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Health and Human Resources
The conference report upholds our commitment to invest in core government services by providing $44.7 million in additional funding for Health and Human Resources. These actions were possible in part by achieving $78.7 million in savings in the Medicaid program from combination of actions including, earned federal Medicaid bonus payments and savings from revised estimates of the impact federal health care reform, a recently-announced provider settlement, and transitioning veterans from Medicaid to federal health care programs.
The House prevailed in its insistence on setting aside additional funding for Medicaid community-based waivers for Virginians with intellectual and developmental disabilities and increased the number of waiver slots over the amounts included in the House budget: $10.2 million GF for 225 additional Intellectual Disability (ID) Waivers; $1.6 million GF for 80 additional Developmental Disability (DD) Waivers; These are in addition to those required this biennium to meet the DOJ Settlement Agreement (450 ID Waivers and 50 DD waivers for individuals on community waiting lists)
Preserves funding for the health safety net by restoring: $4.8 million GF funding for free clinics, community health care clinics, and the Virginia Health Care Foundation; $6.0 million GF to continue long-term care Medicaid eligibility for 1,500 elderly and disabled individuals; $2.5 million GF for local Area Agencies on Aging to address the growing number of elderly citizens in need of health and nutritional services funding.
Upholds the House commitment to ensure critical health care providers have fair and adequate payment for services by providing: $69.0 million GF for Medicaid payments to hospitals and nursing homes to help offset inflationary costs; $10.8 million GF to increase Medicaid personal care and congregate care rates; $1.5 million GF to increase Auxiliary Grant rates in Assisted Living facilities.
Public Education
In total, the Conference agreement provides $214.7 million above the budget as introduced for public education over the biennium. The House was able to insist that $100.0 million will flow through a flexible block grant, which school divisions can use to address retirement, inflation and prekindergarten programs. Other major items include: $47.1 million to update funding for K-3 class size reduction and $6.8 million for a correction to career and technical education funding; $40.0 million to restore the Northern Virginia cost of competing adjustment for support positions; $6.2 million for early intervention reading assistance in 3rd grade; $3.0 million for the Microsoft Information Technology Academies initiative; and $2.0 million for additional Virtual Virginia courses and sections plus $1.4 million for Educational Technology Digital Content and Virginia STAR IT Repairs, $4.3 million is saved from a number of new initiatives that were not funded or reduced compared to the amounts in the introduced budget, including PSAT ($1.8 million), Communities in School ($1.3 million), Recruitment of College Freshmen ($700,000), Jobs for Virginia Graduates ($500,000).
Higher Education
The conference report continues our House priorities of: increasing accessibility to higher education for Virginia undergraduate students; improving affordability by providing additional operating funds that will allow public colleges and universities to moderate tuition increases over the biennium; targeting initiatives that support the goals of the Top Jobs for the 21st Century legislation of increasing degrees especially in science, technology, engineering, mathematics and health fields; and requiring better accountability by linking initiatives to the six-year planning process.
Provided $122.2 million to higher education institutions for base operations, enrollment incentives and initiatives over the biennium. Provided funding for higher education institutions that supports initiatives in their six-year plans. Amounts include $42.6 million for increases in new in-state undergraduate students including new seats at the University of Virginia, the College of William and Mary, Virginia Tech and James Madison University Amounts also include $28.6 million for incentive funding targeted to specific programs / initiatives identified by the colleges that promote increased degree production especially in STEM-H fields
The increased funding will allow public colleges and universities to moderate tuition increases over the biennium consistent with the goals of the Top Jobs legislation adopted in the 2011 Session. Provided $18.5 million dollars for higher education undergraduate and graduate student financial aid. Provide $6.0 million for cancer research at the University of Virginia and Virginia Commonwealth University
Faculty salary bonus of 3.0 percent in December 2012, contingent on FY 2012 revenue surplus and unspent balances; 2.0% faculty salary increase on August 1, 2013, if revenue performance remains at the level currently projected, consistent with overall employee salary increase.
Requires the higher education institutions to reallocate 1.5 and 2.0 percent of their current educational and general program resources to support initiatives and goals of their six-year plans and the Top Jobs legislation adopted in the 2011 Session.
Economic Development and Natural Resources
The conference report continues our commitment to expanding Virginia's economy by funding business incentives and keeping costs. In total, the conference agreement on HB 1301 reflects a general fund increase of almost 25% for our commerce and trade agencies when compared to the 2009-2010 biennium.
To support the continued attraction of business expansion across all regions of the Commonwealth, the conference report recommends fully funding all outstanding incentive commitments, continuing funding for the Governor's Opportunity Fund at $11.8 million each year, providing additional funding for international marketing at the Virginia Economic Development Partnership and VDACS, and increasing promotional support for our tourism attractions.
To support Virginia's research and technology sectors we provide $13.0 million over the biennium for the Commonwealth Research and Commercialization Fund capitalized last year. Future economic growth depends on strengthening the linkage between economic development and higher education to ensure we have well-qualified employees and a research establishment to support key growth sectors.
