April 12, 2011

The Reconvened Session of the General Assembly lived up to its tradition of being a busy and grueling day as it took us nearly nine hours to act on all of the Governor’s vetoes and amendments to bills that passed during the 2011 session. Before the veto session began, I joined Governor McDonnell, Lieutenant Governor Bolling, Attorney General Cuccinelli, and a number of my fellow legislators on the steps of the Capitol for a “Call to Prayer” rally. It was a wonderful opportunity for us to pause and reflect upon the importance of prayer before the start of the reconvened session.

The session itself started off on a celebratory note as we welcomed the VCU men’s basketball team and had a chance to congratulate them on their impressive run to the final four. It was quite a treat to be able to congratulate Shaka Smart and his team for their accomplishments.

Once the congratulations were over, we went to work to take action on Governor McDonnell’s vetoes and amendments. In all, Governor McDonnell sent down amendments to 134 bills and vetoed four bills. Governor McDonnell addressed a variety of issues in his amendments and vetoes, including amendments to reduce the unfunded liabilities in the Virginia Retirement System (VRS) and strengthen funding for state troopers and local sheriffs.

House Supports Governor’s Amendments to Strengthen Virginia’s Retirement System

As I have said before, the biggest threat to our state’s prized AAA bond rating is the VRS’s $17.6 billion in unfunded liabilities. During this year’s session, House Republicans advanced a number of reforms designed to reduce the VRS unfunded liability and ensure its solvency moving forward. Unfortunately, some of the proposals advanced by the House were killed in the State Senate.

Like the House Republicans, Governor McDonnell understands the serious threat that this unfunded liability poses to the fiscal strength of VRS and our bond rating. McDonnell proposed a number of amendments designed to strengthen the fiscal integrity of the VRS by reducing the unfunded liabilities.

Specifically, Governor McDonnell proposed the following amendments to strengthen the VRS:

• Increase the state’s contribution into the VRS by $27.8 million: Governor McDonnell proposed putting an additional $27.8 million into the VRS in an effort to increase funding for the retirement system.
• Speed up monthly payments into the Virginia Retirement System to encourage more timely investments: By making monthly contributions instead of quarterly contributions, we will enable the VRS to invest their funds in a more timely fashion and generate increased returns from the investments.
• Create an optional defined contribution plan for interested state employees: One way we can lower the VRS’s unfunded liability would be to give state employees an opportunity to enroll in a defined contribution plan. A defined contribution plan is less costly to the state compared to a defined benefit plan that is currently offered. A defined contribution plan would appeal to younger workers who are less likely to stay with the state for a long period of time because they could take their built up contribution with them to their next job.

The State Senate went along with the first two of the Governor’s recommendations, but they again rejected the proposal to create a defined contribution plan for state employees. I am pleased that we were able to make some changes to strengthen the VRS, but I know that there is still more work to be done to ensure the long-term solvency of the VRS.

Supporting Our Police and Sheriffs

Governor McDonnell proposed two amendments to increase funding for our local sheriffs and state troopers. McDonnell provided an additional $7.4 million to help our local sheriffs. I was especially pleased to see Governor McDonnell include an additional $3 million to pay for overtime for state troopers. The net effect of this funding will be to put the equivalent of 82 full time troopers on duty at a fraction of the cost of creating new positions. Both of these amendments passed the General Assembly and are now a part of the final budget.

Closing

With the end of the reconvened session, we can now officially close the book on a successful 2011 General Assembly Session. Legislators will now begin to do the research necessary to lay the groundwork for bills and legislation that could potentially be introduced during the 2012 General Assembly Session.

Now that the session is over, I will continue to send out monthly updates with the latest news from Governor McDonnell, Lieutenant Governor Bolling, and Attorney General Cuccinelli, along with any updates from my office on issues that may impact you.

In closing, my staff and I are back in the district office, and if we can be of service to you, please do not hesitate to contact me. My office can be reached by phone at 434-455-0243, or by email at DelSGarrett@house.virginia.gov.

Thank you again for allowing me to serve you as your Delegate.