The George Washington University School of Business Advisory Council partnered with the Board of Trade and other regional organizations to for the GW Business & Policy Forum on Attacking Cybersecurity Risks.

The event, held on April 25, 2023, brought together top US government officials and prominent global leaders from the private and public sectors to address the most significant issues related to emerging technology and cybersecurity.

The forum highlighted the dominant force of emerging technologies in our society, which account for more than US$40 trillion in global nominal GDP. This included indepth discussions about how Artificial Intelegence (AI) technology is impacting a variety of global industries — growing businesses and changing how people work in the future.

Participants gained valuable insights and opportunities for interaction as they tackled the most pressing issues related to this ever-evolving landscape and its profound implications for global business, markets and regulation. The GW Business & Policy Forum was launched with support from the George Washington University School of Business Advisory Council.

Last updated on April 19, 2023 

Maryland’s 90-day legislative session has concluded with Governor Moore having passed, in one form or another, his entire 10-piece legislative package. Amendments accompanied several of the Governor’s key policy proposals, significantly impacting The Fair Wage Act, Keep Our Hero’s Home Act, and legislation surrounding broadband expansion. In the days before the session’s end, Senate and House leaders also came to an agreement on the state’s budget. This agreement included placing an additional $900 million in a savings account to help pay for the State’s costly education program – The Blueprint for Maryland’s Future. 

The budget process continues to progress in DC, as the council reviews and prepares to amend the mayor’s proposed $19.7 billion budget. The United States House of Representatives will again utilize Congress’s oversight powers and is expected to take a vote on DC’s police accountability legislation this week. President Biden however has made it known that in the event this does pass Congress, which would be an uphill battle to begin with, he would veto it. In May, Mayor Bowser along with Chief Contee and City Administrator Donahue, will appear in front of the House Oversight Committee to discuss crime, safety, and city management.  

Virginia legislators were back in Richmond for their one-day veto session to act on the 81 pieces of legislation that Governor Youngkin proposed changes to. Governor Youngkin’s three vetoes were sustained by the Republican controlled House and the majority of his proposed changes to other legislation were approved. However, there was no new budget presented, as conferees continue to work out a deal with a potential special session coming in June.  

DC: 

Congressional Intervention – Policing and Justice Reform Amendment Act 

A disapproval resolution to nullify DC’s Comprehensive Policing and Justice Reform Amendment Act is expected to be on the House floor this week. While the resolution may make it out of the House, it will face an uphill battle in the Senate, and even then, the President has vowed to veto it if it reaches his desk.  

DC Budget 

Budget oversight hearings concluded last week; the DC Council now moves on to committee mark-up hearings before approving and sending a revised budget to the mayor in May. The mayor’s proposed budget did cut some existing programs, a result of the financial reality the city finds itself in with revenues falling and pandemic-era related federal funding drying up. Thus far, some of the more controversial budget proposals include a $35 million cut to the Emergency Rental Assistance Program, the addition of 342 traffic cameras, cancelled free Metrobus (projected cost of $45 million annually), cutting of vacant positions across government, cutting the DC Circulator service in half, a three year delay to the Building Energy Performance Standards (BEPS), and no continued funding for the “baby bonds” program (projected cost of $54 million).  DC Council is expected to act on at least a few of these items, where funding will come from, is undetermined.  

Maryland  

Broadband Expansion  

(HB0551 – The Speaker / SB0547 – The President) 

The legislation passed both chambers and is headed to the Governor’s desk, however it is far different than what was originally introduced. There will be no tax incentives included to help incentivize broadband deployment, rather the legislation calls for a study on certain incentives to be conducted by the Department of Housing and Community Development. This does leave the door open for potential incentives for broadband deployment to be introduced next session.  

Fair Wage Act of 2023   

(HB0549 – The Speaker / SB0555 – The President)  

The legislation passed both chambers and has already been signed into law by Governor Moore. Maryland’s minimum wage will now be $15 an hour starting January 1, 2024, two years ahead of the current schedule. While this does accelerate the rate at which the state reaches a $15 minimum wage, the legislation does not include automatic increases after that tied to the Consumer Price Index, which was a component the Governor had originally included and supported. Expect to see legislation introduced next session relating to minimum wage and the CPI.  

