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Committee flags $8M reversion, $13M payroll-tax sweep and adult-education graduation fix for appropriations
Summary
Committee members discussed an $8 million reversion, a proposed $13 million transfer from a payroll special fund to the general fund, support for a VHFA rental program, and language to allow near-complete adult-education students to graduate under the previous system.
Members of the House Commerce & Economic Development Committee discussed several budget and program issues they asked staff to flag for appropriations and other committees.
The committee heard that appropriations will show an approximately $8,000,000 reversion; members questioned why some of that money could not be retained to help address unemployment-insurance system problems and workforce staffing until a new system is implemented. Committee members asked staff to notify Appropriations of the committee’s concerns.
Members also discussed a governor-proposed or discussed transfer of approximately $13,000,000 from a payroll-related special fund back to the general fund. Several members said they have reservations about sweeping those funds into the general fund because doing so could create future shortfalls or require tax increases; the committee asked to be involved in deliberations and to consider recommending that funds remain with the program or be placed in a reserve.
Committee members said they support a VHFA rental program described in testimony and believe it could support workforce housing. Members noted a marketing campaign is expected that could increase program uptake and raise fiscal pressure.
Separately, members discussed adult education: the Agency of Education changed requirements for adult high-school graduation and has not yet implemented a new pathway. Staff reported roughly 100 adult learners who are close to completing the previous graduation requirements but cannot receive graduation under the new system; the committee asked staff to draft budget-adjustment language to let those adults graduate under the prior rules so they are not forced to restart under the new system.
Committee members also directed liaisons to other committees to monitor bills tied to workforce, housing and broadband consumer protections and to attend hearings as appropriate.
