2008 General Assembly Highlights

The General Assembly convened on January 9, 2008 and is scheduled to adjourn on March 8, 2008.  As of February 12th, the General Assembly is at the mid-point.

State Budget 

The organizational process of the General Assembly was particularly smooth considering the leadership changes in the Senate with the Democrats securing the majority and the committee assignment process in the House with so many new members. 

To date, the members of the General Assembly taken action on a multitude of bills, including mental health issues, campus safety, immigration, health care, pay day lending, smoking in public places, among others with modest differences of opinion. 

On February 12th the Governor announced additional anticipated revenue shortfalls of $1.4 billion.  The Governor has announced a strategy to meet the shortfall, including use of the Commonwealth’s rainy day fund and agency reductions for the remainder of this year and for the 2008-10 proposed budget.  Higher education has been spared further reductions for the budget ending on June 30, 2008, because of the significant cuts made in October 2007.  Higher education may face budget reductions of approximately 2% for 2008-10.  Other agencies are expected to have budget reductions of 3%.  Salary increases for state employees will be reduced from the proposed 3% to 2% and will take effect in December 2009. 

As such, the final weeks of the 2008 General Assembly will be focused primarily on resolving the budget issues.  The next step in resolving the budget occurs on Sunday, February 17^th when the House Appropriations and Senate Finance Committees report their respective budget recommendations to the Governor’s introduced budget.

Key Legislation

Out of the almost 3,000 bills and resolutions that have been introduced, VCU is currently tracking over 600 pieces of higher education/administration and health related legislation.  Some highlights include:

VCU Legislative Priorities.  For additional information on VCU priorities for the 2008 General Assembly session:  http://www3.vcu.edu/govrel/ga-08legpri.shtml

• New School of Medicine Building Proposal.  There are two bond bills (HB 1547, SB 795) currently being discussed by the General Assembly.  At this point, there is still some uncertainty regarding the funding of capital projects. Governor Kaine proposed a General Obligation bond bill including three VCU projects -- the new School of Medicine building, a general classroom building on the Monroe Park Campus, and the Massey Cancer Center vivarium. The House Appropriations Committee has adopted a different approach, with some changes in projects and when the funding would become available. In the Appropriations Committee bill, the new School of Medicine building, renovations to the School of Pharmacy, and a new dental clinic in Southwest Virginia have been included in a set of projects that could begin upon enactment. The Monroe Park Campus classroom building would be considered for full funding during the 2010 session.

  The Senate Finance Committee advanced its version of a bond bill, which includes the VCU projects.  After each house has adopted its own proposal, the House and Senate will move to reconcile the differences between their two bills. We feel that both House and Senate recognize the importance of our capital projects -- particularly our School of Medicine building -- and we remain optimistic that we will be well positioned in any capital legislation that is finally adopted.

• VCU is seeking Tier 3 status under the Higher Education Restructuring Act, which will grant the University the highest level of operational flexibility in key areas.  The VCU Management Agreements for Tier 3 status (HB 1124, SB 358) are making their way through the process.  HB 1124, patroned by Delegate Chris Jones passed the House 99-0.  SB 358, patroned by Senator John Watkins, passed the Senate 40-0. Each bill will now move to the opposite chamber where we are optimistic they will pass without difficulty and move on to the Governor for his signature. The Management Agreement would become effective on July 1, 2008. We are deeply indebted to Senator Watkins and Delegate Jones for their leadership and support of the University.

• In addition, budget committees will make midterm recommendations for base adequacy, financial aid, and faculty/staff salary increases on February 17^th. 

Campus Security Concerns (HB 109, HB 424, HB 1005, HB 1371, HB 1449, SB 256, SB 538, SB 539).  Campus safety and related mental health issues have been of particular concern for the 2008 legislative session.  There has been, however, little effort to reduce the university’s authority to restrict guns on campus. 

Immigration (HB 14, SB 652).  Over 100 immigration bills, ranging from health care, higher education accessibility, and employment, have been introduced in the 2008 General Assembly. 

Hospital Mental Health (HB 499, SB 246).  Mental health services have been brought to the forefront after the tragedy of April 16^th.  The Governor introduced two omnibus bills, HB 499 and SB 246, to help reform the mental health system.  The House and Senate have taken different approaches, as the House now has multiple bills dealing with separate pieces of the commitment process and reform efforts, while the Senate has decided on one vehicle. 

Certificate of Public Need (HB 502, HB 381).  Two pieces of legislation have been introduced relating to hospital regulation or Certificate of Public Need (COPN).  Delegate Phil Hamilton patroned HB 502, which adds citizen accessibility, community support and institutional competition as criteria to be assessed in an application for COPN.  HB 381, introduced by Delegate John O’Bannon, provides for an exemption from the COPN process for a particular cardiac catheterization clinic.  HB 381 failed to report.