Income Tax – Subtraction Modification for Military Retirement Income – Keep Our Heroes Home Act   

(HB0554 – The Speaker / SB0553 – The President) 

Having passed both chambers, this legislation is headed to the Governor’s desk. It will result in an increase in the retirement exemption for military veterans, although not to the extent originally proposed by the Governor. The House and Senate reduced the Governor’s original proposal of the first $40,000 in military retirement income to be subtracted, regardless of age, to: 

• For individuals at least 55 years old the subtraction modification is increased to $20,000 from $15,000 in current law.  
• For individuals under 55 years of age the subtraction modification is increased to $12,500 from $5,000 in current law.  

Economic Development – Build Our Future Grant Pilot Program and Fund   

(HB0552 – The Speaker / SB0549 – The President) 

The legislation passed both the House and Senate and is headed to the Governor’s desk. It will allow the state’s Department of Commerce to provide sizable grants (up to $2 million) to certain infrastructure projects in targeted industries. This should result in incentivizing more investment into the state, resulting in additional jobs in traditionally well-paying industries.   

Economic Development – Industry 4.0 Technology Grant Program  

(HB0622 – Del. Qi / SB0906 – Sen. Rosapepe) 

The legislation is headed to the Governor’s desk, creating a grant program for small and medium sized manufactures to implement Industry 4.0 technology or related infrastructure. Up to $1 million a year will be made available for eligible manufacturers between 2025-2028. The Board of Trade was happy to provide support for this legislation, which should result in additional private investment within the state.   

Virginia  

Virginia Budget 

While budget conferees continue to negotiate a revised budget, there is no sense of urgency on either side of the aisle. Both sides agree that they need more information regarding state revenues in the final quarter of the fiscal year before making a decision on additional state spending. A potential special session could take place in late June, after the primary elections, however it is important to note that technically, the Commonwealth has a spending plan in place through June of 2024.  

Featured guests from the media group Axios spoke about ‘Smart Brevity: The Power To Say More With Less’, a communication approach that has made their organization successful, when the Board of Trade hosted a TD Bank Morning Star Speaker Series event at The Tower Club in Tysons, Virginia, on April 6.

TD Bank’s head of HR, US Commercial Banking, Tara John, led a conversation with Axios’ publisher Nicholas Johnston and Axios HQ’s chief of staff, Tristyn Hassani, on punching through the noise and delivering high quality, effective communication that gets people to pay attention.

Topics covered by the speakers from Axios included how to engage and create more efficient emails, company branding and how it can impact audience engagement, and stories of how Axios found success in practices that it has implemented to make communication internally and externally more streamlined and clear.

Speakers from Axios engaged the crowd on how digital communication has changed the way we do business and how brands adapt in a fast-paced business society. Board of Trade members also got the opportunity to ask questions to the speakers from Axios regarding communication efforts within their own companies, and some of the sturggles they face.

A huge thank you to our sponsor for this event TD Bank and its regional president, Terry Kenny, for helping the Greater Washington Board of Trade help grow workforce solutions and promote success for business in our region.  

Click here for more picture from our TD Bank Morning Star Speaker Series

The Greater Washington Board of Trade partnered with Easterseals DC MD VA’s mission-driven Candid Conversations series on March 27 and brought together the business community for a workforce panel discussion on Employment Strategies for Hiring & Retaining Persons with Disabilities and Veterans. 

The event took place at Booz Allen’s “The Helix Center for Innovation,” an immersive technology experience for its community partners in downtown Washington, D.C. with additional sponsorship from Comcast.

