Feb. 28-Richmond-Here is a letter from Del. Charles Poindexter after the Assembly at Richmond concluded.

District: (540) 576-2600 Richmond: (804) 698-1009 DelCPoindexter@House.Virginia.gov www.VotePoindexter.com The Poindexter Report Week 7 February 17 - 23, 2013 Dear Friend, This whirlwind session ended on schedule on Saturday evening with the passage of the budget and other bills remaining after the major transportation bill passed late Friday. The election of judges was postponed until April 3 in order to coincide with legislators' return to Richmond for the reconvened session to take up the Governor's amendments to bills and the budget. Overall, I strongly supported the budget that I helped craft in the House Appropriations Committee, and it passed the House 83-17. While the final bill contains some provisions I disagree with, it is a conservative and balanced budget, reflecting targeted expenditures and priorities for jobs, economic development and core services. I was pleased we were able to fund a) a 2% raise for teachers and support staff; b) provide salary increases for state employees, including a 'compression' factor; c) provide state supported local employees a raise; d) fund an additional 200 ID and 50 DD Medicaid slots for the health care safety net for less fortunate citizens, and e) provide $31M for school safety and security. We also set aside funding to address likely DOD cuts, whether from sequestration or yearly federal budget cuts to Defense. In the biennium budget that we prepare next January, we are required by Virginia's Constitution to replace about $285M in the Rainy Day Fund. We set aside $95M this year as a down payment for that. The budget discussions included some lively and emotional debates on Medicaid expansion, often ignoring the fundamental fact that governors, not legislators are the decision makers. Governor McDonnell, rightly so, has decided not to implement Medicaid expansion, certainly not until the current federal program's shortcomings are fixed by fundamental reforms for health outcomes, cost containment, elimination of waste, fraud and error and until Virginia can be confident the federal funding is there. This is a wise and prudent step as Medicaid is now 22% of the state budget, up from an historic level of around 13%, and is expanding each year under the current rules and regulations. Even President Obama, as a candidate for President, remarked, "As we move forward on health care reform, it is not sufficient for us simply to add more people to Medicare or Medicaid to increase coverage in the absence of cost controls and reform...another way of putting it is we can't simply put more people into a broken system that doesn't work." This is one of his few statements on which the President and I agree. Since the Senate had Medicaid expansion in their budget -- and, frankly, we don't yet know the next governor's position on this issue -- we came to agreement on a budget amendment that would REQUIRE reforms first and then and only then could expansion occur if the House members of a special commission concur that the necessary waivers (changes) from the federal government have been granted, they are in place in Virginia, the cost containment is as promised, and the federal funding available. I am doubtful the federal government will even grant us state management and control of Medicaid, that whatever they offer will address the cost containment necessary for Virginia, or that the federal government has the money. So, I supported this push-back against Obamacare. On Friday, we debated and passed a major transportation bill. Virginia is in danger of losing our cherished AAA bond rating and our "friendly to business" ranking has dropped due to our failure to address an adequate transportation infrastructure. Perhaps more importantly, there simply is no money for secondary roads, primary roads such as Route 58 or Route 122, or start-up money for I-73. Most of the new construction dollars are currently going to maintenance. By 2017, there will be zero construction money and maintenance will go negative. Thus, we will not be able to maintain what we have.This has been a long-simmering problem and the resultant bill was a 'give and take and compromise' by legislators from all regions of the state and legislators of both political parties. Since the current gas tax is a declining source of dollars (greater MPG, new 55MPG standard, etc.), the bill ELIMINATES the current 17.5-cents per gallon tax and replaces it with a 3.5% sales tax on gas and 6% on commercial-use diesel (heavy trucks cause more wear and tear), both levied at the wholesale or 'rack' level. The general retail sales tax is increased from 5% to 5.3%, which also goes to transportation as everyone -- even non-drivers -- benefit from good roads and transportation. Together, these two changes mean rural Virginians will be paying LESS state taxes on gasoline, around 10-cents a gallon versus 17.5-cents today. The second major component of the bill applies only to Northern Virginia and Hampton Roads. In those areas, money is raised there and spent there on transportation projects they decide on. For example, in NOVA their sales tax goes from the new statewide 5.3% to 6%, an added 3% transient occupancy tax, and 25-cents/$100 is added to the Grantor's Tax. Unless we travel to these regions and spend money there, this component does not affect us, but it does allow them to address huge congestion problems with their money however they decide. Another significant component is using some General Fund monies to fund transportation. Transportation is funded and spent separately from the General Fund, which is the regular budget funding source for education, health and human resources, pubic safety, etc. Historically, using some General Fund dollars for transportation has been a contentious issue between political parties and regions, so this is a significant policy change resulting from the bill. I've always believed transportation is a core function of government and some of the General Fund money should be used for transportation so, to me, this is a positive change for the future. Other components include reducing the current 2% discount for vehicle sales by 1%, so vehicle purchases will cost more, and alternative fueled vehicles will pay a $100 yearly fee, as these vehicles use the roads, as well. For years, the House of Delegates has wanted a 'lockbox' bill to ensure transportation revenue would have to be spent as directed by the bill. We passed legislation again this year to do that. Unfortunately, the Senate killed our bill, just as they have done every year since I've been in the House. This was not an easy vote for me but, as I said, rural Virginians will be paying some less for gas, which is so vital to us, and the bill will provide additional funding for all the state, including us per the statewide funding allocation formula that allocates road funding across the state. Some critics of this bill will say to reduce General Fund spending instead of passing a comprehensive transportation bill. We've done that. I helped reduce General Fund spending by $7B in the last few years while keeping taxes level and reducing spending by nearly every state agency. Education (K-12 and higher education) makes up 50% of the state discretionary budget; Medicaid 22%, public safety 15%, and everything else about 13%. So, it is the duty of critics to say what they would cut or reduce. I have yet to locate any contractor who would put down asphalt for free. This bill is not perfect, nor will any similar bill ever be perfect due to regional, political, and personal preferences. But this is a bill that could pass regional and bipartisan hurdles and fix the problem for a long time. I was elected to fix problems, to govern, to make tough decisions. So, I did what I determined was the right thing to do, for the citizens of the 9th District, other rural areas and Virginians in our urban areas. A major driver in my decision to vote for this bill was that the NOVA and Hampton Roads legislators dropped their insistence on 'stacking' the Commonwealth Transportation Board with urban representatives and making changes to the roads funding allocation formula that rural Virginians are so dependent upon for roads. Either or both would have devastated rural Virginia transportation infrastructure and, especially, our roads needs for decades to come. I am always humbled to walk the historic halls of the Virginia Capitol fully aware you have placed in me your confidence, faith and support. I would be pleased to discuss with you or your group any issues from this session or provide assistance with any state government matters you may have. You can contact me at 540-576-2600 or delcpoindexter@house.virginia.gov or P.O. Box 117, Glade Hill VA 24092. Best Regards, Delegate Charles D. Poindexter 9th District, House of Delegates, Virginia General Assembly