GOVERNOR'S RECOMMENDATION

While I approve of the general purpose of this bill, I am returning it without my signature and requesting that four amendments be adopted. I commend the General Assembly for its diligent work this session.

Given the significance of this bill, it’s important to adopt a targeted approach, and the enrolled bill allocates additional funding to a select few core services that have been thoughtfully prioritized.

My amendments are nevertheless necessary and limited to technical adjustments for time-constrained programs and funding purposes.

While this bill’s passage is significant, it does not mark the end of this session’s work.

Through the first eight months of the fiscal year, tax collections are surpassing expectations, confirming at least $3.6 billion in unanticipated resources. I look forward to working with the General Assembly  to develop a budget that provides $1 billion in tax relief for Virginians and delivers over $2.6 billion for our shared goals of job growth, public safety, education excellence, and behavioral health services.

I urge the General Assembly to approve these amendments promptly to reenroll the budget without delay.

2023 Reconvened Session Executive Amendments (HB 1400)

Amendment 1: Make Technical Changes to General Fund Resources

Item 0

Language:

Page 1, line 2, after “reenact”, insert “Enactment 1 and”.

Page 1, line 10, after “That”, insert “Enactment 1 and”.

Page 1, after line 12, insert:

“1. §1. The following are hereby appropriated, for the current biennium, as set forth in succeeding parts, sections and items, for the purposes stated and for the years indicated:

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:

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

§ 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 twenty-two, through the thirtieth day of June two thousand twenty-four, inclusive.

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

C. "Next biennium" means the period from the first day of July two thousand twenty-four, through the thirtieth day of June two thousand twenty-six, 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:

§ 8. This chapter shall be known and may be cited as the "2022 2023 Appropriation Act." ”

Explanation:

(This amendment recognizes changes in estimated revenue collections resulting from the passage of HB1595 / SB882 regarding conformity of the Commonwealth's taxation system to the Internal Revenue Code. The amendment also recognizes adjustments to balances associated with various balance sheet actions for required deposits and future planned appropriation of contingent amounts from prior year excess revenue collections including the Revenue Stabilization Fund Deposit, Virginia Retirement System Deposit, and the 2022 Capital Supplement Pool. This amendment also makes technical corrections to the total appropriations summary included in Enactment 1 of Chapter 2.)

Amendment 2: Funding for TANF Unemployed Parents Program

Item 341

Language:

Page 1, line 2, strike “Items 267 and 269” and insert “Items 267, 269, and 341”.

Page 1, line 10, strike “Items 267 and 269” and insert “Items 267, 269, and 341”.

Page 2, after line 93, insert:

Authority: Title 2.2, Chapter 54; Title 63.2, Chapters 1 through 7, Code of Virginia; Title VI, Subtitle B, P.L. 97 -35, as amended; P.L. 103 -252, as amended; P.L. 104 -193, as amended, Federal Code. 

A. It is hereby acknowledged that as of June 30, 2021 there existed with the federal government an unexpended balance of $130,397,626 in federal Temporary Assistance for Needy Families (TANF) block grant funds which are available to the Commonwealth of Virginia to reimburse expenditures incurred in accordance with the adopted State Plan for the TANF program. Based on projected spending levels and appropriations in this act, the Commonwealth's accumulated balance for authorized federal TANF block grant funds is estimated at $79,652,390 on June 30, 2022; $49,119,392 on June 30, 2023; and $17,988,412 on June 30, 2024.

B. No less than 30 days prior to submitting any amendment to the federal government related to the State Plan for the Temporary Assistance for Needy Families program, the Commissioner of the Department of Social Services shall provide the Chairmen of the House Appropriations and Senate Finance an Appropriations Committees as well as the Director, Department of Planning and Budget written documentation detailing the proposed policy changes. This documentation shall include an estimate of the fiscal impact of the proposed changes and information summarizing public comment that was received on the proposed changes.