The Panelists included:
Martel Neville, Vice President Human Resources at Comcast
Chris Wheedleton, Senior Vice President, Employment Programs, Easterseals DC MD VA
Sylvia B. Charles, Business Relations Specialist; DC Dept of Disability Services, Rehabilitation Services Administration
Tom Downs, CDR; Director Diversity Talent Acquisition and Talent Pipeline; Booz Allen Hamilton
Francesca Daniels (moderator); Lead Associate, Experiential Analytics, Booz Allen Hamilton

“Statistically, persons with disabilities are the least employed so they have the most difficult time gaining employment” said Sylvia Bailey-Charles, Business Relations Specialist at the DC Department of Disability Services, part of the Rehabilitation Administration Services. “We’re here to remove barriers and ensure job seekers have equal access to employment.”

Watch the full panel discussion below:

“With over a quarter million software engineer jobs open in the U.S., there’s a war for talent, with an often overlooked demographic of persons with disabilities, so there’s a need to educate recruitment teams and hiring managers to identify all potential candidates,” said Tom Downs, Director of Diversity Talent Acquisition and Talent Pipeline for Booz Allen Hamilton.  One additional step that Booz Allen does before posting a job is to put the job description through a tool to help call out and eliminate words that might prevent certain demographics from applying for jobs.

At Comcast, the organization tracks and measures diversity, equity, and inclusiveness at each career level to ensure they are stacking up against the values they strive for.  “Employee Resource Groups (ERG) are a group of individuals that help everyone feel included and represented and raise the level of awareness internally but often serve as an accountability measure as well hold the company accountable,” said Martell Neville, Vice President of Human Resources at Comcast.

The conversation really framed issues around employment and workforce challenges for disabled persons, including disabled veterans. Larger corporations generally have the resources necessary to identify what issues or barriers exist and make corrective actions in the recruitment and hiring process, along with creating a sense of belonging in company culture.

Further, the discussion identified some best practices and practical solutions for engaging with this valuable and productive demographic. 

Click here to see more photos from our Candid Conversation event with Easterseals DC MD VA

Crossover Day in Maryland on Monday signaled the homestretch of the state’s legislative session and provided a clearer picture of what bills have a legitimate shot of becoming law. Governor Wes Moore’s legislative agenda has advanced but comes with some significant changes to key bills, including the Fair Wage Act and Keep Our Heroes Home Act. All of this comes as the Maryland Board of Revenue Estimates’ most recent projections show a combined reduction to the general fund of $478 million over the remainder of Fiscal Year 2023 and Fiscal Year 2024, likely impacting current legislation being debated by lawmakers and the budget that must be passed by April 3. 

The updated D.C. Criminal Code that was passed by city council earlier this year was overturned after President Joe Biden signed the disapproval resolution that had bipartisan support from Congress. This is the first time in over 30 years Congress nullified a law passed by the city council through the disapproval process. Mayor Muriel Bowser presented her 2024 Budget to the D.C. Council on March 22. The Board of Trade was pleased to join several other organizations in a letter calling for efforts to use more budget funding to reinvigorate the economy, impose no new taxes, improve the regulatory environment, and protect core services. 

Things remain in-process in Virginia, as budget conferees work to form a consensus on a revised budget with potential tax relief included. Governor Glenn Youngkin has until March 27 to act on legislation, which will be followed by the General Assembly reconvening on April 12 to consider any actions taken by the Governor and with the intent to adopt a revised budget. Youngkin signed 51 bills into law this week, marking his first action on the 819 pieces of legislation that passed the most recent session. 

Below is a deeper look at legislation and initiatives we are following across D.C., Maryland, and Virginia: 

DC: 

DC Criminal Code 

President Biden signed the disapproval resolution pertaining to D.C.’s updated criminal code. This comes after it had already passed the House (250-173) and Senate (81-14) with considerable bipartisan support. Prior to the Senate voting on the disapproval resolution, D.C. Council Chairman Phil Mendelson tried to withdraw the legislation to prevent an official vote from taking place, this however did not impact Senate proceedings and the vote went ahead as scheduled. Mayor Bowser has already unveiled amendments to the criminal code that would: 

• Create opportunities for the public to provide input on policy changes around jury trials and expansion of the Second Look Act. 
• Restore penalties on crimes that the public has expressed significant concerns about in recent months. 
• Allow sufficient time for training and data systems changes across the criminal justice system by updating the implementation date to January 1, 2027. 

