Amendment # 1			Item 21
Legislative Department
Joint Legislative Audit And Review Commission			Language

Language: Page 15, line 14, after "process.", strike remainder of line. Page 15, strike lines 15 through 23. Explanation: (This amendment strikes language that gives Joint Legislative Audit and Review Commission (JLARC) staff direct access to individual and corporate tax data files maintained by the Department of Taxation. The policy established by the language conflicts with state tax laws regarding privacy of tax records.)

Amendment # 2			Item 65
Administration	FY 04-05	FY 05-06
Compensation Board	$552,500	$1,105,000	GF

Language: Page 44, line 8, strike "$43,866,915" and "$43,866,915" and insert "$44,419,415" and "$44,971,915". Explanation: (This amendment provides funding to restore 25 percent the first year and 50 percent the second year of the Commonwealth's Attorneys' budget reductions. This action will enable Commonwealth's attorneys to retain experienced prosecutors and provide for additional staff, thereby strengthening their abilities to effectively prosecute violent criminals.)

Amendment # 3			Item 65
Administration	FY 04-05	FY 05-06
Compensation Board	$695,165	$389,165	GF

Language: Page 44, line 8, strike "$43,866,915" and "$43,866,915" and insert "$44,562,080" and "$44,256,080". Page 46, after line 3, insert: “I.1. Out of this appropriation, $395,165 the first year and $389,165 the second year from the general fund is designated for the Compensation Board to fund five additional positions in Commonwealth’s Attorney’s Offices that shall be dedicated to prosecuting gang-related criminal activities. The Board shall ensure that these positions work across jurisdictional lines, serving the Northern Virginia area (counties of Fairfax, Loudoun, Prince William, and Arlington and the cities of Falls Church, Alexandria, Manassas, Manassas Park and Fairfax). The additional five positions established by this provision shall be supplemental to the position levels specified in Item 63, paragraph B.1. 2. Also included within the appropriation for this Item is $300,000 the first year from the general fund that shall be transferred no later than August 1, 2004, from the Compensation Board to the Department of State Police. These funds shall be used only to support the anti-gang efforts of the State Police Strike Force.” Explanation: (This amendment provides funding for three additional Assistant Commonwealth’s Attorneys and two staff support positions to prosecute crimes involving gangs in Northern Virginia. Prosecutors dedicated to working with law enforcement on gang-related crimes is one of the most effective measures in the fight against gangs. The amendment also provides funding to support the State Police Strike Force focusing on gang-related activities. The Strike Force will be deployed to hot spots of gang activity around the state to combat gang violence in conjunction with local law enforcement officials.)

Amendment # 4			Item 111
Commerce and Trade	FY 04-05	FY 05-06
Department Of Housing And Community Development	($50,000)	($100,000)	GF

Language: Page 84, line 28, strike "$40,077,706" and insert "$40,027,706". Page 84, line 28, strike "$40,127,706" and insert "$40,027,706". Page 86, strike line 42 through line 48. Explanation: (This amendment transfers the authority to fund the Center for Rural Virginia from the Department of Housing and Community Development to another item in Central Appropriations which deals with similar entities. This action will consolidate similar types of payments in one item for the purposes of clarity.)

Amendment # 5			Item 116
Commerce and Trade	FY 04-05	FY 05-06
Department Of Labor And Industry	$212,830	$202,830	GF
	4.00	4.00	FTE

Language: Page 89, line 14, strike "$666,071" and insert "$878,901". Page 89, line 14, strike "$666,071" and insert "$868,901". Explanation: (This amendment provides funding and positions to improve service in the apprenticeship program and to allow growth in existing, new, and emerging industry areas. The addition of four field representatives will enable the program to grow by 2,000 more apprentices per year. Established in 1938, the apprenticeship program places workers with experienced sponsors to learn trades such as electrician, mechanic, machinist, plumber and welder. Currently, more than 11,100 apprentices and 1,800 sponsors representing 300 industries participate in the program.)

Amendment # 6			Item 125
Commerce and Trade	FY 04-05	FY 05-06
Department Of Minority Business Enterprise	$435,013	$463,163	GF
	7.50	7.50	FTE

Language: Page 91, strike lines 26 through 33 and insert: "Industrial Development Services (53400) $435,013 $463,163 Minority Enterprise Coordination and Promotion (53406) $435,013 $463,163 Minority Enterprise Development and Improvement (53407) $0 $0 Fund Sources: General $435,013 $463,163 Authority: Title 2.2, Chapter 14; Title 11, Chapter 7, Article 2, Code of Virginia. A. Notwithstanding paragraphs F, G, H, I, and J of Item 107, out of the amounts provided for the Department of Business Assistance, $199,592 in the first year and $200,408 in the second year from the general fund and $1,065,924 in the first year and $1,065,924 in the second year from Commonwealth Transportation funds shall be transferred to the Department of Minority Business Enterprise. In addition, 3.00 general fund positions and 13.50 nongeneral fund positions in each year shall be transferred from the Department of Business Assistance to the Department of Minority Business Enterprise. B. Notwithstanding paragraph G of Item 107, the Department of Minority Business Enterprise, in conjunction with the Department of General Services, the Virginia Employment Commission and the Virginia Department of Transportation, is authorized to conduct analyses of the availability of minority business enterprises in Virginia and the utilization of such businesses by the Commonwealth of Virginia, localities or private industry in the acquisition of goods and services. To carry out such analyses, the Department is authorized to receive and accept from the United States government, or any agency thereof, and from any other source, private or public, any and all gifts, grants, allotments, bequests or devises of any nature that would assist the Department in conducting such analyses or otherwise strengthen its services to minority business enterprises. The Department is further authorized to create and hold an institutional fund for its exclusive use and purposes into which it may deposit the proceeds of any gift, grant, bequest, allotment, or devise of any nature received from private sources. Such fund shall be subject to the Uniform Management of Institutional Funds Act (§ 55-268.1 et seq., Code of Virginia). The fund and the income from such fund shall not be subject to the provisions of § 2.2-1802, Code of Virginia. The availability of such fund shall not be taken into consideration in, nor be used to reduce, state appropriations or payments, but such funds shall be used in accordance with the wishes of the donors thereof to offset the costs of conducting analyses of the availability and utilization of minority business enterprises or otherwise strengthen the services rendered by the Department to minority business enterprises in the Commonwealth. The Director, Department of Planning and Budget, is authorized to establish a nongeneral fund appropriation for the purposes of expending revenues that may be received for this program. Total for Department of Minority Business Enterprise $435,013 $463,163 General Fund Positions 7.50 7.50 Position Level 7.50 7.50 Fund Sources: General $435,013 $463,163". Explanation: (This amendment restores funding for the Department of Minority Business Enterprise. An independent Department of Minority Business Enterprise is necessary to ensure that minority business concerns and the findings of the recent disparity study are addressed. The disparity study found that utilization of minority firms by the Commonwealth was very low during the FY 1997-FY 2002 study period. Utilization of minority and women-owned business enterprises was only 1.27 percent of total spending over the study period. A significant portion of that was with firms owned by non-minority women. Total Commonwealth spending with minority-owned firms was less than 0.44 percent of total spending. By comparison, utilization of minority and women-owned business enterprises is much higher in other states like Maryland (17 percent in 2001), Texas (13 percent in 2003), Florida (11.8 percent from FY 1997-FY 2001), and North Carolina (7.4 percent from 1998-2002). The consulting firm that conducted the disparity study concluded that the Commonwealth also lags behind Mississippi, Alabama, and West Virginia in its support of minority and women-owned businesses. In addition, the disparity study concluded that Commonwealth spending with minority business enterprises as a percentage of total spending is one of the lowest recorded in over 100 studies conducted by the firm.)

