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2006 Special Session I

Budget Bill - HB5099 (Introduced)

069882260
HOUSE BILL NO. 5099
Offered September 25, 2006
A BILL to amend Chapter 3 of the 2006 Acts of Assembly, Special Session I, relating to the appropriation of funds for the two years ending respectively on the thirtieth day of June 2007 and the thirtieth day of June 2008.
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Patrons-- Callahan, Hamilton, Joannou, Purkey and Tata
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Referred to Committee on Appropriations
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Be it enacted by the General Assembly of Virginia:

1. §1. That Items 260, 447, 461 and § 4-13.00 of Chapter 3 of the 2006 Acts of Assembly, Special Session I, be hereby amended and reenacted.

 

A. The balances of appropriations made by previous acts of the General Assembly which are recorded as unexpended, as of the close of business on the last day of the previous biennium, on the final records of the State Comptroller; and

 

B. The public taxes and arrears of taxes, as well as moneys derived from all other sources, which shall come into the state treasury prior to the close of business on the last day of the current biennium. The term "moneys" means nontax revenues of all kinds, including but not limited to fees, licenses, services and contract charges, gifts, grants, and donations, and projected revenues derived from proposed legislation contingent upon General Assembly passage.

 

§ 2. Such balances, public taxes, arrears of taxes, and monies derived from all other sources as are not segregated by law to other funds, which funds are defined by the State Comptroller, pursuant to § 2.2-803, Code of Virginia, shall establish and constitute the general fund of the state treasury.

 

§ 3. The appropriations made in this act from the general fund are based upon the following:

 

 

                                 First Year     Second Year           Total
Unreserved Balance,
June 30, 2006                $1,406,018,468              $0  $1,406,018,468
Additions to Balance           $134,002,852         $47,000    $134,049,852
Official Revenue Estimates  $15,453,255,934 $16,234,694,890 $31,687,950,824
Lottery Proceeds Fund          $426,100,000    $426,100,000    $852,200,000
Transfers                      $372,445,281    $360,111,243    $732,556,524
Total General Fund Resources
Available for Appropriation $17,791,822,535 $17,020,953,133 $34,812,775,668
 

The appropriations made in this act from nongeneral fund revenues are based upon the following:

 

                                 First Year     Second Year           Total
Balance, June 30, 2006       $2,538,258,284              $0  $2,538,258,284
Official Revenue Estimates  $18,153,574,015 $18,594,216,663 $36,747,790,678
Bond Proceeds                  $809,454,000              $0    $809,454,000
Total Nongeneral Fund Revenues
Available for Appropriation $21,501,286,299 $18,594,216,663 $40,095,502,962
TOTAL PROJECTED REVENUES    $39,293,108,834 $35,615,169,796 $74,908,278,630

 

§ 4. Nongeneral fund revenues which are not otherwise segregated pursuant to this act shall be segregated in accordance with the acts respectively establishing them.

 

§ 5. The sums herein appropriated are appropriated from the fund sources designated in the respective items of this act.

 

§ 6. When used in this act the term:

 

A. "Current biennium" means the period from the first day of July two thousand six, through the thirtieth day of June two thousand eight, inclusive.

 

B. "Previous biennium" means the period from the first day of July two thousand four, through the thirtieth day of June two thousand six, inclusive.

 

C. "Next biennium" means the period from the first day of July two thousand eight, through the thirtieth day of June two thousand ten, inclusive.

 

D. "State agency" means a court, department, institution, office, board, council or other unit of state government located in the legislative, judicial, or executive departments or group of independent agencies, or central appropriations, as shown in this act, and which is designated in this act by title and a three-digit agency code.

 

E. "Nonstate agency" means an organization or entity as defined in § 2.2-1505 C, Code of Virginia.

 

F. "Authority" sets forth the general enabling statute, either state or federal, for the operation of the program for which appropriations are shown.

 

G. "Discretionary" means there is no continuing statutory authority which infers or requires state funding for programs for which the appropriations are shown.

 

H. "Appropriation" shall include both the funds authorized for expenditure and the corresponding level of full-time equivalent employment.

 

I. "Sum sufficient" identifies an appropriation for which the Governor is authorized to exceed the amount shown in the Appropriation Act if required to carry out the purpose for which the appropriation is made.

 

J. "Item Details" indicates that, except as provided in § 6 H above, the numbers shown under the columns labeled Item Details are for information reference only.

 

K. Unless otherwise defined, terms used in this act dealing with budgeting, planning and related management actions are defined in the instructions for preparation of the Executive Budget.