The Board of Trade will continue to work with Mayor Bowser and D.C. Council to amend the legislation to create a safer environment for residents of the District and the business community.  

D.C.’s Stop Discrimination by Algorithms Act of 2023  

Councilmembers introduced the Stop Discrimination by Algorithms Act of 2023 (B25-0114) earlier this year. This bill as proposed will impose significant new requirements and penalties for violations on many businesses in the District. Among other organizations, the Board of Trade is seeking to better understand how this bill can be implemented without harming businesses and allowing them to stay competitive. The bill was referred to the Committee on Business and Economic Development and Committee on Judiciary and Public Safety. It is expected that action on the legislation will not take place until after the budget has been finalized.  

DC Budget 

Mayor Bowser submitted her Fiscal Year 2024 Budget to the D.C. Council on March 22. The Board of Trade was pleased to join several organizations in a letter to Mayor Bowser calling for efforts to reinvigorate the economy, impose no new taxes, improve the regulatory environment, and protect core services. This is more imperative considering the updated revenue projections from the city’s CFO Glen Lee, which show a $464 million shortfall over the next three fiscal years. The shortfall stems from the reduction in tax revenue from large commercial properties and office buildings, which have been impacted heavily by remote work. The Board of Trade looks forward to advocating on behalf of the business community as Mayor Bowser’s budget is debated and amended by D.C. Council.  

Maryland  

Broadband Expansion  

(HB0551 – The Speaker / SB0547 – The President) 

The legislation, as originally proposed, called for tax incentives to assist expanding broadband access throughout the state. It would have allowed a tax reduction for companies that receive federal grants for broadband deployment while providing an exemption from the sales and use tax on the purchase of broadband equipment. However, amendments were added and accepted to the House version of the bill that removed the tax incentives portion of the legislation. Additionally, it now requires the Office of Statewide Broadband within the Department of Housing and Community Development to conduct a study and report to the Governor and the General Assembly on or before July 1, 2024, on certain incentives to encourage the expansion of broadband infrastructure in the state. It has passed the House (135-1) and has been referred to the Senate Budge and Taxation committee. The original Senate version of the legislation did not move.   

Fair Wage Act of 2023   

(HB0549 – The Speaker / SB0555 – The President)  

The legislation as originally proposed aimed to increase the minimum wage to $15 an hour by October 1, 2023. Additionally, it would tie the minimum wage to the Consumer Price Index with a cap of 5% after reaching $15, resulting in automatic increases to the minimum wage moving forward. Under current Maryland law, minimum wage was to be raised incrementally, ultimately reaching $15 an hour starting Jan 1, 2025. Businesses with 14 or fewer employees would be permitted to wait until July 1, 2026, to get to $15 an hour. However, amendments to the Senate version of the legislation, that were added by the Finance Committee, removed the Consumer Price Index component and pushed the start date of $15 minimum wage from October 1, 2023, to January 1, 2024. Both small and large businesses would be on the same track. This version passed the Senate (31-14) and is headed to the House Economic Matters Committee. The original House version of the legislation did not move.  

Income Tax – Subtraction Modification for Military Retirement Income – Keep Our Heroes Home Act   

(HB0554 – The Speaker / SB0553 – The President) 

In an effort to prevent military veterans from moving out of the state, Governor Moore proposed tax incentives in the form of increases to their retirement exemption. The initial version of the legislation called for the first $40,000 of military retirement income to be subtracted, regardless of age. However, the legislation as currently passed by the House and Senate, reduced the amount exempted and restrict it by age: 

• For individuals at least 55 years old the subtraction modification is increased to $20,000 from $15,000 in current law.  
• For individuals under 55 years of age the subtraction modification is increased to $12,500 from $5,000 in current law.  
• If passed, the bill is effective July 1, 2023, for taxable years after December 31, 2022.      

