Bills would sweeten incentives to firms making Virginia home

RICHMOND

Bipartisan support for his economic package has been elusive, but Gov. Bob McDonnell has Democrats and Republicans carrying late legislation to give him more freedom when offering financial incentives to companies coming to Virginia.

Two bills recently filed would allow McDonnell to provide state funds to companies moving into and augmenting private buildings in Virginia; current law restricts use of state money to public properties.

The legislation also would double the capacity of a state economic development grant program and allow Virginia to begin issuing new grants in July.

At present, the state has reached its cap of $30 million in commitments. The proposal would create another grant cycle of up to $30 million more.

The legislation comes as Virginia is making a pitch to Northrop Grumman Corp. to move its headquarters here, although administration officials won't comment on that.

In this case, the money would be available to a company that brings 300 or 400 high-paying jobs worth at least $5 million in payroll to the state, a state official said.

Northrop Grumman already has several outposts in Northern Virginia and owns the shipyard in Newport News.

A company spokesman declined comment on the legislation.

McDonnell spokeswoman Stacey Johnson said Virginia has "become a location of choice for major headquarters and research and development facilities" and the bills "seek to ensure that Virginia remains" in that position.

House and Senate versions of the economic development bills are expected to be voted on this week.

Meanwhile, select lawmakers from both bodies are negotiating a budget compromise.

The House plan contains nearly all of the $50 million in budget spending McDonnell requested for his jobs agenda, while the Senate plan includes millions less.

Julian Walker, (804) 697-1564, julian.walker@pilotonline.com