RD74 - Virginia Tobacco Indemnification and Community Revitalization Commission Annual Report Fiscal Year 2007
Executive Summary: I. Background – The Commission is the designated recipient of one-half of the Commonwealth’s share of the National Tobacco Settlement revenue. In two separate bond issues (May 2005 and May 2007) the Commission securitized its entire share of the Settlement and received slightly more than $1 billion, in aggregate, which is held by the State Treasurer pending further instruction from the Commission. Approximately $223 of this sum has already been committed or disbursed. The Commission was charged by the General Assembly to use this resource to (1) compensate tobacco farmers for the decline of tobacco quota, and (2) stimulate economic growth in tobacco-dependent communities. This is a summary of the Commission’s efforts to fulfill this charge. II. Compensation to Farmers – In the spring of 2007, the Commission issued its eighth consecutive annual payment to Virginia tobacco growers and quota holders. Approximately 45,715 payments were made totaling $14.3 million, bringing the total amount paid since the Commission was formed to approximately $226.9 million. The Commission has a remaining liability to these growers and quota holders of approximately $61.1 million and has already made provisions in its current budget to issue the ninth annual installment in 2008. While there is no statutory timeline for completion of this indemnification phase, the current rate of disbursement will complete the task in approximately three more years. III. Stimulation of Economic Growth – The Commission has approached this phase of its mission by developing a strategic plan that identifies four primary areas of economic need within the tobacco-dependent region. The four areas are (1) Technology, (2) Education (3) Innovation, and (4) Regional Economic Development. The Commission created a subcommittee for each area, budgeted resources for each committee, and empowered each committee to determine how best to address the specific area of need for which the committee was created. The committees have each invited proposals from public entities, subjected the proposals to a staff review process, and voted on the level of funding for each proposal. A summary of the work of each committee is shown below: Technology – The Commission awarded grants totaling $6.1 million to 6 entities engaged in the installation and utilization of high-speed fiber networks in Southside and Southwest Virginia. Broadband deployment is the Commission’s largest single economic development effort, with aggregate grants to date totaling over $86 million among approximately twelve entities. Education - The Commission awarded grants totaling $13.6 million to 22 entities for educational programs, facilities and scholarships for GED training, technical training, undergraduate, and graduate degrees in diverse fields and venues throughout the tobacco region. Innovation - The Commission awarded grants totaling $11.7 million to fund approximately 36 projects in agriculture, business development, research, and job incentives. These grants are generally divided into three distinct categories, (1) Agri-business, (2) job-creation incentives, and (3) Special Projects. Economic Development – The Commission awarded grants totaling $23.5 million for over 44 projects to improve industrial sites, training facilities, water and sewer infrastructure, and tourism venues, all designed to expand and diversify the economic base, create employment opportunities, and generate revenue for local entities in the tobacco region. A copy of the Commission’s 2007 Annual Report is attached as additional information. |
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