Market supports Governor’s plan to advance funding for transportation
RICHMOND – The Commonwealth Transportation Board (CTB) has closed the sale of the $600 million of Commonwealth of Virginia Transportation Capital Projects Revenue Bonds sold on May 11 to advance transportation projects managed by the Virginia Department of Transportation and the Virginia Department of Rail and Public Transportation. The Commonwealth received seven highly competitive bids from underwriters. The winning bid was from Wells Fargo Bank with a true interest cost of 4.025 percent. The $600 million issue of bonds sold at a premium, netting the commonwealth $647.7 million.
“The outcome of this sale highlights the benefits of the accelerated use of bond authority sought and obtained by my transportation plan provided by House Bill 2527 and Senate Bill 1446 of the 2011 General Assembly,” said Governor Bob McDonnell. “The interest rate and premium received on this sale illustrates the great market conditions and value of Virginia’s credit.”
This bond sale was the first of three planned $600 million issuances of Transportation Capital Projects Revenue Bonds over three years. The bonds were rated AA+ by Fitch and Standard and Poor's, and Aa1 by Moody's. It was the second issuance of the Capital Projects Revenue Bonds that were authorized by the General Assembly in 2007.
As a component of the transportation funding package, the bond sale will provide funding for transportation projects across the commonwealth as reflected in the update to the CTB's Fiscal Years 2012-2017 Six-Year Improvement Program this spring.
The 17-member CTB, appointed by the governor, establishes the administrative policies for Virginia's transportation system. The CTB allocates highway funding to specific projects, locates routes and provides funding for airports, seaports and public transportation.
For more information about these bonds and transportation financing, visit VDOT
~Legislation is Second Part of Governor’s 2011 “Opportunity at Work” Agenda~
VIRGINIA BEACH – Governor Bob McDonnell today signed the second part of his “Opportunity at Work” legislative package at an afternoon event at the Virginia Beach Convention Center. The three measures signed today will help to increase tourism and attract new business to the state. The Governor was joined at today’s signing ceremony by Secretary of Commerce and Trade Jim Cheng, members of the General Assembly, Virginia Beach Mayor Will Sessoms, and stakeholders in the retail, tourism and commercial spaceflight industries.
Speaking about the legislation signed today, Governor McDonnell remarked, “Economic development and job creation remains my top priority. Over the last year and a half Virginia’s unemployment rate has dropped over one percent and we have added 64,900 net new jobs. But there is more work to be done to help every Virginian get a good-paying, quality job. The three bills I signed today will go far to encourage job creators to choose Virginia and invest in this state.”
Governor McDonnell continued, “Tourism is an important revenue stream for Virginia, generating $17.7 billion in revenue annually, and supporting 204,500 jobs. Legislation signed today will allow certain locally-approved tourism projects to temporarily retain a portion of local and state sales tax to complete financing for a project, helping Virginia’s tourism industry, a significant sector of our economy, continue to grow. In addition, it is my goal to make Wallops Island the best spaceport in America and this legislation will direct revenue generated by commercial spaceflight to the Virginia Commercial Space Flight Authority encouraging significant growth of the aerospace industry in the Commonwealth. Finally, the third piece of legislation signed today will allow a county, city or town to provide relief from license taxes to any business opening in that locality for the first two years. This will defray some of the startup costs of a new business, which should help encourage businesses to choose Virginia. We are constantly looking to implement policies that will help the private sector to create new jobs here in Virginia. That is what this legislation does and it is part of our ongoing effort to ensure that Virginia remains the most business-friendly state in America.”
Senator Thomas Norment (R-Williamsburg) added, “Tourism brings good jobs and much needed revenue to my district of Williamsburg and every corner of the Commonwealth as Virginians travel within the state and as visitors from across the country and around the world choose to visit Virginia. Through the creation of the Tourism Development Grant Program we will be able to provide a mechanism by which local tourism projects can fill a potential funding gap in order to get new projects off the ground. This is a great means to help grow the important tourism industry in Virginia.”
Delegate Sal Iaquinto (R-Virginia Beach) noted, “Governor McDonnell and his economic development team are actively working to recruit businesses to Virginia and ensure that businesses have the tools they need to start up. Through the Business License Incentive Program, localities will be able to provide tax relief on business licenses to help businesses during their first two years. This program will defray some of the initial costs of getting up and running and will help ensure businesses have a little more of the cash flow they may need to be successful from day one.”
“Opportunity at Work” Legislation Signed Today
SB1193 (Norment)/ HB2285 (James) – Creates the Tourism Development Grant Program
•Creates the Tourism Development Grant Program to allow certain locally endorsed tourism projects to temporarily retain a portion of state and local tax revenue generated from the project combined with a matching contribution from the developer to provide gap financing for the project
SB1447 (Wampler) – Revenues to the Virginia Commercial Space Flight Authority
•Directs revenue generated by commercial spaceflight to the Virginia Commercial Space Flight Authority to develop Wallops Island as an even more attractive spaceport
HB1587 (Iaquinto) – Creates a Business License Incentive Program
•Permits any county, city or town to provide relief from license taxes to any business locating in such county, city or town for the first time, for the first two years after such location
Delegate Peace Presents Mission Oriented Re-election Bid:“Smaller Government & a Stronger Economy” is Centerpiece of Peace Campaign
Peace Highlights Record on Job Creation, Economic Growth, Lower Taxes and a Smaller, Leaner Government
“Virginians deserve leadership committed to the taxpayer and to individual liberties,” says Peace
HANOVER, VA – Central Virginia Delegate Christopher K. Peace (R-97th District) announces his intentions to seek a fourth two-year term to continue his commitment of faithfully serving the people of Hanover, New Kent and King William Counties. In a prepared statement Peace said “Serving the people of the 97th district in the Virginia House of Delegates is a tremendous honor. As a Delegate to the Virginia General Assembly, I have worked hard to keep taxes low, make our schools better and communities safer, create opportunities for job creation and economic growth, and provide excellent customer service. I have honored my commitments over my three terms, but I strongly believe that there is much more work to be done to make a smaller government and a stronger economy a reality. To improve our community’s quality of life and sustain Virginia’s economic recovery, government must lower the burden on taxpayers and respect individual liberty. For these reasons, I am announcing my intention to seek re-election.” He continued “As many people know, I consider my service a team effort. I thank my wife and children for their love, encouragement and support. Additionally, I appreciate the work of my Chief of Staff Julie Coggsdale and Legislative District Chairman Norman Sulser for their tireless work across the district.”
