2020 Legislative Program: General Policy Positions

SECTION 3: GENERAL POLICY POSITIONS

General Government

TELECOMMUNICATIONS INFRASTRUCTURE

The City opposes legislation to further reduce local zoning authority and public input in the siting of new wireless support structures. The City opposes limiting applicable permit fees to an arbitrary rate in statute that doesn't reflect the actual costs and planning staff time; and it opposes legislation that limits local control over its own public rights of way and public property to benefit one industry.

IMPACT FEES/CONDITIONAL ZONING/RECORDATION FEE

The City recommends that the General Assembly enact laws to broaden and simplify impact fee authority to allow the assessment of the fees for all public infrastructure, including school construction costs, caused by growth. Impact fees should be based on public facilities construction costs and fees should be locality-specific.

A bifurcated system could be considered where cash proffers are used for rezoning applications and impact fees for by-right development. Any change must not shift the burden of paying for new infrastructure to existing citizens through increased real estate taxes.

The City supports simplification of the statutory construct regarding proffers, to this end, the City supports the repeal of the 2016 proffer legislation or short of that, supports significant amendments to return flexibility to the City's ability to work with developers to help mitigate the costs of new residential development. The City further supports amending the 2016/2019 proffer legislation language to clarify the meaning of terms used in the statute which have not been referenced in proffer law in the past. While the 2019 legislation began to address the deficiencies in the statute, it also introduced new implementation problems. Thus, the City supports amending the statute to impose one rule of law on all rezoning applications instead of varied rules of law that apply based on when the application was filed and/or if the applicant elects to be considered under "2019 law." As passed, the proffer law is difficult for applicants to understand and hard for localities to implement. The different rules of law imposed based on the timing of application are illustrated in Appendix B entitled, "Residential Proffer Process Flow Chart."

The City also supports a comprehensive study of public infrastructure funding, as it relates to proffers, the potential for broad impact fees, state funding sources, and other potential tools to help localities keep up with necessary demands on public infrastructure.‌‌‌

LAND USE

The City opposes any reduction of local authority to manage such functions as land use, zoning, conditional use permits, etc. Local governments must retain current authority to use conditional zoning rules in the State Code to balance the financial impact created by residential development and to facilitate well-planned communities that are compatible with nearby developments.

REVITALIZATION/REDEVELOPMENT

The City supports legislation that would aid local revitalization/redevelopment efforts such as, but not limited to, additional funding for demolition of abandoned structures, statutory presumption of abandonment, authority to enter and abate derelict buildings, and expanded authority concerning spot blight abatement.

VIRGINIA HOUSING TRUST FUND

The City supports continued state funding for the Virginia Housing Trust Fund. The City also supports providing for a portion of the Fund to be used to provide matching funds to localities that have established local housing funds, and grants to be made from the Fund to support innovative housing projects and low and moderate income housing projects that are located in areas experiencing extreme shortages of such housing.‌

FUNDING FOR OPEN SPACE CONSERVATION

The City desires to protect its open space, agricultural lands and industries, natural resources, including its drinking water supply watershed, natural habitats, and historic sites. Conserving these resources is critical to Virginia's economy and establishing a balance between the conservation of open space/natural resource lands and residential and/or commercial development is essential to quality of life and fiscal health. The City supports the efforts to establish a dedicated funding source for open space conservation, to include agricultural lands.

MOTOR VEHICLE TITLE LOANS, PAYDAY LOANS, AND OPEN-END CREDIT PLANS

The City urges the passage of legislation to enact a market based interest rate cap for consumer loans made in the Commonwealth of Virginia in order to protect citizens from the high interest rates that are presently allowed. The City also supports a reversal of the legislation that was adopted in 2011. The 2011 amendment allowed title loan issuers to advance loans secured by out of state vehicles.‌‌‌

ELECTIONS; DATE OF JUNE PRIMARY ELECTIONS

Primaries for the nomination of candidates for the offices listed in the Constitution of Virginia to be voted on at the general election in November 2001 and each tenth year thereafter shall be held on the second Tuesday in June next preceding such election notwithstanding any special primary schedule enacted for any other office. During the 2019 General Assembly Session, HB1615 was introduced to change the date of the primary election from the second Tuesday in June to the third Tuesday in June. The City's General Registrar supports this date change due to the additional congestion from special activities during the second week of June, which is the last week of school.

