Martinsville Bulletin, Inc.
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| But does not rule out cuts in state funds |
Gov.-elect Bob McDonnell (right) gestures Wednesday during an economic roundtable discussion at the New College Institute in uptown Martinsville. Also taking part were (from left) Del. Danny Marshall, R-Danville, and Lt. Gov. Bill Bolling. (Bulletin photo by Mike Wray) |
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Thursday, December 17, 2009
By MICKEY POWELL - Bulletin Staff Writer
Gov.-elect Bob McDonnell said Wednesday that although he supports the New College Institute (NCI), it is too soon to tell whether it will be spared cuts in state funds or how it will evolve in the future.
While visiting NCI to talk with local government and business leaders about Southside’s economic development needs, McDonnell, who will be sworn into office Jan. 16, said “we are absolutely convinced that over the long term, expanding educational opportunities is the best thing we can do” to attract new businesses and industries to the region.
In addition to himself, he was referring to Lt. Gov. Bill Bolling, who he said will take a prominent role in statewide economic development efforts; Bob Sledd, whom he has appointed to be state secretary of commerce and trade; and Jeff Anderson, executive director of the Virginia Economic Development Partnership (VEDP). They were with him during his trip to Martinsville.
McDonnell said it was his third visit to NCI, and “it just gets better every time I come.”
“We certainly want to keep the institute strong,” he said.
However, the state is facing a possible budget gap of at least $3.6 billion over the last six months of the current fiscal year and the next two years, which likely will result in major spending cuts, state officials have said.
For that reason, McDonnell said he does not yet know if the state will have to reduce its allocation to NCI.
Rob Spilman, chairman of NCI’s board, reminded McDonnell that any cut in state funds results in an equal loss of funds from The Harvest Foundation.
NCI, which opened in 2006, is a state-supported higher education center in uptown Martinsville. It provides local access to courses needed to earn certain bachelor’s and master’s degrees offered by universities statewide.
So far, 114 people have earned degrees through NCI, which expects to educate more than 400 people in the 2009-10 academic year.
In 2012, the State Council of Higher Education for Virginia (SCHEV) is to decide whether NCI should stay as it is or evolve into either a stand-alone, state-supported university or a branch campus of an existing university.
McDonnell said he has not yet formed an opinion on how NCI should evolve. He said he wants to see SCHEV’s recommendation after it studies the institute’s success and “let the process take its course.”
He, Bolling, Sledd and Anderson pledged that the state is committed to helping Henry County and Martinsville lure companies and boost the local economy.
“We’re going to do everything we can to help you. Trust me,” Sledd said.
But government cannot do the job alone, he said, noting that the private sector also must be involved in economic development efforts.
McDonnell said he or Bolling will visit Southside — either the Martinsville or Danville area — at least every 30 days to talk with local leaders about what needs to be done to improve economic development or participate in some other type of activity pertaining to the issue.
They said they could not be more specific on those visits right now.
“Whenever you’re down here, I request that I get the first two hours of your time” because there are a lot of things to talk about, said Mark Heath, president and CEO of the Martinsville-Henry County Economic Development Corp.
During their visit to NCI on Wednesday, McDonnell said they wanted to find out what local leaders think the state can do to help economic development in Southside, and particularly Henry County and Martinsville.
“You all know about” the local economy, and what might work and what might not work in the region, better than state officials, he said.
The people who filled a classroom at NCI offered their ideas.
Martinsville City Attorney Eric Monday suggested that the state find a way to participate in economic development deals with North Carolina, such as agreements to share revenues from companies locating near the border.
Such companies tend to employ workers from both states, so both states could benefit from such deals, those attending the session reasoned.
Henry County and Martinsville share revenues from some companies in the county’s Patriot Centre at Beaver Creek industrial park, and they also plan to share revenues from firms that locate in the Commonwealth Crossing Business Park planned off U.S. 220 South near the state line.
North Carolina often offers companies more economic incentives to locate there, officials said. Heath compared local and state efforts to compete with the neighboring state to “fighting Muhammad Ali with one hand tied behind your back.”
McDonnell said the idea of economic development deals with North Carolina is interesting. Bolling said it might require changing the state constitution.
Those attending the discussion also cited a need to lower electricity rates in Southside.
Appalachian Power (APCo) rates “essentially have doubled” in the past few years, said Del. Ward Armstrong, D-Collinsville.
“It’s been a job-killer,” he said, noting that the area has lost prospective companies to North Carolina due to lower electric rates there.
Armstrong mentioned that APCo did not seek a rate increase for about 10 years but has sought 13 hikes since 2006.
Del. Danny Marshall, R-Danville, said that when the General Assembly meets in January, officials with APCo and the State Corporation Commission will be asked to explain why so many rate hikes have been needed in recent years.
Heath suggested that, as an economic incentive, businesses that use large amounts of electricity be allowed to pay lower rates.
The idea of letting Duke Energy, which supplies electricity to nearby areas in North Carolina, compete with APCo was mentioned.
Monday said if Duke is allowed to compete, city-owned electric systems such as Martinsville’s also should be allowed to compete.
Other ideas for improving economic development in Southside that were presented by area residents included:
• Finding sources of money for localities, particularly ones with high jobless rates, to extend infrastructure, such as water and sewer, to industrial sites.
• Providing work force training for high-tech jobs, such as Web site design.
• Encouraging companies in China and India, two of the world’s fastest-growing economies, to move some of their production to Virginia.
That would be like “an insurance policy” for foreign firms, Martinsville City Councilman Danny Turner said, in case economies in those nations falter. |
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