In just a short time in office, Delegate Peace has proved to be an effective, thoughtful and respected legislator serving on the prominent Courts of Justice, Health Welfare and Institutions, General Laws, and Finance Committees. Speaker of the House William J. Howell has recognized Peace’s leadership skills and appointed him to several statewide boards important to the district: Joint Commission on Health Care, Virginia Commission on Youth, State Advisory Council on Career and Technical Education. He is also a member of several legislative groups namely the Conservative Caucus, Rural Caucus, Tourism Caucus, the Virginia Indian Commemorative Commission and the War of 1812 Bicentennial Commission. This summer he will participate in a national leadership forum at UVA for emerging state legislators.
Peace, a consistent supporter of small business and prior recipient of the National Federation of Independent Business endorsement, recently visited small businesses in the district to learn whether the modest economic recovery is reaching local businesses and what the appropriate state government response should be. At the Ruby Slipper Boutique in Mechanicsville, Peace shared a report of the 2011 General Assembly Session with owner Vicki Trice and called attention to the good news regarding a reduction of taxes and fees on businesses, particularly those on small business. Peace conveyed his support for recently passed budget amendments that work to phase?out the accelerated sales tax which required nearly 9,000 retailers to pay July’s sales tax in June. The phase-out of the accelerated sales tax begins immediately and 80% of impacted retailers will not have to remit an accelerated sales tax payment. “This action is an example of making government work better on behalf of the taxpayer. Government should allow the real job creators to keep more of their hard earned dollar,” said Peace.
Peace acknowledged that the General Assembly has made the tough, but necessary, choices over the last two years to keep Virginia a top state for business, to raise a family and to earn a living. Legislators have made various reforms and approved targeted cuts in funding to programs taking spending back to 2008 levels. This leadership makes Virginia live within its means with a balanced budget. The state is better off today because of those difficult decisions, Peace commented. He noted that the focus has been and should remain on funding core services without tax increases.
During the 2011 Session, Delegate Peace placed legislative efforts on job and economic development issues for suburban and rural areas. He successfully sponsored a measure to call for lower taxes as incentives to attract manufacturing industry, specifically defense production business (HB1822). Understanding the importance of a well trained and educated workforce, Peace co-sponsored the “Top Jobs for the 21st Century” Act creating a pathway for greater access and reduced costs at our institutions of higher learning. This bill will provide a blueprint for an additional 100,000 degrees awarded over the next fifteen years. Locally, he successfully carried a bill authorizing the Virginia Racing Commission to join the Interstate Racing Compact to improve the horse industry so important to much of the district. For non-legislative achievement, he is particularly proud of his leadership role in bringing natural gas service to King William County.
Government reform is also a top priority of Delegate Peace. His legislative leadership has produced results in the areas of government efficiency by allowing cost-saving joint aid agreements among localities arranging for the provision of aid to one another (HB2364) and government reforms saving the taxpayers hundreds of thousands of dollars by eliminating unproductive and unnecessary state boards and commissions (HB2520). Previously Peace passed legislation to create more accountability by requiring local governing bodies and their school boards to annually publish their approved budgets online. Lastly Peace sponsored and passed a resolution honoring state sovereignty and 10th amendment federalist principles because of his growing concern regarding the growth of the federal government (HR46).
Delegate Peace shared a partial listing of endorsements of elected officials from each of the counties in the district: Hanover County Commonwealth's Attorney Trip Chalkley, Sheriff Dave Hines, Sheriff (Retired) V. Stuart Cook, Clerk of the Court Frank D. Hargrove, Jr., Treasurer M. Scott Miller, Board of Supervisors Robert R. Setliff, Elton J. Wade, Sr., and Deborah B. Winans; King William County Commonwealth's Attorney Stephen Palmer, Commissioner of the Revenue Sally W. Pearson, Sheriff Jeff Walton, Board of Supervisors Cecil Schools and D.L. "Danny" Wright; and New Kent County Commissioner of the Revenue Laura M. Ecimovic, Board of Supervisors Thomas W. Evelyn and Stran L. Trout, Clerk of Court Karen Butler, School Board Member Terri Lindsay, and Sheriff F.W. "Wakie" Howard, Jr. to name a few.
Over the years, Peace’s voting record has earned him an A+ Rating from the National Rifle Association, 100% scorecard from Virginia Society for Human Life and the Family Foundation, a “Legislative Leader” by the League of Conservation Voters, frequent supporter of business by VA FREE (Virginia Chamber of Commerce), a long-time supporter of the Virginia Ag and Forest Initiatives and previously endorsed by Virginia Farm Bureau.
Since the people of the 97th District elected Peace as their representative, he has been named the State Police Association and Virginia Sheriff’s Association legislative Rookie of the Year (2006) and the legislator of the year for the Virginia Assisted Living Association (2007), the Virginia Council for Private Education and the Virginia Optometric Association (2009), the Virginia Housing Coalition and the Virginia Retail Merchants’ Association (2010).
Prior to his public service in the legislature, Peace worked at McGuire Woods Consulting, a national public affairs and public relations firm. He began his public affairs career by working as a legislative aide to then-Delegate Eric Cantor, and as a law clerk for the Richmond City Attorney and Virginia’s Attorney General. Currently Peace consults for Smithfield Foods, Inc. and is an active member of the DC Bar. He has taught legal studies as an adjunct professor of legal studies at Virginia Commonwealth University’s Wilder School of Government and Public Affairs. An avid history buff, Peace serves as the executive director of Historic Polegreen Church Foundation, a historic preservation non-profit foundation, and established the Road to Revolution State Heritage Trail to honor the life and influence of Patrick Henry.
