Since 2005, the fund, a flexible economic development tool, has invested over $644 million as of Jan. 31 to support major projects, including transportation improvements for the LEGO manufacturing plant in Chesterfield County and enhanced access near Wallops Island for the state’s aerospace and research facilities.
Overall, the changes increase oversight by lowering the funding thresholds that trigger review by the Virginia Major Employment & Investment (MEI) Commission, lengthening the review period, adding more formal notification procedures and requiring updates to program guidelines.
Lawmakers directed the guideline changes in the biennium budget passed in late June in response to lawmakers’ concerns about awareness and oversight, according to Secretary of Transportation Nick Donohue. He did not expand on lawmakers’ directions to the board at its business meeting on Wednesday.
“The authority of this board and of the administration to allocate funds is the same,” Donohue said.
“What has changed is the amount of time that we must provide an opportunity for review of awards of a certain amount. That amount has been lowered. The number of people we must provide the notice to has been expanded, and the method of delivery has been changed.”
Under the fund’s guidelines, the governor can award money from the fund as grants up to $5 million, revolving loans up to $30 million and other financing tools to an agency or political subdivision in Virginia.
In light of the concerns, additional notification requirements are being considered, including:
If a single project is funded over $10 million or $25 million over two years, it must be reviewed by MEI within 30 days; if no response is received, the funds can move forward. Additionally, the governor’s notification must be hand-delivered to MEI, House Appropriations and Senate Finance and Appropriations committee staff.
The secretary of transportation will continue to notify legislative leaders of funds directed to projects in excess of $5 million within 35 days.
The revised guidelines will be posted on the Virginia Regulatory Town Hall, the state’s online bulletin board for government rule changes, for 30 days of review and public comment.
Before making any new awards, the governor must provide copies of the revised changes to the chairs of the House Committees on Appropriations, Finance, and Transportation, and Senate Committees on Finance and Appropriations.