To improve Virginia's environment, the conference report provides $87.6 million in cash for deposit to the Water Quality Improvement Fund in order to reduce the pollution from 57 wastewater treatment plants for which the Department of Environmental Quality has signed grant agreements. The Senate had proposed the issuance of $89.5 million in additional borrowing to meet these grant obligations.
In terms of specific amendments, the conference report includes the following:
Elimination of $6.6 million of proposed increases for restaurant and other food service inspection fees, a proposed weights and measures fee, the state park fee increase and elimination of the existing waste tire fee in the second year through the budget and legislation to be introduced during the next Session. Also rejected was a proposal to fund the repayment to the federal government for unemployment insurance loans from a per employee surcharge;
$87.6 million in cash provided to the Water Quality Improvement Fund to meet the state's commitment to upgrade 57 local and regional wastewater treatment plants in order to meet water quality goals; $7.0 million to capitalize the Housing Trust fund to support the creation of long-term, permanent solutions for homeless individuals; $8.0 million in the first year and $5.0 million in the second year provided for the Commonwealth Research Commercialization Fund;
$4.5 million for Civil War Battlefield Preservation; $4.1 million restored for Soil and Water Conservation Districts; $3.0 million for the Small Business Investment Grant Program; and $1.2 million restored for state park operations.
General Government & Compensation
The conference report for general government focused on alleviating budget reductions that have been imposed on the judicial branch. The agreement eliminates the hiring freeze within the judicial branch district and juvenile and domestic relations clerks' offices and provides funding to fill the vast majority of currently vacant judgeships and those scheduled to occur prior to the 2013 Session.
In terms of specific amendments, the conference report includes the following: 3.0% employee bonus in December 2012, contingent on FY 2012 revenue surplus and unspent balances; 2.0% salary increase on August 1, 2013, if revenue performance remains at the level currently projected. Salary increase covers all state employees, including college faculty and employees of local constitutional officers and other state-supported local government employees. $10.6 million over the biennium to eliminate across the board reductions within the Judicial Branch
Restoration will allow Judicial Department agencies to eliminate hiring freezes and fill vacant positions, $5.8 million for 61 deputy district court clerks (80 percent of staffing standard) and authorization to fill 23 judgeships in order to expedite court proceedings.
Transportation
The conference agreement on transportation rejected the Senate calls for $700 million in additional debt to support short-term toll buy-downs on the Dulles Toll Road and the Downtown/Midtown/MLK Extension project. While the costs for those projects are substantial, the proposals did nothing to bend the cost curve, but instead would have resulted in the delay of other critical projects across the state. In other action, the conference agreement:
Uses the portion of the FY 2011 undesignated revenue balance for transportation as follows: $9.9 million to Mass Transit Trust Fund, $28.7 million to capitalize the Intercity Passenger Rail Operating and Capital Fund, and $28.7 million to the Virginia Transportation Infrastructure Bank.
Maintains current requirement that 2/3rds of undesignated balance be dedicated to transportation. Includes new language clarifying that VDOT may not withhold funding from localities that operate and maintain their own transportation systems for failure to conform local transportation plans to the VDOT Six Year Program for roadways that are locally maintained.
Includes modified House language keeping a level playing field for all Virginia companies - both union and non-union - by prohibiting the use of scoring incentives favoring project labor agreements. Provides $7.5 million per year for operation of Virginia Commercial Spaceflight Authority pursuant to HB 813 as well as authorizing capital acquisition of the launch pad and refueling facilities from Orbital Sciences with undesignated VDOT balances.
Capital-Related
Conference report continues House priorities of limiting the use of debt and requiring detailed planning prior to moving forward on major construction projects: Provides $93.0 million in cash and tax supported debt for high priority maintenance and infrastructure projects at state agencies, colleges and universities; projects include roof and major mechanical system repair and replacement across the Commonwealth, debt level for capital projects is almost $27 million less than the introduced budget, provides $41.5 million from central planning and other nongeneral fund sources to conduct detailed planning of 32 projects including 25 high priority higher education projects.
This builds on the process that began in the 2008 Special Session I
Public Safety
The conference report continues legislation allowing for up to four localities to develop immediate sanction probation programs and for evaluation of the operations and results of those local programs by the Criminal Sentencing Commission. The conference report also adopts a House amendment that ensures that all funding for the prevention of internet crimes against children is provided solely for that purpose.
In terms of specific amendments, the conference report includes the following: $2.7 million for operation of the Commonwealth Challenge program; $2.0 million to assist with rebuilding Louisa County public schools affected by last year's earthquake; $804,248 to eliminate firearms background checks delays; and $5.9 million in savings by supplanting prison operating costs with funding for criminal penalty enhancements.
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As Memorial Day approaches, please take the time to pause and consider the true meaning of this holiday. Memorial Day is a time for reverence where we honor the Americans who have died defending our Nation and its principals and values. 
