Question: What State revenues have been recently reduced or do not fully fund the expenditures they are intended to cover?
Response: Based on amendments adopted by the House of Delegates and Senate to the 2016-2018 Biannual Budget, the joint conference report did not include any reductions in State Aid to the City. The 2016-2018 Biannual Budget did include additional revenue totaling $0.5 million, of that amount $0.2 million in revenue was added as part of the adopted amendments. The budget included an increase of $0.17 million in HB funding and $0.16 million in State prisoner per diem. The amendments include a 2% across the board increase for all compensation board funded full-time positions which resulted in additional revenue of $0.17 million. The amendments also included compensation board funding for a salary compression plan for the Sheriff’s office. Sworn employees in a Compensation Board funded position with three or more years of continuous service will receive $80 for each full year of service, up to a maximum of 30 years and non-sworn employees in a Compensation Board approved position who have three or more years of continuous service will receive $65 for each full year of service, up to a maximum of 30 years. Staff is currently working with the State Compensation Board to accurately identify dates of service for the Compensation Board funded positions to determine what additional revenue may be available.
Although there are no reductions in State Aid, and Compensation Board funding is expected to increase in FY 2018, neither source fully covers the costs of the services they are intended to fund. Compensation Board and HB 599 law enforcement reimbursements are applied equally to all areas of the state regardless of the area’s cost of living, and so the City must supplement State funded positions, and City funded positions are compensated at a higher rate than the State reimburses. State highway maintenance funding also does not cover the City’s full cost of street and sidewalk maintenance. State funded positions that require City subsidies include those of the Health Department, Court Services Unit, Magistrate, Adult Probation and Parole, Public Defender, General District Court, and the Juvenile and Domestic Relations Court. City employees for which the State reimbursement does not fully cover their cost include those of the Registrar of Voters, the Sheriff’s Office, the Commonwealth’s Attorney, the Clerk of the Court, and the Finance Department.