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Hello, this is Rob Bloxom with a report from Capitol Hill on another special session. Governor Northam called on this session to appropriate $ 4.3 billion from the federal government under the American Rescue Plan Act (ARPA). Virginia has three years to spend that money, but for understandable political reasons, the governor wanted to direct as much spending as possible before stepping down. I can only hope that the pandemic will not once again shut down the economy where we might “need” this money for future spending. Fortunately, most expenses are one-time expenses and do not create recurring expenses. The governor left $ 1.1 billion to be allocated at a later date.
One of the biggest expenditures was $ 800 million to replenish the Unemployment Trust Fund. While I believe a larger deposit was warranted, that deposit will prevent businesses from paying higher unemployment tax for a year. In the future, all eyes will be on the trust balance, as a low balance could lead to an increase in business tax per employee. Broadband has also received an injection of $ 700 million which is supposed to bring us to universal coverage. I have doubts, but it will certainly bring us closer.
Other areas receiving statewide investment include the Rebuild Virginia program, which received $ 250 million to meet grant applications. Tourism received $ 50 million. The Virginia Employment Commission received $ 73 million to upgrade its system and the Virginia Health Department received $ 100 million to modernize its computer systems. Aid to utilities received an infusion of $ 120 million while school systems received $ 250 million for improved ventilation. While investments in our school system are essential, the process of receiving this money is problematic because it corresponds to a twinning with the localities. This will be the first time that school funding is not subject to the “ability to pay” equation. The Democratic majority say this pairing system will only apply to this program. I hope this is the case, because requiring localities to match state funding on a dollar-for-dollar basis would be devastating for poor and rural communities.
Other areas of spending range from bonuses for essential state employees to improving outdoor recreation in our state parks. There have been a slew of extra credits in Democrat-controlled districts of the house facing tight re-election campaigns in November. Only one Republican-controlled district received an additional penny. After seven years in the House, both in the majority and in the minority, I understand how the process works. I will pay close attention to programs that have received funding and ensure that our district receives our share of the American Rescue Plan Act funding.
As always, I welcome your comments, comments and concerns. Please feel free to contact me at [email protected]. You can also call my district office in Mappsville at (757) 824-3456. Thank you.
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