While this is still an increase compared to what is currently available for veterans, more will likely be needed in the future in order to keep them in the state, especially considering 36 other states do not tax military retirement income at all. Virginia passed legislation in 2022 that will ultimately result in a subtraction of $40,000 by 2025 for those 55 and older. 

Economic Development – Build Our Future Grant Pilot Program and Fund   

(HB0552 – The Speaker / SB0549 – The President) 

This bill would establish the Build Our Future Grant Pilot Program in the Department of Commerce to fund infrastructure projects to support innovation in targeted industry sectors. Those sectors include things such as advanced manufacturing, life sciences, quantum, and cybersecurity. Projects could potentially include Sensitive Compartmented Information Facilities (SCIF), wet laboratories, manufacturing centers, cyber ranges, along with other specialized workforce training or skill certification spaces. The grants funds are eligible to be utilized on the infrastructure related components, like the cost to acquire, construct, improve, or equip a space. $10 million would be available in Fiscal Year 2024, with a matching requirement of 200% for grants under $1 million and 400% for grants up to $2 million (the max grant allowable). This legislation helps bring more investment into the state, resulting in increased growth and jobs in well-paying industries, which would benefit the region. Both the Senate and House version of this legislation has passed.  

Economic Development – Industry 4.0 Technology Grant Program  

(HB0622 – Del. Qi / SB0906 – Sen. Rosapepe) 

This bill would establish the Industry 4.0 Technology Grant Program in the Department of Commerce to provide grants to certain small and medium-sized manufacturing enterprises to assist those manufacturers with implementing new Industry 4.0 technology or related infrastructure. With the upfront capital being too much of a financial burden for many small and medium sized manufactures to invest in, support is needed to ensure the industry remains viable within the state. The Board of Trade provided written testimony in support of the legislation. While the initial version of the legislation called for a $10 million investment per year from 2023-2028, the House version of the legislation amended it to $1 million per year from 2025-2028, and will aim to set aside 20% of the funds for manufacturers who employ 50 or fewer employees. The legislation passed the House (122-15) and was referred to the Senate Budget and Tax Committee along with the Senate Finance Committee.  

Virginia  

Virginia Budget 

Budget conferees continue to negotiate to adopt a revised budget. There does remain the potential for additional tax relief, most likely in the form of a rebate along with an increase to the standard deduction. Several bipartisan priorities that had been at the center of discussions throughout the session remain in play, those items include salary increases for state employees and teachers, greater funding of new mental health and substance abuse services, economic development site preparation, and initiatives to reverse pandemic-related learning loss in K-12 school systems. 

Governor Wes Moore joined the Greater Washington Board of Trade to kick off our Regional Policy Leadership Series conversations for 2023.

Moore spoke about various key initiatives as part of his first 60-days as governor of Maryland. He also answered questions from the Board of Trade’s business partners, highlighting the state’s capacity to invest in public-private partnerships.

Event moderator Misty Allen, Vice President Government & Regulatory Affairs and Community Impact for Comcast, also asked the governor questions regarding regional competitiveness, transportation, technology, education, workforce, and more.

When diving into competitiveness economically, Moore shared what makes him the most frustrated when he thinks about missed potential in the State of Maryland.

“One of the biggest frustrations that I have, is that as a state, we have this tendency to be asset rich and strategy poor,” said Moore. “When we think about the assets of the State of Maryland, I don’t know a single state that would trade assets with the State of Maryland. But why is it that the State of Maryland over the last eight years we have seen national GDP rising of 23%, and Maryland’s GDP has risen at 11%? We’re falling behind.”

View the whole discussion with Maryland Governor Wes Moore below:

This Regional Policy Leadership Series webinar is presented by Comcast. Supporting Sponsors of the event series are G.S. Proctor & Associates Inc., Holland & Knight LLP, McGuireWoods Consulting LLC and McGuireWoods LLP, and MGM National Harbor. Thank you for supporting the Greater Washington Board of Trade and our region’s business community.  

