14
Overview of Commerce & Trade in SB 1100( in millions)FY 2021 GFChapter 56Proposed IncreasesProposed DecreasesNet ChangeFY 2021 NGFFY 2022 GFFY 2022 NGF 400.9 755.5 342.1 725.215.70.088.130.3(19.1)(0.0)(15.7)(0.0)SENATE FINANCE & APPROPRIATIONS COMMITTEE(3.4)0.072.530.3SB 1100, as Introduced 397.5 755.5 414.5 755.5Percent Change over Chapter 56(0.9%)0.0%21.2%4.2%15
Overview of Commerce & Trade in SB 1100 The introduced budget proposes net increases totaling 69.0 million GF overthe biennium. Major GF spending amendments include: 40.7 million GF in increased support for the Housing Trust Fund, including additionalfunds to support mortgage and rental assistance; An additional 22.5 million GF for the Virginia Employment Commission to support andenhance the unemployment insurance program;SENATE FINANCE & APPROPRIATIONS COMMITTEEAn additional 15.3 million GF for broadband; An increase of 9.8 million GF in economic development incentives payments; 5.0 million GF in additional funding for the Business Ready Sites Program; 3.3 million GF to restore funding for the Eviction Prevention and Diversion Program; and 3.0 million GF for the Main Street Program at the Department of Housing andCommunity Development.16
Commerce & Trade: Summary of Proposed AmendmentsGF Actions for 2020-22 Biennium( in millions)DHCD: Housing Trust FundFY 2021FY 2022Total 15.7 25.0 40.7DHCD: VA Telecommunication Initiative0.015.315.3DHCD: Eviction Prevention Program0.03.33.3DHCD: Main Street Program0.03.03.00.60.610.010.0DHCD: SERCAPSENATE FINANCE & APPROPRIATIONS C0.0OMMITTEEVEC: UI Customer Service0.0VEC: Interest on Federal Cash Advance0.07.57.5VEC: Integrate CARES Act0.05.05.0DOLI: VOSH Compliance Positions0.01.51.5DMME: Agency Restructuring0.0(0.5)(0.5)SBSD: Strategic Sourcing Unit0.00.70.717
Commerce & Trade: Summary of Proposed Amendments(continued)GF Actions for 2020-22 Biennium( in millions)FY 2021FY 2022TotalEDIP: Tech Development Grant Fund 0.0 5.6 5.6EDIP: Special Workforce Grant Fund0.02.32.3EDIP: VA Jobs Investment Program Grants0.02.02.0(0.2)(0.2)5.05.0EDIP: Other Savings0.0SENATEFINANCE & APPROPRIATIONS C0.0OMMITTEEVEDP: Business Ready SitesProgramVEDP: Labor Market / Education Alignment0.00.50.5VIPA: Rent0.00.80.8VTA: Heart of Appalachia Tourism Authority0.00.10.1Move Reductions to Agency Budgets(19.1)(14.9)(34.1)Total( 3.4) 72.5 69.018
Higher EducationSENATE FINANCE & APPROPRIATIONS COMMITTEE19
Overview of Higher Education in SB 1100( in millions)FY 2021 GFChapter 56Proposed IncreasesProposed DecreasesNet ChangeFY 2021 NGFPercent Change over Chapter 56FY 2022 NGF 2,474.2 9,982.1 2,385.0 NATE FINANCE & APPROPRIATIONS COMMITTEESB 1100, as IntroducedFY 2022 GF(142.3)32.0(32.2)57.8 2,328.9 10,014.1 2,352.8 10,173.5(5.8%)0.3%(1.4%)0.6%20
Overview of Higher Education Proposed amendments result in a net decrease of 142.3 million GF thefirst year and 32.2 million GF the second year, compared withChapter 56 of the 2020 Acts of Assembly, Special Session I. Distributes the Chapter 56 budget reductions from Central Appropriations,reducing funding in the higher education agency budgets by 148.8 million GF thefirst year and 146.5 million GF the second year. SENATE FINANCE & APPROPRIATIONS COMMITTEEChapter 1289 of the 2020 Acts of Assembly had “unallotted” the majority of the new funding of 284.4 million GF provided during the 2020 Regular Session for the 2020-22 biennium.Chapter 56 then converted the “unallotments” to reductions (within Central Appropriations), andalso provided some limited restorations and some new FY 2021 funding, including 60.0 millionGF for operations, financial aid, or other purposes to address the impact of the COVID-19pandemic, as well as allocations from the federal Coronavirus Relief Fund (CRF).Reflects additional restorations of 111.2 million GF and new spending of 9.6 million GF.21