Peace received a Bachelor of Arts degree in English from Hampden-Sydney College and earned his law degree from the University of Richmond. In 2005, Style Weekly magazine named Peace one of the “Top 40 Under 40.” He is an alumnus of Leadership Metro Richmond and University of Virginia’s Sorensen Institute for Political Leadership. Along with their daughter (Camden), son (Henry) and two dogs, (Sidney and Laney), Chris and his wife (Ashley) make their home in Mechanicsville and attend a local Episcopal Church.
Based on recent redistricting legislation, House Bill 5005 which was signed by the Governor on April 29th, the reconstituted 97th District will include approximately 80,000 Virginians across all of New Kent County; part of Hanover County comprised of the Battlefield (401), Beaverdam Creek (406), Black Creek (404), Clay (301), Cold Harbor (403), Georgetown (506), Hanover Grove (604), Laurel Meadow (507), Mechanicsville (603), Newman (503), Old Church (402), Pebble Creek (405), Rural Point (502), Shady Grove (303), Stonewall Jackson (602), Studley (504), Totopotomoy (505), and Village (601) Precincts; and part of King William County comprised of the Aylett (301), Mangohick (501), and Manquin (401) Precincts and part of the Courthouse (202) Precinct.
April Revenue up 1.5% Over the Prior Year; Year to Date: State Revenue Growing at 4.5%; Ahead of Forecasted 3.5%
Thirteenth Month out of Last Fourteen with Increase in Revenue Collections over Prior Year
RICHMOND – Governor Bob McDonnell announced today that April revenue collections increased by 1.5% over the prior year, continuing a trend of increased monthly state revenues dating back to last year. This is the thirteenth month out of the last fourteen in which state revenue collections exceeded the previous year’s amount. Over the last six months, state revenues have grown by 7.7%.
April is a significant month for revenue collections with final payments for tax year 2010 due April 15th for corporations and May 1 for individuals. The April revenue increase was primarily driven by withholding (+6.5%), nonwitholding (+11.1%) and sales tax (+7%- this number reflects March sales) collections. On a year-to-date basis total revenue collections have risen 4.5 percent, ahead of the annual forecast of 3.5 percent growth. Adjusting for the accelerated sales tax program in June 2010, total revenues grew 6.1 percent through April, ahead of the economic-base forecast of 5.5 percent growth.
Speaking about the latest revenue report, Governor McDonnell noted, “Virginia’s economy continues to rebound and grow. This is now the thirteenth month out of the last fourteen in which revenues have increased over the prior year. That means we are now seeing gains over previous gains, which is a positive sign that this recovery is increasingly taking hold. While we have a long way to go before every Virginian can find the good-paying and rewarding job they need and deserve, it is clear that progress is being made.”
The Governor continued, “We know that it is the private sector that creates jobs and opportunities. The proper role of government is to put in place the policies that facilitate that job creation, and free our entrepreneurs and business owners to innovate, create and succeed. That is what we are doing. Today I am in Beijing telling Chinese companies and investors why they need to be doing business in Virginia, and why they need to be buying Virginia made products. While here, we are letting them know about our low tax environment, commitment to keeping regulation and litigation to a minimum, and our recent significant investments in transportation and higher education, which are key to ensuring Virginia has the infrastructure and workforce necessary to compete and win in the 21st century economy. We will continue to take every step necessary to position Virginia to lead the nation and the world out of this recent economic downturn, and into a vibrant and dynamic future.”
~Virginia is one of only 13 states to top all six categories for measuring transportation investment~
RICHMOND – Virginia was recognized in a national study, Measuring Transportation Investments: The Road to Results, released today by the Pew Center on the States and the Rockefeller Foundation as one of the nation’s leaders in developing the goals, performance measures and data needed to help decision makers ensure their transportation systems are advancing economic growth, mobility and other key policy outcomes. Virginia was given the study’s highest ranking, “Leading the Way”, for all six performance measures including safety, jobs and commerce, mobility, access, environmental stewardship and infrastructure preservation.
“Virginia has long connected the importance of performance measurement and transparent reporting with sound government management,” said Governor Bob McDonnell. “In calling for accountable, efficient and transparent management policies, Virginia has become the top state in the nation for business and opportunity. Our transportation system is a vital component to ensuring economic prosperity and job growth in Virginia. This national recognition as a leader in developing, and more importantly, actively managing transportation investment through specific performance metrics yet again demonstrates that the Commonwealth is the best managed state in the nation.”
Thirteen states were lauded with the top honors in this study, which assessed investments in transportation to illustrate how limited taxpayer funds for transportation impact measurable objectives.
The study went on to specifically link transportation investment to its positive impacts on the economy. “The overall benefits of transportation investments to the broader economy are estimated to be five times the $240 billion spent by governments each year on highway, transit, and other transportation infrastructure,” it quoted Susan Martinovich, director of the Nevada transportation department and president of the American Association of State Highway and Transportation Officials.
“We have to invest in our transportation system to attract businesses, grow jobs, and protect our quality of live,” Governor McDonnell said. “Proving that this investment is benefiting taxpayers is an important part of engendering trust in our transportation programs. Just this year, we commissioned a study by Chmura Economics and Analytics, a national consulting firm based in Richmond, that indicated Virginia’s economy would expand by $13.1 billion and support 105,642 additional jobs over six years if the $4 billion transportation program we proposed and the General Assembly supported was fully implemented. This type of objective data sets Virginia apart from other states.
The Pew/Rockefeller study recognized that Virginia provides its data in an accessible format for citizens to review, and puts it in context as well. “Not only does Virginia provide timely data on core indicators of its roads and bridges, it also includes comparative information so that managers, decision makers and citizens can understand where Virginia’s results stand in a broader context.”