It would be an understatement to say we are disappointed by the news that Maryland’s plan for a new American Legion Bridge and beltway traffic relief is once again delayed. Traffic volumes in Maryland have already rebounded to pre-pandemic levels and this trend won’t slow even with necessary increases in transit options given the region’s population is expected to grow by 1.3 million people by the year 2045. 

Our region is consistently ranked amongst the most congested in the nation, costing the average commuter 83 hours and roughly $1,400 per year, with overall congestion estimated to cost more than $3.5 billion annually.  

This project should have started years ago, and each delay increases project costs, slows regional economic growth, and imperils our quality of life.  

We are pleased to hear that the federal Record of Decision is still intact to allow this to move forward and that Governor Wes Moore’s administration is committed to relieving traffic congestion. This project is a critical component of an integrated regional system, including transit, and we encourage the administration to take swift action.

Sincerely, 

Jack McDougle,
President & CEO 
Greater Washington Board of Trade

Over 500 Greater Washington Board of Trade members and friends attend the 103rd Mid-Winter Dinner on Feb. 23^rd at the stunning Washington National Cathedral. The Board of Trade continued its tradition of convening for an evening of elegant entertainment and allowing the region’s leading business executives and community partners to mingle with elected and agency officials.

From the spectacular venue and décor to the entertainment from the National Philharmonic and the delicious food and drink from Ridgewells Catering, the Mid-Winter Dinner is a perfect example of how coming together and building relationships can make our region stronger. 

See pictures from our 103rd Mid-Winter Dinner here.

Thank you to all our sponsors for making this signature event an evening to remember.  

On January 31^st, the Greater Washington Board of Trade hosted a small delegation from JetBlue at our office in downtown, Washington, D.C.  Joanna Geraghty, president and chief operating officer of JetBlue sat down with a group of member business leaders to discuss the planned merger between JetBlue and Spirit Airlines, and the positive effects this deal would have for Greater Washington.

JetBlue’s proposed acquisition will create a highly competitive national low-fare challenger to the Big Four US Airlines – American, Delta, Southwest and United.  Those four airlines together control about 80 percent of the US market today, while JetBlue and Spirit each represent less than five percent. 

The combined airline will expand its footprint in our region with operations at both Reagan National Airport (DCA) and Baltimore Washington International (BWI), bolster additional workforce opportunities especially from a company that has a commitment to no furloughs, provide more career growth options, and broaden travel benefits for employees. Further benefits would be seen through their social impact initiative “JetBlue For Good” which supports dedicated community organizations, promotes healthy environments throughout communities, and inspires next generation youth education.

While the completion of the merger is subject to regulatory approval, the benefits to the Greater Washington region seem clear – adding more high paying/highly skilled jobs to our area, improving our global competitiveness through expanded competition, and providing expanded travel opportunities with affordable pricing – are all measures the Board of Trade supports.

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Last updated on Feb. 27, 2023

Virginia’s legislative session has concluded without a fully amended spending plan for Fiscal Years 2023-2024 . Instead, a “skinny budget” consisting of a few items was unanimously adopted. There is now a potential special session, which Virginia Governor Glenn Youngkin would call once negotiators can work a deal out. The Greater Washington Board of Trade was excited to have supported the workforce consolidation legislation that will be headed to the Governor’s desk and expects to play an active role in the implementation process. Maryland Governor Wes Moore has been hands-on in supporting his legislative agenda, having personally testified in front of the General Assembly on two of his initiatives, the SERVE Act and the Keep our Heroes Home Act. Meanwhile, Congress has taken up an interest in Washington D.C.’s new criminal code, with the House having voted in favor of overturning it. 

Below is a look at legislation and initiatives we are following across D.C., Maryland, and Virginia:

Washington D.C. 

D.C. Comeback Plan 

Mayor Muriel Bowser’s D.C. Comeback Plan was released by her administration and is something the Board of Trade supports but will continue to monitor. Our President and CEO Jack McDougle shares in an Op-Ed why downtown revitalization is important, and ways we believe Bowser and her administration can improve upon this plan.   

