Compendium of Budget Information for the 2014 General Session
| Business, Economic Development, and Labor Appropriations Subcommittee | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Line Item: Business Development Function The mission of Business Development is for Utah to excel in job creation, innovation, entrepreneurship, global business, quality workforce and to have a stable and sustainable business friendly environment. To accomplish this mission Business Development is focused on Business Outreach and International Trade, as well as Corporate Recruitment and Business Services. Intent Language
Funding Detail For more detail about a particular source of finance or organizational unit, click a linked entry in the left column of the table(s) below.
Function Prior to FY 2013 Business Creation was charged with creating new, high quality jobs in the State of Utah through the development of the business environment within specific business clusters. The program worked to accelerate the transition of technologies from Utah's institutions of higher education into Utah companies by providing access to business teams and helping to leverage capital for startup companies. Beginning in FY 2013 most of the functions for Business Creation were transitioned to the Business Outreach and International Trade Program to align the budgets with the internal office structure. Funding Detail The Business Creation Program contained General Fund for the State Science Advisor, Technology, Commercialization and Innovation Program, Business Cluster Development program, and the Informal Science Education program.
Function Prior to FY 2013 Business Growth was charged with promoting the vitality, expansion and retention of existing Utah businesses. Most of the functions for Business Growth were transitioned to the Corporate Recruitment and Business Services program to align budget with operational functions. Rural Development and International Trade were transferred to Business Outreach and International Trade. Funding Detail Funding for business growth was used for staff support and pass through. Most of the funding came from the General Fund.
Program: Corporate Recruitment and Incentives Function Prior to FY 2013 the mission of Corporate Recruitment and Incentives was to create high-paying, high-quality jobs by recruiting new or expanding companies to the state. Beginning in FY 2013 the functions of Corporate Recruitment and Incentives have transitioned to the Corporate Recruitment and Business Services program to align budgets with the operational structure. Funding Detail Funding for Corporate Recruitment and Incentives was used for staff support and pass through. Most of the funding came from the General Fund.
Program: Outreach and International Trade Function Business Outreach and International Trade focuses on 3 primary areas: 1) Identifying business clusters where Utah has a competitive advantage; 2) Assisting rural communities with business needs; 3) Utilizing foreign trade to attract business to the state. Programs that support these goals are listed below in the background section. Background State Science Advisor The State Science Advisor (SSA) is given statutory authority under UCA 63M-1-606 and is responsible for all statewide initiatives related to science and technology. The Science Advisor serves on a broad range of boards and commissions pursuant to the oversight of key scientific initiatives, research efforts, federal and state mandates and ongoing programs devoted to science and technology issues. The Science Advisor has specific responsibility to supervise or participate in the following key areas: Advisory Council on Science and Technology (SAC): The SSA and SAC review significant advances in science and technology and advise and make recommendations to the Governor, State Legislature and governmental agencies on the use of science and technology to foster scientific literacy and to strengthen the state's economy, educational system and quality of life. STEMLink Initiative: The STEMLink initiative continues to support the growth of the talent "pipeline" for Utah's science and technology companies. STEMLink includes partners from higher and public education, government, community/philanthropy and industry who will work together to create outreach and recruitment activities, as well as education and training programs that support the life science industry in Utah. Science, Technology and Innovation Plan (STIP): The STIP is a comprehensive, state-level strategic plan to support the growth of Utah's science and technology community. It is a partnership between GOED, the Department of Workforce Services, the Utah System of Higher Education and the State's Experimental Program to Stimulate Competitive Research (EPSCoR) program. Technology Commercialization and Innovation Program (TCIP) TCIP is given statutory authority under UCA 63M-1-704 and supports the acceleration and commercialization of promising technologies from universities and colleges in the state, leveraging in particular the investments made by USTAR and the hundreds of millions of dollars of federal research grants to the State's colleges and universities each year. The Program offers grants to college and university teams and principal investigators seeking to commercialize their research, as well as to companies who have licensed technology from Utah's colleges and universities. The primary goal of TCIP is to accelerate commercialization of university-based research and innovation in order to drive economic development and job creation in the State of Utah. International Trade and Diplomacy The mission of the International Trade and Diplomacy Office (ITDO) is to increase exports, foreign direct investment and international trade-related jobs in Utah. The ITDO helps Utah companies do business internationally and expand existing markets. This assistance is provided in one-on-one mentoring, region-specific training seminars and trade missions. Additionally, ITDO holds numerous networking events. The ITDO represents the State of Utah and the Governor on all diplomatic and trade matters, including hosting foreign dignitaries and delegations. The ITDO works closely with a number of internationally focused partners, including the U.S. Commercial Service, World Trade Center Utah and World Trade Association of Utah to promote export growth in the State. Economic Clusters The Economic Clusters Program serves as a catalyst to focus people, ideas and resources. Clusters are groups of related businesses and organizations whose collective excellence, collaboration and knowledge base provide a sustainable competitive advantage. Strong clusters translate into tangible benefits for Utah businesses, citizens and educational institutions. The program aligns industry, research, commercialization, capital, talent and government around emerging or mature industry sectors that possess the greatest opportunity for success. The goal is to create higher paying jobs, strengthen education and raise the standard of living in Utah. Utah's economic clusters include:
Rural Development The Rural Development program's mission is to unite and support Utah's rural communities in economic development through coalitions, entrepreneurship, business expansion and infrastructure development. The Rural Development office targets businesses and economic development throughout the 17 designated rural Utah counties, areas which often experience low wages and higher unemployment. Since economic development occurs at the local level, the program's focus is on assisting rural leaders and leveraging local resources of the state to help them be economically viable. Statutory Responsibilities include:
The Office of Rural Development runs a program that offers tax credits to Utah businesses. The Utah Enterprise Zones program provides state income tax credits for investment and job creation in rural counties. Rural development matching grants are available to communities to facilitate economic development projects. Funding Detail Funding for this program is used to provide staff support. Funds are also passed through to contracted entities.
