Dickenson County v. VCEDA
Brian August 28th, 2005
I rarely delve into local politics, but with the Dickenson County Board of Supervisors making hard decisions like this one, I may start doing so more often. Not because they are wrong, but because I want to know more about what is going on around here.
And I should be honest, I do not know much about the Virginia Coalfield Economic Development Authority (VCEDA), but in theory it sounds pretty dang good.
The Virginia Coalfield Economic Development Authority was created by Virginia’s General Assembly in 1988 to enhance and diversify the economic base of the seven-county, one city, coal-producing area of the Commonwealth.
Southwestern Virginia counties – Lee, Wise, Scott, Buchanan, Russell, Tazewell, Dickenson – and the City of Norton comprise the region the Virginia Coalfield Economic Development Authority serves.
Touting a strong work ethic, tailored training programs, a ready workforce, industrial and technology parks, and available buildings, VCEDA promotes this region-in-transition to businesses looking for a new home or expansion site.
VCEDA provides financial support for fixed assets at interest rates below prime, construction of buildings for sale or lease, installation of utilities and direct loans to private for-profit basic employers and industrial development authorities. The level of financing is based upon the number of full-time jobs created, wage rate and investment.
From what I understand, Dickenson County wanted to use $25,000.00, of money it had committed to the VCEDA, for a feasibility study on building a multi-purpose education and technology school in the county. Apparently the VCEDA did not think that was a good use of the money and denied the county’s request. The county has now ask Delegate Bud Phillips to introduce a bill that will remove it from the VCEDA.
Now again, I do not have all the facts on this - most importantly is how much the county has contributed to the VCEDA - but the authority can and did point to contributions it has made to the county.
The authority helped the county land 100 call center jobs in June when SI International opened, [Charles] Yates said. The Ralph Stanley Museum in Clintwood also received the bulk of its money from the authority, he said.
The county also received $37,000 for Hill Mandolins, $175,000 for Mountain Forest Products, and $50,000 to construct a tower and purchase equipment for the county’s wireless Internet network, he said.
In addition, the authority provided more than $1 million to help Dickenson County reopen its only hospital after it closed nearly two years ago, Yates said.
The only lingering question is whether the above allowed the county to get its money’s worth. I am inclined to believe it probably did.
On the county message board, one person named “tsopf” offered some persuasive reasons on why withdrawing from the VCEDA might be a bad idea.
(1) With the weight of Virginia House and Senate decision-making now shifted in favor of northern and eastern Virginia, and having lost the group of strong, high-seniority delegates from around Roanoke that the Southwest Virginia Delegation used to form coalitions with, and given that every constituency and every state agency in the Commonwealth is cutting every throat they can for every nickle they can steal from somebody else, it ought to be crystal clear that if they meddle with the VCEDA statute now, it is likely to end up either in the GENERAL FUND, or in the hands of the Virginia Department of Business Assistance, who does most of the economic development in the state.
(2) Niether (sic) the Dickenson County nor any other southwest Virginia county Board of Supervisors has established a record that demonstrates an ability to employ these funds wisely. They are to transition from a coal economy - not to buy gravel for driveways. These local politicians are, with all due respect, just not qualified by nature or by knowledge and expertise to administer the effort with which VCEDA is charged.
(3) If Dickenson County splits off from the regional effort, it will (besides setting up counterproductive competition within the region) deprive the county with they least resources of the resources of the regional effort, and make it even harder to lure prospects to Dickenson County.
Bottom line: Worst idea to come from a local politician in my memory. If my friend Bud Phillips would support this and introduce a bill to do it just because some benighted local politician asked for it, he’s making a very, very bad mistake.
Of course, I am not sure this person knows anymore about this than anyone else, but he or she does make some compelling arguments. Most notably, the suggestion that very few, if any, counties have had a lot of success at utilizing their available funds to lure new employers into their region. If true, that seems to be very important to the present question.
I just hope this decision to jump out of the VCEDA is not based on recent budget shortfalls and public pressure against adequate budget reform. If we are leaving the VCEDA, I hope its because they are screwing us over or some other good reason.
So I guess the first question residents need the answer to is how much of the county’s money is going to the VCEDA. And then, is what we are getting in return worth what we are paying. Any Dickenson County residents out there that want to weigh in on this? If so, please comment.
It’s being discussed on the Clintwood Connection–http://www.network54.com/Forum/4481–also. I personally think if the BoS goes through with this they’ll not only be cutting their own throats but the throats of every person who resides in Dickenson County. This action could very well be the last nail in the county’s coffin.
tsopf is a well-known and respected Norton businessman, who often counsels reason on the local message boards. He is active in supporting Dickenson County economic development efforts.
I hope he and your readers can appreciate the frustration the Dickenson BOS feels after another (from their perspective) rejection by VCEDA of an another economic development effort.
First, some history. Coal and gas companies, since the 70s, have had to obtain a severance tax license from a local governing body. A portion of the tax goes into a local road Fund, a portion goes to VCEDA, and the rest goes to the local governing body.
The policy underlying this approach is that as coal and gas are removed from the earth, the tax base is decreased. The tax is in essence to compensate the locality for this loss of tax base, i. e. future revenue.
Because there was concern that localities would use this revenue stream to fund current needs, rather than for the future, the Road Fund and VCEDA were developed.
The Road Fund is controlled by a board appointed by the locality, with a VDOT person.
VCEDA has funds from each member locality. Some of the funds are pooled, or “uncommitted”, and some are tied to the county of origin.VCEDA has representatives from each locality, coal companies, and governor appointees.
Of the 7 counties that contribute, the largest source is Buchanan, then Wise, and Dickenson.
I serve on the Industrial Development Authority for Dickenson, and have concerns myself about our relationship to VCEDA, and its structure. I don’t expect them to accept every proposal to access Dickenson county funds for projects.
But I do expect there to be no favoritism, and at least civility from VCEDA staff.
That is not always the case. I have detected hostility towards us, and have observed instances of favoritism.
It is true that after substantial pressure, VCEDA gave in and let Dickenson use some of its own money to save the hospital. But it was done very reluctantly, and further efforts on the part of the IDA to assist the hospital have been met with rudeness and hostility.
I fully support the regional approach to economic development, and hope that VCEDA will recognize that it needs to restructure and reconsider its treatment of its members.
[…] Virginia Coalfield Economic Development Authority (VCEDA) when it announced its intent to withdraw from VCEDA. This move was questioned by numerous people all over Southwes […]
[…] Virginia Coalfield Economic Development Authority (VCEDA) when it announced its intent to withdraw from VCEDA. This move was questioned by numerous people all over Southwes […]
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