GOVERNOR'S RECOMMENDATION

I approve the general purpose of this bill, but I am returning it without my signature with the request that three amendments be adopted. Thank you for your diligent work on both budgets; it is something that the Members of the General Assembly should be proud of.

As enrolled, the bill achieves most of the major promises I made during my campaign, and it does so in a thoughtful, bipartisan manner. Even though we may disagree with respect to certain details, your hard work has not gone unnoticed.

My amendments are nevertheless necessary if we are to maintain Virginia's status as the best-in-class state to live, work, and raise a family.

I hope that these amendments will be acceptable to Republicans and Democrats, Delegates and Senators, so that the budget can be reenrolled without returning to my desk. The passage of these amendments will allow HB 29 to take effect immediately, which would be a positive development in line with Virginia's strong tradition of fiscal responsibility.

Amendment 1: Make technical changes to General Fund resources

Item 0

Language:

Page 1, Line 33, strike “($2,375,994,370)” and insert “($2,370,994,370)”.

Page 1, Line 33, strike “($3,654,574,703)” and insert “($3,649,574,703)”.

Page 1, Line 35, strike “$26,976,800,000” and insert “$26,998,300,000”.

Page 1, Line 35, strike “$49,297,632,509” and insert “$49,319,132,509”.

Page 1, Line 41, strike “$29,236,918,341” and insert “$29,263,418,341”.

Page 1, Line 41, strike “$53,848,756,471” and insert “$53,875,256,471”.

Page 2, Line 10, strike “$85,067,104,376” and insert “$85,093,604,376”.

Page 2, Line 10, strike “$161,310,451,554” and insert “$161,336,951,554”.

Explanation:

(This amendment makes technical changes to general fund resources as follows: $21.5 million increase in revenue to reflect a correction in the amounts assumed under federal tax conformity related to the charitable contribution deduction for non-itemizers; and $5 million increase in Additions to Balance from the update of sum sufficient amounts reserved for previous disaster declarations. These technical adjustments result in a $26.5 million increase in General Fund resources in FY 2022.)

Amendment 2: Provide clarifying language concerning the CoStar MEI Project

Item 112

Language:

Page 47, strike lines 40 through 55

Page 48, strike lines 1 through 28 and insert:

“S.1. Out of this appropriation, $15,000,000 the second year from the general fund shall be deposited to the Property Analytics Firm Infrastructure Fund for expenses related to public infrastructure improvements, including commuter access and parking, pedestrian access, roadway and traffic improvements, safety enhancements, site preparation and utilities in the City of Richmond (the City). These improvements will serve the existing and proposed facilities for a real property analytics firm (the Company) located in the City, the employees of the firm, and other visitors to the vicinity of the facilities.

2. Disbursement of these funds shall be based upon an agreement (the Agreement) between the City, the Company and the Virginia Economic Development Partnership Authority setting forth the terms and conditions of the distribution of funds to the City and any expected repayment should the Company fall short of its promises to invest at least $460,500,000 at the facilities, and to create at least 1,984 new jobs that pay an average annual wage of at least $85,000 related to its operations at the facilities.

3. There is hereby created a nonreverting fund to be known as the Property Analytics Firm Infrastructure Fund. The Fund shall be established on the books of the Comptroller. All funds appropriated to the Fund shall be paid into the Fund and credited to it. Any moneys remaining in the Fund, including interest thereon, at the end of each fiscal year shall not revert to the general fund but shall remain in the Fund. Moneys in the Fund shall be used for the purpose to pay or reimburse the costs of the public infrastructure improvements pursuant to paragraph S.1. of this item. Expenditures and disbursements from the Fund shall be made by the State Treasurer on warrants issued by the Comptroller pursuant to paragraph S.5. of this item.

4. The Company shall provide evidence, satisfactory to the Secretary of Commerce and Trade, annually of (i) the aggregate number of new full-time jobs in place as of the last day of each calendar year and (ii) the aggregate amount of the capital investment made as of the last day of each calendar year. The application and evidence shall be filed with the Secretary in person, by mail, or as otherwise agreed upon in the memorandum of understanding by no later than April l each year reflecting performance in and through the prior calendar year. The Virginia Economic Development Partnership Authority will use this information to calculate the extent to which the Company may owe a repayment of the funds expended from the Fund, should there be a shortfall from the targeted capital investment or new jobs required by paragraph S.2. Any required repayment of funds should be deposited into the general fund.

5. Disbursement of moneys from the Fund shall be at the request of the Secretary of Commerce and Trade and the Virginia Economic Development Partnership Authority, based upon arrangements with the City and the Company in the Agreement.

6. The Company shall make available to the Secretary of Commerce and Trade for inspection, upon request, all documents relevant and applicable to determining compliance with the terms and conditions of the Agreement. All such documents appropriately identified by the Company shall be considered confidential and proprietary."

Explanation:

(This amendment clarifies the reimbursement structure of the infrastructure investments for the CoStar economic development expansion project, in the City of Richmond, and requires the company to repay a portion of the investment should they fail to reach their performance commitments to the state.)

Amendment 3: Clarify average annual wage for Blue Star MEI Project

Item 112        

Language:

Page 47, line 38, after ‘an’, insert “average”

Explanation:

(This amendment clarifies that the jobs associated with the Blue Star project will pay an “average” annual wage of $37,321, in accordance with the MOU.)