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1996 Session

Budget Bill - SB30 (Introduced)

Central Appropriations

Item 530

Item 530

First Year - FY1997Second Year - FY1998
Economic Contingency (75800)$22,725,000$27,000,000
Fund Sources: 
GeneralFY1997 $22,725,000FY1998 $27,000,000

Authority: Discretionary Inclusion.


A. The Governor is hereby authorized to allocate sums from this appropriation, in addition to an amount not to exceed $1,000,000 from the unappropriated balance derived by subtracting the general fund appropriations from the projected general fund revenues in this act, to provide for supplemental funds pursuant to Paragraph B hereof. Transfers from this Item shall be made only when (1) sufficient funds are not available within the agency's appropriation, and (2) additional funds must be provided prior to the end of the next General Assembly session.


B. The Governor is hereby authorized to allocate such sums from this appropriation as he may determine to be needed for the following purposes:


1. To address the six conditions listed in § 4-1.03 a.3. of this act.


2. To provide for unbudgeted and unavoidable increases in costs to state agencies for essential commodities and services which cannot be absorbed within agency appropriations.


C. The Department of Planning and Budget shall submit a quarterly report of any disbursements made from, commitments made against and requests made for such sums authorized for allocation pursuant to Paragraph B to the Chairmen of the House Appropriations and Senate Finance Committees. This report shall identify each of the conditions specified in Paragraph B for which the transfer is made.


D. Any unexpended balance remaining in this Item on June 30, 1997, shall be carried forward on the books of the Comptroller and shall be available for expenditure in the second year of the current biennium. Any unexpended balance remaining in this item on June 30, 1998, shall be carried forward on the books of the Comptroller and shall be available for expenditures in the next biennium .


E.1. This appropriation includes $18,000,000 the first year and $20,000,000 the second year to be used at the discretion of the Governor, subject to prior consultation with the Chairmen of the House Appropriations and Senate Finance Committees, to attract economic development prospects to locate or expand in Virginia.


2. The Governor may allocate these funds as grants or loans to political subdivisions. Loans shall be approved by the Governor and made in accordance with procedures established by the Department of Economic Development and approved by the State Comptroller. Loans shall be interest-free unless otherwise determined by the Governor and shall be repaid to the general fund of the State Treasury. The Governor may establish the interest rate to be charged; otherwise, any interest charged shall be at market rates as determined by the State Treasurer and shall be indicative of the duration of the loan. The Department of Economic Development shall be responsible for monitoring repayment of such loans and reporting the receivables to the State Comptroller as required.


3. Funds may be used for public and private utility extension or capacity development on and off site; road, rail, or other transportation access costs beyond the funding capability of existing programs; site acquisition; grading, drainage, paving, and other activity required to prepare a site for construction; construction or build-out of publicly-owned buildings; grants or loans to an Industrial Development Authority, Housing and Redevelopment Authority, or other political subdivision pursuant to their duties or powers; training; or anything else permitted by law.


4. The following guidelines shall be considered in determining eligibility from this fund.


a. A minimum private investment of $10 million, creating 100 jobs. In localities with a population between 50,000 and 100,000, minimum private investment shall be $5 million and 50 jobs. In localities with a population of 50,000 or less, the minimum private investment shall be $2,500,000 and 25 jobs. Central cities or urban cores will be treated for eligibility purposes the same as communities of 50,000 to 100,000 population.


b. The amount of assistance from this fund for any project shall be based on the Fiscal Stress cited in the Index published by the Commission on Local Government for the locality in which the project is located or to be located. If a prospect is physically located in more than one contiguous locality, the highest Fiscal Stress Index of the participating localities will be used to determine the amount of assistance.


Local Fiscal Stress Index

Percent

State Match High

30%

Above Average

25%

Below Average

20%

Low

15%


c. No locality may receive funding for more than one (1) project during a given fiscal year.


d. Any unexpended balances related to economic development in this program on June 30, 1997 and June 30, 1998, shall not revert to the general fund but shall be carried forward and reappropriated.


F. The Governor is authorized to transfer $2,025,000 the first year and $4,500,000 the second year to the Department of Mines, Minerals, and Energy for solar photovoltaic manufacturing incentive grants in accordance with § 45.1-392, Code of Virginia.


G. The Governor is authorized to transfer $200,000 in the first year to assist the City of Buena Vista in retaining a major employer.