C. Notwithstanding any other provision of state law, the Department of Social Services shall maintain a separate state program, as that term is defined by federal regulations governing the Temporary Assistance for Needy Families (TANF) program, 45 C.F.R. § 260.30, for the purpose of providing welfare cash assistance payments to able-bodied two-parent families. The separate state program shall be funded by state funds and operated outside of the TANF program. Able-bodied two-parent families shall not be eligible for TANF cash assistance as defined at 45 C.F.R. § 260.31 (a)(1), but shall receive benefits under the separate state program provided for in this paragraph. Although various conditions and eligibility requirements may be different under the separate state program, the basic benefit payment for which two-parent families are eligible under the separate state program shall not be less than what they would have received under TANF. The Department of Social Services shall establish regulations to govern this separate state program.

D. As a condition of this appropriation, the Department of Social Services shall disregard the value of one motor vehicle per assistance unit in determining eligibility for cash assistance in the Temporary Assistance for Needy Families (TANF) program and in the separate state program for able-bodied two-parent families.

E. The Department of Social Services, in collaboration with local departments of social services, shall maintain minimum performance standards for all local departments of social services participating in the Virginia Initiative for Education and Work (VIEW) program. The department shall allocate VIEW funds to local departments of social services based on these performance standards and VIEW caseloads. The allocation formula shall be developed and revised in cooperation with the local social services departments and the Department of Planning and Budget.

F. A participant whose Temporary Assistance for Needy Families (TANF) financial assistance is terminated due to the receipt of 24 months of assistance as specified in § 63.2-612, Code of Virginia, or due to the closure of the TANF case prior to the completion of 24 months of TANF assistance, excluding cases closed with a sanction for noncompliance with the Virginia Initiative for Education and Work program, shall be eligible to receive employment and training assistance for up to 12 months after termination, if needed, in addition to other transitional services provided pursuant to § 63.2-611, Code of Virginia.

G. The Department of Social Services, in conjunction with the Department of Correctional Education, shall identify and apply for federal, private and faith-based grants for pre-release parenting programs for non-custodial incarcerated parent offenders committed to the Department of Corrections, including but not limited to the following grant programs: Promoting Responsible Fatherhood and Healthy Marriages, State Child Access and Visitation Block Grant, Serious and Violent Offender Reentry Initiative Collaboration, Special Improvement Projects, § 1115 Social Security Demonstration Grants, and any new grant programs authorized under the federal Temporary Assistance for Needy Families (TANF) block grant program.

H. Out of this appropriation, $2,647,305 the first year and $2,647,305 the second year from the general fund shall be provided to support state child care programs.

I. Out of this appropriation, the Department of Social Services shall use $4,800,000 the first year and $4,800,000 the second year from the federal Temporary Assistance to Needy Families (TANF) block grant to provide to each TANF recipient with two or more children in the assistance unit a monthly TANF supplement equal to the amount the Division of Child Support Enforcement collects up to $200, less the $100 disregard passed through to such recipient. The TANF child support supplement shall be paid within two months following collection of the child support payment or payments used to determine the amount of such supplement. For purposes of determining eligibility for medical assistance services, the TANF supplement described in this paragraph shall be disregarded. In the event there are sufficient federal TANF funds to provide all other assistance required by the TANF State Plan, the Commissioner may use unobligated federal TANF block grant funds in excess of this appropriation to provide the TANF supplement described in this paragraph.

J. The Board of Social Services shall combine Groups I and II for the purposes of Temporary Assistance to Needy Families cash benefits and use the Group II rates for the new group.

K. The Department of Social Services shall develop a plan to increase the standards of assistance by 10 percent annually until they equal 50 percent of the federal poverty level.

L.1. The Department of Social Services (DSS) and the Department of Education (DOE) shall ensure that the Temporary Assistance for Needy Families (TANF) Virginia Initiative for Employment and Work (VIEW) mandated child care forecast is funded through a combination of general fund, TANF, and Child Care Development Fund (CCDF) grant dollars. The amount of needed CCDF dollars identified in the Memorandum of Agreement (MOA) between the agencies shall be transferred from DOE to DSS within the first thirty days of the fiscal year. DSS shall notify DOE of the required amount of the next fiscal year transfer upon the enrollment of the budget. This amount shall reflect the need identified in the official forecast as well as changes resulting from actions in the final budget.

