Dear , The General Assembly reconvened today (June 1) to approve the Conference Committee budget. I am grateful to the conferees for their tireless work in developing a budget. Good news: The biennium (two-year) budget has a good deal more money for affordable housing. This additional money is in two forms. The budget includes $150 million for the Virginia Housing Trust Fund, which is an additional $40 million increase over the past allocation. It also increases the annual cap on housing tax credits from $15 million to $60 million. Thus, over the next two years, there could be $120 million in tax credits spent on building affordable housing. Tax credits are used by developers to get more money for building affordable housing. So even though the General Assembly did not allocate the full amount we had hoped for the Virginia Housing Trust Fund, they allocated a great deal more than anticipated in the Housing Tax Credits, which is good for expanding affordable housing. In addition, language was included to create a workgroup for the Virginia Housing Stability Fund (a rental assistance program). More is needed for affordable housing, but this budget is an important good start. More budget good news – Here are other budget items we are pleased with: - Partially refundable EITC. The federal and state Earned Income Tax Credit (EITC) is one of the most direct ways to support low-income working families. Some families have such low incomes that a tax credit doesn’t help them unless the credit is “refundable,” meaning they get it even though they don’t owe taxes. The decision to make the credit partially refundable will put more than $300 million dollars into the hands of families with low incomes. Although reducing the sales tax on food and raising the standard deduction help all families with tax burdens, the EITC is the most targeted assistance to working families with low incomes. Special thanks to The Commonwealth Institute for Fiscal Analysis for its leadership on this issue.
- Medicaid reimbursement rates. The budget includes increases in Medicaid reimbursement rates for home and community-based services, dental services, developmental disability waiver services, personal care services, and other services. Increasing these rates will help ensure that there are adequate providers for those eligible for Medicaid.
- Behavioral/mental health. The budget allocates significant amounts of money to improve behavioral and mental health services, including money to help people who are incarcerated and recently released from incarceration.
- TANF benefits. Benefits and income eligibility for the Temporary Assistance for Needy Families (TANF) were increased by 5 percent.
- Resettlement. $2 million was allocated to support resettlement agencies in Virginia that have been struggling to help resettle refugees.
- Prison staff salaries. As we’ve been advocating reducing the use of solitary confinement, the issue of the shortage of correctional officers, due in large part to low pay and difficult working conditions, has been raised repeatedly. We support increasing staff salaries and limiting the use of solitary confinement. We also believe that we must find ways to divert people with drug addictions and mental health challenges to more appropriate facilities, thus reducing Virginia’s mass incarceration.
Religious accommodations bill signed into law. Delegate Shin’s bill, HB 1063, was signed into law by the Governor without any of the proposed amendments that we were concerned about. The bill clarifies that in terms of religious discrimination, the term “'religion' includes any outward expression of religious faith, including adherence to religious dressing and grooming practices and the carrying or display of religious items or symbols.” This last week has been another tragic moment for the nation as we mourn the deaths of the students and teachers in Uvalde, Texas. My sons are grown, so I did not have to talk with them about this tragedy, but I know many parents of school-aged children and teachers who struggled to discern what to say. Too many Americans pride themselves on “American exceptionalism.” Unfortunately, we are exceptional in the frequency of mass shootings. And our polarization on how to address the crisis of mass shootings seems exceptional, as well. I wish there were simple solutions that we could all readily agree to that could stop these mass shootings. I give thanks for the religious leaders and community leaders, like Lori Haas, who’ve provided leadership challenging this crisis.
Prayerfully,
Kim Bobo Executive Director
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