Gov. Bob McDonnell says jobs plan will create 29,000+ jobs in 2 years

Gov. Bob McDonnell delivered his jobs-and-economic-opportunities legislative package today, appearing with roughly two dozen lawmakers -- Democrats and Republicans -- who will carry the bills.

The 20-piece legislative agenda focuses on using incentives to create jobs, and fleshes out the proposals that McDonnell previously announced.

The measures range from requiring the state to waive administrative fees for issuing a permit to a veteran operating a small business to income tax credits to film companies spending at least $250,000 on a film in Virginia. The credits would be capped each biennium at $5 million.

"There shouldn't be red jobs and there shouldn't be blue jobs but we should have green jobs," said freshman Del. Mark Keam, D-Fairfax, in a nod to the bipartisan team carrying the legislation.

McDonnell has proposed $50 million in new spending, including more than doubling the Governor's Opportunity Fund in fiscal year 2011 by increasing the state commitment by $12.1 million, and committing $5 million to a state "industrial mega-site fund" to attract new employers.

He also has proposed using $2 million over the two-year budget to establish state economic development offices in China, India and the United Kingdom.

He also wants to support the biotechnology and life sciences industry by raising a $3 million cap on the Qualified Equity and Subordinated Debt Investment Tax Credit to $5 million in fiscal year 2011. He wants to invest $3 million in bioscience "wet lab" facilities over the biennium; use $2 million to re-establish funding for the Business Incubator Program in fiscal year 2011; and provide an income tax exemption for qualified investments in technology and science startup companies in fiscal year 2012.

McDonnell said this morning that a preliminary economic impact analysis prepared by the Virginia Economic Development Partnership estimates that the budget initiatives of his agenda will bring in more than $311 million in new revenue over five years, and create more than 29,000 new jobs over the biennium.

McDonnell's team yesterday explained how the governor wants to offset the $50 million in new spending. He is suggesting tapping into six funding sources. Half of the funding would come from stretching over two years an increase in the state's contribution to workers' retirement plans.

These offsets are separate from upcoming cuts to resolve the state's massive budget gap. McDonnell this morning gave no indication when or how he would begin share his more comprehensive strategies for erasing the state's $4.2 billion budget shortfall.