MINUTES OF THE

ECONOMIC DEVELOPMENT AND HUMAN RESOURCES

APPROPRIATIONS SUBCOMMITTEE



ROOM 225 STATE CAPITOL BUILDING

Tuesday, January 15, 2002



Members Present: Sen. Dave Gladwell, Co-Chairman

Rep. Sheryl Allen, Co-Chairman

Sen. Gene Davis

Sen. Carlene Walker

Rep. Jackie Biskupski

Rep. Kory M. Holdaway

Rep. Carol Spackman Moss

Rep. Bradley A. Winn

Members Excused: Sen. Al Mansell

Rep. David Ure



Staff Present: Dr. Andrea Wilko, Fiscal Analyst

Kathryn Judd, Committee Secretary



Visitors List: Visitors List available at House of Representatives



Chairman Sheryl Allen called the meeting to order at 2:20 p.m. She recognized Brent Sloan, Chairman Children's Museum Board, and Dr. D. D. Hilke, Director. They gave an overview of the Children's Museum, its programs, priorities, and financing. They introduced Randy Horiuchi, Salt Lake County Councilman, who represented the County in reinforcing the call for unified support of the Museum. Dr. Hilke invited the Committee Members to an exhibit at the Museum on February 4, 2002.



Chairman Allen turned the chairmanship to David Gladwell to conduct the rest of the meeting.



Chairman Gladwell invited Leslie Marks, Legislative Auditor, and Tim Osterstock, Audit Manager, to give an account of the Association of Governments Audit Report. They reviewed the Association made up of 7 groups of counties, cities, or towns; its programs and services; and made their recommendations to the Committee. They answered Committee questions.



Rep. Sheryl Allen was called upon to give a summarization of the Tourism Marketing Performance Fund Report. She pointed out Utah's tourism included revenue sources which are assessed and controlled by the counties rather than located centrally in the State like most states. She emphasized the importance of direct tourism promotion and funding for Travel and Tourism as we are losing tourism market share. She made a request for FY2003 for $2,000,000 for Tourism Performance Marketing Fund and $1,000,000 for Utah Travel Council. There was a discussion of the funding by the Committee and Division members.



Chairman Gladwell asked for the Committee's recommendations to Executive Appropriations for FY2002 supplemental budgets. He commented on the uniqueness of the Committee and its economic stimulus feature along with a community service feature. We need to consider the human, social, and economic impact of each $1 we put into each program. This consideration will help the State in the future to prioritize spending opportunities.



Dr. Andrea Wilko, Fiscal Analyst, summarized the General Fund Reduction sheet with the breakdown of Committee targets and amendments made to the Analyst's recommendations. She reviewed the balance of $40,900 available to the Committee for prioritization. Ms. Wilko then reviewed Non General Fund Supplementals, transfers, and intent language needed to be acted on by the Committee. There was a discussion by the Committee of the various recommendations and programs. Several motions and substitute motions were made but withdrawn.



MOTION: Rep. Biskupski made a motion to restore funding of $4,100 to the Design Arts Program; $3,700 for the Career Service Review Board; and $33,100 for the Arts Grants Program.



SUBSTITUTE MOTION: Rep. Holdaway made a substitute motion to restore $3,700 to the Career Service Review Board; $20,200 to the Arts Grants, $12,000 to AOG; and $5,000 to Affordable Housing. He made an amendment to the motion to reduce the amount to AOG to $7,900 and restore funding to the Design Arts Program in the amount of $4,100. This funding is to be one-time. The motion passed unanimously.



Bob Fuehr, DBED explained the funding for the Centers of Excellence. There was a Committee and Department discussion. Several motions and substitute motions were made and withdrawn.



MOTION: Rep. Allen made a motion to accept the Analyst's recommendation for General Fund Reductions as amended. The motion passed unanimously.



MOTION: Rep. Allen made a motion to accept the Analyst's recommendation to recommend to Executive Appropriations that funds set aside for Industrial Assistance Fund replenishment ($329,400) be allocated to that use. The motion passed unanimously.



MOTION: Sen. Davis made a motion to accept the Analyst's recommendations on sheet 2 for the Non General Fund Supplementals; transfers; and intent languages, excluding the Davis Conference Center intent language. The motion passed unanimously.



Chairman Gladwell asked if the Committee would like to make a recommendation to Executive Appropriations that they would like to see the Kuhni Rendering Plant, Ogden High Tech Center, and Children's Museum funded if there are funds available. There was a discussion of the

various projects and the funding according to the Governor's recommendations and the Analyst's

recommendations. Other funding that might be more of a Committee priority were discussed.



MOTION: Rep. Winn made a motion that the Chairs make a recommendation for funding of the Kuhni Rendering Plant, Ogden High Tech Center, and Children's Museum if funds are available, but to also highlight the fact that other important programs have taken cuts. The motion passed unanimously.



Megan Hough, GOPB, responded to questions regarding the transfer of the State Science Advisor to Technology Development.



There was a clarification of the Version 1 intent language for the Davis County Conference and Community Center.



MOTION: Rep. Holdaway made a motion to adopt the Version 1 intent language for the Davis County Conference and Community Center as follows:

If Davis County has not executed a legally-binding contract for construction of the Davis Conference and Community Center by December 31, 2002, it is the intent of the Legislature that the Department of Community and Economic Development seek refund of the $500,000 disbursed to Davis County for construction of the Davis County Conference and Community Center in HB 28, 1998 General Session, together with interest for the time Davis County had use of the monies at the rate Davis County earned on the monies during the period that it had possession of the money. The motion passed unanimously.



Barbara McConvill, Ogden/Weber CVB Marketing Performance Fund Committee, and Dean Reeder, Utah State Travel Council, reviewed the Tourism Marketing Performance Fund and recommended funding of $2,000,000 be appropriated for FY 2003.



MOTION: Senator Gene Davis made a motion to adjourn. The motion passed unanimously. The meeting adjourned at 4:25 p.m.



















_____________________________ ______________________________

Sen. David L. Gladwell, Co-Chair Rep. Sheryl L. Allen, Co-Chair