 

§ 7. The total appropriations from all sources in this act have been allocated as follows:

 

BIENNIUM 2006-08

 

                  General Fund   Nongeneral Fund             Total
OPERATING 
EXPENSES       $33,761,544,114   $36,893,215,804   $70,654,759,918
               $33,855,394,114                     $70,748,609,918
 
LEGISLATIVE 
DEPARTMENT        $119,250,065        $6,617,524      $125,867,589
 
JUDICIAL 
DEPARTMENT        $696,499,354       $46,852,214      $743,371,568
                                                      
 
EXECUTIVE 
DEPARTMENT     $32,908,466,355   $36,175,799,547   $69,084,265,902
               $33,002,316,355                     $69,178,115,902
 
INDEPENDENT 
AGENCIES              $613,570      $663,946,519      $664,560,089
 
STATE GRANTS TO
NONSTATE AGENCIES  $36,714,770                $0       $36,714,770
 
CAPITAL OUTLAY 
EXPENSES        $1,020,708,398    $1,329,086,000    $2,349,794,398
 
TOTAL          $34,782,252,512   $38,222,301,804   $73,004,554,316
               $34,876,102,512                     $73,098,404,316

 

§ 8. This chapter shall be known and may be cited as the "2006 Appropriation Act."

 

PART 1: OPERATING EXPENSES

 

Items 1 through 259:  Not Set Out

 

Department of Accounts Transfer Payments (162)

 

                                                      Appropriations ($)
                                                 First Year      Second Year
                                                   FY2007           FY2008
 
260. Financial Assistance to
      Localities - General (72800)..               $55,190,000      $55,190,000
                                                                  $115,190,000
 
                                          Item Details ($)
                                   First Year       Second Year
                                      FY2007            FY2008
 
Distribution of Alcoholic
 Beverage Control Profits (72800)     $4,150,000       $4,150,000
                                 
 
Distribution of Wine Taxes (72805)   $4,350,000       $4,350,000
                                   
 
Distribution of Rolling
Stock Taxes (72806).............     $5,600,000       $5,600,000
 
Distribution of Recordation
Taxes (72808)...................    $40,000,000      $40,000,000
                                                    $100,000,000
Distribution of Sales Tax Revenues
From Certain Public 
Facilities (72811)..............     $1,010,000       $1,010,000
 
Distribution of Tennessee Valley
Authority Payments in 
Lieu of Taxes (72812)...........        $80,000          $80,000
 
Fund
Sources: General................    $55,190,000      $55,190,000
                                                    $115,190,000

 

Authority: §§ 4.1-116, 4.1-117, 4.1-235, 15.2-5814, 15.2-5914, 58.1-608.3, 58.1-815.1, 58.1-816, 58.1-2658.1, and 58.1-3406, Code of Virginia.

 

A. Out of this appropriation, amounts estimated at $18,500,000 the first year and $18,500,000 $50,000,000 the second year from the general fund shall be deposited into the Northern Virginia Transportation District Fund, as provided in § 58.1-815.1, Code of Virginia. Said amount shall consist of recordation taxes attributable to and transferable to the cities of Alexandria, Fairfax, Falls Church, Manassas, and Manassas Park and the counties of Arlington, Fairfax, Loudoun, and Prince William, pursuant to § 58.1-816, Code of Virginia. This amount shall be transferred to Item 447 of this act and shall be used to support the Northern Virginia Transportation District Program as defined in § 33.1-221.1:3, Code of Virginia. The Commonwealth Transportation Board shall make such allocations and expenditures from the Fund as are provided in the Northern Virginia Transportation District, Commonwealth of Virginia Revenue Bond Act of 1993 (Chapter 391, Acts of Assembly of 1993). The Commonwealth Transportation Board also shall make such allocations and expenditures from the fund as are provided in Chapters 470 and 597 of the Acts of Assembly of 1994 (amendments to Chapter 391, Acts of Assembly of 1993).

 

B. Pursuant to Chapters 233 and 662 of the Acts of Assembly of 1994, out of this appropriation, an amount estimated at $1,000,000 the first year and $1,000,000 the second year from the general fund shall be deposited into the Set-aside Fund as requested in an ordinance adopted March 28, 1995, and in compliance with the requirements provided for in § 58.1-816.1, Code of Virginia, for an account for the City of Chesapeake. These amounts shall be transferred to Item 447 of this act and shall be allocated by the Commonwealth Transportation Board to provide for the debt service pursuant to the Oak Grove Connector, City of Chesapeake, Commonwealth of Virginia Transportation Program Revenue Bond Act of 1994 (Chapters 233 and 662, Acts of Assembly of 1994).

 

C. There is hereby appropriated for payment to the Virginia Baseball Stadium Authority from the program Financial Assistance to Localities - General a sum sufficient equal to the state personal, corporate, and pass-through entity income and sales and use tax revenues to which the Authority is entitled.

