2004 Special Session I

Budget Amendments - HB5001 (Committee Approved)

Transfer Opp Fund to Distressed Areas Prog

Item 506 #1h

Item 506 #1h

First Year - FY2005 Second Year - FY2006
Commerce And Trade
Housing and Community Development, Department of FY2005 $500,000 FY2006 $500,000 GF

Page 70, line 20, strike "$1,960,000" and insert "$2,460,000".
Page 79, line 20, strike "$1,960,000" and insert "$2,460,000".
Page 79, after line 47, insert:
"C. This item includes $500,000 the first year and $500,000 the second year from the general fund to support a job creation grant program in qualifying economically distressed localities.  Localities eligible for participation in the program shall have a median household income 65 percent or less than the statewide average, a percentage of students eligible for the federal free school lunch program that is at least 175 percent of the statewide average, and an unemployment rate at least 140 percent of the statewide average over the past three years.  The Department of Housing and Community Development shall administer the program and shall provide one-time grants to new or expanding employers who provide at least three additional jobs.  The grant shall be $5,000 for each new employee up to a maximum of $25,000 per business per year.  If the jobs created by the new or expanding employer has a wage of at least twice the prevailing wage of that locality, the per-employee grant shall increase to $7,500 per employee, up to a maximum of $37,500 per employer per year.  Total grants awarded under this program shall be limited to $500,000 each fiscal year."

(This amendment redirects $500,000 each year from the general fund appropriation for the Governor's Development Opportunity Fund to the Department of Housing and Community Development for a grant program geared toward attracting new and expanding businesses to economically distressed localities in the Commonwealth. A companion amendment to Item 506 reduces the appropriation to the Opportunity Fund.)