Proposed D.C. Criminal Code Changes 

The United States House of Representatives voted in favor of overturing the rewrite of the District’s criminal code. The final vote was 250-173, to include 31 Democrats voting in favor of overturning the legislation. In order for the legislation to be overturned, it would still have to pass the Senate with 51 votes and be signed by the President. To date, all 49 Republicans in the Senate have signaled support for the resolution of disapproval, meaning only two Democrats are needed. While the White House has signaled they would veto the measure if it makes it to the president’s desk, they have not confirmed they would do so.  

D.C.’s Stop Discrimination by Algorithms Act  of 2023 

Councilmembers introduced the Stop Discrimination by Algorithms Act of 2023 (B25-0114) earlier this month. The legislation would prohibit users of algorithmic decision-making in a discriminatory manner and would require corresponding notices to individuals whose personal information is used in certain algorithms to determine employment, housing, healthcare, and financial lending. This bill as proposed will impose significant new requirements and penalties for violations on a wide range of businesses located in the District. The Board of Trade among many other businesses and organizations, look to better understand how this bill can be implemented without harming businesses and staying competitive. The bill was referred to the Committee on Business and Economic Development, and Committee on Judiciary and Public Safety. 

Maryland 

Broadband Expansion Incentive Act of 2023

This bill would allow for subtraction modification under the Maryland income tax for certain qualified broadband grants awarded during the taxable year for broadband deployment; and provide an exemption from the sales and use tax for the sale of certain equipment related to providing internet service and deploying broadband. If passed and signed by the governor it would be effective July 1, 2023. 

Amendments announced in committee:  

1. Establishes a rebate program to reimburse companies for qualifying costs up to a total of $2 million annually. The Governor’s Supplemental Budget includes $10 million in funding. Program is first come, first served.   

2. The Tax Cuts and Jobs Act (TCJA) passed in 2017 required that broadband grants be counted as income. This amendment would eliminate that requirement. There is similar federal legislation. 

(HB0551) In the House – Hearing 2/16 at 1:00 p.m.    

(SB0547) In the Senate – Hearing 3/01 at 1:00 p.m. 

Fair Wage Act of 2023

This bill strives to increase the state minimum wage rate in effect for certain periods of time:   

• For the 9-month period beginning January 1, 2023 $13.25 per hour   
• For the 21-month period beginning October 1, 2023, $15.00 per hour   

• For the 12-month period beginning July 1, 2025, and each subsequent 12-month period, the lesser of the average percentage growth in the consumer price index for the immediately preceding 12-month period or 5%.   

The minimum wage rate shall be calculated on March 1 of each year and effective of July 1 of each year. Increasing, except under certain circumstances, such as the state minimum wage rate in effect for certain periods of time based on annual growth in a certain consumer price index.   

This bill would also alter the Board of Public Works’ authority to temporarily suspend the minimum wage rate. It would repeal the requirement that the Governor’s budgets for certain fiscal years include certain provider rate increases. State law currently requires large businesses to reach $15 on Jan. 1, 2025, and small businesses to pay that wage by Jan. 1, 2026.  

(HB0549)  In the House – Hearing 2/27 at 1:00 p.m. 

(SB0555) In the Senate – Hearing 3/02 at 1:00 p.m. 

Income Tax – Subtraction Modification for Military Retirement Income – Keep Our Heroes Home Act – (HB0554)  

Increasing the amount of a certain subtraction modification under the Maryland income tax for certain military retirement income received by individuals, regardless of age, for certain military service to $25,000 for the taxable year beginning after December 31, 2022, and $40,000 for taxable years beginning after December 31, 2023. It would cost about $30 million in the next fiscal year, and if passed it would be effective July 1, 2023.   

(HB0554)  In the House – Hearing 2/16 at 1:00 p.m. 

(SB0553) In the Senate – Hearing 3/01 at 1:00 p.m. 