The report is intended for state policy makers and seeks to provide a useful and important baseline for understanding where states are in measuring the results of their transportation dollars. The report was a joint project of the Pew Center on the States, a division of the Pew Charitable Trusts that identifies and advances effective solutions to critical issues facing states and the Rockefeller Foundation, known for fostering innovative solutions to many of the world’s most pressing challenges.
The goal of this assessment is to identify which states are doing the best measuring the information they need to understand transportation’s return on investment. States were assessed based on a review of more than 800 performance, planning and budget documents. They were rated on one of three levels—“leading the way”, “having mixed results,” or “trailing behind”—for each of six key goals: safety, jobs and commerce, mobility, access, environmental stewardship and infrastructure preservation. Each state also was given an overall rating.
RICHMOND – Governor Bob McDonnell issued the following statement today following news that Delegate Harvey Morgan has decided not to run for re-election to the General Assembly.
“For more than 30 years, Harvey has been a dedicated and stalwart advocate for his constituents in the 98th District and for all the citizens of the Commonwealth. While passionately advocating on issues such as mental health reform, the environment and the Chesapeake Bay, Harvey has always been a true statesman and the epitome of a Virginia gentleman.
“I had the pleasure of serving with him in the General Assembly and learned much from him about how to best represent the interests of our constituents. I have known Harvey for more than 20 years. We served on committees together, and were roommates during the legislative session for 8 years. In that time, he has become a close friend, an advisor and a partner in government. The General Assembly will miss his strong, but congenial manner of advocacy and his leadership as the chairman of the House Agriculture Chesapeake and Natural Resources Committee and a member of the Appropriations and Commerce and Labor Committees.
“I wish Harvey the very best in his future endeavors. I know he will enjoy spending time with his wife Mary Helen and the rest of his family, and I thank him for his tremendous service to the people of the Commonwealth.”
Governor\'s Veto Letter
RICHMOND – Governor Bob McDonnell yesterday signed House Bill 1500, the appropriation bill amending the 2010-2012 biennial budget. The governor made one line-item veto, eliminating Budget Item 123. The veto reduces state funding of public television and public radio stations by $424,001 in fiscal year 2012.
Speaking about his veto of public television and radio funding, Governor McDonnell commented, “I want to commend the Virginia legislature for the great work they did during the 2011 General Assembly Session to pass the appropriation bill on time, with strong bipartisan support, and with an overwhelming majority of my budget recommendations. These recommendations were made to encourage economic growth, streamline government, and ensure we are adequately funding essential government services like public safety and education. When I took office, I pledged to refocus state government on its core functions by finding ways to make government more efficient and effective, and to wisely spend the hard earned money of Virginia taxpayers. That is why, in returning the signed appropriation bill, I have decided to reduce the appropriation made to public television and radio stations. In today’s free market, with hundreds of radio and television programs, government should not be subsidizing one particular group of stations. We must get serious about government spending. That means funding our core functions well, and eliminating spending on programs and services that should be left to the private sector. This is a smart, practical budgeting decision to make Virginia government smaller and more efficient and save taxpayer dollars.”
RICHMOND – Governor Bob McDonnell issued the following statement regarding the redistricting legislation passed by the General Assembly this evening:
“I thank the General Assembly for passing this new redistricting plan. I will sign this legislation as soon as it reaches my desk. The plan as passed does address most of the criteria I outlined in my veto letter, and ensures that the elected members of the legislative branch fulfill their constitutional obligation to draw our electoral lines every ten years.
In my veto letter, I asked the Senate to send me a plan that was bipartisan and addressed potential legal issues. The plan approved today is in line with those goals. This plan retains more geographic and municipal boundaries, contains districts that are somewhat more compact, and passed the Senate on a strong bipartisan vote. In these aspects it is similar to the House plan. It is a great improvement over the previous plan that I vetoed, and which failed to gain a single vote from the minority party. I applaud the Republican and Democratic members of the Senate who worked well together to craft this compromise plan.
At my request, the Attorney General's office has reviewed the preliminary data regarding the plan. Based on this review, they concluded that the plan meets the relevant legal requirements of the U.S. Constitution, the Virginia Constitution, and the Voting Rights Act. I have asked the Attorney General to ensure that the legislation will be precleared in a timely fashion so that the 2011 election process can get underway.
While additional improvements in measures of compactness and preservation of communities of interest would have been ideal, and no plan is perfect, the Constitution of Virginia tasks the General Assembly with drawing lines, and further delay could have turned that authority over to the courts. With state and federal lawsuits currently pending that request court-drawn lines, prompt action was required to preserve this inherently legislative function, and permit timely preclearance under the Voting Rights Act.
I also wish to thank the many groups that have been involved throughout the redistricting process, including the Independent Bipartisan Advisory Commission on Redistricting. I am confident that their involvement and detailed report had a significant positive impact on the process by allowing members of the General Assembly to consider further options as they worked together to pass today’s plan. I look forward to continuing to work with the members of the General Assembly, and all Virginians, in our crucial ongoing effort to bring new jobs and more opportunities to every region of Virginia.”
Dear Friends,
I thought you might be interested in this recent AP article that talks about our efforts to focus more attention on economic development and job creation. We are learning from past mistakes and the results speak for themselves.
As a result of our Jobs and Opportunity Agenda, (2010) and our Opportunity at Work Agenda (2011), we now have more tools to help the private sector create jobs, and we have dedicated significant new resources to economic development.
In the past 15 months we have closed 406 economic development deals in Virginia and we have added more than 55,000 net new jobs. That is the 8th highest number of net new jobs in the nation. By contrast, during the four years of the prior administration Virginia ranked 35th in the nation in the total number of net new jobs created. This is a dramatic turnaround.
We are pleased with the progress we have made to date, but we will not stop working until every Virginian who wants a job can find a job.
Lieutenant Governor Bill Bolling
VA seeks to learn from lost jobs since '05
VA State Wire By Michael Felberbaum
RICHMOND, Va. (AP) - As Virginia renews its focus on job creation, officials are using lessons learned from lost opportunities and the importance companies place on saving money to better attract new businesses and help current companies grow.
