By Amanda Iacone
Virginia Statehouse News

RICHMOND — Senate Democrats say Virginia should spur small business growth and work force training this year to help put more Virginians back to work.

While Democrat leaders generally support Gov. Bob McDonnell’s proposed $54 million job incentive plan, they believe that small business is the key to adding jobs to the state’s economy.

The Democrats on Wednesday announced nine separate proposals to provide support and incentives to small business, provide worker training and prevent businesses from tapping the state’s unemployment insurance fund.

“The greatest need we have in Virginia today are jobs,” said Sen. Richard Saslaw, D-Springfield. “This appears to be a jobless recovery we are having.”

Although McDonnell has reported that the state created 55,400 new jobs since February 2010, a new report released this week found that the state would have to recover about 25,000 jobs a month for the next year to reach pre-recession employment levels.

“Our total employment level is essentially the same as it was in June 2009,” said Michael Cassidy, president of The Commonwealth Institute, which released the report. “The hole is quite large, and the challenges we face are quite severe. To be at the same employment level is really striking when we think about the state of our economy and the perception of folks of where we are.”

Last year, lawmakers supported most of McDonnell’s economic package, which focused on luring large companies to come to Virginia. Those proposal will take time to show results. Saslaw said attracting large corporations is expensive and carries large risks if the companies should close or leave.

Although Northrop Grumman, which announced last year a $24 million investment to move its corporate headquarters to Virginia, pledged to add several hundred jobs to the state’s economy, many more are needed, Saslaw said.

Targeting small business also spreads the risks around, Saslaw said.

“We are trying to focus right now on small business,” said Sen. Mary Whipple, D-Arlington, “because so much of the job growth is there.”

The proposal will cost taxpayers little, Whipple said.

Only one proposal — a plan to increase the number of small business loan guarantees — would need more tax dollars. The governor has requested increasing the loan fund from $1 million to $5 million, changes that were part of the budget amendments he sent to lawmakers, she said.

Other proposals call for studies that carry a minimal budgetary impact. Another would reduce business-dependence on the unemployment insurance fund, Whipple said.

No companion legislation has been proposed in the Republican-controlled House. But two weeks ago, Republican lawmakers announced their legislative agenda, which includes the governor’s proposed tax credits and other incentives to bring new jobs.

Senate Republicans separately said they want to focus on adding Virginia’s right-to-work law to the state constitution and requiring secret votes, not card-check approvals, for workers to join unions.

Whipple criticized GOP members for what he said is their limited focus.

“They didn’t recommend any programs for job creation,” she said.

Sen. Jill Vogel, R-Winchester, said she supports any effort to stabilize the environment for small business, including reducing government regulations and taxation, as well as making Virginia as business-friendly as possible.

“Consider where most jobs and what’s making the economy go in Virginia is small business,” she said. “The more can do to keep them afloat is very important.”

But efforts to kill the workers’ rights amendment by Senate Democrats sends the wrong message to industries that are might consider coming to Virginia, Vogel said.

“It’s important to continue to reaffirm to everyone who is interested in coming here that we want you to come,” Vogel said.