McDonnell says plan would create 29k jobs over 5 years

RICHMOND — A package of economic development bills Republican Gov. Bob McDonnell has proposed would create 29,300 jobs over five years in Virginia, the administration said Monday.

Surrounded by Republicans and several Democratic lawmakers who are co-sponsors for pieces of his jobs-development initiative, McDonnell said the added jobs would generate an additional $311 million a year in state revenue by 2015.

Individual highlights of the bundle of bills had been laid on Monday in an evening news release. They included millions of dollars to recruit businesses, boost tourism and entice Hollywood to film more blockbusters in Virginia.

It contains incentives for offshore oil exploration and drilling and credits for creating jobs tied to renewable energy sources such as solar and wind power.

McDonnell said that even though Virginia had recently landed several major corporate headquarters, the state was being outgunned by emerging countries and regional rivals in recruiting jobs.

“While we have the reputation of being the most business-friendly state in the nation, we can no longer trade on that reputation,“ he said. “A neighboring state, North Carolina, provides almost three times as much economic development incentives. Florida, Georgia (are) aggressive as well.“

The power of the proposals became clear from senior Democrats who will carry major pieces of the legislation. Senate Finance Committee Chairman Charles J. Colgan is a co-sponsor of major state budget amendments necessary to fund the $50 million package. House Minority Leader Ward L. Armstrong, D-Henry, will co-sponsor a bill that establishes a $5 million industrial “mega-site fund.“ Senate Privileges and Elections Committee Chairwoman Janet Howell, D-Fairfax, will co-sponsor a biotechnology research grant bill. And Senate Local Government Committee Chairwoman L. Louise Lucas is a patron of a bill that establishes tax credits for producing major films in the state.

Commerce and Trade Secretary Jim Cheng said the $50 million in incentives would yield a sixfold return on investment.

Less clear, however, were the criteria for estimating the number of new jobs by 2015. Cheng said the formula relied on “established industry and specific examples from our experience.“ The estimate came from the Virginia Economic Development Partnership, a quasi-governmental body created to foster maximum business and trade opportunities for the state.

“Those are very conservative numbers,“ he said.

Yet the administration had printed two different job-creation numbers — the 29,300 figure and one at 34,300 — on identical poster-sized boards for the news conference. The board with the lower figure was presented on an easel flanking the governor; the other was discarded and found later Tuesday in the meeting room. Both boards listed the same revenue yield of $311 million.

Cheng said he had rejected the higher number, preferring the more conservative one. “I wouldn’t have been happy putting it in there and still calling it a conservative estimate,“ he said.