According to state data obtained by The Associated Press, Virginia lost more than 175 economic development projects totaling about 56,000 jobs and company investments worth $22.5 million since 2005. During that same period, Virginia lost about 78,065 jobs because of business closings and layoffs.
By contrast, officials have announced projects promising the creation of more than 127,550 jobs with total investments of more than $18 billion since 2005.
"State economic development folks ... never like to lose, so it's not a fun situation to find yourself in," said Liz Povar, director of business development for the Virginia Economic Development Partnership, an organization created by the General Assembly in 1995 to promote the expansion of Virginia's economy.
"We recognize that there are a broad number of factors that influence a company's decision about where they want to locate. ... Ultimately if the company doesn't make a good business decision, they won't be in business at all."
Of the projects Virginia lost since 2005, many of the companies cited factors related to other existing facilities, financing, market proximity, and logistics as the reason for going elsewhere. Other projects were lost because publicly-owned facilities or mega sites, and/or required infrastructure such as gas and rail were not available.
Many of the lost projects ended up going to neighboring North Carolina, with others going to places like Pennsylvania, South Carolina and Maryland, or as far away as Singapore and Canada, according to information provided by the Partnership.
"It's not surprising that we would end up competing and maybe even being finalists for some of the same projects," said Dale Carroll, North Carolina's deputy secretary of commerce. "There are probably a lot of things that bring us together in the final stages of site searches."
Both states share many of the same attributes, including similar geography, being well-positioned in the Mid-Atlantic region, and having a good quality of life for its residents.
The recent Great Recession created the worst economic downturn in Virginia since the Great Depression. The loss of potential jobs and the closing of businesses helped push Virginia's unemployment rate from more than 3.5 percent in 2005 to around 6.5 percent.
Lt. Gov. Bill Bolling was tapped by Gov. Bob McDonnell a year ago to spearhead his administration's job creation efforts.
"Economic development had not been a top priority of state government in a number of years," Bolling said. "As a result of that, we had fallen farther and farther behind the states with whom we compete with on a regular basis."
Over the last few years, Virginia has created new tax credits for creating jobs, given itself more flexibility in how it awards incentives, and made it easier for companies to obtain permits and establish businesses, Bolling said.
Virginia also changed its tax laws and has increased the number of sites with roads and infrastructure in place to handle large facilities. Those changes have resulted in projects like software maker Microsoft Corp.'s plan to invest up to $499 million and create 50 jobs at a data center in Mecklenburg County.
While Virginia can work to address some of the factors that influence where a company sets up shop, there are others, like population size or geographic location, that are out of its control.
Povar also said the economic landscape involving businesses coming to Virginia has changed: "The branch plant of yesterday announcing 50 jobs, employing people who assemble things is not the future."
Instead, the state is seeing more high-tech and specialized product companies looking to locate here.
In some cases, however, economic development officials made the decision not to pursue projects because they believed incentives sought by the company wouldn't generate the right return on revenue for Virginia.
For example, Povar said, the state elected to walk away from a $115 million manufacturing plant computer maker Dell Inc. proposed to build in 2004. The project went to North Carolina, which offered more than $300 million in incentives.
The decision turned out to be a good one for Virginia as Dell closed the Winston-Salem plant last year after a six-year run that failed to reach the economic promises floated at the beginning.
-Southern Business & Development Magazine recognizes Governor and Seven Virginia organizations in its annual Top Ten lists--Newly formed Southern Virginia Regional Alliance recognized as one of Top Ten Notable Collective Economic Development Efforts in the South-
RICHMOND – Governor Bob McDonnell and seven Virginia organizations were recently recognized by Southern Business & Development Magazine in its annual Top Ten in the South lists. , Governor McDonnell was recognized in the category of: “Ten People Who Made A Difference” in the South. A full listing of awarded Virginia organizations and their categories are outlined below.
Speaking about the ranking, Governor McDonnell noted, “The only ranking that matters to me is ensuring that Virginia remains the best place in the world for business. The more we can do in Richmond to promote economic development and job creation, the more Virginians who will be able to find the good paying jobs they need in their counties and cities. From our local economic development officials, to the great team at the Virginia Economic Development Partnership, to the work of Lieutenant Governor Bill Bolling, Secretary of Commerce and Trade Jim Cheng and Senior Economic Advisor Bob Sledd, we are fortunate to have so many talented and committed individuals working so diligently to bring new job-creating businesses here, and help existing businesses expand and grow. Government doesn’t create jobs; the private sector does. Our aim is to create the kind of policy climate that is most conducive to job creation. We are not going to stop until every Virginian can gain access to the basic opportunity of a rewarding job.”
Lieutenant Governor Bill Bolling, Virginia’s Chief Jobs Creation Officer, added, “I congratulate Governor McDonnell for receiving this terrific recognition of his leadership and commitment to creating jobs and economic opportunity for all Virginians. Having seven Virginia organizations recognized among the Top Ten in the South validates our approach and highlights our success. I am especially proud of the Southern Virginia Regional Alliance. One year ago there was no regional economic development organization in Southern Virginia. However, through the joint efforts of the Administration, Tobacco Commission and participating localities, the Southern Virginia Alliance is off to a strong start, as this recognition as one of the top collaborative economic development organizations in the South reflects. We hope to replicate this success in other regions of Virginia.”
In their recognition of Governor McDonnell, Southern Business & Development Magazine wrote:
“Virginia Gov. Bob McDonnell, a Republican from Northern Virginia, won 59% of the vote and was sworn in as Governor of Virginia on January 16, 2010. He received more votes than any governor in Virginia history. When it comes to economic development, it looks like those voters knew what they were doing. McDonnell already is being compared with former Gov. George Allen, whose term in the 1990s brought Virginia its best economic development years in state history.
The first executive order by Gov. McDonnell once in office was to establish the Chief Job Creation Officer and the Governor's Economic Development and Job Creation Commission. McDonnell has made job creation a priority since he took office a little more than a year ago. In his inaugural address, the Virginia Governor said, "the creation of new job opportunities for all our citizens is the obligation or our time."