 

Items 261 through 446:  Not Set Out

 

Department of Transportation (501)

 

                                                      Appropriations ($)
                                                 First Year      Second Year
                                                   FY2007           FY2008
 
447. Non-Toll Supported 
      Transportation Debt
      Service (61200)............               $329,292,729     $335,592,729
                                                                $345,592,729
 
                                          Item Details ($)
                                   First Year       Second Year
                                      FY2007            FY2008
 
Highway Transportation
 Improvement District
Debt Service (61201)............    $47,528,100      $47,528,100
                                 
 
Designated Highway Corridor
Debt Service (61202)............    $63,037,907      $63,037,907
                                                     $73,037,907
 
Federal Highway Revenue
Anticipation Notes
Debt Service (61203)............   $218,726,722     $225,026,722
 
 
Fund
Sources: General................   $151,300,000     $157,600,000
                                                    $167,600,000
         Commonwealth 
           Transport............   $107,426,722     $107,426,722
         Trust and Agency.......    $70,566,007      $70,566,007
 

 

Authority: Titles 15, 33, and 58 of the Code of Virginia; Chapters 827 and 914, Acts of Assembly of 1990; Chapters 233 and 662, Acts of Assembly of 1994; Chapter 8, as amended by Chapter 538, Acts of Assembly of 1999; Chapters 1019 and 1044, Acts of Assembly of 2000; and Chapter 799, Acts of Assembly of 2002.

 

A.1. The amount shown for Highway Transportation Improvement District Construction shall be derived from payments made to the Transportation Trust Fund pursuant to the Contract between the State Route 28 Highway Transportation Improvement District and the Commonwealth Transportation Board dated September 1, 1988 as amended by the Amended and Restated District Contract by and among the Commonwealth Transportation Board, the Fairfax County Economic Development Authority and the State Route 28 Highway Transportation Improvement District Commission (the “District Commission”) dated August 30, 2002 (the “District Contract”).

 

2. There is hereby appropriated for payment immediately upon receipt to a third party approved by the Commonwealth Transportation Board, or a bond trustee selected by such third party, a sum sufficient equal to the special tax revenues collected by the Counties of Fairfax and Loudoun within the State Route 28 Highway Transportation Improvement District and paid to the Commonwealth Transportation Board by or on behalf of the District Commission (the "contract payments") pursuant to § 15.2-4600 et seq., Code of Virginia, and the District Contract between the Commonwealth Transportation Board and the District Commission.

 

3. The contract payments may be supplemented from primary funds allocated to the highway construction district in which the project financed is located, or from the secondary system construction allocation to the county or counties in which the project financed is located, and from any other lawfully available revenues of the Transportation Trust Fund, as may be necessary to meet debt service obligations. The payment of debt service shall be for the bonds (the Series 2002 Bonds) issued under the "Commonwealth of Virginia Transportation Contract Revenue Bond Act of 1988" (Chapters 653 and 676, Acts of Assembly of 1988 as amended by Chapters 827 and 914 of the Acts of Assembly of 1990). Funds required to pay the total debt service on the Series 2002 Bonds shall be made available in the amounts indicated in paragraph E of this Item.

 

B.1. Out of the amounts for Designated Highway Corridor Construction, $40,000,000 the first year and $40,000,000 $50,000,000 the second year shall be paid from the general fund to the U.S. Route 58 Corridor Development Fund, hereinafter referred to as the "Fund", established pursuant to § 58.1-815, Code of Virginia. This payment shall be in lieu of the deposit of state recordation taxes to the Fund, as specified in the cited Code section and shall be made no later than July 15 of each year. Said recordation taxes which would otherwise be deposited to the Fund shall be retained by the general fund. Additional appropriations required for the U.S. Route 58 Corridor Development Fund, an amount estimated at $12,000,000 the first year and $12,000,000 the second year, shall be transferred from the highway share of the Transportation Trust Fund.

 

2. Pursuant to the "U.S. Route 58 Commonwealth of Virginia Transportation Revenue Bond Act of 1989" (as amended by Chapter 538 of the 1999 Acts of Assembly), the amounts shown in paragraph E of this Item shall be available from the Fund for debt service for the bonds previously issued and additional bonds issued pursuant to said act.

3.  The Commissioner shall report on or before July 1 of each year to the Chairmen of the Senate Finance and House Appropriations Committees on the cash balances in the Route 58 Corridor Development Fund.  In addition, the report shall include the following: (i) allocations and expenditures from the Fund for the preceding fiscal year by project and district; (ii) a comparison of actual spending to allocations by projects and district; and (iii) a six-year plan for planned future expenditures from the Fund by project and district.

 

C.1. The Commonwealth Transportation Board shall maintain the Northern Virginia Transportation District Fund, hereinafter referred to as the "Fund." Pursuant to § 58.1-815.1, Code of Virginia, and for so long as the Fund is required to support the issuance of bonds, the Fund shall include at least the following elements:

 

a. Amounts transferred from Item 260 of this act to this Item.