Program: Corporate Recruitment and Business Services Function Corporate Recruitment and Business Services focuses on the retention and expansion of companies in the State. The program works with the Procurement Technical Assistance Program, the Manufacturer's Extension Partnership, and Business Resource Centers to provide services to companies within the state or to companies thinking of relocating to the state. The program uses a wide range of incentives identified under the background section. Background Corporate Recruitment and Incentives The mission of Corporate Recruitment and Incentives (CRI) is to "increase the number of quality jobs in Utah by helping existing companies expand and by recruiting new companies to the State." Financial incentives are available for business relocation and expansion for select companies that create new, high-paying jobs to help improve the standard of living, increase the tax base, attract and retain top-level management, and diversify the state economy. The following incentives are offered as either tax credits or grants.
Business Manufacturing Productivity/Utah Manufacturing Extension Partnership A key element of Utah's economic development strategy is to increase the productivity of Utah manufacturers. To accomplish this, the state manages a contract with the Utah Manufacturing Extension Partnership (UMEP). The UMEP is focused on helping small manufacturers in Utah improve the productivity, efficiency, and profitability of their businesses. UMEP provides counseling and support services to Utah's small manufacturing community. The UMEP is funded by the federal Department of Commerce, the State of Utah, and from fees for service activities. The Manufacturing Extension Partnership (MEP) is a nationwide network of not-for-profit centers in over 400 locations nationwide, whose purpose is to provide small and medium sized manufacturers with help. The goal is to make it possible for even the smallest firms to tap into the expertise of knowledgeable manufacturing and business specialists all over the United States. These specialists are people who have had experience on manufacturing floors and plant operations. Each center works directly with area manufacturers to provide expertise and services tailored to their most critical needs. Solutions are offered through a combination of direct assistance from center staff and outside consultants. Entrepreneurial Development/Small Business Centers Business Resource Centers (BRCs) receive statutory authority under UCA 63M-1-2704. BRCs consolidate various business service providers in a single location so that business owners have a convenient place to go to get their questions answered. Staff is equipped to answer questions on business planning, tax structure, personnel, training, marketing, locations, contracting, administrative services, mentoring and funding. BRC staff also assists in coordinating the services of the local business service provider partners to make the delivery of the counseling and assistance more effective for the business customer, ensuring the business owner and managers receive all the help they need to be successful. Procurement Technical Assistance Procurement Technical Assistance Centers (PTAC) provide assistance to small and mid-sized Utah companies in obtaining federal, state or local government contracts. PTAC counselors provide one-on-one and group instruction to help clients identify contracting opportunities which may help increase their market share and revenues. Statutory Authority The Industrial Assistance Fund was created in 1991. Statutory authority is provided in UCA 63M-1, Part 9. The purpose of the fund is to encourage the creation of quality jobs in Utah. The GOED Board has responsibility to approve all incentive recommendations. UCA 63M-1 Part 24 established the Economic Development Zone Tax Increment Financing program to enhance the State's ability to attract and recruit new businesses to Utah. These refundable tax credits are based on new state revenues including income tax, sales tax, and corporate tax. By current policy, a qualifying applicant may receive up to a 30 percent tax rebate for up to 20 years. The Motion Picture Incentive Fund was established in 2005 under 63M-1, Part 18 and funding for the fund relies tax credits and non-lapsing balances authorized by the Legislature. Funding Detail Funding is used to provide staff support to the program and to pass through funds to contracted entities.
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COBI contains unaudited data as presented to the Legislature by state agencies at the time of publication. For audited financial data see the State of Utah's Comprehensive Annual Financial Reports.