The following is a full list of the Virginia organizations and their category included in Southern Business & Development’s Top Ten list:
Ten People Who Made A Difference – Governor Bob McDonnell LINK: http://www.sb-d.com/Features/Winter2011/TenPeopleWhoMadeaDifference/tabid/416/Default.aspx
Ten Notable Collective Economic Development Efforts in the South LINK: http://www.sb-d.com/Features/Winter2011/TenNotableCollective/tabid/417/Default.aspx
•Southern Virginia Regional Alliance
•Mid-Atlantic Broadband Cooperative
•Hampton Roads Economic Development Authority
The Ten Best Automotive Assembly Plant Sites in the Southern Auto Corridor LINK: http://www.sb-d.com/Features/Winter2011/TenBestAutomotive/tabid/418/Default.aspx
•Mid-Atlantic Advanced Manufacturing Center - Emporia, VA
The Ten Best Data Center Sites in the South LINK: http://www.sb-d.com/Features/Winter2011/TenBestDataCenters/tabid/422/Default.aspx
•Scott County Regional Business and Technology Park – Duffield, VA
•QTS – Richmond, VA
•GigaParks – Various locations in Southern Virginia
Established in 1992, Southern Business & Development Magazine is the only print and online source covering and promoting economic development in the South. The magazine reports on economic development opportunities in the South but is designed to be read by executives and other decision makers from outside the region. The magazine publishes an annual Top Ten list of different economic development classifications.
-- on Today’s Introduction of New Redistricting Legislation and its 16-0 Passage by House Privileges & Elections Committee --
RICHMOND, VA – Virginia House of Delegates Speaker William J. Howell (R-Stafford) today issued the following statement after the introduction of House Bill 5005, patroned by Delegate Chris Jones (R-Suffolk), and that new redistricting legislation’s passage by the House of Delegates’ Privileges and Elections Committee on a strong bipartisan vote of 16-0. HB 5005 was introduced following the veto of House Bill 5001 on April 15, 2011 by the Governor because of his “significant concerns” with the Senate reapportionment plan that was added to the House Bill by the Senate Democratic majority on a straight party-line vote of 22-18. As Governor McDonnell requested in his veto letter last Friday, House Bill 5005 strengthens the original House redistricting plan that garnered an unprecedented 85-9 vote earlier this month, with a majority of House Republicans supporting as well as a majority of House Democrats. Presently, the 100-member Virginia House of Delegates has 61 members in the Republican Caucus and 39 Democrats.
“I’m pleased that the House Privileges & Elections Committee today met and approved HB 5005, a bill that strengthens the House’s original redistricting plan and continues to garner solid bipartisan support from Democrats, House members of the Legislative Black Caucus, and Republicans. The redistricting plan for the Virginia House of Delegates in the bill follows closely the plan sent to the Governor last week. However, we have taken the advice the Governor offered in his April 15 veto message and used the intervening time to strengthen the bill by making several adjustments. As requested by local government officials and others, the changes make whole a number of precincts. The unsplit precincts now included in HB 5005 are in the cities of Norfolk and Richmond and the counties of Chesterfield and Henrico.
“Working to do our part to advance this process toward a successful legislative conclusion, I called the House into pro forma session today so HB 5005 could pass the first of its three constitutional readings. Now, when the full House and Senate return on Monday, April 25, we will be in the best possible position to send a bill to the Senate so a new Senate plan that successfully addresses the Governor's concerns can be added to HB 5005 and sent to him so the schedule for this November’s legislative elections can be met.
“Today’s strong bipartisan vote on HB 5005 underscores anew the priority placed by the House on meeting the standard we set last summer on redistricting – a fair process leading to a fair outcome that complies with the law and makes each district as nearly equal in population to every other district as practicable. Now, I look forward to the Governor and Senators resolving their difference that led to last week’s veto so we all can come together and complete this important redistricting exercise as soon as possible.”
~Twelfth Month out of Last 13 with Increase in Revenue Collections over Prior Year; Follows 16.7 Percent Revenue Increase in February~
RICHMOND – Governor Bob McDonnell announced today that March revenue collections increased by 12.4 percent over the prior year. This is the twelfth month out of the last 13 in which state revenue collections exceeded the previous year’s amount. It is the fifth month in a row in which year-over-year revenue growth was greater than 9 percent.
Although March is typically not a significant month for revenue collections, most major revenue sources contributed to the continued growth this month, such as withholding (+.6 percent) and sales tax (+8.5 percent—this number reflects February sales) collections. On a year-to-date basis, total revenue collections have risen 4.9 percent, slightly ahead of the revised annual forecast of 4 percent growth. Adjusted for the accelerated sales tax program, state revenues have grown 6.7 percent, ahead of the forecast of 5.6 percent.
“For the fifth month in a row, we are seeing revenue growth over 9 percent, clearly indicating that Virginia’s economy is on the path toward recovery,” Governor McDonnell said. “We have made significant progress in providing a positive pro-business environment in Virginia that attracts companies from around the country and the world to locate and create jobs here. Our strong economic development programs, educated and skilled workforce, and our high quality of life make Virginia the top state in the nation in which to do business.”
The governor continued, “While we can celebrate the recent good news for our economy and are pleased with the continued trend toward recovery that these numbers indicate, we cannot lose sight of the fact that this recovery is still fragile. More than 250,000 Virginians are still lacking good-paying jobs to support their families. For them, these numbers do not erase the daily struggles they are facing to make ends meet. That is why this administration will continue managing this state with a dedicated focus toward fiscal responsibility and will aggressively support programs that will allow private-sector job creators to grow their businesses in the Commonwealth and create good jobs. At the same time, we must address major fiscal challenges with Medicaid and the solvency of our pension systems in order to protect our economic well-being in the future.”