 

b. An amount estimated at $12,000,000 the first year and $12,000,000 the second year, which shall be transferred from the highway share of the Transportation Trust Fund.

 

c. Any public right-of-way use fees allocated by the Department of Transportation pursuant to § 58.1-468.1 of the Code of Virginia and attributable to the counties of Fairfax, Loudoun, and Prince William, the amounts estimated at $4,900,000 the first year and $4,800,000 the second year.

 

d. Any amounts which may be deposited into the Fund pursuant to a contract between the Commonwealth Transportation Board and a jurisdiction or jurisdictions participating in the Northern Virginia Transportation District Program, the amounts estimated to be $816,000 the first year and $816,000 the second year.

 

2. The Fund shall support the issuance of bonds at a total authorized level of $500,200,000 for the purposes provided in the “Northern Virginia Transportation District, Commonwealth of Virginia Revenue Bond Act of 1993,” Chapter 391, Acts of Assembly of 1993 as amended by Chapters 470 and 597 of the Acts of Assembly of 1994, Chapters 740 and 761 of the Acts of Assembly of 1998, Chapter 538 of the 1999 Acts of Assembly, Chapter 799 of the 2002 Acts of Assembly, and Chapter 621 of the 2005 Acts of Assembly.

 

3. Pursuant to the Northern Virginia Transportation District, Commonwealth of Virginia Revenue Bond Act of 1993, Chapter 391, Acts of Assembly of 1993, and as amended by Chapters 470 and 597 of the Acts of Assembly of 1994, Chapters 740 and 761 of the Acts of Assembly of 1998, Chapter 538 of the 1999 Acts of Assembly, Chapter 799 of the 2002 Acts of Assembly, and Chapter 621 of the 2005 Acts of Assembly,  amounts shown in paragraph E of this Item shall be available from the Fund for debt service for the bonds previously issued and additional bonds issued pursuant to said act.

 

4. Should the actual distribution of recordation taxes to the localities set forth in § 58.1-815.1, Code of Virginia, exceed the amount required for debt service on the bonds issued pursuant to the above act, such excess amount shall be transferred to the Northern Virginia Transportation District Fund in furtherance of the program described in § 33.1-221.1:3, Code of Virginia.

 

5. Should the actual distribution of recordation taxes to said localities be less than the amount required to pay debt service on the bonds, the Commonwealth Transportation Board is authorized to meet such deficiency, to the extent required, from funds identified in Enactment No. 1, Section 11, of Chapter 391, Acts of Assembly of 1993.

 

D.1. The Commonwealth Transportation Board shall maintain the City of Chesapeake account of the Set-aside Fund, pursuant to § 58.1-816.1, Code of Virginia, which shall include funds transferred from Item 260 of this act to this Item, and an amount estimated at $1,000,000 the first year and $1,500,000 the second year received from the City of Chesapeake pursuant to a contract or other alternative mechanism for the purpose provided in the “Oak Grove Connector, City of Chesapeake Commonwealth of Virginia Transportation Program Revenue Bond Act of 1994,” Chapters 233 and 662, Acts of Assembly of 1994 (hereafter referred to as the “Oak Grove Connector Act”).

 

2. The amounts shown in paragraph E of this Item shall be available from the City of Chesapeake account of the Set-aside Fund for debt service for the bonds issued pursuant to the Oak Grove Connector Act.

 

3. Should the actual distribution of recordation taxes and such local revenues from the City of Chesapeake as may be received pursuant to a contract or other alternative mechanism to the City of Chesapeake account of the Set-aside Fund be less than the amount required to pay debt service on the bonds, the Commonwealth Transportation Board is authorized to meet such deficiency, pursuant to Enactment No. 1, Section 11 of the Oak Grove Connector Act.

 

E. Pursuant to various Payment Agreements between the Treasury Board and the Commonwealth Transportation Board, funds required to pay the debt service due on the following Commonwealth Transportation Board bonds shall be transferred to the Treasury Board as follows:

                                              FY 2007      FY 2008 
Transportation Contract Revenue 
   Refund Bonds, Series 2002 (Route 28)      $7,529,845   $7,524,883
 
Commonwealth of Virginia Transportation 
Revenue Bonds: U.S. Route 58 Corridor 
Development Program:
 
Series 1996B                                 $4,235,155   $4,236,750
Series 1997C (Refunding)                     $4,879,944   $4,879,194
Series 1999B                                 $8,179,660   $8,176,438
Series 2001B                                 $5,591,613   $5,591,688
Series 2002 B (Refunding)                    $7,233,288   $7,235,438
Series 2003A (Refunding)                     $9,914,875   $9,916,075
Series 2004B                                $11,563,050  $11,563,050
 
Northern Virginia Transportation District Program:             
 
Series 1996A                                 $2,709,540   $2,709,000
Series 1997B (Refunding)                     $2,333,612   $2,333,769
Series 1999A                                 $1,328,863   $1,327,988
Series 2001A                                 $3,210,013   $3,211,163
Series 2002A                                $14,935,019  $14,951,219
Series 2004A                                 $4,102,000   $4,102,000
 
Transportation Program Revenue Bonds:             
Series 1997A (Oak Grove Connector, 
  City of Chesapeake)                        $2,328,870   $2,326,620 

 

F.1. Out of the amounts provided for this Item,  an estimated  $152,275,052 the first year and $152,296,812 the second year shall be provided from federal highway and highway assistance reimbursements for the debt service payments on the Federal Highway Reimbursement Anticipation Notes. 

