Year in preview

In a place largely insulated from past economic downturns and the early vestiges of the housing collapse that precipitated the current recession, the Valley is feeling the pinch, hit by sagging home sales and a series of layoffs and closings leading up to last month’s announcement that a third of Invista’s company workforce would lose their jobs and the plant’s nylon line would be idled. The economy shaped the year that just ended and will mold 2009. A look at the top storylines for the new year:

1. What will happen to Invista?

Invista has announced layoffs of 342 company and contract workers, with WARN Act notices taking effect in February. The Kansas-based company said it has no plans to close the Waynesboro plant, and it will keep its Lycra spandex operations open while idling nylon production for at least six months. Invista is counting on a resurgence in the housing market to spark increased demand for carpet and nylon. But housing prices continue to plummet, casting clouds over the nylon line’s immediate future.

2. Budget woes everywhere

The state’s $2.9 billion shortfall, according to Gov. Timothy Kaine, is having a palpable effect on local governments statewide, including in the Augusta County region. Waynesboro, Staunton and Augusta County have all had to cut varying amounts off their current budgets – Staunton cut $1.3 million and Waynesboro more than $500,000 – and all face the prospect of slimming down even more for their fiscal year 2010 budgets. Both cities imposed hiring freezes in 2008, and in 2009. Even schools are getting hit: state education funding is expected to decline, by 8 to 9 percent and $300 per pupil in Augusta under Kaine’s budget-cutting proposal.

3. Tax man cometh

Reassessments in Waynesboro and Augusta County increased values by 10 to 15 percent and a third, respectively, putting officials in the awkward position of choosing between taking in higher revenues at the expense of taxpayers or lowering rates to soften the tax blow. The scenario here differs sharply from communities throughout the commonwealth, where reassessment values have dropped in the wake of the collapse in housing prices, which dropped by 18 percent nationwide in October.

4. The race to replace Kaine

For the next six months Democrats will decide between a trio of formidable candidates in Creigh Deeds, Brian Moran and Terry McAuliffe. Once the nominee is selected, he will face Republican Bob McDonnell in what is shaping up as a must-win for Republicans after several losses in recent statewide races. Further, Democrats carved deep inroads here during the fall campaign, with Barack Obama coloring the state blue for the first time in more than 40 years and Mark Warner cruising past Jim Gilmore in the Senate race.

5. Waynesboro referendum projects

Voters in a 2007 citywide referendum approved three projects worth more than $10 million – a West End fire station, a library expansion and stormwater improvements. The city has begun borrowing for that work, but council members say they want to look for efficiencies to keep from having to borrow as much money. The budget crunch has some officials fearful of adding to the debt load for projects voters approved when times were brighter.

6. They may have to do it with the lights off

The American Shakespeare Center in Staunton has announced it needs to raise at least $250,000 by Jan. 31, as it faces a “grave” funding situation that could affect key programs and the theater’s future should it not meet its goals. ASC also says it needs to raise another $400,000 by May 1 or the theater could control its own destiny.

7. Help wanted

As it looks to revitalize its downtown and overcome tax revenue shortages from recent layoffs, Waynesboro still needs to hire an economic development director, a city planner and a city engineer. The economic development director position is considered key by some observers as the city’s population ages, retail is impacted by the economic downturn and Invista’s future is clouded by dwindling demand for carpet.

8. Time ticking on double-murder prosecution

After 41 years of agony for the families of two women shot dead in 1967, Staunton police arrested Sharron Diane Crawford Smith on Dec. 12 on two charges of first-degree murder. But the 60-year-old woman is terminally ill and near death, jeopardizing the justice for families that could come through a court sentence. The case gained new life in June when family members, a witness and independent investigators brought new information to police.

9. Motocross comes back

When Terry Argenbright proposed building a motocross track at Augusta Expoland in Fishersville, he sparked controversy that stretched for months, with local homeowners lining up in opposition citing concerns about noise and decreased property values. Expo officials eventually nixed the deal, but Argenbright is undaunted. He’s back with a plan to build a track in Greenville. Already, concerns about noise are being raised.

10. Teens charged in school murder plot

Two teens are scheduled to appear in court this month on charges they planned to kill students and staff at their former school, the Virginia School for the Deaf and the Blind, in Staunton. Virginia State Police and school officials will not describe the nature of the threats, but indicate information about the pending attack was investigated quickly and thoroughly, leading to murder conspiracy charges. The case highlights the abiding dangers on campus, and the seriousness with which authorities and school officials take threats.