Economic Development – Build Our Future Grant Pilot Program and Fund

This bill would establish the Build Our Future Grant Pilot Program in the Department of Commerce to provide funding for certain costs for infrastructure projects in eligible technology sectors. It would require certain grantees to provide matching funds and to demonstrate certain abilities; and establishing the Build Our Future Grant Fund as a continuing, nonlapsing fund.   

The Maximum grant would be up to $2 million and require matching funds. Grants up to $1 million require a match to at least 200%, with grants between $1 million and $2 million requiring at least 400% match. A grantee must show ability to cover the full estimated project costs for which the grant is awarded.  

(HB0552)  In the House – Hearing 2/16 at 1:00 p.m. 

(SB0549) In the Senate – Hearing 3/01 at 1:00 p.m. 

Virginia 

Workforce Development Consolidation 

After 30+ years Virginia finally has a framework to restructure its workforce development programs and services. HB 2195 and SB 1470 were passed with a final combined House and Senate vote of 136-1. The Board of Trade’s advocacy reminded legislators that consolidation, clear performance metrics and accountability measured in jobs filled and employees retained is critical to maximizing economic security for both companies and labor. Secretary of Labor Bryan Slater can now work with Governor Youngkin to implement the provisions with likely a first convening of a stakeholder workgroup to develop and implement specific transition activities with work that must be completed by June 30, 2024.  

The Board of Trade will work with interested members to identify and work on those initiatives that have regional impact such as high-quality internship or apprenticeship opportunities for students and tightly tying education/training outcomes to workforce needs. Our 2022-2026 Strategic Vision regarding the future of work and talent will guide our contributions to improving Virginia labor force for the National Capital Region. 

Commonwealth Mass Transit Fund 

SB 1079 and HB 1496 are headed to the Governor’s desk, implementing new transparency and accountability requirements for the Virginia Railway Express (VRE) and the Washington Metropolitan Washington Transit Authority (WMATA) that must be met to continue receiving state support funds. Staff at the Virginia Department of Rail and Public Transportation will quickly have to develop performance metrics that will prioritize uses for the state funding of the VRE. These metrics will eventually be proposed to the Commonwealth Transportation Board for adoption.  

Proposed regulations against data centers 

None of the proposed legislation significantly impacting data center development throughout the Commonwealth moved forward, including legislation that would have required a study of the industries impact on jobs, tax revenue, energy, and water use. However, there is a strong possibility that data center development will be a campaign issue for some local government elections in 2023.  

Tax Policy  

None of the significant legislation relating to the Governor’s 1 billion package of tax rate cuts, credits, and deductions was able to pass during the session, however, there remains the possibility of tax relief as negotiators attempt to finalize a more complete budget after having passed a “skinny budget” prior to the conclusion of session.  

The Virginia General Assembly broke new ground before it adjourned Sine Die on February 25^th when it unanimously approved the so-called “skinny budget” instead of a fully amended spending plan for Fiscal Years 2023-2024. The approved amendments address four key areas: (1) make a required $904 million deposit into the Rainy Day fund due to better than projected FY 2022 revenue collections, (2) make a $250 million payment into the Virginia Retirement System to further reduce unfunded liabilities and protect retirees; (3) fix a $201 million accounting error in the introduced budget and insure local K-12 school divisions are funded at promised levels and (4) provide $100 million in FY 2023 to complete existing capital projects whose costs have increased due to inflation and supply chain delays.  

Budget conferees continue to negotiate, and the entire General Assembly will return in a special session to adopt a revised budget. The key block to consensus relates to what level — if any — tax relief will be provided. Because the underlying budget is in place until amended Virginia technically has a spending plan in place. However, Governor Youngkin has limited ability to change funding priorities and without action by the General Assembly he – and they – won’t be able to implement several bipartisan priorities discussed this year including salary increases for state employees and teachers, greater funding of new mental health and substance abuse services, economic development site preparation, and initiatives to reverse pandemic-related learning loss in K-12 school systems.