 

2. Notwithstanding Enactment 6 of Chapters 1019 and 1044, Acts of Assembly of 2000, this act, or any other provision of law, any additional amounts needed to offset the debt service payment requirements on the Transportation Trust Fund attributable to the issuance of Federal Highway Reimbursement Anticipation Notes shall be provided from the Priority Transportation Fund to the extent available and then from the portion of the Transportation Trust Fund available for highway construction purposes prior to making the allocations required by § 33.1-23.1 B of the Code of Virginia.

 

3.  Out of this appropriation, $111,300,000 the first year and $117,600,000 the second year from the general fund shall be deposited into the Priority Transportation Fund.  These amounts represent the share of insurance premium tax revenues derived from automobile insurance premiums.

 

Items 448 through 460:  Not Set Out

 

Central Appropriations (995)

 

                                                      Appropriations ($)
                                                 First Year      Second Year
                                                   FY2007           FY2008
 
461. Compensation and Benefit
      Supplements (75700)...........              $137,085,279     $290,167,430
                                                                  $314,017,430
 
                                          Item Details ($)
                                   First Year       Second Year
                                      FY2007            FY2008
 
Supplements to Employee
 Compensation (75701).............   $66,801,275     $216,827,571
                                                    $240,677,571
 
Supplementsto Employee 
Benefits (75702).................   $70,284,004      $73,339,859
                                   
 
Fund
Sources: General................   $137,085,279     $290,167,430
                                                    $314,017,430

 

Authority: Discretionary Inclusion.

 

A. Transfers from this Item may be made to supplement general fund appropriations to state agencies for:

 

1. Adjustments to base rates of pay;

2. Adjustments to rates of pay for budgeted overtime of salaried employees;

3. Salary increases for positions with salaries listed elsewhere in this act;

4. Salary increases for locally elected constitutional officers and their employees;

5. In-band salary adjustments for employees subject to the Virginia Personnel Act to recognize changes in duties or professional skill development, establish internal alignment (equitable salary relationships), or respond to labor market conditions (retention).

6. Employer costs of employee benefit programs when required by salary-based pay adjustments; and

7. Salary increases for local employees supported by the Commonwealth, other than those funded through appropriations to the Department of Education.

8. Adjustments to the cost of employee benefits to include but not limited to health insurance premiums and retirement and related contribution rates.

 

B. Transfers from this Item may be made when appropriations to the state agencies concerned are insufficient for the purposes stated in paragraph A of this Item, as determined by the Department of Planning and Budget, and subject to guidelines prescribed by the department. Further, the Department of Planning and Budget may transfer appropriations within this Item from the second year of the biennium to the first year, when necessary to accomplish the purposes stated in paragraph A of this Item.

 

C. Except as provided for elsewhere in this Item, agencies supported in whole or in part by nongeneral fund sources, shall pay the proportionate share of increases in salaries and benefits as required by this Item, subject to the rules and regulations prescribed by the appointing or governing authority of such agencies.  Nongeneral fund revenues and balances required for this purpose are hereby appropriated.

 

D.1. The Department of Human Resource Management may approve pilot compensation programs within agencies that support the redesigned classified compensation plan. Such pilot programs approved by the department shall have clearly defined objectives, specified time frames, and shall be restricted to no more than two years. Such pilot programs shall be funded from existing agency appropriations or from funds provided for salary increases specified elsewhere in this Item, or a combination of both. A report on such pilot programs shall be made to the Governor and the Chairmen of the House Appropriations and Senate Finance Committees by October 1, 2007. The Secretary of Administration shall approve any change in compensation plans based on pilot programs, prior to their implementation.

 

2. Any pilot programs or alternative pay plans authorized under the provisions of this paragraph shall provide for average annual salary increases that are no greater than those authorized in this Item for classified state employees.

 

E. The Governor is hereby authorized to transfer funds from agency appropriations to the accounts of participating state employees in such amounts as may be necessary to match the contributions of the qualified participating employees, consistent with the requirements of the Code of Virginia governing the deferred compensation cash match program. Such transfers shall be made consistent with the following:

 

1. The maximum cash match provided to eligible employees shall not be less than $20.00 per pay period, or $40.00 per month. The Governor may direct the agencies of the Commonwealth to utilize funds contained within their existing appropriations to meet these requirements.

