THE VIRGINIAN-PILOT
Copyright (c) 1994, Landmark Communications, Inc.
DATE: Friday, December 9, 1994 TAG: 9412090623
SECTION: BUSINESS PAGE: D2 EDITION: FINAL
SOURCE: BY DAVID RESS, RICHMOND TIMES-DISPATCH
LENGTH: Short : 49 lines
A new quasi-public agency and targeted incentives to attract business will be at the center of the state's strategy for economic development.
The ``Opportunity Virginia'' plan, outlined by Gov. George F. Allen and Commerce Secretary Robert T. Skunda also proposes to boost the state's telecommunications network, increase the budget of the state Department of Economic Development and continue to cut regulations.
Allen's proposed quasi-public agency, the Virginia Economic Development Authority, would be run by a board of business leaders appointed by the governor.
It would take over the marketing efforts of the state, which would remove the state's development salespeople from the civil service system.
``It would be able to hire and fire, just as a company does,'' Skunda said. ``We'd be able to pay people bonuses for work well done and get rid of unproductive people.''
The new authority would also do research and long-term planning and oversee the state's economic development efforts.
Skunda said that any functions the state transfers from the Department of Economic Development to the new authority, the corresponding appropriation would transfer with it.
Skunda said Opportunity Virginia would build on existing state programs. He proposed an employee training tax credit of $1,000 per worker.
Skunda also proposed expanding the Governor's Opportunity Fund, set up two years ago by Gov. L. Douglas Wilder to make grants to help companies expand or relocate. The fund is typically used to pay for roadwork, utility connections and similar improvements to industrial sites. Skunda proposed eventually expanding the fund from $8.5 million to $25 million.
He also wants to make the new Major Business Facilities Jobs Tax Credit enacted this year available to smaller firms. It is now available for companies that invest in projects creating 100 new jobs, but Skunda would like to bring that down to 50.
Skunda also proposed a targeted program of grants, similar to Virginia's unique - but as yet untapped - Solar Photovoltaic Fund. The idea is to link payment of grants to actual job creation, instead of paying grants in return for a company's promise to create jobs.. by CNB