Jobs commission considers better marketing of Va.

Reducing or eliminating the corporate income tax and putting more money into tourism promotional efforts are two of the ideas being considered by the Governor's Commission on Economic Development and Job Creation.

So far, the 64-member commission's eight committees have generated 115 ideas.

The group is looking for a recommendation that would give the state's business recruitment efforts "marketing pizazz," Steve Baril, a Richmond lawyer who is vice chairman of one of the committees, told a meeting of the commission yesterday.

Lt. Gov. Bill Bolling the state's chief jobs-creation officer, said Virginia has one of the nation's best economic development programs but not enough business leaders are aware of it.

One recommendation to come out of the commission is increased spending on marketing, he said.

The commission also is likely to recommend setting up a Tourism Development Fund, Bolling said. The state has not been able to afford television advertising outside of Virginia to promote tourism since 2008, he said.

Gov. Bob McDonnell has proposed doubling the tourism budget in four years to $19.5 million.

McDonnell, who returned Saturday from a trade mission to England, the Netherlands and Germany, said yesterday that he asked the commission to generate ideas regardless of their political or fiscal consequences and not all will be accepted when the final recommendations are made to him in mid-October.

He acknowledged that the suggestion of doing away with the business, professional and occupational license tax, or BPOL tax, would not sit well with local governments, which already are coping with declining tax revenues. The BPOL tax is imposed by local governments on gross receipts, regardless of whether a company has made a profit.

As a result of the trade mission, McDonnell said he will announce within 30 days a new furniture-manufacturing plant that will locate in Southside Virginia.

He also said the state will set up foreign-trade offices in China and England by the end of the year.

Though the state has had some success in creating jobs, the state's 7 percent unemployment rate in June is unacceptable, the governor said. He said the cost of certain federal policies, such as health-care reform, will make job creation more difficult.

An estimated 100 people attended the commission meeting at J. Sargeant Reynolds Community College's Parham Road campus.

The commission made no recommendations. Bolling described the reports from the study committees as "works in progress."

Among the findings:

•Virginia's economic development programs and incentives have been "disproportionately" affected by budget reductions.

•Tourism, small business and emerging-technology programs have historically lacked the attention, tools and resources commensurate with their return on investment.

•The business-development task force said several states and countries that are key competitors of Virginia have either reduced, or are taking steps to eliminate their corporate income taxes.

"The subgroup believes such an action could be a game changer for Virginia, sending a bold statement to companies that Virginia is indeed open for business and business investment," the interim report stated.

 

The report also said more regional collaboration is needed and incentives should be offered to spur such cooperation. The state is proposing a pilot program in six Southside localities to see how this works, Bolling said.

•The work-force development potential of the state's four-year and community colleges is underutilized.

There continue to be challenges for entrepreneurs setting up businesses in getting business permits and securing capital.