 

2. The Governor may direct agencies supported in whole or in part with nongeneral funds to utilize existing agency appropriations to meet these requirements. Such nongeneral revenues and balances are hereby appropriated for this purpose, subject to the provisions of § 4-2.01 b of this act. The use of such nongeneral funds shall be consistent with any existing conditions and restrictions otherwise placed upon such nongeneral funds.

 

3. Employees who are otherwise eligible but whose 403 (b) provider does not participate in the cash match program by establishing a 401 (a) account are ineligible to receive a cash match.

 

4. The procurement of services related to the implementation of this program shall be governed by standards set forth in § 51.1-124.30 C, Code of Virginia, and shall not be subject to the provisions of Chapter 7 (§ 11-35 et seq.), Title 11, Code of Virginia.

 

F.1. The base salary of the following employees shall be increased by four percent on November 25, 2006 and three percent on November 25, 2007 for state employees:

 

a. Full-time and other classified employees of the Executive Department subject to the Virginia Personnel Act;

b. Full-time employees of the Executive Department not subject to the Virginia Personnel Act, except officials elected by popular vote;

c. Any official whose salary is listed in § 4-6.01 of this act, subject to the ranges specified in the agency head salary levels in § 4-6.01 c; and

d. Full-time professional staff of the Governor's Office, the Lieutenant Governor's Office, the Attorney General's Office, Cabinet Secretaries Offices, including the Deputy Secretaries, the Virginia Liaison Office, and the Secretary of the Commonwealth's Office.

e. Heads of agencies in the Legislative Department;

f. Full-time employees in the Legislative Department, other than officials elected by popular vote; and

g. Secretaries and administrative assistants as provided for in Item 1 of this act.

h. Judges and Justices in the Judicial Department;

i. Heads of agencies in the Judicial Department; and,

j. Full-time employees in the Judicial Department.

k. Commissioners of the State Corporation Commission and the Virginia Workers' Compensation Commission, the Executive Directors of the Virginia College Savings Plan and the Virginia Office for Protection and Advocacy, and the Directors of the State Lottery Department, and the Virginia Retirement System;

 

l. Full-time employees of the State Corporation Commission, the Virginia College Savings Plan, the State Lottery Department, Virginia Workers' Compensation Commission, the Virginia Retirement System, and Virginia Office for Protection and Advocacy.

 

2.a. Employees in the Executive Department subject to the Virginia Personnel Act shall receive the salary increases authorized in this paragraph only if they attained at least a rating of "Contributor" on their latest performance evaluation.

b. Salary increases authorized in this paragraph for employees in the Judicial and Legislative Departments, employees of Independent agencies, and employees of the Executive Department not subject to the Virginia Personnel Act shall be consistent with the provisions of this paragraph, as determined by the appointing or governing authority. The appointing or governing authority shall certify to the Department of Human Resource Management that employees receiving the awards are performing at levels at least comparable to the eligible employees as set out in subparagraph 2.a. of this paragraph.

 

3. The Department of Human Resource Management shall increase the minimum and maximum salary for each band within the Commonwealth's Classified Compensation Plan by four percent on November 25, 2006. No salary increase shall be granted to any employee as a result of this action. The department shall develop policies and procedures to be used in instances where employees fall below the entry level for a job classification due to poor performance. Movement through the revised pay band shall be based on employee performance.

 

4. Out of the amounts for Supplements to Employee Compensation is included $44,403,040 the first year from the general fund and $115,610,104 the second year from the general fund to support the general fund portion of costs associated with the salary increase provided in this paragraph.

 

5. The following agency heads, at their discretion, may utilize agency funds or the funds provided pursuant to this paragraph to implement the provisions of existing pay plans:

 

a. The heads of agencies in the Legislative and Judicial Departments;

b. The Commissioners of the State Corporation Commission and the Virginia Workers' Compensation Commission;

c. The Attorney General;

d. The Director of the Virginia Retirement System;

e. The Director of the State Lottery Department;

f. The Director of the University of Virginia Medical Center;

g. The Executive Director of the Virginia College Savings Plan;

h. The Executive Director of the Virginia Port Authority; and

i. The Executive Director of the Virginia Office for Protection and Advocacy.

 

G. The base rates of pay, and related employee benefits, for wage employees may be increased by up to four percent no earlier than November 25, 2006.  The cost of such increases for wage employees shall be borne by existing funds appropriated to each agency.

 

H.1. Agency heads in the Executive Department are authorized to utilize an amount equivalent to 0.5 percent of salaries to implement pay practices pursuant to Department of Human Resource Management policies for pay practices under the compensation plan for classified employees and agency compensation plans.