~Legislation is First Part of Governor’s 2011 “Opportunity at Work” Agenda~
RICHMOND – Governor Bob McDonnell today ceremonially signed the first part of his “Opportunity at Work” legislative package, along with other economic development legislation, at a morning event at the Virginia Biotechnology Research Park in Richmond. The 10 measures signed today are designed to help attract new businesses to Virginia and help existing businesses grow and expand. The Governor was joined at today’s signing ceremony by Lieutenant Governor Bill Bolling, Secretary of Commerce and Trade Jim Cheng, Senior Economic Advisor Bob Sledd, Secretary of Technology Jim Duffey, Secretary of Education Gerard Robinson and members of the General Assembly.
Speaking about the legislation signed today, Governor McDonnell remarked, “The key to turning our economy around and getting Virginians back to work is ensuring that businesses continue to choose the Commonwealth of Virginia to locate, grow and expand. Our economic success is dependent on good jobs, a well educated workforce and a strong business climate. The legislation I ceremonially signed today positions us to continue to be the best state in America in which to start or grow a business. It includes measures that establish research and development tax credits, streamlines the criteria for the Governor’s Development Opportunity Fund and creates Local Defense Production Zones that qualify businesses for tax breaks on tools and machinery created for national defense when they locate within those Zones. In today’s global economy, it is essential that we not only stay competitive with our fellow states, but also with nations around the world, and this legislation will help us do just that.”
Lieutenant Governor Bill Bolling, Virginia’s Chief Jobs Creation Officer, said, “I am gratified to stand beside Governor McDonnell as he signs part of the economic development legislation passed during the 2011 General Assembly Session. I applaud the broad, bipartisan support that these initiatives received from members of the General Assembly. These new innovative economic development initiatives will allow us to aggressively build upon the successes of the past and compete for new business in a wide range of emerging industries. They will help ensure that key sectors of Virginia’s economy will thrive and grow.”
Speaking about his legislation establishing research and development tax credits, Senator Mark Herring (D-Leesburg) commented, “The key to growing Virginia's innovative economy is incentivizing research and development in the Commonwealth. The tax credits we will now be able to offer for early-stage firms in targeted, rapidly growing industries will enable us to grow and keep more businesses here. Companies have recognized that Virginia is perfectly situated for research and development and these tax credits will foster growth and make Virginia and our universities even more competitive.”
Delegate Terry Kilgore (R-Gate City), who patroned legislation adjusting the criteria for the Governor’s Development Opportunity Fund, noted, “The Governor’s Development Opportunity Fund is one of the best tools we have to recruit companies to Virginia. The legislation we passed streamlines this incentive and creates the opportunity for new jobs and investment for projects - especially in localities with high unemployment or high poverty. By making this adjustment we will be better able to bring new jobs to areas of the state that have been most affected by the economic downturn.”
Legislation bolstering the Commonwealth Research and Commercialization Fund was co-patroned by Delegate Scott Lingamfelter (R-Woodbridge), who added, “By bolstering the Commonwealth Research and Commercialization Fund we are laying the groundwork for a long-term economic strategy for emerging technology innovation in Virginia. This is just the beginning of what will be a game-changer for the Commonwealth and our economic prosperity. The collaboration between the private sector and the research universities is essential to this - and I am thrilled and invigorated about the potential outcomes in emerging technologies.”
“Opportunity at Work: Virginia’s Innovation Economy” Legislation Signed Today
SB1326 (Herring)/ HB1447 (Cline) – Creates the Research and Development Tax Credit
• Creates a Research and Development Tax Credit for start ups and early stage firms in targeted industries, especially those companies accessing research and development services through Virginia colleges and universities to strengthen our business competitiveness
SB1379 (Stanley)/ HB1982 (Kilgore) – Adjusts criteria for the Governor's Development Opportunity Fund
• This initiative establishes a state-wide level of 50 new jobs and $5 million in capital investment, and it reduces the level of required new jobs and capital investment for those localities that have a high unemployment rate and/or high poverty
• Since 2006, the jobs and capital investment qualification criteria for awards from the Governor's Development Opportunity Fund (GOF) have been primarily based on the size of the locality where the project may locate, with nine tiers of qualification. Population is not an indicator of fiscal stress or need for employment, so this is not the best criteria to use to ensure this incentive can be deployed where needed most
SB1485 (Newman and Herring)/ HB2324 (Lingamfelter) – Bolsters the Commonwealth Research and Commercialization Fund to create a comprehensive structure to grow Virginia's innovation economy
• This program will serve as a catalyst for leveraging the entrepreneur, Virginia higher education research assets and private-sector funding to encourage evolving technologies that create the industries, businesses and jobs of the future
Other Economic Development Bills
SB999 (Stosch/McEachin)/ HB1822 (Peace) – Local Defense Production Zone
• This legislation creates a separate classification of machinery and tools designed and used directly in manufacturing or processing materials, components, or equipment for national defense
• Localities are authorized to create Local Defense Production Zones and to tax such machinery and tools at a rate that is less than the rate generally applicable to machinery and tools.
SB1408 (Ruff) – Local BPOL tax exemption for unprofitable businesses
• Allows localities to exempt from the BPOL tax businesses that lose money and are unprofitable during the taxable year, for taxable years beginning on or after January 1, 2012.
HB1437 (Cole) – Provides a choice for localities on how to impose BPOL tax
• Allows localities to decide whether to impose the BPOL tax on a business's gross receipts or its Virginia taxable income.
About the Virginia BioTechnology Research Park
The Virginia BioTechnology Research Park is currently home to a unique mix of over 60 public and private bioscience companies, research institutes affiliated with the VCU Medical Center, and major state and national medical laboratories. These companies are housed in nine buildings totaling more than 1.1 million square feet of space, representing an employee base that exceeds 2,000. The Park’s nationally recognized biosciences business incubation program, the Virginia Biosciences Development Center (VBDC), has successfully graduated more than 40 client companies, including three publicly traded firms. www.vabiotech.com
~ Order Accelerates Implementation from December 2012 to June 2011~
RICHMOND – Governor Bob McDonnell officially ordered today that all executive branch state agencies implement the E-Verify system to verify employment eligibility based upon immigration status for all new hires by June 1, 2011, a full 18 months ahead of the legislated deadline of Dec. 1, 2012.
