- Report Published -
|Report Document No. 16|
PUBLICATION YEAR 2009
|Annual Executive Summary of Interim Activity of the Tobacco Indemnification and Community Revitalization Commission|
|Tobacco Indemnification and Community Revitalization Commission, Board Chairman|
|§ 3.2-3102 (F.)|
|I. Background – The Commission is the designated recipient of one-half of the Commonwealth’s share of the National Tobacco Settlement revenue, which the Commission securitized and received slightly more than $1 billion, held by the State Treasurer pending instruction from the Commission.|
The Commission was charged by the General Assembly to (1) compensate tobacco farmers for the decline of tobacco quota, and (2) stimulate economic growth in tobacco-dependent communities. The following is a summary of the Commission’s efforts since June 30, 2008 and it is suggested that this be read alongside the Annual Executive Summary for 2008.
II. Compensation to Farmers – The Commission began fiscal year 2009 with a budget item of $20.6 million designated for payment to Virginia tobacco growers and quota holders in 2009. The Commission contracted with Troutman Sanders to distribute approximately 45 thousand payments on or about April 30, 2009 and Troutman’s claim process is on schedule to make those payments. Thereafter $41.2 million remains to be paid to fully discharge the Commission’s liability.
III. Stimulation of Economic Growth – The balance of Commission resources budgeted for 2009 were $66.9 million and except for administrative expenses of $2.1, all were designated for economic development within the tobacco region. During the 5 months ending November 30, 2008, the Commission met only once and commitments of $18.2 million were made based on recommendation from Education, Special Projects, and Southside Economic Development Committees. Other committees (Agribusiness, Southwest Economic Development, and Technology) are scheduled to make recommendations at the Commission meeting to be held on Jan 13, 2009.