 

2. The following agency heads at their discretion are authorized to utilize an amount equivalent to 0.5 percent of salaries to implement the provisions of existing pay plans:

 

a. The heads of agencies in the Legislative and Judicial Departments;

b. The Commissioners of the State Corporation Commission and the Virginia Workers' Compensation Commission;

c. The Attorney General;

d. The Director of the Virginia Retirement System;

e. The Director of the State Lottery Department;

f. The Director of the University of Virginia Medical Center;

g. The Executive Director of the Virginia College Savings Plan;

h. The Executive Director of the Virginia Port Authority; and

i. The Executive Director of the Virginia Office for Protection and Advocacy.

 

3. Out of the appropriation for Supplements to Employee Compensation is included $5,550,377 the first year from the general fund and $10,246,839 the second year from the general fund to support the general fund portion of costs associated with the salary increases authorized in this paragraph.

 

I.1. The base salary of the following employees shall be increased by four percent on December 1, 2006 and three percent on December 1, 2007:

 

a. Locally elected constitutional officers;

b. General Registrars and members of local electoral boards;

c. Full-time employees of locally elected constitutional officers; and,

d. Full-time employees of Community Services Boards, Centers for Independent Living, secure detention centers supported by Juvenile Block Grants, juvenile delinquency prevention and local court service units, local social services boards, and local health departments where a memorandum of understanding exists with the Virginia Department of Health.

 

2. Out of the appropriation for Supplements to Employee Compensation is included $19,609,787 the first year from the general fund and $48,471,220 the second year from the general fund to support the costs associated with the salary increase provided in this paragraph.

 

J.1. Out of the appropriation for Supplements to Employee Benefits, amounts estimated at $34,808,234 the first year from the general fund and $36,321,635 the second year from the general fund shall be transferred to state agencies and institutions of higher education to support the general fund portion of costs associated with changes in the employer's share of premiums paid for the Commonwealth's health benefit plans.

 

2. Notwithstanding any contrary provision of law, the health benefit plans for state employees resulting from the additional funding in this Item shall allow for a portion of employee medical premiums to be charged to employees.

 

K.1.  Contribution rates paid to the Virginia Retirement System for the retirement benefits of public school teachers, state employees, state police officers, state judges, and state law enforcement officers eligible for the Virginia Law Officers Retirement System shall be based on a valuation of retirement assets and liabilities that assume an investment return of eight percent, a cost of living increase of three percent, and an amortization period of 30 years the first year and 21 years the second year.   For each year, the employer contribution rates resulting from these assumptions are as follows;

 

2. Out of the appropriation for Supplements to Employee Benefits, amounts estimated at $21,142,477 the first year from the general fund and $31,817,164 the second year from the general fund shall be transferred to state agencies and institutions of higher education to support the general fund portion of the costs associated with changes in the contribution rates for state employee retirement as provided for in this paragraph. 

 

3. State funding for increases in retirement contributions for public school teachers funded through the Standards of Quality is provided under Direct Aid to Public Education.

 

L. 1. For each year, contribution rates paid to the Virginia Retirement System for the public employee group life insurance program shall be 1.13 percent of salaries resulting from an update of the valuation of program assets and liabilities.

 

2. Out of the appropriation for Supplements to Employee Benefits, amounts estimated at $6,815,269 the first year from the general fund and $7,111,568 the second year from the general fund shall be transferred to state agencies and institutions of higher education to support the general fund portion of the costs associated with the increase in the contribution rate for state employee group life insurance as provided for in this paragraph. 

 

3. State funding for increases in group life contributions for public school teachers funded through the Standards of Quality is provided under Direct Aid to Public Education.

 

M.1. For each year, contribution rates paid to the Virginia Retirement System for the Virginia Sickness and Disability Program shall be 1.78 percent of salaries resulting from an update of the valuation of program assets and liabilities.

 

2. Out of the appropriation for Supplements to Employee Benefits, amounts estimated at $2,522,674 the first year from the general fund and $2,632,389 the second year from the general fund shall be transferred to state agencies and institutions of higher education to support the general fund portion of the costs associated with the increase in the contribution rate for the Virginia Sickness and Disability Program as provided for in this paragraph. 

 

N. The Secretary of Administration, in conjunction with the Secretary of Finance, may establish a program that allows for the sharing of cost savings from improved productivity and performance with agencies and employees.  Such gain sharing programs require a management philosophy of open communication encouraging employee participation; a system which seeks, evaluates and implements employee input on increasing productivity; and a formula for measuring productivity gains and sharing these gains between employees and the agency.  The Department of Human Resource Management, in conjunction with the Department of Planning and Budget, shall develop specific gain sharing program guidelines for use by agencies.  The Department of Human Resource Management shall provide to the Governor, the Chairmen of the House Appropriations and Senate Finance Committees an annual report no later than October 1 of each year detailing identified savings and their usage.