Amendment # 7			Item 134
Commerce and Trade	FY 04-05	FY 05-06
Virginia Tourism Authority	$900,000	$250,000	GF

Language: Page 97, line 29, strike "$10,844,914" and insert "$11,744,914". Page 97, line 29, strike "$10,845,098" and insert "$11,095,098". Page 98, strike lines 42 through 43 and insert: "H. Out of the amounts for Tourist Promotion shall be provided $1,000,000 the first year and $500,000 the second year". Page 99, after line 41, insert: "N. Out of the amounts for Tourist Promotion shall be provided $150,000 the first year from the general fund for a partnership leveraging program for outdoor resources tourism. O. Out of the amounts for Tourist Promotion shall be provided $250,000 the first year and $250,000 the second year from the general fund to the Virginia Economic Development Partnership to attract motor sports-related businesses to Virginia." Explanation: (This amendment provides funding to advertise and market the statewide commemorative events marking the 400th anniversary of the founding of Jamestown in 1607, the first permanent English settlement in the United States. The Jamestown 2007 commemoration needs marketing exposure to maximize tourism potential. Further, advertising and marketing must begin in calendar year 2004 in order to begin creating awareness in the minds of potential visitors of the Jamestown 2007 events that actually begin in 2006. The funds also will be used to establish two partnership programs designed to leverage state marketing funds with at least a 2:1 match by public and private partnerships. One of the programs will be used to market the state as a whole, while the other program will be targeted towards outdoor recreation and eco-tourism, which is currently an underserved market segment. This program is to be part of the state’s efforts to bring economic development to rural Virginia. In addition, funds will be transferred to the Virginia Economic Development Partnership to identify and recruit research and design facilities, engine fabricators, specialized machine shops, racing controls and instrumentation makers, race car teams, and other businesses that support and supply the auto racing industry. This effort is aimed principally at bringing high-skill jobs to low-wage areas of Virginia.)

Amendment # 8			Item 135
Education
Secretary Of Education			Language

Language: Page 102, after line 4, insert: "H. The Governor is authorized to transfer from the second year to the first year $8,264,925 in funding provided in the second year for research at the College of William and Mary, Virginia Institute of Marine Science, George Mason University, James Madison University, Old Dominion University, University of Virginia, Virginia Commonwealth University, and Virginia Polytechnic Institute and State University to advance Virginia's effort to enhance its university research programs." Explanation: (This amendment authorizes the Governor to transfer one-time funding support for research at eight institutions of higher education from the second year of the biennium to the first year. This funding will bolster Virginia’s efforts to retain and attract high-caliber research faculty who are able to generate significant research income from public and private grant programs. Their presence strengthens Virginia's research programs, generating additional jobs and economic development throughout the state. Delaying funding for a year puts Virginia at a competitive disadvantage in recruiting and retaining high-performing research faculty.)

Amendment # 9			Item 144
Education: Elementary and Secondary
Direct Aid To Public Education			Language

Language: Page 111, strike lines 3-9. Explanation: (This amendment transfers the authority to fund the Wolf Trap Institute for Early Learning Through the Arts from Direct Aid to Public Education to another item in Central Appropriations which deals with similar entities. This action will consolidate similar types of payments in one item for the purposes of clarity.)

Amendment # 10			Item 163
Education: Other	FY 04-05	FY 05-06
State Council Of Higher Education For Virginia	$1,000,000	$0	GF
	$1,000,000	$0	NGF

Language: Page 145, line 32, strike "$48,915,465" and insert "$50,915,465" Page 148, line 15, strike "$50,000" and insert "$1,050,000" Page 148, line 16, after "general fund" insert "and $1,000,000 from nongeneral funds" Explanation: (This amendment provides a general fund appropriation of $1.0 million to match a private gift of $1.0 million, to increase funding for the Brown v. Board of Education Scholarship Program established in Chapter 935 of the Acts of Assembly of 2004. The program provides funding to assist students who were enrolled in the public schools of Virginia between 1954 and 1964 in jurisdictions in which public schools were closed to avoid desegregation. This funding allows Virginia to remedy in some measure the loss of public education suffered by those students.)

Amendment # 11			Item 164
Education: Other	FY 04-05	FY 05-06
State Council Of Higher Education For Virginia	$49,300	$0	GF

Language: Page 148, line 22, strike "$6,612,728" and insert "$6,662,028". Page 149, line 3, before "Out", insert "1." Page 149, after line 15, insert: "2. Out of the amounts for Regional Grants and Contracts, $49,300 the first year from the general fund is designated for tuition grants to support fourth-year students from Accomack and Northampton Counties for attendance at Salisbury State College and the University of Maryland-Eastern Shore, in the State of Maryland." Explanation: (This amendment restores partial funding for tuition grants for students on the Eastern Shore of Virginia who attend higher education institutions in Maryland. The proposed funding will allow the Commonwealth to fulfill its commitment to 17 students who will complete their undergraduate degrees in FY 2005.)