Education and Human Development

SYSTEM TRANSFORMATION, EXCELLENCE AND PERFORMANCE IN VIRGINIA

STEP – VA was developed to address: Accountability, Access, Quality, and Consistency across all CSBs to work toward excellence in behavioral healthcare and ultimately a healthy Virginia. STEP-VA services are intended to foster wellness among individuals and prevent crises before they arise. The result would be fewer admissions to state and private hospitals, decreased emergency room visits, and reduced involvement of individuals with behavioral health needs in the criminal justice system.

The core services and supports in STEP-VA are now mandated in the Code of Virginia but have not been fully funded. In order to meet the code mandated timeline for implementation of all the services and supports, the General Assembly needs to provide full funding in the 2018 – 2020 biennial budgets.

The City desires funding in this biennium for these 10 services (Screening, Assessment and Diagnosis (including Risk Assessment), Crisis Services (including 24 hour mobile), Crisis Intervention and Stabilization, Targeted Case Management, Outpatient Mental Health and Substance Abuse, Psycho-social Rehabilitation, Peer and Family Support, Care for Members of the Armed Forces and veterans, Primary Care Screening and Monitoring, and Patient Centered Treatment Planning) in the STEP – VA model. The 2017 General Assembly mandated that Same Day Access (SDA) and Primary Care Screening (PCS) come on board by 2019 and the remaining eight services are mandated to come on board by 2021.

The City urges, at a minimum, funding for the CSBs to implement the next phase of the STEP – VA model which is to expand outpatient services. This will cost an estimated $15 million dollars for the Commonwealth.

1. Increase the reimbursement rate for Medicaid Early Intervention Case Management to its data-determined adequacy:

   Early Intervention Services result in special education cost savings and provide an increased quality of life for the child and his/her family.

   The City desires an increase the Medicaid Early Intervention case management reimbursement rate. This increase is necessary because the current monthly rate does not cover the expenses of providing this critical service, which ensures eligible children and families receive service coordination that is appropriate to the needs of infants, toddlers and their families. We currently receive $132.00 per case per month, while intellectual disability case management is paid at $326.50 per month.

2. Reduce the I/DD Waiver Waiting List:

Currently, over 11,000 people with developmental disabilities (DD) are on a waiting list for community-based services. Virginia's DD Waivers have been redesigned to provide increased access to community supports. Using the Family and Individual Support Waiver, Virginia can serve 50% of the individuals on the DD Waiver waiting list for a quarter of the cost of existing DD waiver programs. Receiving a Waiver slot will enable an individual who needs developmental services and supports to live a life that is fully integrated in the community.

The City desires a reduction in the waiting list for DD Waivers by funding 800 additional Family and Individual Supports (FIS) Waivers and 250 Community Living (CL) Waivers. Chesapeake currently has 373 individuals (on all three (3) levels) on the Developmental Disability Waiting list.

CHILDREN'S SERVICES ACT (CSA)‌

Department of Medical Assistance Services (DMAS) recently announced regulatory changes to the process by which children are placed in Residential Treatment Facilities. Under the new process, which will begin December 1 of this year, admission for all Medicaid-funded placements for residential treatment will be coordinated by an Independent Assessment, Certification and Coordination Team (IACCT).

This proposal represents a significant change and local Children's Services Act (CSA) coordinators across the State have raised many questions about how this process would work, including concerns about the required deadlines for the IACCT to complete an assessment and the role of the physician member of the IACCT.

