[Archived] Commission on the Condition and Future of Virginia Cities Meets in Alexandria; Focuses on Funding for Cities


News Release
FOR IMMEDIATE RELEASE

Date:	Monday, December 14, 1998
Contact:	Bernard Caton, Legislative Director, (703) 838-3828

Commission on the Condition and Future of Virginia Cities Meets in Alexandria; Focuses on Funding for Cities

Alexandria, Virginia - The Commonwealth's Commission on the Condition and Future of Virginia's Cities met on December 2, 1998 at the George Washington Masonic Memorial in Alexandria to hear presentations by Northern Virginia officials on ways the state can help Virginia cities meet their needs. Alexandria Mayor Kerry J. Donley and a dozen elected officials and the heads of business and community organizations in Alexandria, Falls Church, Fairfax City, and Fairfax County spoke to the Commission and outlined the fiscal predicament experienced by localities in Virginia.

The 25-member Commission was appointed by Governor Jim Gilmore and includes Northern Virginia representatives: Senator Patricia S. Ticer, Alexandria City Manager Vola Lawson, and Delegate John H. Rust, Jr. of Fairfax.

"Let me be very direct." said Mayor Donley. "Our City government, like other local governments in Virginia, is running out of options to fund its legitimate needs. We need additional state aid and new sources of revenue." Donley explained that cities in Virginia find their tax bases eroding while state revenues grow because state revenues are dependent on the economy, and local revenues are tied to real property values which are not growing at the rate of the economy.

Mayor Donley and Mayor John Mason of Fairfax City presented tothe Commission a letter that had been sent to the Governor and to members of the General Assembly from the mayors and chairs of Northern Virginia, Hampton Roads, and Richmond area cities and counties expressing their common concern for capital investment in transportation and education and the importance of a comprehensive overhaul of Virginia's tax structure. The letter urges the Governor and General Assembly to:

1. Enact legislation providing for the rebate of a percentage of state sales or income tax revenues back to local governments.

2. Initiate a comprehensive restructuring and modernization of the Commonwealth's state and local tax policies.

The Commission has been meeting since it was established by the 1998 Session of the Virginia General Assembly to "study the condition and needs of Virginia cities and to fashion appropriate remedies to ensure the future of the Commonwealth." (House Joint Resolution No. 432)

At its initial meeting June 3, Commission Chair and Speaker of the Virginia House of Delegates Tom Moss established Commission task forces to address the issues before the Commission:

1. Legal - Study legal and governing structures.

2. Finance - Consider finance and fiscal issues.

3. Services and Needs - Review services offered by cities and the needs of cities.

4. Summit - Plan for the Statewide Summit which was held October 13 in Charlottesville.

The Finance Task Force, which includes Alexandria City Manager Vola Lawson and Delegate John H. Rust, Jr., recommended in September that the state fully fund House Bill 599 (state aid to local law enforcement), which was provided by the state to compensate for the 1979 annexation moratorium which constrains cities from expanding their boundaries and thus limits economic growth. Although state law requires this funding to grow at a rate equal to state general fund revenues, the General Assembly has failed to appropriate the necessary funds in many of the years since the program was started in 1979. In fact, the General Assembly has not increased HB 599 funding at all for the past seven years.

Governor Gilmore recently has stated that he will support full funding of HB 599 in his 1999 Budget proposals.

In addition to the December 2 meeting in Alexandria, the Commission has held meetings October 6 at Roanoke, a statewide Cities Summit October 13 in Charlottesville, and November 5 in Danville. The next meeting will be January 5 in Richmond.

The Commission has been asked to present an interim report to the Governor and the 1999 Session of the General Assembly; final findings and recommendations will be ready by the 2000 Session of the General Assembly.