Amendment # 12			Item 165
Education: Other	FY 04-05	FY 05-06
State Council Of Higher Education For Virginia	$155,000	$174,000	GF

Language: Page 149, line 27, strike "$9,379,417" and "$9,295,371" and insert "$9,534,417" and "$9,469,371" Page 151, after line 46, insert: "I. Out of the appropriation in this Item, the following amounts shall be transferred to the agencies listed for the purposes specified: 1. $40,000 the first year and $40,000 the second year from the general fund to the University of Virginia for the Center for Politics, 2. $30,000 the first year and $49,000 the second year from the general fund to Virginia Commonwealth University for the Education Policy Institute, and 3. $85,000 the first year and $85,000 the second year from the general fund to Virginia Polytechnic Institute and State University for tobacco research." Explanation: (This amendment restores funding for the Center for Politics at the University of Virginia and the Education Policy Institute at Virginia Commonwealth University, and tobacco research at Virginia Polytechnic Institute and State University. The Center for Politics provides learning and training on policy development and politics to Virginia's future leaders. The Education Policy Institute provides pertinent research on K-12 education issues facing Virginia, disseminating this information to educators and decision-makers. The tobacco research at Virginia Tech is exploring commercially viable medical uses for tobacco plants, helping to ensure the economic viability of this important cash crop in Virginia.)

Amendment # 13			Item 261
Education: Other
The Science Museum Of Virginia			Language

Language: Page 207, strike lines 6 through 10. Explanation: (This amendment transfers the authority to fund the collaborative science education program at the Science Museum of Western Virginia from the Science Museum of Virginia to another item in Central Appropriations which deals with similar entities. This action will consolidate similar types of payments in one item for the purposes of clarity.)

Amendment # 14			Item 326
Health & Human Resources	FY 04-05	FY 05-06
Department Of Medical Assistance Services	($11,423,746)	($6,800,000)	GF
	($2,176,254)	($6,800,000)	NGF

Language: Page 265, line 46, strike "$4,098,479,181" and insert "$4,084,879,181". Page 265, line 46, strike "$4,502,188,393" and insert "$4,488,588,393". Explanation: (This amendment reflects Medicaid savings resulting from increased state recoveries in FY 2005 due to a settlement reached in late May 2004 for the Medicare Crossover reprocessing repayments from hospitals. The amendment reflects a reduction from the general fund and an increase in nongeneral fund appropriations through the Virginia Health Care Fund. This amendment also captures savings which will be realized from the use of fourth quarter Virginia-specific inflation data from calendar year 2003, as required by regulation (12VAC30-90-41). Fourth quarter data, which became available in late April 2004, shows a reduction in estimated inflation compared to the preliminary data used to estimate nursing home expenditures during budget development. Updating of inflation estimates routinely occurs before the beginning of the fiscal year, in order that actual payments are based on the most recent information available.)

Amendment # 15			Item 399
Natural Resources
Marine Resources Commission			Language

Language: Page 337, strike lines 21 through 32. Explanation: (This amendment removes language that would have restricted the ability of the citizen advisory boards (specifically the Virginia Recreational Fishing Advisory Board and the Commercial Fishing Advisory Board) to make recommendations for the use of licensing fee revenue, as provided in state law. Without the budget language, the Marine Resources Commission will base the allocation of license fee revenue on advisory board recommendations. The Marine Resources Commission intends to ask the advisory boards to consider recommending using license fee revenue to support 10 additional marine police officers, which was the original purpose of the language that is being eliminated in this amendment.)

Amendment # 16			Item 436
Public Safety	FY 04-05	FY 05-06
Department Of Fire Programs	$1,250,000	$0	GF

Language: Page 359, line 25, strike "$17,123,574" and insert"$18,373,574" Page 359, after line 31, insert: "This appropriation includes $1,250,000 the first year from the general fund to provide matching funds for localities participating in the federal Staffing for Adequate Firefighters and Emergency Response (SAFER) grant program, contingent upon Congress appropriating the federal share of funding for the program." Explanation: (This amendment provides $1,250,000 in general fund support to be used as matching funds by localities to encourage participation in the federal Staffing for Adequate Firefighters and Emergency Response (SAFER) grant program. This federal program will provide federal funding to support the hiring of additional firefighters to address the staffing needs of localities. Firefighters are the primary first responders in the event of any type of natural or terrorism disaster.)

Amendment # 17			Item 462
Technology	FY 04-05	FY 05-06
Innovative Technology Authority	$1,912,739	$0	GF

Language: Page 370, line 15, strike "$5,835,414" and insert "$7,748,153". Explanation: (This amendment provides for CIT's continued operations in the first year of the Institute of Defense and Homeland Security, the Initiative for Nanotechnology, biotechnology research enhancement, and assistance to small technology businesses through its regional operations. CIT regional personnel help over 400 of Virginia's small technology focused businesses obtain Small Business Innovation Research grants, Small Business Technology Transfer grants, Advanced Technology Program awards and federal contracts. This amendment also allows for the continuation of operations in the first year in the following CIT field offices: Newport News, Portsmouth, Charlottesville, Richmond, Herndon, Roanoke, Lynchburg, Blacksburg and the Virginia Electronic Commerce Technology Center in Lebanon, Virginia. This first year bridge support is recommended so that the Center for Innovative Technology can make a successful transition to self-sufficiency in FY 2008, as envisioned by the General Assembly. The general fund support will enable the Center to leverage federal and private funding sources to complement the Commonwealth's investment, thereby promoting a greater reliance on nongeneral fund revenues for CIT operations while preserving the legislative purpose, geographic presence, and quality of its programs.)

Amendment # 18			Item 463
Technology
Virginia Information Technologies Agency			Language

Language: Page 373, strike lines 11 through 16 Page 373, line 17, strike "G" and insert "F". Page 373, line 27, strike "G". Page 373, line 35, strike "H", insert "G". Page 373, line 47, strike "I", insert "H". Explanation: (This amendment removes the exemption of the Department of State Police (VSP) from the provisions of Title 2.2, Chapter 20.1 of the Code of Virginia. Including VSP under these provisions is consistent with the intent behind the Virginia Information Technologies Agency's (VITA) creation by increasing the state's purchasing power for information technology and VITA's ability to generate savings. From an operational standpoint, the State Police communicate routinely and share extensive information with numerous other agencies whose infrastructure will become part of VITA. Having VSP included in VITA will facilitate both the timely exchange of information and the effective technical support of those exchanges, particularly during emergency response and disaster recovery situations. Post-September 11 trends have been consistently towards more closely integrated public safety information systems. The recently awarded Homeland Security grant for a Virginia Readiness, Response, and Recovery System, in which VSP will be a key participant, is indicative of that trend.)

