GOVERNOR'S RECOMMENDATION

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6. That notwithstanding the provisions of § 51.1-137 of the Code of Virginia, the Board of Trustees of the Virginia Retirement System (VRS) shall charge the Commonwealth, localities and local school boards, for fiscal year 2000-2001 and fiscal year 2001-2002, the actuarially derived rates for state employees, local employees and teachers that are set forth in the valuation reports of June 30, 2000, for VRS, the Judicial Retirement System, the State Police Officers Retirement System, and the Virginia Law Officers Retirement System or similar valuation reports for local governments, whichever is applicable. In addition, the VRS Board of Trustees shall charge the Commonwealth a group life insurance rate of .62 percent for state employees in fiscal years 2000-2001 and 2001-2002, local school boards a group life insurance rate of .14 for their employees in fiscal years 2000-2001 and 2001-2002, and the Commonwealth and local school boards the rate for the retiree health insurance credit minus the phase-in percentage in fiscal year 2001-2002. The VRS Board of Trustees shall institute premium holidays and/or adjust rates as necessary for fiscal year 2001-2002 so that the Commonwealth and local school boards can recoup the employer savings that result from this action. The intent of the General Assembly is to devote any general fund savings from these VRS rate reductions to salary increases for public school teachers, state employees, including college faculty, and certain local employees.

7. That from such funds that accrue to the general fund as a result of rate and cost-share actions affecting employer retirement contributions to VRS, group life insurance premiums, and the retiree health care credit during the 2000-2002 biennium, there is hereby appropriated from the general fund of the state treasury $125,367,307 for salary increases for certain state and local employees as follows:

§ 1. A. There is hereby appropriated $39,283,699 from the general fund of the state treasury to increase the base salary of the following employees by 3.5 percent on November 25, 2001:

a. Executive Department

1. Full-time employees of the Executive Department subject to the Virginia Personnel Act;

2. Full-time employees of the Executive Department not subject to the Virginia Personnel Act, except faculty at the institutions of higher education and officials elected by popular vote;

3. Any official whose salary is listed in § 4-6.01 b, c and d of Chapter 1073 of the 2000 Acts of Assembly, subject to the ranges specified in the agency head salary levels in § 4-6.01 c of that act, which salary ranges shall be increased by 3.5 percent effective November 25, 2001; and

4. 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.

b. Legislative Department

1. Heads of agencies in the Legislative Department;

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

3. Secretaries and administrative assistants.

c. Judicial Department

1. Judges and Justices in the Judicial Department;

2. Heads of agencies in the Judicial Department; and

3. Full-time employees in the Judicial Department.

d. Independent Agencies

1. Commissioners of the State Corporation Commission and the Virginia Workers' Compensation Commission, the Executive Director of the Virginia College Savings Plan, and the Directors of the State Lottery Department and the Virginia Retirement System;

2. Full-time employees of the State Lottery Department; and

3. Full-time employees of the State Corporation Commission, the Virginia College Savings Plan, the State Lottery Department, and the Virginia Retirement System.

B. The base salary of employees set out in subdivision A.a.1 of this section who receive a contributor rating or an extraordinary contributor rating in their fall 2001 performance evaluation shall be increased on average by 3.5 percent on November 25, 2001. The base salary adjustment for an employee rated as a contributor will be no less than 2.8 percent and no more than the 3.5 percent average increase. The increase for an employee rated extraordinary contributor shall be no less than the average increase of 3.5 percent and no more than 8.75 percent. Further rules and regulations for the performance-based salary increase for such employees shall be developed by the Department of Human Resource Management in conjunction with the Department of Planning and Budget.

C. Of this amount, $1,000,000 shall fund salary adjustments and awards made under the new pay practices that went into effect on September 25, 2000, for state employees covered under the new classified pay plan. The transfer of funds for performance-based adjustments and awards shall be based upon rules and regulations to be developed by the Department of Human Resource Management in conjunction with the Department of Planning and Budget.

D. Agencies supported in whole or in part by nongeneral funds shall pay the proportionate share of costs, from nongeneral funds, of wages, salaries and employee benefits as stated in this section, subject to rules and regulations prescribed by the Governing Authority.

§ 2. There is hereby appropriated $48,466, 836 from the general fund of the state treasury for an equivalent payment for the state share of a 3.5 percent salary increase and related fringe benefit costs for public school instructional and support positions required by the Standards of Quality as set forth in Chapter 13.2 (§ 22.1-253.13:1 et seq.) of Title 22.1, effective December 1, 2001. The intent of the General Assembly is that the average classroom teacher salary be improved throughout the state by at least 3.5 percent in fiscal year 2001-2002. Sufficient funds are appropriated to finance on a statewide basis the state share of such salary increases to school divisions that certify to the state Department of Education, no later than March 1, 2002, that equivalent increases have been granted. These funds shall be matched by the local government, based on the composite index of local ability-to-pay. This funding is not intended as a mandate to increase salaries.

§ 3. There is hereby appropriated $13,605,482 from the general fund of the state treasury to increase the base salary of the following employees by 3.5 percent on December 1, 2001:

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.

§ 4. There is hereby appropriated $24,011,290 from the general fund of the state treasury to the Educational and General Programs of the following institutions of higher education to effect salary and related benefit increases effective November 25, 2001, for full-time teaching and research faculty, administrative faculty, part-time faculty, and graduate assistants.

 

              Institution                                  Amount

              College of William and Mary                $ 1,108,600
              University of Virginia                     $ 4,248,370
              Virginia Polytechnic Institute and
                State Univeristy                         $ 3,839,430
              Virginia Military Institute                $   243,940
              Virginia State University                  $   267,970
              Norfolk State University                   $   488,050
              Longwood College                           $   234,200
              Mary Washington College                    $   344,700
              James Madison University                   $ 1,133,340
              Radford University                         $   550,980
              Old Dominion University                    $ 1,264,920
              Virginia Tech - Cooperative Extension      $   926,490
              Virginia Commonwealth University           $ 3,090,480
              Richard Bland College                      $    54,370
              Christopher Newport University             $   330,260
              University of Virginia's College at Wise   $   103,450
              George Mason University                    $ 1,810,860
              Virginia Community College System          $ 3,827,150
              Virginia Institute of Marine Science       $   139,020
              Virginia State University -
                Cooperative Extension                    $     4,710
              TOTAL                                      $24,011,290

That the provisions of this act shall supersede and control any conflicting provision of law, including Items 142, 143 and 547 of Chapter 1073 of the Acts of Assembly of 2000, notwithstanding the provisions of § 4-11.00 of Chapter 1073.

GOVERNOR'S VETO

Pursuant to Article V, Section 6, of the Constitution of Virginia, I veto Senate bill 954.

House Bill 252 and House Bill 1589 are identical bills that have already become law; therefore, this legislation is unnecessary. Accordingly, I am returning this bill without my signature.