VA Group Weighs Effectiveness of Tobacco Commission Spending

The Tobacco Commission has signed off on millions of dollars worth of projects across our region.

A new report indicates some of those projects may not be doing much good for the economy. This was an extensive review, by JLARC, the investigative branch of state government.

$756 million has been awarded by the commission for economic revitalization, but this report really knocks some of the projects as being ineffective. It also suggests that the money may not have been evenly distributed across some of the poorest regions of the area.

"They would be well served if they put more of their money into big projects that have big impact. and less into the smaller stuff," said Walt Smiley with JLARC.

The report shows those regions with the highest unemployment rates have benefited least from Tobacco Commission funding (pg. 45 of report).

"Those areas that are showing the greatest stress might deserve more attention from the Tobacco Commission than areas that are showing less stress," explained Smiley in a phone interview.

Project leaders say there were success stories. $64 million was awarded in scholarships, loans and internships. The report says of the more than 1,700 Southside students who graduated, 62 percent have returned to work in the region. That means those people are likely living and spending locally.

Extensive Broadband helped with distance learning projects like the New College Institute- a project with the potential for growth, jobs, and income in economically depressed Martinsville.

For Danville, tobacco dollars were a major tool in recruiting business.

"The Tobacco Commission had truly meant the difference between success and failure for us," said Linwood Wright,with Danville's Economic Development Office.

The Tobacco Commission is reviewing the findings in this report. Legislators could potentially draft legislation that might change how this money is spent. It's important to point out-- the Tobacco Commission does not use tax payer dollars. They're funds received from a class action lawsuit back in the late 90s.