Amendment # 19			Item 466
Technology
Virginia Information Technologies Agency			Language

Language: Page 375, after line 49, insert: "D. The Governor is hereby authorized to allocate sums from any unexpended and unobligated balances on June 30, 2004, to provide for equipment and operating costs associated with the start-up of the Virginia Information Technologies Agency (VITA). These funds shall remain unallotted until a detailed plan of expenditure has been submitted to and approved by the Director, Department of Planning and Budget, and communicated to the Chairmen of the House Appropriations and Senate Finance Committees." Explanation: (This amendment provides a funding source for on-going start-up costs and equipment associated with the consolidation of the state's information technology functions. These funds will be used for network management and security, customer care, desktop services, and updating and streamlining agency electronic mail systems. This funding is needed to achieve $7.8 million in savings included in House Bill 5001 that will be achieved through the consolidation of the state's technology functions. These savings will not otherwise materialize. Federal cost allocation rules prohibit funding of these initiatives through the technology rate structure for state agencies and institutions of higher education. Consequently, this amendment is necessary because rates to agencies cannot be adjusted until all agency operations have been transferred to VITA, sometime after January 1, 2005. This would further delay the accruing of savings.)

Amendment # 20			Item 506
Central Appropriations	FY 04-05	FY 05-06
Central Appropriations	$1,000,000	$0	GF

Language: Page 408, line 50, strike "$23,976,258" and insert "$24,976,258". Page 409, line 14, strike "$2,200,000" and insert "$3,200,000". Page 409, after line 27, insert: "4. To provide for unbudgeted and unavoidable cost increases for public services due to rising petroleum prices." Explanation: (This amendment provides additional funding in Economic Contingency to be made available to state agencies and institutions of higher education for unanticipated cost increases associated with the rise in petroleum prices. For example, the Department of General Service's fleet management program has seen the average cost per gallon increase by 50 cents a gallon between June 2003 and June 2004. It is expected to increase another 15 cents per gallon in the near future resulting in an additional cost of $1.4 million next fiscal year to the fleet management program alone. The Department of Transportation indicates that for each one cent increase in both gasoline and diesel, its fuel costs increase by $122,000. The State Police expect an increase of 50 cents per gallon will result in $1.0 million in additional fuel costs.)

Amendment # 21			Item 506.10
Central Appropriations	FY 04-05	FY 05-06
Central Appropriations	$1,750,000	$1,500,000	GF

Language: Page 412, after line 12, insert: "506.10 Planning, Budgeting and Evaluation Services (71500) $1,750,000 $1,500,000 Fund Sources: General $1,750,000 $1,500,000 Authority: Discretionary Inclusion Out of this appropriation $1,750,000 the first year and $1,500,000 the second year from the general fund is provided to conduct research on the cause and effects of desired outcomes in core service areas for the purpose of constructing an overall roadmap for the Commonwealth, to facilitate and implement reengineering initiatives from an enterprise-wide perspective, and to conduct targeted efficiency reviews of state programs and activities including an examination of the cost effectiveness of certain state-operated commercial activities. The Governor is hereby authorized to transfer from this item such amounts as are necessary for state agencies to implement the purposes of this appropriation." Explanation: (This amendment provides funding for activities to enhance the performance of state government through the establishment of programmatic and managerial benchmarks for core programs and services in conjunction with the development of a productivity improvement program which encompasses research, training, and incentives to assist state agencies in meeting the desired benchmarks. The funding will enable the Commonwealth to make budgetary decisions in a more transparent and understandable fashion as well as fully integrate various efforts being undertaken by state agencies for the Council on Virginia's Future, the Government Performance and Results Act, the Taxpayers Budget Bill of Rights legislation, and the Competitive Government Act. It will also provide for a systematic approach for the continued implementation of the recommendations of the Governor's Commission on Efficiency and Effectiveness.)

Amendment # 22			Item 507.10
Central Appropriations	FY 04-05	FY 05-06
Central Appropriations	$569,953	$719,951	GF

Language: Page 412, after line 38, insert: "507.10 Financial Assistance for Cultural and Artistic Affairs (14300) $569,953 $719,951 Fund Sources: General $569,953 $719,951 Authority: Discretionary Inclusion A. Out of the appropriation in Item 144 of this act, $250,000 from the general fund shall be paid each year to the Wolf Trap Institute for Early Learning Through the Arts. B. Out of the appropriation in Item 261 of this act, $100,000 from the general fund shall be paid each year to the Science Museum of Western Virginia to develop a collaborative science education program with the Science Museum of Virginia in support of the Standards of Learning for public education. C. Out of the appropriation in this item, the following amounts shall be transferred to the agencies listed for the purpose specified: $100,000 in each year from the general fund to the Department of Housing and Community Development to support the Center for Rural Virginia; $125,000 each year from the general fund to Direct Aid to Public Education to fund An Achievable Dream, Inc. for its work with at-risk students in public school divisions; $150,000 from the general fund in the second year to the Department of Aging to support the distribution of comprehensive health and aging information to Virginia's senior population, their families and caregivers; $259,980 each year from the general fund to the Department of Social Services to fund Healthy Families Virginia for activities which promote positive parenting, improved child health and development, and reduced child abuse and neglect; and $84,973 in the first year and $84,971 in the second year from the general fund to the Virginia Museum of Natural History. D. The Department of Housing and Community Development shall report to the Governor and the Chairmen of the House Appropriations and Senate Finance Committees by November 15, 2004 on the status of the start-up activities, needs, and accomplishments of the Center for Rural Virginia." Explanation: (This amendment creates a new item in Central Appropriations to serve as a central account for grant funds to be transferred to various educational, cultural, artistic, and other nonstate entities. This action will consolidate similar types of payments in one item for the purposes of clarity.)

