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State's GOP leaders roll out economic plan for Virginia
State's GOP leaders roll out economic plan for VirginiaBy Tara Slate Donaldson
Times-Democrat Staff Writer
Republicans in the House of Delegates have unveiled an economic recovery plan for Virginia. On Wednesday, House Speaker Bill Howell (R-Stafford) and several other House GOP leaders outlined a series of bills aimed at stimulating the state's economy.
The proposals, which include spending for colleges, business tax credits and financing for major employers who move to Virginia, will “restore economic prosperity to the commonwealth,” Howell said.
One of the key pieces of the proposal is a plan to accelerate construction projects at five Virginia colleges. Bedford Del. Lacey Putney, chairman of the House Appropriations Committee, is sponsoring a bill that would provide $12.2 million to move the five projects from the pre-planning phase to the planning phase a year earlier than expected. The building projects are at Christopher Newport University, the College of William and Mary, James Madison University, the University of Virginia and Virginia Tech.
The $12.2 million will result in $230 million in spending for those five projects and will create 3,400 new jobs, he said.
Putney has also proposed an extension of the major business facility job tax credit, which was set to expire next year. Putney's bill would extend the tax credit until 2020.
Colonial Heights Del. Kirk Cox has also introduced a plan aimed at helping business. His plan “tries to incentivize these large corporations to move to Virginia,” by offering financing for companies that will invest at least $250 million and hire at least 400 full-time workers.
And Danville Del. Don Merricks has introduced a bill that would require local governments to deposit at least 10 percent of their investments into Virginia banks. Merricks called the bill a “win-win situation for banks” and Howell said a lot of the money that will come into Virginia banks will then be used to provide auto and home loans, thereby helping the struggling housing and automobile industries.
“It's an injection of millions of dollars into the Virginia economy,” Howell said.
Another bill is aimed at helping out the manufacturing industry. Lynchburg Del. Kathy Byron has submitted legislation that would allow manufacturers' corporate income taxes to be based on sales. The new tax structure would be phased in by 2013 and she said it will help to retain and create about 9,000 high-paying jobs in the manufacturing industry.
The last piece of the GOP package is aimed directly at Northrup Grumman. Newport News Del. Phil Hamilton said his bill will provide the shipbuilder with $5 million grants each year for 10 years if the company makes a $300 million capital investment, creates at least 1,000 new full-time jobs and establishes an apprenticeship program. The goal, he said, is to support workforce training in the Hampton Roads area through apprenticeships.
Howell said some aspects of the GOP package have bipartisan support and some, such as the apprenticeship plan, have been introduced by Democrats on the Senate side. However, he said he has not yet spoken with the Senate leadership about the package. While the House is controlled by Republicans, Democrats hold the majority in the Senate. Howell said House leaders have so far been concentrating on their own plans and have not yet spoken with Senate Majority Leader Dick Saslaw of Fairfax or Prince William Sen. Chuck Colgan, who chairs the powerful Senate Finance Committee.
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