Patrick County Chamber of Commerce, Stuart, Virginia

Chamber News

General Assembly passes sweeping roads legislation

February 23, 2013
The 2013 General Assembly Saturday achieved something that’s eluded Virginia legislators for more than a quarter century: A deal on a sweeping revenue package to raise hundreds of millions for state road needs. By a 25-15 vote, the Senate approved the bill that's a priority to Gov. Bob McDonnell after more than 30 minutes of discussion. Many senators urged passage of the bill they described as imperfect but acceptable. “This is a historic day in Virginia," McDonnell said in a statement released this afternoon. "We have worked together across party lines to find common ground and pass the first sustainable long-term transportation funding plan in 27 years. There is a 'Virginia Way' of cooperation and problem solving, and we saw it work again today in Richmond."

A few, both Democrats and Republicans, spoke against it as a bad piece of policy on the grounds that it failed to raise enough money, or that it hikes taxes on those who can least afford it in this economy. The bill they approved a day after the House of Delegates passed it 60-40 would raise $880 million annually by converting Virginia’s 17.5 cent per gallon gas tax to a wholesale levy on gas and diesel fuel, and raising the sales tax to 5.3 percent from 5 percent. There are several other revenue enhancements within the bill, including a diversion of $200 million in current general fund dollars to road needs, and a higher titling tax on car sales. Additional gas and sales tax levies would be applied in Hampton Roads to raise $200 million for local projects. Senate passage of the transportation plan gives McDonnell a legacy-shaping achievement and signals that an accord has been reached on Medicaid expansion hours after it was feared that a tentative compromise on that issue might break down. "I look forward to receiving the bill in the days ahead, and, as with every piece of legislation we receive, conducting a thorough policy and legal review of the legislation for any amendments that may be appropriate,” McDonnell said. Still pending before the legislature adjourns are House and Senate votes on revisions to Virginia’s two-year, $87 billion budget, which includes the Medicaid expansion language. Key legislative leaders said this afternoon they have a legal way around the constitutional questions raised about that expansion by Attorney General Ken Cuccinelli. Four Republicans involved in budget talks -- Del. Chris Jones of Suffolk, Sen. Emmett Hanger of Augusta County, Senate Majority Leader Tommy Norment of James City County and House Majority Leader Kirk Cox of Colonial Heights -- walked over to meet with Gov. Bob McDonnell to brief him on their proposed Medicaid solution. "I think we have it worked out," said Hanger. Cuccinelli opined Friday the legislature can’t delegate its authority on Medicaid expansion to a “subset of the members of the General Assembly.” A Medicaid compromise reached between Senate and House of Delegates budget negotiators called for the creation of a 12-member committee to oversee Virginia’s pursuit of program reforms through the federal government then proceed with expansion. Citing the Virginia Constitution, Cuccinelli wrote is his Feb. 22 advisory opinion that approval of budget matters requires the affirmative vote of House and Senate members – 51 in the House and 21 in the Senate. Cuccinelli said the constitution’s languague limits the legislature and the General Assembly can’t work around it “by simply passing a statute that provides that an act, or part of an act, will become effective in the future if a subset of the General Assembly determines that certain conditions are met or that prudence dictates that the act becomes effective.” Hanger did not specify how the legal question raised by Cuccinelli would be resolved. Separately, Jones said he remains hopeful that the legislative items still outstanding on the General Assembly's final day, Medicaid included, will be disposed of. "In my many years around this place, I've found there's a lot of emotions during the last couple of days but we always, at the end of the day, do the state's business," said Jones. McDonnell nearly derailed the Medicaid accord earlier this week when he sent a letter to legislators working on mid-year amendments to Virginia’s two-year, $87 billion budget telling them not to include Medicaid expansion language in their plan. McDonnell has long expressed opposition to expansion without federal approvals of significant Medicaid reforms to contain costs in the government-backed health insurance program for needy people. That appeared smoothed over late Friday when McDonnell sent a letter to Senate Majority Leader Tommy Norment, one of the budget brokers, expressing conceptual support for that approach to Medicaid. Medicaid expansion is an option for a state like Virginia under the federal health care act, which would pick up the bulk of costs for covering anywhere from 250,000-400,000 more needy Virginians above the 1 million citizens already enrolled in the program. While Cuccinelli’s opinion isn’t legally binding, it threw a wrench into legislative business on the scheduled last day of this General Assembly session. “It looks to me like we may not be out of here today,” House Minority Leader David Toscano, D-Charlottesville, said Saturday morning after Cuccinelli’s opinion had been circulated. Toscano questioned whether Cuccinelli’s letter technically applies to the Medicaid commission that’s been devised, but didn’t dispute that it put a damper on things nonetheless. “The letter, politically, has the potential to undermine some pretty substantial work that people on both sides of the capitol, and the aisle, have done,” added Toscano, who accused Cuccinelli of “trying to scuttle any effort to move forward on Medicaid.”

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