Amendment # 23			Item C-67
Education: Higher Education
University Of Virginia			Language

Language: Page 439, line 17, strike "Omitted." and insert: "In addition to the authorizations set forth in § 2-17, the University of Virginia may issue short-term debt for any capital project authorized by the General Assembly in order to cover costs of planning, design and construction pending the receipt of philanthropic pledges in an amount not to exceed the authorized amount for the project and for a term not to exceed seven years. The planning, design and construction of such projects shall be in accordance with the Governor's Six-Year Capital Implementation Plan. In the aggregate, the short-term debt shall not exceed $100 million at any point in time. The use of this short-term debt shall not accelerate previously determined state-supported debt issuance schedules for these projects." Explanation: (This amendment allows the University of Virginia to issue short-term debt for approved capital outlay projects supported with private funds. The program will provide interim funding to cover the costs of planning, design and construction of selected capital projects until the University receives philanthropic pledges for the project. Through this approach, the University can move more quickly on projects helping to protect against price increases due to inflation, materials, and competition.)

Amendment # 24			Item C-80.10
Education: Higher Education	FY 04-05	FY 05-06
Virginia Commonwealth University	$22,700,000	$0	NGF

Language: Page 441, line 14, strike "$15,300,000" and insert "$38,000,000" Explanation: (This amendment authorizes Virginia Commonwealth University to issue $22,700,000 in non-tax-supported 9(d) debt for construction of a new 135,000 square foot School of Business Building on the University's Monroe Campus. This private funding will supplement $15,300,000 in state-supported debt previously authorized for this project. Without this funding, the University will not be able to move forward with construction of its new business school. Delays in building the school could result in cost increases.)

Amendment # 25			Item C-125
Education: Higher Education
Virginia State University			Language

Language: Page 449, line 15, strike "Higher Education Operating" and insert "Bond Proceeds". Explanation: (This amendment changes the fund source from higher education operating to bond proceeds for Virginia State University's capital project to provide temporary housing for programs during the renovation of Gandy Hall. The project provides funding to renovate an existing warehouse to house the Registrar's Office during the renovation of Gandy Hall. Once the Gandy Hall renovation is complete, the Registrar's Office will move back into Gandy Hall and the renovated warehouse will be used to house Virginia State's campus police. Through this project, the school addresses both temporary program housing needs and the school's need for new space to house its campus police department. The cost for a new campus police office would be significantly higher than renovating the proposed warehouse space.)

Amendment # 26			Item 3-5.04
Adjustments And Modifications To Tax Collections
Payment Of Auto Rental Tax To The General Fund			Language

Language: Page 479, line 40, insert "A." before "Notwithstanding". Page 479, after line 43, insert: "B. Notwithstanding the provisions of the amendment to § 58.1-2425, Code of Virginia, enacted by Chapter 522 of the 2004 Acts of Assembly, all additional revenues resulting from the fee imposed under subdivision A 5 of § 58.1-2402, Code of Virginia, as enacted by Chapter 522 of the 2004 Acts of Assembly, shall be deposited into the general fund." Explanation: (This amendment specifies that the additional two percent auto rental tax enacted by the General Assembly be deposited to the general fund. Because the enacted legislation calls for the additional amounts to be deposited in a special fund, while the enrolled budget bill accounts for the additional revenue as general fund dollars, the amendment is needed in order to reconcile these provisions and to enable the funds to be spent for the purposes specified by the General Assembly.)

Amendment # 27			Item 3-5.05
Adjustments And Modifications To Tax Collections
Implementation of House Bill 5018			Language

Language: Page 480, line 13, after "unallotted" strike the remainder of line 13 and insert "." Page 480, strike line 14 though 17 and insert: "The Governor is authorized to re-allot funds in Item C-194, up to the total originally appropriated, from any revenues on June 30, 2004 in excess of the amounts on which Chapter 943 of the Acts of Assembly of 2004 were based, or from any unobligated and unexpended balances as of June 30, 2004." Explanation: (This amendment clarifies that the Governor may re-allot funds for the maintenance reserve appropriation in Item C-194 from any unobligated revenue surplus or unobligated and unexpended balances as of June 30, 2004. The adopted budget for 2004-06 required the maintenance reserve appropriation to be withheld in order to compensate for the revenue reduction which comes from implementing HB 5018 on September 1, 2004 rather than August 1, 2004. Without the authority to re-allot funds for the maintenance reserve program, no maintenance reserve funding will be available until an amended budget is enacted after the 2005 session. This amendment is intended to clarify legislative intent.)

Amendment # 28			Item 3-5.05
Adjustments And Modifications To Tax Collections
Implementation of House Bill 5018			Language

Language: Page 480, strike lines 2 through 5. Page 480, line 6, strike "B" and insert "A". Page 480, line 12, strike "C" and insert "B". Page 480, after line 17, insert paragraph "C. The date of July 1, 2004, in Enactment No. 8 of Chapter 1042 of the 2003 Acts of Assembly is hereby changed to July 1, 2006, to continue the Governor's authority as stated in Enactment No. 5 of Chapter 1042, as follows: That the State Comptroller shall make no distribution of the collections in accordance with § 58.1-638 until the Governor determines each year that funds are available to transfer such collections. If the Governor determines that funds are available to transfer such collections in accordance with § 58.1-638 he shall direct the State Comptroller to make such distribution. The Governor will report such determination to the Chairmen of the Senate Finance, House Finance and House Appropriations Committees in August of each year." Explanation: (This amendment deletes language requiring that all state revenue from the elimination of sales tax exemptions for certain public service entities be deposited to the general fund. Without this amendment, sales tax revenue from the repeal of this sales tax exemption would not be distributed to the Transportation Trust Fund, as the statute normally requires. In addition, this amendment restores language authorizing the Governor to transfer transportation funds generated from the accelerated sales tax to the Transportation Trust Fund. When the General Assembly reinstated the accelerated sales tax, this language was omitted. Without this amendment, the Transportation Trust Fund will lose approximately $70 million over the biennium in funding critical to addressing the state's transportation needs.)

Amendment # 29			Item 3-5.06
Adjustments And Modifications To Tax Collections
Repeal Reduction in Withholding of Individual Income Taxes			Language

Language: Page 480, after line 17, insert: "§ 3-5.06 REPEAL REDUCTION IN WITHHOLDING OF INDIVIDUAL INCOME TAXES Chapter 289 of the Acts of Assembly of 1989, as amended and reenacted by Chapter 888 of the Acts of Assembly of 1990 and Chapters 385 and 401 of the Acts of Assembly of 1992, Chapters 139 and 147 of the Acts of Assembly of 1994, Chapters 375 and 458 of the Acts of Assembly of 1996, Chapter 464 of the Acts of Assembly of 1998, and Chapters 501 and 553 of the Acts of Assembly of 2000, is hereby repealed effective January 1, 2003." Explanation: (This amendment extends for two years the repeal of Chapter 289 of the Acts of Assembly of 1989. This language is included in Chapter 1042 and was included in the introduced HB5001, but was inadvertently omitted. Without the restoration of this language, the revenue forecast must be revised downward by $30 million in FY 2005 and $5 million in FY 2006.)

