Bolling talks budget, jobs on county visit

Lt. Gov. Bill Bolling brought bleak financial news on Tuesday when he came to South Boston to conduct a round table discussion on the upcoming state budget with local leaders. He termed this year’s budget “the most challenging” he has seen in his 15 years of work in state government.

“Everybody’s hurting,” Bolling said, noting that the state’s budget for the coming year is $4.6 billion out of balance. With 144,000 more people out of work than last year and a statewide jobless rate of 6.4 percent, versus a 3.2 percent unemployment rate a year ago, he said, “it hurts families, it hurts businesses and it hurts governments.”

Bolling explained that outgoing Gov. Timothy M. Kaine has proposed cuts that will cover about one-half of the deficit, and is proposing that the other one-half be covered by certain tax increases, which he said, “will never fly with the General Assembly. We are going to have to find ways to cut more expenses.”

But he also stressed the importance of making the right investments, which may cost money, but which, he says, are essential to the growth of localities.

Bolling said Governor-Elect Bob McDonnell has “a very aggressive plan to get the state’s economy moving and which will make it easier for businesses to operate.

“We have got to reinvest in things that bring jobs to Virginia,” the Lieutenant Governor said, pointing to the need for funds for tourism, as well as for the establishment of ties to India and China, the fastest growing areas of the world.

He also cited the need for mega-sites that would attract major business and industries, referring to Danville’s 4,000 acre industrial tract that has brought in business prospects. He said this community lost a major economic development prospect because they did not have a suitable site for a large plant.

Saying that economic development has not been a top priority in the past several years, Bolling told his listeners, “You’ll be excited to see Governor McDonnell’s economic development package when he speaks next Monday night.”

Dr. Betty Adams, Executive Director of the Southern Virginia Higher Education Center where the Tuesday discussion was held, told Bolling that when looking at the upcoming year’s budget 30 percent of her staff could be lost. “We need money to operate,” Adams told him.

Bolling acknowledged that higher education has taken a disproportionate reduction in state funding, and while he had no immediate solution to the problem, he thought in the long term the state would get back to investing in higher education once the economy starts moving.

Joshua Lief, general manager for Virginia International Raceway (VIR), complained about the difficulties with the state highway system in getting the proper signage for his business location. He said he had been able to work with the transportation system in North Carolina much more easily than that of Virginia.

Mike Sexton, Executive Director of the Halifax County IDA, told Bolling that Halifax County is ready “to go,” but explained that the state’s department of economic development has been “brutalized by the lack of funds over the past several years.” Sexton said the VEDP needs an outreach program and more flexibility.

Bolling responded that the new administration expects to double the size of the Governor’s Opportunity Fund.

School Superintendent Paul Stapleton expressed his concerns about funding cuts for K-12 education. Rural school systems, Stapleton said, “live or die on state funding.” Facing a $5-to $6 million loss for the coming year, the Superintendent said this is the worst budget year ever for public education. He noted that economic development and education have to work hand in hand.

Debora Crowder, Executive Director for the South Central Workforce Investment Board, commented on the advantages of One Stop Centers such as the one recently opened in South Boston. Crowder pointed to the center’s ability to eliminate duplication and its offering greater convenience for its customers.

Bolling reiterated his promise and that of the Governor to visit Southside Virginia monthly to continue pushing economic development. Both men had held similar meetingsin Danville and Martinsville in December.