At this time, the City can neither support nor oppose the concept of transferring the state pool funding for students with disability in private day educational programs to the Virginia Department of Education because there needs to be more study and analysis on the following areas:

• What factors are driving costs and placements in private special education day schools?

• What is the current capacity of Chesapeake Public Schools to handle this responsibility (knowledge, personnel, programmatic/physical infrastructure = cost/time analysis)?

• What are the positives of the current system (outcome data / cost analysis of private day schools compared to public schools providing these services)?

• If funding is moved out of CSA and reallocated under a new formula through VDOE, it is likely that only a fixed amount will be transferred, rather than the current sum-sufficient allocation under CSA. If costs to serve children increased, would the state's contribution be limited? Would the locality be obligated to make-up the difference? (This could be a potential be a large financial risk).‌

• If funding remains in CSA, what tools are put in place to help control these costs?

LIABILITY OF TEACHER RETIREMENT PLAN

The unfunded liability associated with the teacher retirement plan should be a shared responsibility of the state and local government. The local public school systems, in accordance with government accounting standards (GASB), are a "component unit" of the locality for purposes of financial reporting. The Virginia Municipal League supports legislation that would provide for the Virginia Department of Education to pay its share of retirement costs directly to the Virginia Retirement System in order to facilitate the sharing of these liabilities.

PRETRIAL SERVICES

The City opposes any amendments to limit the scope of Pretrial Services, as well as supports the continued funding of Pretrial Services in the Commonwealth.

HUMAN SERVICES‌

For years the state has consistently underfunded its share of administrative costs (including personnel and technology) for programs administered on its behalf by local departments of social services. The state agency has now decided to make local agencies solely liable for federal financial penalties resulting from federal audits of the system. Federal law does not require passing this cost onto localities; it is the state's choice to do so. If the state is concerned with improved performance and accountability, it must fully acknowledge and fulfill its responsibility in this partnership by properly funding, staffing, equipping, and supporting the local offices that render services on its behalf.

The City urges the state to provide additional funding for transit services and client advocacy training. We support the state's efforts to open an interactive "portal" for clients to review their resources, apply for and change appointments and access services from their home. The Chesapeake Social Services Division has concerns with the barriers to human service providers sharing redundant customer information, which the customer has authorized to be shared. We request that the state remove electronic barriers to the sharing of this information. Along these lines, it is requested that the state continue to find ways to reduce the paperwork requirements, simplify program requirements and integrate requirements between state systems.

The City also supports the Department of Juvenile Justice increasing the Block Grant Funding to 50% of the Chesapeake Juvenile Services (Detention Home) operating budget. Consideration for continued funding of the Community Corrections Program (CCP) as an essential component of re- entry for Juvenile Detention.‌‌

Finance

UNFUNDED MANDATES

Any legislation or regulatory action having a fiscal impact on local governments should also be accompanied with state appropriations adequate to cover the full cost of such mandates. A recent example includes mandatory real property tax breaks for spouses of killed or disabled military veterans. Another potential unfunded mandate could result from the State Board of Corrections, which is beginning the process to develop new behavioral health and medical care standards for local correctional facilities. These new standards will likely impose a significant fiscal impact to localities and as such the City urges the state to not impose such mandates without state funding to support them.

The City opposes any new legislation that would result in another unfunded mandate for the school division or the individual employees. School divisions should have local authority to make decisions about schools, so we oppose any new legislation that would result in a state mandate without full appropriated funding. The City encourages the Virginia Department of Education to review past and current legislation and request that the Commonwealth fully fund the existing mandates or remove those policies. Further, the City calls on the state legislature, the Governor, and the state's administrative agencies not to impose further requirements without appropriating funds that would remove the financial burden from school divisions.‌‌

LOCAL REPRESENTATION ON LEGISLATIVE STUDIES IMPACTING LOCAL GOVERNMENTS

Local government representatives should be included on any "blue ribbon" commission or other body established by the state that has as its purpose changes to local revenue authority or governance.