Amendment # 30			Item 4-0.01
Operating Policies
Operating Policies			Language

Language: Page 481, line 9, after "observed" insert: "and shall ensure that appropriations are spent in an effective manner to address the specific program purposes approved by the General Assembly. The Governor shall further ensure that appropriations are expended in an efficient manner such that cost savings can be realized whenever practical." Explanation: (This amendment is self-explanatory.)

Amendment # 31			Item 4-1.01
Appropriations
Prerequisites for Payment			Language

Language: Page 481, after line 21, insert: "c. Exclusive of revenues paid into the general fund of the state treasury, all revenues earned or collected by an agency, and contained in an appropriation item to the agency shall be expended first during the fiscal year, prior to the expenditure of any general fund appropriation within that appropriation item, unless prohibited by statute or by the terms and conditions of any gift, grant or donation." Explanation: (This amendment clarifies that agencies with both general and nongeneral fund appropriations are to spend their nongeneral fund dollars first before utilizing their general fund appropriations. This has been an accepted operating practice for more than two decades.)

Amendment # 32			Item 4-1.02
Appropriations
Withholding Of Spending Authority			Language

Language: Page 481, strike lines 23-49. Page 482, strike lines 1-56. Page 483, strike lines 1-39 and insert: "a. Changed Expenditure Factors: 1. The Governor is authorized to reduce spending authority, by withholding allotments of appropriations, when expenditure factors, such as enrollments or population in institutions, are smaller than the estimates upon which the appropriation was based. Moneys generated from the withholding action shall not be reallocated for any other purpose except as may be specifically provided elsewhere in this act. Provided, however, the withholding of allotments of appropriations under this provision shall not occur until at least 15 days after the Governor has transmitted a statement of changed factors and intent to withhold moneys to the Chairmen of the House Appropriations and Senate Finance Committees. 2. Moneys shall not be withheld on the basis of reorganization plans or program evaluations until such plans or evaluations have been specifically presented in writing to the General Assembly at its next regularly scheduled session. b. Increased Nongeneral Fund Revenue: 1. General fund appropriations to any state agency for operating expenses are supplemental to nongeneral fund revenues collected by the agency. To the extent that nongeneral fund revenues collected in a fiscal year exceed the estimate on which the operating budget was based, the Governor is authorized to withhold general fund spending authority, by withholding allotments of appropriations, in an equivalent amount. However, this limitation shall not apply to: (a) restricted excess tuition and fees for educational and general programs in the institutions of higher education, as defined in § 4-2.01 c of this act; (b) appropriations to institutions of higher education designated for fellowships, scholarships and loans; (c) gifts or grants which are made to any state agency for the direct costs of a stipulated project; (d) appropriations to institutions for the mentally ill or mentally retarded payable from the Mental Health and Mental Retardation Revenue Fund; and (e) general fund appropriations for highway construction and mass transit. Moneys unallotted under this provision shall not be reallocated for any other purpose. 2. To the degree that new or additional grant funds become available to supplement general fund appropriations for a program, following enactment of an appropriation act, the Governor is authorized to withhold general fund spending authority, by withholding allotments of appropriations, in an amount equivalent to that provided from grant funds, unless such action is prohibited by the original provider of the grant funds. The withholding action shall not include general fund appropriations which are required to match grant funds. Moneys unallotted under this provision shall not be reallocated for any other purpose. c. Reduced General Fund Resources: 1. The term “general fund resources” as applied in this subsection, includes revenues collected and paid into the general fund of the state treasury during the current biennium, transfers to the general fund of the state treasury during the current biennium, and all unexpended balances brought forward from the previous biennium. 2. In the event that general fund resources are estimated by the Governor to be insufficient to pay in full all general fund appropriations authorized by the General Assembly, the Governor shall, subject to the qualifications herein contained, withhold general fund spending authority to prevent any expenditure in excess of the estimated general fund resources available. 3. In making this determination, the Governor shall take into account actual general fund revenue collections for the current fiscal year and the results of a formal written re-estimate of general fund revenues for the current and next biennium, prepared within the previous 90 days, in accordance with the process specified in § 2.2-1503, Code of Virginia. Said re-estimate of general fund revenues shall be communicated to the Chairmen of the Senate Finance, House Appropriations and House Finance Committees, prior to taking action to reduce general fund allotments of appropriations. 4. Within five business days after the preliminary close of the state accounts at the end of the fiscal year, the State Comptroller shall provide the Governor with the actual total of (a) individual income taxes, (b) corporate income taxes, and (c) sales taxes for the just completed fiscal year, with a comparison of such actual totals with the total of such taxes in the official budget estimate for that fiscal year. If that comparison indicates that the total of (a) individual income taxes, (b) corporate income taxes, and (c) sales taxes, as shown on the preliminary close, was one percent or more below the amount of such taxes in the official budget estimate for the just completed fiscal year, the Governor shall prepare a written re-estimate of general fund revenues for the current biennium and the next biennium in accordance with § 2.2-1503, Code of Virginia, to be reported to the Chairmen of the Senate Finance, House Finance and House Appropriations Committees, not later than September 1 following the close of the fiscal year. 5. The Governor shall take no action to withhold allotments until a written plan detailing specific reduction actions approved by the Governor, identified by program and appropriation item, has been presented to the Chairmen of the House Appropriations and Senate Finance Committees. Any subsequent modifications to the reduction plan approved by the Governor shall also be submitted to the Chairmen of the House Appropriations and Senate Finance Committees, prior to withholding allotments of appropriations. 6. In effecting the reduction of expenditures, the Governor shall not withhold allotments of appropriations for: a) More than 15 percent cumulatively of the annual general fund and nongeneral fund appropriation contained in this act for operating expenses of any one state or nonstate agency or institution designated in this act by title, and the exact amount withheld, by state or nonstate agency or institution, shall be reported within five calendar days to the Chairmen of the Senate Finance and House Appropriations Committees. State agencies providing funds directly to grantees named in this act shall not apportion a larger cut to the grantee than the proportional cut apportioned to the agency. Without regard to § 4-5.07 b.4. of this act, the remaining appropriation to the grantee which is not subject to the cut, equal to at least 85 percent of the annual appropriation, shall be made by July 31, or in two equal installments, one payable by July 31 and the other payable by December 31, if the remaining appropriation is less than or equal to $500,000, except in cases where the normal conditions of the grant dictate a different payment schedule. b) The payment of principal and interest on the bonded debt or other bonded obligations of the Commonwealth, its agencies and its authorities, or for payment of a legally authorized deficit. c) The payments for care of graves of Confederate dead. d) The employer contributions, and employer paid member contributions to the: Social Security System, Virginia Retirement System, Judicial Retirement System, State Police Officers Retirement System, Virginia Law Officers Retirement System, Optional Retirement Plan for College and University Faculty, Optional Retirement Plan for Political Appointees, Optional Retirement Plan for Superintendents, the Volunteer Service Award Program, and the Virginia Retirement System’s group life insurance, sickness and disability, and retiree health care credit programs for state employees, state-supported local employees and teachers. If the Virginia Retirement System Board of Trustees approves a contribution rate for a fiscal year that is lower than the rate on which the appropriation was based, or if the United States government approves a Social Security rate that is lower than that in effect for the current budget, the Governor may withhold excess contributions. However, employer and employee paid rates or contributions for health insurance and matching deferred compensation for state employees, state-supported local employees and teachers may not be increased or decreased beyond the amounts approved by the General Assembly. Payments for the employee benefit programs listed in this paragraph may not be delayed beyond the customary billing cycles that have been established by law or policy by the governing board. e) The payments in fulfillment of any contract awarded for the design, construction and furnishing of any state building. f) The salary of any state officer for whom the Constitution of Virginia prohibits a change in salary. g) The salary of any officer or employee in the Executive Department by more than two percent (irrespective of the fund source for payment of salaries and wages). Provided, however, the percentage of reduction shall be uniformly applied to all employees within the Executive Department. h) The appropriation supported by the State Bar Fund, as authorized by § 54.1-3913, Code of Virginia, unless the supporting revenues for such appropriation are estimated to be insufficient to pay the appropriation. 7. The Governor is authorized to withhold specific allotments of appropriations by a uniform percentage, a graduated reduction or on an individual basis, or apply a combination of these actions, in effecting the authorized reduction of expenditures, up to the maximum of 15 percent, as prescribed in subdivision 6a) of this subsection. 8. Each nongeneral fund appropriation shall be payable in full only to the extent the nongeneral fund revenues from which the appropriation is payable are estimated to be sufficient. The Governor is authorized to reduce allotments of nongeneral fund appropriations by the amount necessary to ensure that expenditures do not exceed the supporting revenues for such appropriations. Provided, however, the Governor shall take no action to reduce allotments of appropriations for the Highway Maintenance and Operating Fund and Transportation Trust Fund on account of reduced revenues until such time as a formal written re-estimate of revenues for the current and next biennium, prepared in accordance with the process specified in § 2.2-1503, Code of Virginia, has been reported to the Chairmen of the Senate Finance, House Finance, and House Appropriations Committees. 9. Notwithstanding any contrary provisions of law, the Governor is authorized to transfer to the general fund on June 30 of each year of the biennium or within twenty days from that date, any available unexpended balances in other funds in the state treasury, subject to the following: a) The Governor shall declare in writing to the Chairmen of the Senate Finance and House Appropriations Committees that a fiscal necessity exists which warrants the transfer of nongeneral funds to the general fund and reports the exact amount of such transfer within five calendar days of the transfer; b) No such transfer may be made from retirement or other trust accounts, the State Bar Fund as authorized by § 54.1-3913, Code of Virginia, debt service funds, or federal funds; and c) The Governor shall include for informative purposes, in the first biennial budget document he submits subsequent to the transfer, the amount transferred from each account or fund and recommendations for restoring such amounts. 10. The Director, Department of Planning and Budget, shall report spending authority withheld under the provisions of this subsection to the Chairmen of the Senate Finance and House Appropriations Committees within five calendar days of the action to withhold. Said report shall include the amount withheld by agency and appropriation item. 11. If action to withhold allotments of appropriation under this provision is inadequate to eliminate the imbalance between projected general fund resources and appropriations, the Speaker of the House of Delegates and the President Pro Tempore of the Senate shall be advised in writing by the Governor." Explanation: (This amendment clarifies that budget reduction plans developed as the result of insufficient revenues shall be provided to the General Assembly once they are approved by the Governor. In addition, it retains the current provision that reductions may also be proposed in nongeneral fund appropriations in order to address a revenue shortfall.)