Proposed Amendments Related to Financial Aid RestorationsGF Actions for 2020-22 Biennium ( in millions)FY 2021FY 2022Total 0.0 36.0 36.00.030.330.30.07.97.9Restore Virginia College Affordability Network (VCAN) Last DollarPlus Pilot Programs at Norfolk State University0.04.94.9Restore Virginia College Affordability Network (VCAN) Last DollarPlus Pilot Programs at Virginia State University0.04.94.9 0.0 84.0 84.0Restore Virginia Community College System (VCCS) –“G-3” Last-Dollar Plus Workforce Initiative (cost of tuition, fees, andtextbooks for low- and middle-income students in select high demandworkforce pathways; plus additional incentive for full-time full Pell-eligiblestudents)Restore Undergraduate Need-Based Financial AidSENATE FINANCE & APPROPRIATIONS COMMITTEERestore Tuition Assistance Grant (TAG) (SCHEV)Total of Proposed GF Changes - Financial AidRestorations22
Proposed Amendments Related to Other RestorationsGF Actions for 2020-22 Biennium ( in millions)FY 2021Restore Massey Cancer Center (Virginia Commonwealth)FY 2022Total 5.0 5.0 10.0Fully Restore George Mason Univ. - Enrollment Growth0.05.05.0Fully Restore Old Dominion Univ. - Enrollment Growth0.05.05.0Restore Norfolk State Previously Restored for FY 20210.03.53.5SENATE FItemINANCE& APPROPRIATIONSRestore Virginia State - ExtensionPreviouslyRestored COMMITTEE0.01.51.5Restore Virginia State Previously Restored for FY 20210.01.31.3Restore Richard Bland - Compliance Findings0.00.50.5Restore Earth System Scholars (SCHEV)0.00.20.2Restore Longwood Univ. - Early Childhood Degree0.00.10.1 5.0 22.1 27.1Total of Proposed GF Changes - Other Restorations23
Other Proposed AmendmentsGF Actions for 2020-22 Biennium ( in millions)FY 2021Norfolk State Univ. - Connected Campus InitiativeFY 2022Total 0.0 4.5 4.5Jefferson Lab1.51.53.0University of Virginia - Focused Ultrasound Center0.01.01.0Va. Community College System - Pre-Hire Immersion ProgramSENATE FINANCE & APPROPRIATIONS COMMITTEERichard Bland - Revert Dorm to Classrooms0.00.50.50.00.30.3Va. Inst. of Marine Sci. - Shellfish Aquaculture/Seagrass Research0.00.20.2New College Institute - IT Integration Position0.040.1 0.2Total of Proposed GF Changes - New Spending Items 1.5 8.1 9.624
Other Actions Related to Higher Education Includes funding for faculty and staffsalary bonus of 1,500 effectiveSeptember 1, 2021, and 750 foradjunct faculty.Language Amendments: Recommends approval for GeorgeMason University to operate underLevel III authority. Adjusts funding via Central Clarifies conflicting timelines andAppropriations for premiums forENATE FINANCE & APPROPRIATIONS COMMITTEEreporting dates related to Techhealth insurance,SLineof Duty Act,Talent.and workers compensation. Makes various Nongeneral Fundadjustments. Adds 500,000 GF in the VirginiaEconomic Development Partnershipto create an Office for Labor Marketand Education Alignment. Includes VCCS sum sufficientauthority in certain areas consistentwith other institutions.25
SENATEK-12 Education &FACOtherEducationINANCE &PPROPRIATIONSOMMITTEE26
Overview of Direct Aid in SB 1100( in millions)FY 2021 GFChapter 56FY 2022 GFFY 2022 NGF 6,938.5 2,001.3 7,215.9 2.8) COMMITTEE(68.1)SENATE FINANCE & APPROPRIATIONS(90.4)24.8Proposed IncreasesProposed DecreasesNet ChangeFY 2021 NGFSB 1100, as Introduced 6,895.7 1,933.2 7,125.4 1,842.8% Change over Chapter 56(0.6%)(3.4%)(1.3%)1.4% Per Pupil 5,864 1,594 5,849 1,51327
Overview of Direct Aid Proposed amendments result in a net decrease of 42.8 million GF thefirst year and 90.4 million GF the second year, compared withChapter 56, plus 51.9 million NGF in additional Lottery Proceeds. Reflects reductions of 433.0 million GF from technical updates and other costparticipation updates, mainly from lower student enrollment. Reflects 704.9 million GF in new spending, including 18.3 million GF inrestorations. SENATE FINANCE & APPROPRIATIONS COMMITTEE Distributes the Chapter 56 budget reductions from Central Appropriations, reducingfunding by 405.1 million GF. Chapter 1289 unallotted 490.3 million GF provided during the 2020 Session forDirect Aid. Chapter 56 then restored 86.7 million GF in unallotments, including 37.3 million forearly childhood expansion and 35.2 million for at-risk students.28
