"A. 1. The Director, Department of Planning and Budget shall withhold and transfer to this item $1,969,271 the first year and $7,525,797 the second year from the general fund appropriation of the Department of Housing and Community Development representing savings resulting from the following reductions to the agency:

a. Out of the amounts contained in Item 109 A., $119,271 the first year from the general fund for reduced dues assessment for the Appalachian Regional Commission.

b. Out of the amounts contained in Item 109 L.1., $250,000 each year from the general fund for reductions to the Virginia Telecommunication Initiative.

c. Out of the amounts contained in Item 109 H.,  $500,000 the second year from the general fund for reductions to the Virginia Derelict Structures Fund.

d. Out of the amounts contained in Item 109 M.1., $1,900,000 the first year and $5,550,000 the second year from the general fund for reductions to the Virginia Growth and Opportunity Fund.

e. Out of the amounts contained in Item 109, P., $600,000 the first year and $325,797 the second year from the general fund for reductions to the Center for Advanced Engineering and Research resulting from elimination of federal funding.

2.a. Out of the remaining amounts contained in Item 109 M.1., $3,600,000 the first year and $24,450,000 the second year from the general fund shall be deposited to the Virginia Growth and Opportunity Fund to encourage regional cooperation among business, education, and government on strategic economic and workforce development efforts. Notwithstanding § 2.2-2489, Code of Virginia, the first year appropriation of $3,600,000 shall not require matching funds.

b. The remaining appropriation contained in Item 109 M.1, and pursuant to §2.2-2487, shall be distributed as follows: (i) $3,600,000 the first year and $2,250,000 the second year shall be available to allocate to qualifying regions to support organizational and capacity building activities as well as preparing regional gap analyses on existing skill levels in the workforce versus the skills most likely needed over time based on expected employment and organizational changes; (ii) $10,900,000 the second year shall be available to allocate to qualifying regions based on each region's share of the state population as well as any unused organizational and capacity building funding allocated in (i) above may be retained by any region and used to support regional projects; (iii) $11,300,000 the second year shall be available to award to regional councils on a competitive basis."