The 2010 General Assembly passed legislation (HB737) requiring all state agencies to use E-Verify, an Internet-based system that allows an employer to determine the eligibility of an employee to work in the United States. The E-Verify system is operated by the Department of Homeland Security in partnership with the Social Security Administration.
“Federal law rightly requires that companies and governments only employ individuals who may legally work in this country — either U.S. citizens or foreign citizens who have the necessary authorization.” Governor McDonnell said. “My administration has focused on enforcing the nation’s immigration laws to ensure that all of those working in Virginia’s public and private sectors are legally eligible to do so. The General Assembly passed legislation last year instructing our state agencies to use this federal resource to check employment eligibility based upon immigration status, and I felt strongly that we should implement this policy as quickly as possible. By working closely with our state agencies and the Department of Human Resource Management, we have accelerated this change to begin a year and a half earlier than we had anticipated. We must consistently and correctly enforce the laws of this nation; our country is based on the rule of law. E-Verify will ensure that every state job is held by a legally authorized worker.”
E-Verify supplements procedures in place in the Commonwealth since November 1986 to ensure that state agencies are maintaining a legal workforce. Since Sept. 8, 2009, those state agencies receiving federal contracts requiring the use of E-Verify have been using the system.
“Virginia employs more than 100,000 people, so it is incumbent upon us to remain vigilant in ensuring the legal status of all who are on our payroll,” said Lisa Hicks-Thomas, secretary of administration. “Virginia’s state agencies will lead by example as we strive to have all Virginia companies participate in this free, easy-to-use program that ensures Virginia’s workers are legally eligible for jobs in the U.S.”
Nationwide, more than 238,000 employers are enrolled in the program, with over 16 million queries run through the system in fiscal year 2010.
~ Commonwealth Ranks Ninth in the Nation for Ag Exports ~
RICHMOND – Governor Bob McDonnell today announced that in 2010, despite a worldwide recession and a statewide drought that impacted several key commodities, Virginia exports totaled $2.24 billion. That is only slightly behind the record $2.3 billion for agricultural exports in 2009. Additionally, 2011 is already shaping up to be another very good year. Year-to-date numbers are up two percent over 2010 figures which bodes well for the rest of the year. The announcement comes as the 3rd Annual International Virginia Agricultural Trade Conference concludes today in Norfolk.
Speaking about last year’s export numbers, Governor McDonnell commented, “When you consider the worldwide recession, severe drought in areas of Virginia and political turmoil around the world, the 2010 figures are very promising. Virginia currently ranks ninth in the nation in agricultural export value. Agriculture and forestry are the top two industries in Virginia, and we must continue to strengthen and grow them to ensure our economic vitality. Agriculture exports mean good jobs for our citizens. As we continue to place a greater emphasis on the export of Virginia products around the world, our growers and producers – some of the best in the world – are geared up to increase their export business. We have an aggressive marketing agenda in 2011 and beyond to promote Virginia products globally, including trade missions to Asia, India and Israel, and additional Secretarial missions to the United Kingdom, Cuba and other places.”
Much of the strength in Virginia’s exports is its diversified portfolio of products and export markets. Top products this year were soybeans, grains (wheat, corn, barley, animal feed), pork, poultry, leaf tobacco, wood products and logs, fats and oils, cotton, seafood and aquaculture products, fresh vegetables and hides and skins. Virginia’s Top 20 export markets are a mix of developed and emerging markets, including Canada in the number one spot, China, Morocco, Belgium, Indonesia, Tunisia, Turkey, Venezuela, Russia, Ireland, Japan, The Netherlands, Germany, Taiwan, Hong Kong, Vietnam, Malaysia, Saudi Arabia, Mexico and Jamaica.
In addition to having outstanding farmers and producers, Virginia’s standing as a top agricultural and forestry products exporter are enhanced by a strategic mid-Atlantic location, a business-friendly climate, and the state’s world-class air, sea port facilities and inland port, as well as excellent rail and interstate systems.
Virginia, in coordination with the state’s agricultural and forestry interests, has a strategic plan to continue to grow its agricultural and forestry exports. The state’s efforts, led by the Secretary of Agriculture and Forestry Todd P. Haymore and the Virginia Department of Agriculture and Consumer Services’ Marketing and Development staff, focus on retaining strong market presence in mature and established markets like Canada, China and Japan, and aggressively pursuing growth opportunities in emerging markets such as India, Turkey, and Mexico. In addition, Virginia also continues developing business in unconventional markets, such as Cuba and Venezuela, both of which offer great export opportunities for the state’s growers and producers. Secretary Haymore and VDACS will also work with its partners in state government, including the Secretariat of Commerce and Trade, the Virginia Port Authority and the Virginia Economic Development Partnership, to find more export opportunities.
Secretary of Agriculture and Forestry Haymore served as the keynote speaker at the International Virginia Agricultural Trade Conference, where his remarks focused on 2010 export figures and the state’s strategy to grow exports in 2011 through an aggressive international marketing agenda.
“We knew that that the challenging global economic climate, trade barriers faced by our exporters, and the severe drought and excessive heat that negatively impacted several of our key export products, would make it difficult for export growth in 2010,” Haymore said. “Despite these challenges, Virginia’s agricultural and forestry exports still almost matched the all-time high reached in 2009. In 2011, we forecast that Virginia is on course to exceed 2010 export levels and hopefully better our 2009 numbers if Mother Nature, the global economy, and geo-political events cooperate. That is the goal. Working with our growers, agribusinesses, exporters and partners in state government, the Governor, VDACS staff, and I are committed to growing our exports of agricultural and forestry products because they are so vital to Virginia’s economic vitality.”
Agriculture and forestry are Virginia’s largest industries according to a 2008 economic impact study completed by the Weldon Cooper Center for Public Service at the University of Virginia. The industries have an economic impact of $79 billion annually: $55 billion from agriculture and $24 billion from forestry. The industries also provide approximately 500,000 jobs in the Commonwealth.
