A vastly different state government landscape has Southwest Virginia lawmakers hopeful there can be some level of cooperation, rather than gridlock, when the General Assembly begins its work Wednesday.
With the Republican Party again in charge of the House of Delegates and a GOP administration poised to be sworn in Saturday, the Democrats who controlled all three last year – are left with just a slim majority in the state Senate.
Both chambers of the General Assembly will gavel into session in person at noon Wednesday for the 60-day session. Among the issues lawmakers must tackle is the new biennium budget submitted by outgoing Gov. Ralph Northam, myriad unresolved details with last term’s marijuana legislation and an expected 3,000 new pieces of legislation.
The Bristol Herald Courier spoke with members of the Southwest delegation for their thoughts on the upcoming session and what residents might expect.
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“Despite the red wave in November, we will have divided government this session with a narrow Democrat majority in the state Senate,” said Sen. Todd Pillion, R-Abingdon. “Unfortunately, that means some things won’t pass and we won’t be able to undo some of what the Democrats have done with their complete control of state government over the last two years. But I am optimistic about our ability to work together on key priorities and accomplish some big ticket items that Gov.-elect Youngkin promised Virginians as part of his Day One game plan.”
Sen. Travis Hackworth, R-Tazewell, will participate in his first full session, after taking office last year.
“We’re excited. I was glad we got our feet wet last year with the veto session and the special session so it’s not all brand new,” Hackworth said. “I think the environment will be a lot more favorable for conservatives. But with power comes responsibilities. The pendulum is always swinging and, if we go up there and get crazy, it will swing right back to the Democrats. I’m trying to look at bills that are common sense, that look at correcting some of those things we felt were over-reaching by the Democrats and tweaking those.”
From a strategic standpoint, GOP leaders hope to alter some legislation passed last session, according to new House Majority Leader Del. Terry Kilgore, R-Gate City.
“We’re trying to find out which pieces of legislation, what needs to be addressed or changed and trying to get that 21st vote in the Senate,” Kilgore said. “Some of the criminal justice legislation needs work; the probation violation legislation took a lot of authority from judges. We need to get some of that authority back for the judges because that’s about the only way they can control their docket.”
Del. Will Morefield, R-Tazewell, also anticipates there can be some cooperation.
“Slim majorities encourage all parties to come to the table and reach a reasonable compromise on most issues. It is uncertain how this will work out on any specific legislation, but I am certain it will result in accomplishing goals that could not have been achieved over the last two years,” Morefield said.
Taxes and budget
Gov.-elect Youngkin has already announced he intends to eliminate the 2.5% tax charged on groceries and reduce the tax on gasoline. Those revenue streams don’t just flow into Richmond but are shared with localities, making this process more complex. And those are but the tip of the budget iceberg.
“We already know that, based on some things that Gov. Northam included in his outgoing budget proposal that includes addressing the grocery tax and increasing the standard deduction. In addition to the budget proposal, there is already some bipartisan legislation on this front in the Senate. Sen. Chap Peterson, D-Fairfax, and Sen. David Suetterlein, R-Roanoke, have bills on increasing the standard deduction,” Pillion said.
“The budget is the most important bill we consider during session, even more so this year because Virginia is running record surpluses, thanks in part to excess revenue and billions of dollars in federal relief dollars that have flowed to the commonwealth.” Pillion said. “Virginians will be hearing a lot about the budget this year, but despite these records, it’s important that we budget prudently, balancing tax cuts with strategic investments in our future.”
Kilgore said the key is making sure one-time monies – such as federal COVID relief dollars – don’t wind up being committed for ongoing items like salaries.
“Once you give a 10% raise, then that’s built into the budget for next year. If you give 10% raises as Gov. Northam has done on his way out the door, somebody’s got to pay for that. We’ve got to figure out exactly how much we can do and how much is new money versus how much is money we got from the federal government for COVID or infrastructure money,” Kilgore said.
In response to a question about Youngkin’s plan to reduce the state tax on motor fuels, Kilgore said that won’t impact the Interstate 81 improvement work being partially funded by gas tax revenues.