2. The MOA shall reflect the full cost of the VIEW mandated child care program. From this amount, $38,707,424 the first year and $38,707,424 the second year is appropriated at DSS and the balance shall be transferred from DOE from the CCDF grant to support the VIEW mandated child care program as specified in L.1.

M. Out of this appropriation, $2,120,420 the first year and $2,120,420 the second year from the Temporary Assistance to Needy Families (TANF) block grant shall be provided for the Department of Social Services to implement a program so that TANF-eligible individuals may save funds in an individual development account established for the purposes of home purchase, education, starting a business, transportation, or self-sufficiency. The TANF funds shall be deposited to the individual development accounts at a match rate determined by the department.

N. The Department of Social Services shall increase the Temporary Assistance for Needy Families (TANF) cash benefits and income eligibility threshold by five percent effective July 1, 2022.”

Explanation:

(This amendment provides general fund for the anticipated cost of providing mandated cash assistance benefits.)

Amendment 3: Adjustments to ARPA funding and language

Item 486.10

Language:

Page 1, line 6, strike “Items numbered 138.10 and C-79.50” and insert “Items numbered 138.10, 486.10, and C-79.50”.

Page 1, line 12, strike “Items numbered 138.10 and C-79.50” and insert “Items numbered 138.10, 486.10, and C-79.50”.

Page 2, after line 93, insert:

“486.10 

1. Notwithstanding the provisions of Item 486 of this act, the funding provided pursuant to paragraph A.2.l.1) of Item 486 shall be reallocated in the following manner:

2. $28,057,684 in the first year to the Department of Medical Assistance Services (602) to procure a one-time vendor to assist in the redetermination of Medicaid enrollees over the twelve months following the end of the federal continuous Medicaid coverage requirement.

3. $10,000,000 in the first year to the Department of Social Services (765) to cover the one-time cost of supporting local departments of social services staff with efforts to perform benefit program redeterminations and appeals work in the twelve months following the end of the federal continuous Medicaid coverage requirement.

4. All funds allocated in paragraphs 2 and 3 shall only be used to support one-time eligibility redetermination efforts necessary to meet federal post public health emergency (unwinding) requirements. Prior to the transfer of any funds, impacted agencies shall provide the Department of Planning and Budget and Task Force on Eligibility Redetermination with an accounting of all agency unwinding activities and how any transferred funds will supplement those efforts.”

Explanation:

(This amendment corrects an American Rescue Plan Act State and Local Fiscal Recovery Fund (SLFRF) allocation included in Chapter 2, 2022 Special Session I.  Specifically, this amendment allows the Department of Medical Assistance Services and the Department of Social Services to utilize a total of $38 million in SLFRF amounts to provide for federally required actions to review and redetermine Medicaid enrollees following the end of the COVID-19 public health emergency. The original allocation per Chapter 2 is not allowable under federal guidelines for the use of SLFRF.)

Amendment 4: High Performance Data Facility at Jefferson Lab

Item C-36.50

Language:

Page 1, line 6, strike “138.10 and C-79.50” and insert “138.10, C-36.50, and C-79.50”.

Page 1, line 12, strike “138.10 and C-79.50” and insert “138.10, C-36.50, and C-79.50”.

Page 2, after line 93, insert:

“C-36.50

After the Governor has certified that the U.S. Department of Energy has approved a project to establish a high performance data facility associated with the Thomas Jefferson National Accelerator Facility (Jefferson Lab), the Director, Department of Planning and Budget, shall approve a short-term, interest-free, state-supported treasury loan in the amount of $43,305,379 to the Southeastern Universities Research Association Doing Business for Jefferson Science Associates, LLC., to construct the infrastructure and a building in support of said high performance data facility. The Secretary of Finance shall issue guidelines on regular reporting required for the use of these funds if the contingency is met.”

Explanation:

(This amendment provides authority for the Department of Planning and Budget to approve a short-term, interest-free, treasury loan authorization to the Southeastern Universities Research Association Doing Business for Jefferson Science Associates, LLC for the construction of a high performance data facility. Issuance of the treasury loan is contingent upon certification that the U.S. Department of Energy has approved the project. Repayment of the treasury loan will be determined by the Governor and General Assembly at a future date when/if the loan issuance is undertaken.)