VAR Brokers Digest

March Madness Invades Capitol Square

Before we settle the season-long college hoops quandary, Virginia legislators have but five days to get their work done or it's overtime for us all (note my excitement).

Items still on the table include the reform of the payday lending industry, the budget, and oh yes, the transportation situation in which we find ourselves (more about that later).

While REALTORS^® have taken no position on the payday lending fight, we have monitored the budget very closely. As of today, Capitol insiders suggest that the budget conferees are closer than most think on forging an agreement.

Biennial budget negotiations continue

The budget conferees assigned to bridge the gap between the House of Delegates and Senate versions of the proposed two-year state budget have been meeting to craft a unified spending plan.

Lawmakers from both parties are working to build a consensus budget during an economic downturn when state revenues are not growing as much as projected, forcing officials to make tough choices. Among the differences in the proposals:

The House budget provides two percent raises for teachers in the first year; the Senate plan has a 2.5 percent boost in the second year.
The House would spend $85 million in new money on higher education, compared with $22 million by the Senate. Public school construction would be funded to $180 million by the House, while the Senate wants to spend $27.5 million.

Chief House Whip Kirk Cox (R - Colonial Heights) suggested over the weekend that there were approximately 50 to 60 items left to settle out of a $78 billion budget and that he thought compromise could be reached.

Report card on your VAR legislative agenda

While there is a lot left to grapple with, the Senate and House of Delegates have passed the overwhelming majority of the REALTOR^® legislative agenda. We are pleased to report that HB 516 (VAR's POA bill) and HB 445 (VAR's overcrowding bill) both passed the Senate today.

With their passage, REALTORS^® were successful in passing 10 of 11 bills introduced.

The next edition of Capitol Connections will include a summary of all the initiatives in which REALTORS^® were involved over the past 60 days.

Transportation funding in a new funk

Transportation: what happened? This is the easiest question to answer. Late last week the Virginia Supreme Court ruled that the transportation package, as approved last year, was unconstitutional in that it levied taxes on localities through regional authorities...a unanimous no-no for all of you constitutional lawyers, so say the Supreme Court Justices.

What is the next step? This is the harder of the questions. While the House leadership wants to "simply" amend the plan approved last year and make the taxes local-option, the Senate leadership and Governor Kaine think the most prudent path to avert further gridlock (no pun intended) is to reconvene the legislature for a special session to be held in the spring.

How will we pay for transportation in Northern Virginia and Hampton Roads? This is definitely the hardest of the questions to answer. Depending on the legislator and the time of day, that answer is different. Options include passing the same package of taxes and fees from last year, passing a local-option sales or gas tax in the regions, having the General Assembly impose a sales or gas tax in the regions or using bonds to pay for major projects and a mix of taxes and fees for the rest.

Do you know a Virginia legislator or member of Congress?

Are you on a first-name basis with a legislator or Congressman? If so, please contact Blake Hegeman (bhegeman@varealtor.com) to join our list of Key Contacts or become a Federal Political Coordinator (FPC) team member. As a friend of an elected official, you are VAR and NAR's best resources when we are trying to communicate our key messages.