Some industries soon will pay more to be regulated by the state, but it could have been worse for them.
And individuals will pay more to file lawsuits, to record deeds and to get a driver's license reinstated after a conviction for driving under the influence.
In the newly approved budget, the General Assembly authorized $95.4 million in new fees for the two years beginning July 1.
At one point, the state Senate was holding out for $330 million. But in a conference committee, the Senate receded from its position, while the House of Delegates gave up its stance against any fee increases. This came after Gov. Bob McDonnell signaled that he could accept some fee increases if they paid for the cost of services and were related to the services on which the fee was imposed.
So lawmakers voted to raise fees on recorded deeds, coal and mineral mines, restaurant inspections, solid waste, boiler inspections, and marine and shellfish sanitation. The "$4 for Life" fee on vehicle registrations was raised from $4.25 to $6.25, with the $25.2 million in biennial proceeds going to rescue squads and the Virginia State Police.
By doubling the fee on recorded deeds -- from $10 to $20 -- the state expects to raise about $18 million, with proceeds used to pay for water-quality protection.
John Broadway, lobbyist for the Virginia Association of Realtors, said the association objected "in principle" to raising fees on the hard-pressed real estate industry, but he did not object strongly to the fee increase because of the tight budget situation facing the state. The state faced a $4.2 billion deficit for the 2010-12 budget cycle.
The budget adopted last Sunday forecasts a $50 million surplus in the $30 billion general fund budget.
Del. S. Chris Jones, R-Suffolk, one of the six House budget conferees, said the House did not come easily to accepting any fee increases. But he said the $4.2 billion deficit made the fees acceptable. He noted that the final number was closer to the House's wishes than the Senate's.
"We followed the governor's guidelines," he said of connecting fee increases to related services.
State Sen. R. Edward Houck, D-Spotsylvania, one of the seven Senate conferees, said the Senate finally settled on "what we could get them [the House negotiators] to give up."
In arriving at the fees, the Senate followed the general parameters laid down by McDonnell, he said.
The Senate tried to increase the gross premium tax on property and casualty insurance to pay into the Virginia Public Safety Fund for state police and local law enforcement. The Senate said that followed the governor's guidelines because law enforcement would guard against property crimes. But the House insisted it was not directly related, and the proposal failed.
The House also rejected large increases in court fees, designed to raise $50 million a year. It finally settled on about $9 million a year, after opponents argued that the larger fee increase would discourage people from going to court.
An increase in the E-911 fee on landlines and mobile phones also was turned down. The conferees found other ways to fund death and health benefits for law enforcement.
Lawmakers preserved the "dealer discount" -- the fee allowed retailers for collecting the state sales tax -- but discontinued it for larger retailers who file the sales taxes electronically.
George C. Peyton Jr., lobbyist for the Virginia Retail Federation, said retailers objected and hope McDonnell will restore some of the money to the retail industry.
McDonnell can propose amendments to the budget bill to be considered at the reconvened session April 21.
The price of liquor also is on track to go up. Acting on the recommendation of then-Gov. Timothy M. Kaine, the General Assembly authorized the Department of Alcoholic Beverage Control to raise the markup on liquor by 2 percent, which would raise about $8 million over two years.
Contact Tyler Whitley at (804) 649-6780 or twhitley@timesdispatch.com.
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