Direct Aid: Summary of Proposed AmendmentsGF Actions for 2020-22 Biennium ( in millions)Technical Adjustments (Ch. 56 Reductions in Central Appr.)FY 2021FY 2022Total( 176.3)( 228.8)( 0.152.90.052.9Fund School Counselors SatENATE1:325FinFY 22INANCE & APPROPRIATIONS COMMITTEE0.026.626.6Restore: VPI PPA Increase from 6,959 to 7,6550.011.111.1Utilize Presumptive English Learner in ESL Program4.26.510.7Cost of Competing Adjustment for Accomack and Northampton0.02.72.7Restore: Early Childhood Educator Incentive Program0.05.05.0Restore: Jobs for Virginia Graduates0.01.71.7Restore: Power Scholars Academy - YMCA BELL0.00.50.5( 42.8)( 90.4)( 133.2)Routine Updates & Forecast ChangesNo Loss Payments to Divisions for Enrollment Changes2% Bonus SOQ Instructional & Support PositionsSupplant COVID-19 Relief Funds (“Grey Machine”) with GFTotal Proposed GF Changes29
Sales Tax Estimate Revisions Sales tax dedicated to K-12 increases by 200.9 million over the biennium, resulting in net increases to divisions of 42.3 million GF in FY 2021 and 46.6 million GF the second year. The sales tax revisions result in a decrease of 42.3 million NGF the first year for the COVID-19 Local Relief Payments(included in Chapter 56 to cover the increased local SOQ costs from the downward revision of the sales tax estimate as adopted).( in millions)FY 2021FY 2022Ch. 56 Sales Tax Estimate 1,326.4 1,354.6 2,681.095.7SENATE FINANCE & APPROPRIATIONS COMMITTEESB 1100 Sales Tax Estimate 1,422.1105.2200.9 1,459.8 2,881.9(53.4)(58.6)(112.0)Net Impact of Sales Tax Changes 42.3 46.6 88.9COVID-19 Local Relief Payments, Ch. 56 95.2 0.0 95.2(42.3)0.0(42.3) 52.9 0.0 52.9Forecast ChangeBasic Aid Offset AdjustmentReduction due to Net Impact of Sales Tax ChangesCOVID-19 Local Relief Payments, SB 1100Biennium30
Federal K-12 Relief Funds are 4x the CARES Act AmountThe Consolidated Appropriations Act included an additional 54.3 billion in Elementary andSecondary School Emergency Relief, which is four times the CARES Act amount ( 13.2 billion).Virginia’s K-12 Federal Allocations ( in millions)SENATE FINANCE & APPROPRIATIONS COMMITTEEElementary & SecondarySchool Emergency ReliefGovernor’s Emergency Education Relief FundGovernor’s Emergency Education Relief Fund –Assistance to Non-Public SchoolsTotalCARESActConsolidatedAppropriationsAct* 238.6 939.366.829.50.046.6 305.4 1,015.4* Estimates prepared by the Congressional Research Service and may not reflect actual distribution.31
Department of EducationGF Actions for 2020-22 Biennium ( in millions)FY 2021FY 2022Technical Adjustments (Ch. 56 Reductions)( 0.9)( 8.0)Repayment of Treasury Loan1.90.0Cultural Proficiency CoordinatorProfessionalDevelopmentSENATE FINANCEand& APPROPRIATIONSCOMMITTEE0.00.4Expand VKRP Assessment to Four-Year Olds0.00.3Support Deputy Superintendent of Early Childhood0.00.2Transfer Appropriation for Licensure System Automation(0.1)0.1State Match for the Head Start Grant0.050.0532
Other Education AgenciesGF Actions for 2020-22 Biennium ( in millions)FY 2021FY 2022VMFA: Plan for Monument Avenue’s Future (2 FTEs) 0.0 10.8 10.8VMFA: Temporary Wage Positions for COVID-190.010.10.1FC: Access to VITA’s Network0.00.070.07LOV: Restore Gubernatorial Records0.00.40.4JYF: American Revolution 2500.00.20.2SENATE FINANCE & APPROPRIATIONS COMMITTEETotal33
HealthandHumanResourcesSFACENATE INANCE &PPROPRIATIONSOMMITTEE34
Overview of Health and Human Resources Proposed amendments result in a net decrease of 373.5 million GFin the 2020-22 biennium, compared with Chapter 56. Reflects savings of 347.8 million GF and new spending of 208.1 million GF. Distributes the Chapter 56 budget reductions from Central Appropriations,reducing fundingby F 233.8GF overCOMMITTEEthe 2020-22 biennium.SENATEINANCE &millionAPPROPRIATIONS Chapter 1289 unallotted the majority of new discretionary funding of 441.9 million GF provided during the 2020 Session. Chapter 56 then provided partial restorations totaling 208.1 million GF.35
Overview of Health and Human Resources in SB 1100( in millions)FY 2021 GFChapter 56Proposed IncreasesProposed De
SENATE FINANCE & APPROPRIATIONS COMMITTEE Overview of SB 1100. January 11, 2021. Governor’s Proposed Amendments to 2020-22 Budget. SENATE FINANCE & APPROPRIATIONS COMMITTEE Public Safety & Veterans Economic . SB 1100 - New Allocation. VDH - Vaccination Program. 22,052,445 DBHDS - Hazard Pay. 669,312 VDH - Additional testing needs - One Lab .
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