“If we cut the gas tax, I think we’ll move money from other areas of VDOT (Virginia Department of Transportation) to do that. With all the [federal] infrastructure money coming to VDOT, I think we can survive. I think the gas tax [proposal] is $250 million. If you look at $250 million, that sounds like a lot of money, but that’s really just one major VDOT project.”
Funding school construction will also receive a lot of focus. Northam put $500 million in the budget for school construction and some proceeds from state casinos are earmarked for schools, once they open.
Del. Israel O’Quinn, R-Bristol, the newly named deputy majority leader in the House, expects budget topics, especially school construction, to receive a lot of attention. It is an issue O’Quinn and others have tried to find funding for in past years.
“We have got to assist localities with replacing some of these school buildings that are falling apart,” O’Quinn said. “We have schools in Southwest Virginia that are top notch and some that should have been replaced 10 or 20 years ago.”
O’Quinn said the budget tends to “suck all the air out the room,” because it affects every aspect of state government and impacts the public.
Marijuana legislation
Last session, the General Assembly narrowly approved preliminary legislation decriminalizing possession of a small amount of marijuana for personal use and setting up a framework for its commercial sale in the future. To become law, that entire bill must be completed and reenacted by the House and Senate – a process similar to the casino legislation of two years ago.
The bill would establish a Cannabis Control Authority, advised by a health advisory council that would be tasked with completing regulations and issuing business licenses so that on Jan. 1, 2024, commercial sales to adults 21 and older would be legal.
“We’re going to have to do something with the marijuana bill,” Kilgore said. “The governor has made it clear he’s not going to make marijuana possession illegal, but this whole retail market has a lot of flaws. … One area is who gets licenses, how many licenses are in each particular area. And we need to make sure you’re not over-complicated, like California and Oregon, that you create a black market so there’s no taxes coming in.
“All of us in Southwest Virginia voted no last year, but now it’s the law so it’s up to us to tweak the law to get the best outcomes we can,” Kilgore said.
O’Quinn was surprised at how that vote played out last year when it lost support and barely passed.
“I figured that bill would pass handily, but it got so weighted down with things like equitable distribution of licenses and right-to-work protections for any business that gets involved and turned into this monstrosity that caused members to start dropping like flies,” O’Quinn said. “It was a very poorly done piece of legislation rammed through at the last minute so I think you’ll see a ton of changes. I don’t know if anyone is going to carry a full-on repeal or not, but there will be changes.”
Universal broadband
Gov. Northam committed funds to provide universal broadband everywhere in Virginia, with a goal of 2024. It will be up to lawmakers, Pillion said, to see that gets accomplished.
“With over $700 million allocated to achieve universal broadband access in Virginia by 2024, now comes the heavy task of making that a reality. Families with students in school were some of the hardest hit throughout the pandemic when schools were closed,” Pillion said. “As a result, I’m working on a bill to ensure our school divisions, the Department of Education, and Department of Housing and Community Development are communicating with each other so that we can quickly identify service gaps and work to get those areas serviceable through this new funding.”
Casinos and gray machines
The state passed and voters in four of five cities approved bringing casinos to those cities Work is just beginning in Bristol and Danville, but regulations are still being finalized and the matter is expected to get some attention from the General Assembly. There is an effort to allow financially strapped Petersburg to have a casino referendum since Richmond voters turned down a proposed casino there last November.
There will be an effort to simplify some parts of the casino legislation, Kilgore said, but a lot of attention is expected on the “gray” machines – unregulated slot machine-like electronic games that are widespread in use but generate no tax revenues.
Previous state law established a July1, 2021 deadline for those machines to go away or operators would face hefty fines, but a court injunction still has them operating. The machines are opposed by the Virginia Lottery Board and the new casino operators.
“The gray machines will be a big battle,” Kilgore said. “The court in Southside has the injunction and that will be a big fight whether to approve them or not. … I’m sure at the end of the day there will have to be a compromise but what that looks like, who knows? Lobbyists are lining up on both sides.”
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