The 2010 Executive Budget Document
Economic Development Incentive PaymentsMission Statement
This agency serves as a holding account for state incentive programs to localities, companies opening or expanding a business facility within the Commonwealth, and production companies and producers who film their product in the Commonwealth, and assistance to impacted localities in implementing and responding to the recommendations of the 2005 Base Realignment and Closure Commission. These incentives include performance-based financial assistance, infrastructure development grants, and customized training and support programs. These programs are administered by the Virginia Economic Development Partnership, the Virginia Tourism Authority, and the Virginia National Defense Industrial Authority.Operating Budget Summary
|General Fund||Nongeneral Fund||Personnel Cost|
|2011 Addenda||$ 38,575,436||$ 375,000||$ 0|
|2011 Total||$ 38,575,436||$ 375,000||$ 0|
|2012 Addenda||$ 43,935,384||$ 375,000||$ 0|
|2012 Total||$ 43,935,384||$ 375,000||$ 0|
|General Fund||Nongeneral Fund||Total Positions|
Recommended Operating Budget Addenda
Transfer existing appropriation for the Governor's Development Opportunity Fund and the Governor's Motion Picture Opportunity FundTransfers existing appropriation for the Governor's Development Opportunity Fund and the Governor's Motion Picture Opportunity Fund from the Office of the Secretary of Commerce and Trade to a new subagency, Economic Development Incentive Payments. This funding was included in the Office of the Secretary of Commerce and Trade in 2010.
FY 2011 FY 2012 General Fund $12,111,055 $12,111,055 Nongeneral Fund $375,000 $375,000
Reduce funding for the Governor's Motion Picture Opportunity Fund and the Governor's Development Opportunity FundReduces general fund support for the Governor's Motion Picture Opportunity Fund (GMPOF) and the Governor's Development Opportunity Fund (GOF) by $100,000 each in FY 2011, and eliminates general fund support for the GMPOF and reduces funding for the GOF by $100,000 in FY 2012. A nongeneral fund appropriation of $375,000 for GMPOF remains in both FY 2011 and FY 2012. This nongeneral fund appropriation is for anticipated revenue to be generated from the digital media fee.
FY 2011 FY 2012 General Fund ($200,000) ($300,000)
Provide funding for semiconductor manufacturing performance grant payments to MicronProvides funding for semiconductor manufacturing performance grant payments under the Semiconductor Memory or Logic Wafer Manufacturing Grant Program. The payments are based on the amount of new capital investment and the number of new jobs created. The company has met the investment and job creation criteria required by the performance agreement and payment is now due.
FY 2011 FY 2012 General Fund $1,600,000 $3,800,000
Continue incentives to Rolls-RoyceContinues funding to attract Rolls-Royce, a world-leading provider of power systems and services for use on land, at sea, and in the air, to Prince George County. The company will build a state-of-the-art aeroengine facility in Prince George County. The projects will create a total of over 500 new jobs. This amendment includes funding for a variety of components, including a higher education grant and job creation grants provided for in the Code of Virginia.
FY 2011 FY 2012 General Fund $12,769,000 $7,517,000
Provide funding for the Virginia Investment Partnership Grant Program and the Major Eligible Employer Grant ProgramProvides funding for grant payments owed to companies under the Virginia Incentive Performance Grant Program and the Major Eligible Employer Grant Program. The payments are based on negotiated grants awarded to select projects that invest in Virginia and promote stable or growing employment opportunities. The companies have met the investment and job creation criteria required by the performance agreements and payments to the companies are now due.
FY 2011 FY 2012 General Fund $1,795,381 $7,807,329
Fund incentives for the location of the Ignite Institute to the CommonwealthProvides funding for an incentive for a biotechnology venture, the Ignite Institute, in Fairfax County, Virginia. The project’s $200 million investment in Fairfax County will create 415 jobs. The funding represents the first of four performance grant payments to the Ignite Institute. The grant, subject to legislative action, is tied to job creation, commitments of additional outside capital, and research collaborations of significant value with Virginia universities.
FY 2011 FY 2012 General Fund $0 $5,500,000
Continue funding for SRI InternationalProvides funding for the state's final payment to SRI International, an independent, nonprofit research institute, in accordance with § 2.2-2240.1, Code of Virginia, which provides for a grant program intended to promote research, development, and commercialization of products. SRI International established its Center for Advanced Drug Research (CADRE) at its new facility in Harrisonburg, Virginia. CADRE's goal is the creation of new diagnostics, therapeutics, and vaccines for infectious and neglected diseases, and for biodefense.
FY 2011 FY 2012 General Fund $3,000,000 $0
Provide funding to assist localities affected by base realignment and closure commission recommendationsProvides funding for matching grants to assist Virginia localities affected by the base realignment and closure process. This funding, which will be used to match local and other funds, can be used for infrastructure, environmental clean-up, workforce training, and related non-recurring costs for localities that may lose or gain personnel and facilities from the realignment. In allocating funds, priority will be given first to any locality in which a United States Navy Master Jet Base is located.
FY 2011 FY 2012 General Fund $7,500,000 $7,500,000
Expand the use of Governor's Development Opportunity Fund recoveriesA language only amendment to allow up to $5 million of unclaimed monies and funds returned to the Governor's Development Opportunity Fund to be used by Prince George County toward the Rolls-Royce project for site improvements.
Implement recommendations of the Sub-Cabinet on Community InvestmentAdds language to indicate that in determining suitable projects for funding through the Virginia Investment Partnership Act, consideration should be given to economic development projects that are in areas of high unemployment, link commercial development along existing transportation/transit corridors within regions, and are located near existing public infrastructure.