February 1, 2001

Dear Civic Association President,

During the General Assembly, it is hard to give an update on where things stand, because things change from minute to minute! However, I am sending this report to you so that you will have an overview of the general issues we face in this 2001 session.

Thus far, the 2001 session of the Virginia General Assembly has been dominated by discussion of the car tax and the massive cuts in mental health, education, public safety and other programs proposed in the Governor's budget. The controversy is generated by revenues that are lower than forecasted, due to the slowing economy. When the car tax relief was enacted in 1998, each new phase was to be implemented only if revenue triggers were met.

I supported the gradual reduction of the car tax when we voted on it in 1998, after fighting to make sure that it was tied to an increase in state funding for education. Circumstances are different today.

Until this year, growth has exceeded expectations, and there were no problems in continuing car tax relief. This year, however, we must decide whether to cut funding from virtually every area of government in order to continue this relief and voters need to know what's at stake.

I know that many people are adamant that we must continue this reduction, but I hope that everyone will take a hard look at the current situation. I am sure that people of good faith can come to agreement about what we should do at this critical juncture, but I would like to have your input as I make these important decisions that will affect the future of our Commonwealth.

The following is a brief summary of the Governor's proposed budget, which proposes a combination of budget cutting, borrowing and "creative financing" to make up for a $449.3 million shortfall in revenue for the remainder of the 2000-2001 biennium.

The governor has proposed across the board cuts of 3% for the 2001 fiscal year (ending June 30), and 6% for the next fiscal year, amounting to $67 million in currently unidentified cuts to an already lean state government.

Governor Gilmore's budget has no funding for teacher raises, urging school districts to make up the difference with savings resulting from lower contributions to the state retirement system. However, it would also require local school systems to fund an extra $19.4 million for retiree health care expenses previously covered by the state. The budget also takes $119 million from the general fund ($64 million the first year and $55 million the following year), which was to provide money for school construction. Instead, approximately $9 million per year from unclaimed lottery prizes would be placed in the Literary Fund for this purpose, money that is not available to Fairfax County, in any case. This change would gut the school construction program we passed last year.

While the budget provides new funding for mandated services, such as Medicaid and foster care, it includes funding for only 75% of the projected need in Medicaid for the next fiscal year, according to Senate Finance Committee staff. Other Medicaid cuts include: Eliminating a Medicaid-funded substance abuse program, which would serve 16,000 people. The cut saves $5.1 million, but loses the same amount in federal matching funds for the state. Cutting a plan which would have allowed 5,400 elderly and disabled people to receive health care and prescription drugs they currently can't afford. Again, the cut saves the state $5.2 million but loses almost that amount in federal funds. Cutting one-third of the funds for children's health insurance for low-income working families. The cut would not remove any of the estimated 30,000 already enrolled, but would limit expansion to 10,000 more, rather than the 33,000 currently funded. This cut will cost the state $21.3 in federal matching funds. Other cuts include replacing $10 million in state money for family health initiatives and teen pregnancy programs with federal money for welfare programs, thereby jeopardizing the localities' eligibility to receive federal matching funds, and limiting the programs to those eligible for welfare. Also, $2 million would be cut for advanced medication for mental illness, which could prevent possible hospitalization or imprisonment for approximately 500 people. Families have protested that this is inconsistent with Governor Gilmore's intention to begin closing state mental hospitals.

Funding for substance abuse treatment for adult offenders would be cut, while funding for a juvenile boot camp facility will be eliminated, sending possibly 100 additional inmates to regular juvenile corrections facilities, an expense not included in the Governor's budget. Also, schooling for new state troopers would be postponed, which may necessitate taking 30 troopers off the roads to fill positions in the drug enforcement division.

$6.2 million for open space acquisition and $1.8 million for soil and water conservation districts would be cut, as well as $450,000 for monitoring and analysis of toxins.

Over the next weeks, these and other proposals will be fiercely debated in the Virginia General Assembly. For the past years we have enjoyed a strong and growing economy. The budget we passed last year depended on the continuation of the same strong rate of growth, but that has not turned out to be the case. The economy is still growing, but not as rapidly as forecast, so now we must make some hard decisions. Each and every one of these cuts has a cost associated with it, and in many cases, a human cost. To those who cannot afford their medication, to those with a loved one suffering from mental illness, and to those who must make the choice between taking a sick child to the doctor or paying the rent, these cuts are catastrophic. To children attending schools with leaking roofs, this budget delays the construction of safe, adequate facilities, and the lack of teacher raises hurts our ability to attract and retain the best teachers for our children.

Another issue receiving attention in our area are three bills making their way through the General Assembly which would give Northern Virginia voters the tight to decide whether to increase the sales tax to fund regional education and transportation initiatives. After a meeting of the entire Northern Virginia delegation last week, all but two legislators agreed to support giving voters the right to decide whether or not to levy this tax to support education and transportation.

There are a number of bills making their way through the legislature that would restrict teen driving in some way. I have a bill which calls for a study of the effectiveness of a graduated license for youthful drivers, and other bills include a curfew on for teen drivers between midnight and 5 a.m. and a limit on the number of passengers in a car driven by a teenager.

I welcome your input on these and other issues. You can contact me by calling my home office at 703-765-1150 or my Richmond office at 804-698-7536. More contact information is available on my website at www.toddy.org, where you can also find a link to the General Assembly and access my bills, along with a wealth of information on the 2001 General Assembly session.

s/ L T Puller