To attract new businesses to Preston County, local officials are doing the work of securing environmental permits, teams of engineers and regulatory approval to prepare land for development.
It often costs more than what the county’s economic development office can afford on its own.
So when the state provided $375,000 to transform five sites for new businesses last year, it was a significant help.
“That’s a couple of years’ budget for us,” said Roberta Baylor, director of the Preston County Economic Development Authority.
It’s an investment process that West Virginia began four years ago.
But more than half of the state’s program funding has already been disbursed, and Gov. Morrisey’s proposed budget doesn’t include additional funding for it.
This means economic development agencies across the state could soon lose the extra support they need.
Over $2 million has been disbursed to local EDAs
In 2022, lawmakers passed legislation to create the state’s first site readiness program, allocating $5 million to help local agencies prepare properties for development.
The Division of Economic Development administers the program and provides grants of up to $75,000 per site to help cover costs for engineering, environmental work and infrastructure planning.
Those steps can significantly shorten the amount of time it takes a company to build, and those investments can help make the state more competitive. Without a catalog of prepared sites, states can miss major projects, according to research from WVU.
Other states have invested in preparing sites, pouring millions of dollars into programs. In 2024, neighboring states like Virginia and Kentucky put $126 million and $35 million, respectively, in development grants for sites.
Funds started flowing to local economic development authorities in West Virginia last year. Since then, more than $2 million has been awarded for sites across 23 counties, including Preston County.
And Sean O’Leary, senior policy analyst at the West Virginia Center on Budget and Policy, said that a fiscal note on a bill introduced this legislative session to expand the program indicates that the rest of the funds appropriated in 2023 have already been fully committed.
Baylor said that if companies are considering Preston County as a location, they’re also looking at Maryland and Pennsylvania, so having funds available to make sites ready is even more critical to better compete.
“It may not sound like a lot, but for a small economic development authority, that’s a big investment,” she said.
No new money to be found
O’Leary said the governor’s proposed budget this year does not include a line item for site readiness funding, suggesting no new money is being appropriated.
But Del. Jordan Maynor, R-Raleigh, proposed expanding the program and site certification process, focusing heavily on utility upgrades and increasing the grants from $75,000 to $100,000 or $250,000, depending on the size of the property.
The proposal reflects lawmakers’ continued interest in growing the program, but it doesn’t guarantee any new funding.
Andy Malinoski, a spokesperson for the Department of Commerce, confirmed that the program’s funding has all been allocated, but he said the governor is committed to site readiness and remediation.
“He has requested a $40 million appropriation for the WV Department of Commerce, specifically for site selection and other economic development initiatives.”
Whether the program continues now depends largely on lawmakers shaping the final state budget.
Lawmakers can choose to add funding during the budget process, shift money from other programs or allow the program to exhaust its funding.
House and Senate finance leaders play a key part in shaping the final spending plan, which lawmakers typically revise before approving the final state budget for the next fiscal year.
Neither Del. Vernon Criss, R-Wood, chairman of the House Finance Committee, nor Sen. Jason Barrett, R-Berkeley, chairman of the Senate Finance Committee, responded to requests for interviews about the legislative budget.
For Baylor, the choices are straightforward. Preparing sites before companies start searching can determine whether West Virginia communities get considered.
“Having these ready gives us a better chance of attracting companies and being able to bring investment and jobs into our area,” she said. “It’s the bottom line.”