Amendment # 33			Item 4-1.03
Appropriations
Appropriation Transfers			Language

Language: Page 484, line 1, strike "0100 and 0300 in higher education institutions; or” and insert “;”. Page 484, line 2, strike ".” and insert ";”. Page 484, after line 2 insert: “6) to provide for unbudgeted increases in costs which he determines a state agency or other agency must receive to render essential services; or 7) to ensure that appropriations are spent in an efficient and effective manner.” Page 484, line 6, strike "the express consent of" and insert "prior written notification to". Page 484, after line 42 insert: “9. The Director, Department of Planning and Budget may transfer capital appropriation authority between projects and from one state agency to another to provide for unbudgeted increases in costs.” Explanation: (This amendment clarifies the authority of the Director of the Department of Planning and Budget to execute appropriation transfers between fund groups, between agencies for unbudgeted costs or cost savings actions, and between capital projects for cost overruns. It also allows transfers affecting aid to localities or aid to individuals with prior written notification to the General Assembly.)

Amendment # 34			Item 4-1.04
Appropriations
Appropriation Increases			Language

Language: Page 484, strike lines 44 through 47. Page 484, line 48, strike “b” and insert “a”. Page 485, strike lines 38 through 41. Page 486, line 2, strike “c” and insert “b”. Explanation: (This amendment removes language that prohibits the Governor from re-establishing a vetoed program. This provision is contrary to the Virginia Supreme Court decision in Gilmore v. Landsidle.)

