Senate approves Hopewell-triggered fiscal-distress bill; passage also on House doorstep

RICHMOND – Legislation that would allow the state to intervene in the affairs of a locality deemed fiscally distressed continued its quick path through the General Assembly Monday.

The measure, with its roots in Hopewell’s recent battle against the governor’s office over the city’s lack of submitting required audits, overwhelmingly cleared the state Senate on a 34-6 vote. Across the Capitol, the House of Delegates advanced its version to a final vote set for Tuesday, the final day when each chamber must act on its own bills.

The bills – sponsored by Sen. Lashrecse Aird, D-Petersburg, and Del. Carrie Coyner, R-Chesterfield County, would codify an existing state-budgeting process where the Virginia Auditor of Public Accounts could declare a city or county in fiscal distress if it cannot or will not take steps to submit delinquent reports about its accounts-payable and accounts-receivable systems. The distressed label would kick in if that locality has missed six straight deadlines for audits.

Chief among their recommendations is the appointment by the Virginia Commission on Local Government of an “emergency fiscal manager” to temporarily take over all the locality’s money decisions and duties, including those of the locality’s treasurer.

They were brought to the legislature after Hopewell – which had not submitted an audit to the state since 2015 – rejected the Youngkin administration’s overtures to step in and help steer the city away from complete fiscal collapse. Instead, a majority of City Council opted to bring in the Robert Bobb Group to help establish billing and spending policies, and get the audits caught up.

Five of the seven Hopewell councilors wrote letters objecting to the overreach of the intervention, and they were joined by the Virginia Municipal League, the Virginia First Cities Coalition and the Virginia Treasurers’ Association.

In the Senate, five Republicans joined Democratic Sen. Louise Lucas of Portsmouth in opposition. In the House, Coyner’s legislation advanced to its final passage on a voice vote.

In both instances, floor debate was non-existent.

Bill Atkinson (he/him/his) is an award-winning journalist who covers breaking news, government and politics. Reach him at batkinson@progress-index.com or on X (formerly known as Twitter) at @BAtkinson_PI.

This article originally appeared on The Progress-Index: Fiscal-distress legislation clears Senate, expected to pass House