WASHINGTON - Virginia lawmakers late Tuesday reached a preliminary agreement on a $1.4 billion bond package to fund construction at the state's colleges, parks, and mental health facilities.
Manju Ganeriwala, the state's deputy secretary of finance, said lawmakers are "fine tuning" a final version that they will vote on immediately after a special session that begins Wednesday. During that special session, they will vote on Gov. Timothy M. Kaine's vetoes and amendments to bills passed during the regular session. Ganeriwala said that depending on how long the General Assembly debates Kaine's amendments, the bonds could be approved as early as Wednesday.
"The General Assembly has worked very hard over the last months to advance our higher education bond proposal," Kaine said in a statement. "The completion of their work will signal a record investment in Virginia's higher education institutions, which are absolutely critical to our economic success. In addition, I applaud their inclusion of key projects to improve open space and expand Virginia's state park system. This is a signature achievement for the General Assembly. I look forward to reviewing the bill."
The legislature approved a $77 billion two-year budget last month, but lawmakers had to negotiate over differences between the House and Senate versions of a bond package that Kaine had recommended total $1.65 billion.
The Senate voted for $2.6 billion of bonds, but the House only approved $1.8 billion, with some Republicans in both chambers warning the state should not borrow to excess during a possible recession.
The governor's original education package proposed the state and its authorities issue $1.53 billion of general obligation bonds and that the Virginia College Building Authority issue $126.5 million of bonds. The authority's bonds would be backed by appropriations, and would not require voter approval. They segregated out the authority's bonds so the they could be issued sooner than November, Kaine's spokesperson said earlier this year.
Meanwhile, lawmakers still must find a way to finance much-needed transportation improvements following a Feb. 29 state Supreme Court ruling that found it would be unconstitutional for the Northern Virginia Transportation Authority to issue $130 million of bonds. The court ruled only the General Assembly has the authority to levy taxes and fees. The NVTA had prepared an initial issuance of $102 million, but the bond issue has since been canceled.