Amendment # 35			Item 4-1.05
Appropriations
Reversion of Appropriations and Reappropriations			Language

Language: Page 486, line 14, after "nonrecurring costs" insert "to the extent practicable". Page 486, line 26, strike "no later than" and insert "by". Page 486, line 26, after "succeeding fiscal year" insert "or as soon thereafter as practicable". Page 486, after line 28, insert: "3. Reappropriations payable from the general fund shall be made only upon certification by the Governor that funds are available for such payment." Page 486, line 29, strike "3." and insert "4." Page 486, line 41, after "nonrecurring cost" insert "to the extent practicable". Explanation: (This amendment clarifies the Governor's authority regarding the reappropriation of general fund and nongeneral fund amounts, and provides that reappropriations require the governor to certify that sufficient cash is available to support them.)

Amendment # 36			Item 4-1.06
Appropriations
Limited Adjustments of Appropriations			Language

Language: Page 487, line 28, strike "with the written concurrence of the Auditor of Public Accounts” and insert “with written notification to the Auditor of Public Accounts”. Explanation: (This amendment clarifies the authority of the State Comptroller to process transactions prior to June 30. The proposed change will require notification to instead of the concurrence of the Auditor of Public Accounts for the State Comptroller to process transactions prior to June 30 for the upcoming fiscal year. Notification will allow for more timely execution of emergency transactions before the beginning of the fiscal year in lieu of holding the emergency transactions until the Auditor of Public Accounts provides "written concurrence" with the Comptroller's request. The $3 million limit for the transactions remains unchanged. Requiring concurrence from a legislative official also raises separation of powers issues.)

Amendment # 37			Item 4-2.02
Revenues
General Fund Revenue			Language

Language: Page 490, strike lines 30 through 32. Page 490, line 33, strike "e)" and insert "d)". Page 490, line 34, strike "f)" and insert "e)". Page 490, line 37, strike "g)" and insert "f)". Page 490, line 39, strike "h)" and insert "g)". Page 490, line 40, strike "i)" and insert "h)". Page 491, line 2, strike "j)" and insert "i)". Page 491, line 3, strike "k)" and insert "j)". Page 491, line 6, strike "l)" and insert "k)". Page 491, line 8, strike "m)" and insert "l)". Explanation: (This amendment corrects a technical error. HB 5018 provides that Medicaid recoveries be deposited into the Virginia Health Care Fund, which is a nongeneral fund program. The language in this item of HB 5001 however, calls for such recoveries to be deposited to the general fund. This amendment corrects the inconsistency and requires Medicaid recoveries to be deposited in the Health Care Fund, as provided in HB 5018.)

Amendment # 38			Item 4-3.02
Deficit Authorization and Treasury Loans
Treasury Loans			Language

Language: Page 493, line 31, after "collection of" insert "nongeneral fund revenues or". Page 493, line 34, after "such loans" insert "in anticipation of bond proceeds". Explanation: (This amendment makes a technical correction to ensure treasury loans can be made to capital projects in anticipation of nongeneral fund revenues and bond proceeds.)

Amendment # 39			Item 4-6.01
Positions and Employment
Employee Compensation			Language

Language: Page 509, line 23, after "6." insert "a)" Page 509, after line 24, insert: “b. Existing salary contracts between the Chief Information Officer and the Information Technology Investment Board in effect before the enactment of this act shall remain in effect as originally written until the termination of said contracts. Salary contracts entered into after enactment of this act shall adhere to the conditions specified in § 4-6.01.” Explanation: (This amendment allows for the existing salary contract between the Information Technology Investment Board and the state's Chief Information Officer (CIO), signed on January 20, 2004, to remain in effect. Upon termination of the existing contract, subsequent contracts will follow the salary guidelines outlined in the appropriation act. Section 2.2-2005 of the Code of Virginia directs that the CIO be appointed by the Information Technology Investment Board as the chief administrative officer of the Board and to oversee the operations of the Virginia Information Technologies Agency. The statute stipulates that the CIO shall be employed under special contract for a term of five years and shall, under the direction and control of the Board, exercise the powers and perform the duties conferred or imposed upon him by law and perform such other duties as may be required by the Board.)

Amendment # 40			Item 4-6.01
Positions and Employment
Employee Compensation			Language

Language: Page 509, after line 58, insert "Executive Director, Department of Game and Inland Fisheries $108,607 $111,865 $111,865". Page 510, strike lines 51 and 52. Explanation: (This amendment makes the Department of Game and Inland Fisheries a Level One agency for the purpose of agency head compensation, instead of Level Two.)

Amendment # 41			Item 4-6.01
Positions and Employment
Employee Compensation			Language

Language: Page 513, after line 26 insert: "c) The State Council of Higher Education may annually supplement the salary of the Director from any available appropriations or any other nonstate funds available to the Council. In approving a supplement, the State Council of Higher Education should be guided by criteria which provide a reasonable limit on the total additional compensation of the Director. The criteria should include consideration of additional income from outside sources including, but not being limited to, service on boards of directors or other such services. The State Council shall report approved supplements to the Department of Human Resource Management for its records." Explanation: (This amendment restores language allowing the State Council of Higher Education in Virginia to adjust the director's salary. Without the additional flexibility to supplement the director's salary, the State Council will not be able to compete nationally to attract a qualified individual to fill the vacant position. In addition, the language provides greater flexibility by allowing the Council to use available nonstate funds to supplement the director's salary.)

Amendment # 42			Item 4-7.01
Statewide Plans
Manpower Control Program			Language

Language: Page 517, line 29, strike “Approvals for executive department agencies” Page 517, strike line 30, and insert: "The Director, Department of Planning and Budget, may increase the Position Level number of Executive Department agencies to effect the following: “a) to address threats to life, safety, health, or property or compliance with judicial orders; b) to ensure that appropriations are spent in an efficient and effective manner; c) to provide for unbudgeted increases in costs which he determines a state agency or other agency must receive to render essential services; or d) utilize additional nongeneral fund revenue approved under §4-1.04." Page 517, line 37, strike "2.a." and insert "2.a)". Explanation: (This amendment clarifies the authority of the Director of the Department of Planning and Budget to adjust the position level in Executive Branch agencies and makes a technical correction in paragraph numbering.)

Amendment # 43			Item 4-8.02
Reporting Requirements
State Agencies			Language

Language: Page 519, line 43, after "calendar days" insert "after the Governor approves agency budget reduction plans or five calendar days". Page 519, line 43, after “briefs,” insert “or”. Page 519, line 44, strike “, or budget reduction proposals”. Explanation: (This amendment clarifies agency reporting requirements regarding budget requests and other related submissions.)