02/13/2008
We have reached the halfway point of the 2008 General Assembly Session. NFIB has successfully defeated increased regulations and taxes on Virginia's small businesses. Here are some of the highlights:
Budget -- The news gets worse; Gov. Tim Kaine announces revised budget revenue forecast
Proposes strategy for addressing anticipated budget shortfall
The shortfall for the remainder of fiscal year 2008 and fiscal years 2009 and 2010 totals nearly $1.4 billion. The proposed strategy for filling the budget gap calls for withdrawing more money from the Rainy Day Fund ($423.5 million); reducing funding for the governor's initiatives and other programs; cutting funds for state agencies; and bonding capital projects. The governor's plan does not include tax increases. The revenue shortfall for the remainder of this fiscal year is projected to be $339 million. It is expected to be $520 million in fiscal 2009 and $532 million in fiscal 2010.
"Since the November 2007 revenue forecast, the national economy has dramatically slowed," Gov. Kaine said. "While Virginia can weather economic downturns better than most states, we are not immune. In the past week, we have gathered the most recent data and met with our leading economists, representatives of the private sector, and state legislators. The revised consensus revenue forecast indicates that we are now facing an additional shortfall of nearly $1.4 billion over the remainder of fiscal year 2008 and the 2009-2010 biennium."
Read the governor's press release in its entirety.
Health care
NFIB has been hard at work discussing potential health care solutions for small businesses and their employees. Senators and delegates have introduced numerous bills in an attempt to provide relief to employers and address the small-business health care crisis in the commonwealth.
"Virginia Share" Health Insurance Program seeks to expand access to health insurance coverage for small business owners who do not offer insurance to their employees. The revised version of the legislation passed the Senate but failed to move from the House of Delegates. Due to the new economic forecast and the budget numbers, the governor has removed $5.8 million from the Virginia Share program -- leaving less than $2 million to "begin a smaller, regional pilot program." NFIB's goal is to increase employers' access to affordable health insurance options so as to cover more Virginians, thereby saving the commonwealth money. Stay tuned for more details.
Insurance mandates. NFIB spent the first half of the 2008 Session fighting against six different health insurance mandates which would have caused the cost of health insurance in Virginia to rise, making it less affordable. Virginia ranks third in the number of mandated benefits, providers, and covered persons. Even well intended mandates add costs. Thanks to the grassroots support of our members all mandates were defeated.
Tax credits for employers who pay health insurance premiums. Several bills would have provided tax credits for taxable years beginning on or after Jan. 1, 2008, to small businesses who pay a portion of the annual health insurance premium per employee. Due to the budget deficit and grim financial outlook these tax credits failed to pass.
Immigration
As of the halfway mark, only a handful of the over 100 immigration-related bills are still working their way through the General Assembly. NFIB is a very active participant in this year's debate surrounding employers and immigration. We support a business climate that facilitates the employment of legal immigrant workers. NFIB is working towards a sensible solution that cracks down on those who knowingly break the law but protects employers from penalties when acting in good faith to comply with federal immigration law.
Honorable mentions
This list includes some of the good, the bad, and the interesting bills before the General Assembly.
NFIB successfully defeated union-sponsored bills to allow public employees to "meet and confer" (HB 152) or collectively bargain (HB 852). Both run counter to business initiatives and are seen as the "camel's nose under the tent" for future union-like initiatives. Unfortunately, SB 161 passed the Senate and will now be debated by the House of Delegates. NFIB will be working on this measure and keep you posted.
The business community supports a legislative effort to better coordinate the state's disjointed workforce development resources so as to provide an effective and targeted Strategic Plan for Workforce Development (HB 1312/SB 252). The training with offer worthwhile career advancement opportunities while addressing critical manpower shortages across the Commonwealth.
Finally, the House (HB 1075) and Senate (SB 584) have passed bills to allow restaurants owners to pre-mix and sell pitchers of sangria.
Useful links
Virginia General AssemblyWho's My LegislatorOffice of the Governor Office of the Lieutenant GovernorOffice of the Attorney General
Sincerely,
Julia Ciarlo Hammond
NFIB/Virginia State Director