 

O. There is hereby created the Pre-Medicare Eligible Retiree Health Benefits Trust Fund (the Fund). The funds of the Pre-Medicare Eligible Retiree Health Benefits Trust fund shall be deemed separate and independent trust funds, shall be segregated from all other funds of the Commonwealth, and shall be invested and administered solely in the interests of the participating retirees.  Neither the General Assembly nor any public officer, employee, or agency shall use or authorize the use of such trust funds for any purpose other than as provided in law for benefits, refunds, and administrative expenses.  The Fund is established to pay the health insurance benefits of retirees and their dependents who are not yet eligible for Medicare under the plan established under § 2.2-2818.  Deposits to the Fund shall be made from general fund appropriations, retiree payroll deductions and other retiree payments together with any earnings on those deposits.  Fund deposits are irrevocable and are not subject to the claims of creditors.  The Department of Human Resource Management shall use the assistance of the Virginia Retirement System in establishing, investing, and maintaining the Fund. The Board of Trustees of the Virginia Retirement System shall administer and manage the investment of the Fund as custodian and provide staff.  The Virginia Retirement System shall invest the Funds in accordance with Article 3.1 (§ 51.1-124.30 et seq.) of Chapter 1 of Title 51.1. The Fund shall annually reimburse the Virginia Retirement System for all reasonable costs incurred and associated, directly and indirectly, with the administration of this chapter and management and investment of the Fund.

 

P.  Out of the appropriation for Supplements to Employee Benefits, amounts estimated at $952,000 the first year from the general fund and $990,000 the second year from the general fund for the state employee retiree health credit as required by Chapter 622 of the Acts of Assembly of 2006.

 

Q. Out of the amounts for Compensation Supplements shall be paid $317,203 the first year and $317,203 the second year from the general fund for the correction of internal compensation alignment at Longwood University.  Such non-general fund amounts as are required to carry out the purpose of this paragraph are hereby appropriated.

 

R. Out of the amounts for Compensation Supplements shall be paid $12,864,000 the second year from the general fund to provide for a three percent salary increase and related employee benefit costs effective November 25, 2007.  Such non-general funds as may be required to implement this increase are hereby appropriated.

 

S. Out of the amounts for Compensation Supplements a total of $22,000,000 the second year shall be provided for reserve for a salary increase and the related employee benefit costs for the state's share of all public education funded SOQ instructional positions.

 

S. 1) Out of the amounts for Compensation Supplements a total of $45,850,000 the second year shall be transferred into Item 135 for the purpose of providing a 3.0 percent salary increase and the related employee benefit costs for the state's share of all public education funded SOQ instructional positions, and shall be effective December 1, 2007. 

 

2) It is the intent that the average classroom teacher salary be improved throughout the state by at least 3.0 percent the second year.  Sufficient funds are appropriated in this act to finance, on a statewide basis, the state share of such a salary increase to school divisions which certify to the state Department of Education, no later than March 1, 2008, that equivalent increases have been granted in the second year.

 

3) These funds shall be matched by the local government, based on the composite index of local ability-to-pay.

 

4) This funding is not intended as a mandate to increase salaries.

 

Items 462 through 481:  Not Set Out

 

 
 
TOTAL FOR PART 1:
 OPERATING EXPENSES                           $34,904,269,286  $35,750,490,632
                                                               $35,844,340,632
 
    General Fund
     Positions            55,904.48         55,916.78
    Nongeneral Fund 
     Positions            60,967.46         64,350.68
      Position Level     116,871.94        117,267.46
 
    Fund Sources:
     General        $16,779,048,401   $16,982,495,713
                                      $17,076,345,713
 
    Special          $1,582,139,532    $1,722,709,724
    Higher Education
     Operating       $4,833,655,952    $5,052,165,848
    Commonwealth 
     Transportation  $4,065,286,028    $4,120,333,115
    Enterprise         $822,233,996      $837,099,712
    Trust and Agency $1,091,584,780    $1,105,769,295
    Debt Service       $204,399,236      $206,745,939
    Dedicated Special 
     Revenue           $660,473,168      $666,884,007
    Federal Trust    $4,865,448,193    $5,056,287,279

 

PART 2: CAPITAL PROJECT EXPENSES

 

§ 2-0 General Conditions:  Not Set Out

 

Items C-1 through C-328:  Not Set Out

 

PART 3: MISCELLANEOUS

 

§ 3-1.01 through § 3-6.02:  Not Set Out

 

PART 4: GENERAL PROVISIONS

 

§ 4-0.01 through § 4-12.00:  Not Set Out

 

§ 4-13.00 EFFECTIVE DATE

 

This act is effective on July 1, 2006. This act is effective on its passage as provided in §1-12c, Code of Virginia.

 

PART 5: ENACTMENT NUMBERS 2 THROUGH 5

 

Enactment 2:  Not Set Out