Fact Checker

If you listen to state Sen. R. Creigh Deeds (D) and ex-attorney general Robert F. McDonnell (R), a little-understood fund run by the governor's office is a quick ticket to economic prosperity in Virginia.

Both gubernatorial candidates have called for doubling the state appropriation for the Governor's Opportunity Fund to $20 million, and both say the potential for economic growth is big.

But Democrats also say that McDonnell, as a House delegate from Virginia Beach earlier this decade, voted three times to cut the fund. And Republicans argue that Gov. Timothy M. Kaine (D) isn't using the fund to its full potential, letting millions sit unused.

Neither claim is completely accurate.

The Governor's Opportunity Fund provides cash grants to companies that create jobs in Virginia.

Often, the funds are used when localities face serious competition for new businesses from other states or countries, said Christie Miller, a spokeswoman for the Virginia Economic Development Partnership, the state agency that administers the fund.

With the economy still a leading issue in the race, Deeds has made hay of McDonnell's House votes to "decimate that fund three times."

Indeed, McDonnell voted twice to cut money from the fund and intended to vote for a third bill.

But McDonnell argues that "times have changed."

"We are facing the highest unemployment rate in a quarter century," he said in a statement. "In order to stay competitive, we must be forward thinking and look for better ways to attract new business and good-paying jobs."

And McDonnell says the fund is being misused and needs new stewardship. The Governor's Opportunity Fund is budgeted at a level nearly 33 percent less than during the 2000-02 period, McDonnell's campaign notes.

About $5 million from the fund has been used this fiscal year while $11 million has not been spent. An additional $12.5 million was added July 1 for the next fiscal year. Some $19.5 million in projects are in the pipeline but have not been approved.