From the Desk of Don Gehring                               Date: February 13, 2009

State Update

Highlights:

On February 17th, VCU will host the annual Legislative Basketball Game at the Siegel Center.  Starting at 7:00 pm, the Senate will play the House of Delegates, followed by a game of the Governor’s Office versus lobbyists.  Proceeds from this basketball game will go to support the Massey Cancer Center. 

Budget

The House and Senate released their recommendations to the Governor’s introduced budget last Sunday, February 8th.  Yesterday, February 12th, the House passed the budget on a vote of 88 - 11.  The Senate decided to delay action until Wednesday, February 18th, at which time they hope they will have received information on both the state revenue figures for January 2009 as well as the impact on Virginia of the American Recovery Act of 2009. 

Key Legislation

Currently 1847 bills and 486 resolutions have been introduced.   We are tracking 147 higher education and administration bills and 217 health related bills, totaling 364 bills.   

Certificate of Public Need (COPN) – The Senate Education and Health Committee unanimously reported Delegate Hamilton’s HB 1598, which primarily consolidates the criteria to be considered for COPN applications.  VCU worked extensively with the patron and VHHA to make sure that language in the bill protecting teaching hospitals was included. 

Anti-Smoking Legislation – After amending the bill numerous times on the House floor, the House passed HB 1703 by a vote of 61 – 37.  The Senate version (SB 1105), which passed the Senate, was amended in the House to conform to HB 1703.  It was voted out of the House on a vote of 59-39 and has been returned to the Senate floor for action.  Both of these bills will likely go to a conference committee to work on a few provisions of the bill that the House and Senate have not agreed upon. 

Medical Malpractice Liability (SB 843, SB 1389) - Both of these bills were discussed on Monday, February 9th in the Senate Courts Committee.  The patrons asked that both bills be passed by indefinitely.  This effectively kills these bills.  VHHA, MSV and the Virginia Trial Lawyers Association have agreed to meet with Senator Marsh by the end of session with their action plan regarding how they are going to work together over the upcoming year on malpractice reform.   

Federal Update

American Recovery and Reinvestment Act of 2009 – The conference committee of the House of Representatives and the Senate agreed upon a $789 billion package.  The House and Senate are expected to pass the compromise bill today, February 13th.  The President is likely to sign the bill on Monday, February 16th (President’s Day). 

Health System

• Temporary Federal Medical Assistance Percentage (FMAP) increase ($86.7 billion)

• Funding distributed for a 27-month period through 2010

• Across-the-board increase to states of 6.2%

• Bonus (in addition to across-the-board increase) in the form of a decrease in the state share, based on state's increase in the unemployment rate

• States must maintain current levels of eligibility

• Increase in Disproportionate Share Hospital allotments

• Increases states' FY 09 annual DSH allotments by 2.5%

• Increases states' FY 10 by 2.5% above FY 09 DSH allotment

• After FY 10, states' annual DSH allotments would return to 100% of the annual DSH allotments as determined under current law

• Moratorium on CMS Regulations

• Includes "Sense of Congress" that HHS Secretary should not promulgate regulations concerning:

                        - Cost Limit Rule
                        - Graduate Medical Education Rule

• Blocks FY 09 Medicare payment reduction to teaching hospitals related to capital payments for indirect medical education

• Health Information Technology  ($19 billion)

• Proposal allows banks to deduct 80% of the cost of buying and carrying tax-exempt bonds issued in 2009 and 2010, up to $30 million per borrower

 
Higher Education
 

• $39.5 billion would be appropriated to the states explicitly for elementary, secondary, and public higher education to restore cuts to state budgets

• Can be used by the states in FY2009, FY2010, and FY2011 rather than just in FY2009 and FY2010

• The states must use the federal resources to bring public higher education back to the higher of either the FY2008 or FY2009 funding levels

• A $500 increase in the Pell maximum

• A new $2,500 education tax credit, 40 percent of which would be refundable

• $200 million for the work-study program

• $100 million for teacher enhancement grants

Science and Research

• $3 billion for National Science Foundation (NSF)

• $10.4 billion for National Institutes of Health (NIH)

• $2.0 billion for research at the Department of Energy (DOE), including $1.6 billion for Science and $400 million for Advanced Research Project Agency-Energy (ARPA-E)

• $580 million for the National Institute of Standards and Technology (NIST), including $180 million for a competitive research facilities construction program

• $280 million for National Oceanic and Atmospheric Administration (NOAA) research

• $400 million and $150 million, respectively, for NASA science and aeronautics programs

Even if the bill is signed on Monday, the process is still very fluid.  It is not known exactly when the money will be allocated or what steps VCU will need to take to secure any of this money.   

If you have questions, contact Don Gehring (dcgehrin@vcu.edu) or Mark Smith (mesmith@vcu.edu). Our office phone number is: 804-828-1235.