SUPPORT FOR CHILDREN'S HOSPITAL OF THE KING'S DAUGHTERS (CHKD) FUNDING

The City supports CHKD's request of $33.4 million in the 2020-2022 biennium to support its new mental health hospital for children. This new hospital will offer a comprehensive mental health inpatient and outpatient programming plus a complement of outpatient services at a total capital cost of $224 million. It will unquestionably assist the state in addressing access and capacity issues plaguing Virginia's mental health system, and particularly the sole state-operated children's and adolescent psychiatric facility, The Commonwealth Center for Children and Adolescents. The state's investment of $33.4 million represents a fraction of the cost it would otherwise incur to add 60 psychiatric beds to the state system. Moreover, the financial support for CHKD directly benefits children covered by Medicaid as evidenced by CHKD's historic nearly 60 percent Medicaid utilization rate.‌‌

LOCAL TAXING AUTHORITY

The General Assembly should not cap, remove or restrict any revenue sources, taxing authority or user fees available to localities. The erosion of local revenue sources reduces local flexibility, increases local government's reliance on the real property tax and jeopardizes local bond ratings. If the state does eliminate or restrict local revenue sources, it should replace those revenues lost to the localities. The loss to localities includes not only current revenues being derived from the revenue source, but also potential increases in revenues due to growth or rate increases.

ELIMINATE DIVERSION OF LOCAL COMMUNICATIONS SALES AND USE TAX

The FY19-FY20 biennium budget included language that swept $2,000,000 each year of the biennium to the General Fund from revenues received from the Communications Sales and Use Tax. The City opposes diversion of this tax beyond the uses already specified in statute and believes this sets a bad precedent for future diversion of a tax that by Code should be distributed to localities. The City requests removal of this language from the budget diverting these funds. City collections in 2018-2019 were $10,088,071, which has been declining from a high collection point of $12,204,073 in 2012-2013.

STATE AID TO LOCALITIES‌

State aid to localities assists in providing services at the local level, many of which are mandated. The state and localities that are in partnership in providing these services to their citizens and localities should not be expected to take on a greater and greater share of the funding responsibility. The City opposes cuts in state assistance programs such as, but not limited to, full funding of State Aid to Local Public Libraries, HB 599 funding for localities with police departments, extension services, local offices on youth, Virginia Juvenile Community Crime Control Act (VJCCCA) funds and services for senior citizens. The City also opposes any further reduction to the car tax reimbursement to local governments.‌

ECONOMIC DEVELOPMENT INVESTMENT PROGRAMS

The City supports State funding for such programs as the Virginia Jobs Investment Program and the Governor's Opportunity Fund. The City also supports changes to the State's economic development incentives program to provide increased flexibility to provide assistance to a wider range of companies, especially smaller and mid-sized projects. Further, the City supports the creation and implementation of new economic development incentives programs that are based on "best practices" of Virginia's competitor states.

VIRGINIA ENTERPRISE ZONE PROGRAM‌

The City's Enterprise Zone program was recognized as one of the most successful in the Commonwealth. It was a vital component to the City's ability to bring business and job growth to the City's South Norfolk community. The program designation expired in 2005, and the reapplication process was placed on hold by the Virginia Department of Housing and Community Development while changes to the statewide program were being considered by the 2005 Virginia General Assembly. These program changes were highly significant, and removed the City's eligibility to participate in the Enterprise Zone program.

The City supports a revision of the state's Enterprise Zone program to provide additional funding and to revert back to the original eligibility criteria, whereby Enterprise Zone designations were granted based on the demographics and economics of specific neighborhoods, and not the City as a whole.

FUNDING FOR CONSTITUTIONAL OFFICES

The City of Chesapeake urges the state to fund the additional positions for the Offices of Clerk of the Circuit Court, Sheriff, Commonwealth's Attorney, City Treasurer and Commissioner of the Revenue, that its own staffing standards indicate are needed, and which more accurately reflect the actual workloads and requirements of these offices.

SECTION 3 Continued >>