General Assembly at a glance

Shenandoah Valley legislators have reached a consensus about certain things as they begin the 2012 General Assembly on Wednesday: the state budget will take center stage and they feel cautious optimism about the Virginia economy.

Gov. Robert F. McDonnell submitted his version of the 2013 and 2014 state budget last month, an $84.9 billion spending plan.

The McDonnell budget contains no tax increases and is based on modest economic state growth of 3.3 percent in 2013 and 4.5 percent in 2014.

All area legislators agree the growth numbers are positive, but they hesitate to say Virginia has turned the economic corner.

Del. Steve Landes, R-Weyers Cave, said there are unknowns lurking in the background.

He points to federal budget cuts that could impact defense spending by the government and contractors in Northern Virginia and Hampton Roads, and the ultimate impact of the federal health care reform.

“Those costs are astronomical if fully implemented,” said Landes of health care reform. Landes has served as a state budget conferee and is a member of the House Appropriations Committee.

Sen. Emmett Hanger, R-Mount Solon, said federal budget cuts might not be as devastating if they are implemented over time.

Hanger does object to part of the McDonnell budget plan, that being the use of general fund revenues to pay for state transportation improvements.

“The gas tax should be the primary mechanism,” Hanger said.

Hanger said the improved fuel efficiency of newer cars has made the gas tax a less lucrative revenue source for Virginia.

The senator points to the recent issuing of transportation bonds that will paid back by Virginia taxpayers, and the McDonnell proposal in the upcoming budget to use more of sales tax revenue to pay for transportation.

Under the governor’s proposal, the transportation allocation of the sales tax would increase from .5 percent to .75 percent over an eight-year period.

“That reduces the money for other core functions. But if you put the costs on a fuel tax and tolls if appropriate the non Virginians are paying a proportionate cost of the roads they use,” Hanger said.

He estimates about 40 percent of the traffic on Interstate 81 comes from outside the state.

The area delegates and senator will put forward legislative proposals during the session they hope can succeed.

Both Landes and Hanger are sponsors of legislation that are part of McDonnell’s 2012 jobs and economic development agenda unveiled last week:

* Landes is the chief patron of a bill that would create an economic development program for agriculture and forestry operations. Large grants, under the legislation, would be those more than $50,000 that are value-added or for processing operations of Virginia grown products. The smaller grants, under $50,000 would be to assist in planning and infrastructure for localities to develop agriculture and forestry economic development projects.

Landes said there is no fund now in Virginia specific to agriculture development, and said that is the reason for the proposal.

* Del. Dickie Bell, R-Staunton, is proposing a deaf child’s bill of rights for deaf children who are educated in Virginia public schools.

Bell said the legislation addresses the lack of interpreters for the students, and will assure that the students’ specific education plans are met.

* Hanger is the Virginia Senate sponsor of a McDonnell proposal to include the Secretary of Agriculture and Forestry and Secretary of Technology as part of the Virginia Economic Development Partnership board.

The senator is also considering filing legislation that would require online retailers like Amazon to collect the Virginia sales tax.

“They (online retailers) have a huge advantage over traditional retailers. This is something we have to address as the billions add up online,’’ Hanger said.

Bell said the budget will take much of the time during the session.

The delegate credits McDonnell with a bold approach on the budget, saying the governor has “shown leadership and courage in making decisions.”