Add Transparency to DBA Budget

Item 98 #1h

Language
Page 79, line 33, strike "$18,644,897" and insert "$16,644,897".
Page 80, strike lines 1 through 41 and insert:
"A. 1. The appropriation for this item includes $11,461,287 the first year and $7,961,287 from the general fund for the Virginia Jobs Investment Program at the Department of Business Assistance.  Of this amount,
$1,584,870 in the first year and $1,584,870 in the second year may be used for operating expenses.  The remaining $9,876,417 in the first year and $6,376,417 in the second year shall be available for eligible businesses.  It is the intent of the General Assembly that a minimum of 10 percent of the amounts provided for the Virginia Jobs Investment Program each year shall be transferred to the Small Business Jobs Grant Fund established pursuant to § 2.2-904.2, Code of Virginia, and shall only be used for the purposes of that section.  
2. Periodically, the agency shall report to the Governor and the Secretary of Commerce and Trade the expenditure of the Small Business Jobs Grant Fund and anticipated needs for small business development in order to monitor the effective use of funds and provide additional funding as needed for small businesses.
B.1.  The appropriation for this item includes $1,000,000 the first year from the general fund for the Virginia Small Business Financing Authority's Loan Guarantee Program.
2.  The appropriation for this item includes $5,000,000 the second year from the general fund for the Virginia Small Business Financing Authority's Loan Guaranty, the Virginia Capital Access Program, and the State Loan Participation Program.  The Virginia Small Business Financing Authority is authorized to distribute this amount among these programs to best meet market needs for the respective programs.
3.  The Virginia Small Business Financing Authority is authorized to withdraw revenues of up to $50,000 the first year and $50,000 the second year from the accrued interest balances of the Virginia Small Business Growth Fund in order to cover the costs of administering the Virginia Capital Access Program.
4.  Also included in this appropriation is $154,196 in the first year and $154,196 in the second year from the general fund to support the operating expenses of the Virginia Small Business Financing Authority.
4.  To meet changing financing needs of small businesses, the Executive Director of the Virginia Small Business Financing Authority with the approval of the Director of the Department of Business Assistance may transfer moneys between funds managed by the Authority. These include the Virginia Small Business Growth Fund (§ 2.2-2310, Code of Virginia); the Virginia Export Fund (§ 2.2-2309, Code of Virginia); and the Insurance or Guarantee Fund (§ 2.2-2290, Code of Virginia). The Executive Director of the Virginia Small Business Financing Authority shall report, by fund, the transfers made by January 1 of each year to the Chairmen of the Senate Finance and House Appropriations Committees.
C.  The appropriation for this item includes $500,000 the first year and $500,000 the second year from the general fund to support the Business One-Stop Program at the Department of Business Assistance.
D.  The appropriation for this item includes $875,464 the first year and $945,299 the second year from the general fund for the business information services operating expenses.
E. The appropriation for this item includes $682,487 in the first year and $682,652 in the second year from the general fund for agency administration.
E.1.  Out of the amounts for Economic Development Services shall be provided $127,465 the first year and $127,465 the second year from the general fund to the Virginia-Israel Advisory Board
2.  The Virginia-Israel Advisory Board shall report by January 15 of each year to the Chairmen of the Senate Finance and House Appropriations Committees on the Board's activities and expenditure of state funds."

Explanation
(This amendment removes all language associated with the Department of Business Assistance and replaces it with language clearly setting out where the funds appropriated to the agency are to be spent. Language included in Chapter 874 as adopted by the 2010 General Assembly directed that when the amendments to the fiscal year 2010-2012 budget were presented, the separate DBA programs would be set out. Also included is the elimination of a proposal to provide $2.0 million for a new micro-tourism loan fund. $5.0 million is provided in the second year to recapitalize the Virginia Small Business Financing Authority's programs.)