SD9 - Review of the Effectiveness of Economic Development Incentive Grants in Virginia (SJR 329, 2011)

    Executive Summary:
    Senate Joint Resolution 329 (2011) directs JLARC staff to review the effectiveness of economic development incentive grants available in Virginia. Economic development grants are typically awarded as incentives for businesses to locate or expand in the Commonwealth, and include programs such as the Governor’s Development Opportunities Fund and the Virginia Investment Partnership. JLARC staff have recently begun a preliminary review of the research literature. Once all preliminary research activities have been completed, JLARC staff will develop a comprehensive workplan, which will lay out key issues and the methods best suited to fully research them.

    As part of its research, JLARC staff will (1) identify which economic development incentive grants are available and to what extent they are used, (2) examine the public policies for which the grant programs were established and whether the desired public policies have been achieved, and (3) propose a mechanism or process for the ongoing evaluation of the effectiveness of grant programs. The Commission will provide a final report to the Governor and the General Assembly no later than November 30, 2012.

    JLARC staff plan to complete the review of Virginia’s economic development incentive grants and brief their findings to the Commission in November 2012. A report of the Commission's findings will be submitted to the General Assembly and the Governor as a House document, and an executive summary and the report will be submitted to DLAS, no later than December 31, 2012.