Compendium of Budget Information for the 2010 General Session
|Economic Development and Revenue
|Subcommittee Table of Contents
The mission of Business and Development is to create jobs that will raise the standard of living of Utah's citizens by enabling companies to be successful. To accomplish this mission Business and Economic Development is focused on driving Business Creation, Business Growth, and Business Recruitment.
Under Section 63J-1-402 of the Utah Code, the Legislature intends that any remaining amount of the $1,000,000 one-time General Funds provided by the Laws of Utah 2007 Chapter 383, Appropriation Adjustments, Item 81, for the Governor's Office of Economic Development - Business Development line item for Rural Broadband Service Fund contracts not lapse at the close of Fiscal Year 2009.
Business Creation is 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 works 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.
State Science Advisor
The State Science Advisor is given statutory authority under UCA 63M-1-608 and is responsible for all statewide initiative related to science and technology. The State Science Advisor has specific responsibility for fostering technological advancement and developing new technology-based economic opportunities.
The State Science Advisor serves as an objective source of information and interpretation of technical issues confronting the State for the benefit of the Governor, the Legislature, and the citizenry. Both independently and through the State Science Advisory Council, the Advisor interfaces with military operations, reviews radioactive waste operations, suggests measures for improved science and technology literacy in the adult and student populations, and works as the interface between State Government, education, business development and technology. The State Science Advisor is appointed directly by the Governor under statutory authority.
Centers of Excellence
The Centers of Excellence program provides grant funding to help technologies developed at Utah's colleges and universities transition out of the lab and into industry. Such advanced technologies can help create new companies and new products for Utah's existing companies. Both of these mechanisms create high paying long term jobs for Utah's citizens. The Centers of Excellence program was created in statute in 1986.
Previously, funding went primarily to university professors to do additional lab work. A national trend is that once the technology leaves the lab, funding support becomes challenging. Beginning in FY 2009, the COE program now provides grants to licensees. A licensee (or sub-licensee) is a company which is licensing and planning to take to market any technology developed at a Utah college or university. Startups and existing companies are eligible to apply for funds.
During the 2007 legislative session, the Legislature passed House Bill 125, Centers of Excellence Amendments. In this bill, the Legislature authorized the Governor's Office of Economic Development Centers of Excellence program to provide direct grants to licensees and sub-licensees of technologies developed in Utah's colleges and universities in order to facilitate the transition of these technologies into industry for the purpose of economic development. For the Centers of Excellence program, this is primarily measured in the creation of jobs for Utah citizens.
The COE program follows the Licensee Grant provisions of the COE legislation and continues as a grant program but focuses only on Licensee (company) grant funding. After FY 2009, there will be no more funding directly to University research teams.
Beginning FY 2009, any company headquartered in Utah or has a significant divisional headquarters in Utah is eligible to apply. Startup companies or an existing company, which decides to newly license a technology developed at, and licensed from, one of Utah's colleges or universities and which will create jobs for Utah citizens, is eligible to apply for funds. The competitive process for Centers of Excellence Grants is intended to encourage and develop technologies that create Utah jobs from the commercialization of the technology.
The Director of the Centers of Excellence program operates under the oversight of the State Advisory Council on Science and Technology (SAC) and the GOED Board, the two citizen oversight boards with responsibility for the Centers of Excellence program. Each center tracks, and reports to the Director matching funds, licenses, patents, sponsored research projects from potential customers/licensees and spinout companies. These are all self reported but can be confirmed via the Technology Transfer Offices/Sponsored Projects Offices at the Universities.
The Business Creation Program contains General Fund for the State Science Advisor, Centers of Excellence program, Business Cluster Development program, and the Informal Science Education program.
Business Growth is charged with promoting the vitality, expansion and retention of existing Utah businesses. Existing businesses create 75 percent of the new jobs every year. Business Growth ensures statewide coverage, oversight, and implementation of programs to help existing businesses. It drives industry partnering and enables industry self-sufficiency by building strong industry associations and establishing a business development strategy for each industry.
Specific programs include: the Business & Technology Parks program; the Entrepreneurial Development/SBDC program; the Rural Development Office; the International Trade and Diplomacy Office; the Procurement Technical Assistance Centers (PTAC); and the Business Manufacturing Productivity/UMEP program.
Business & Technology Parks
The mission of the Business & Technology Parks program is to develop business and technology centers within the State of Utah. Technology parks serve three economic purposes:
A recent success for this program is the Falcon Hill National Aerospace Research Park, a 550-acre tech development adjacent to Hill Air Force Base that is slated to be a magnet for the state's defense, aerospace and advanced composites clusters and employ 15,000 people.
Entrepreneurial Development/Small Business Development Centers
The Utah Small Business Development Centers were established to provide small business owners with one-on-one counseling, business skills training, and loan counseling. The investment in SBDC program of $349,000 annually by the Legislature helps fund a partnership and leverages funds from the SBA and local Colleges and Universities in Utah. Measures include counseling sessions, seminars and training sessions. Services are provided to help small businesses assess opportunities and challenges.
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: 1) Enterprise Zone Act (UCA 63M-1-401); 2) Recycling Market Development Zone Act (UCA 63M-1-1101); 3) Utah Pioneer Community Act (UCA 63M-1-1501); 4) Business Development for Disadvantaged Rural Communities Act (UCA 63M-1-2001); 5) assisting the Governor's Rural Partnership Board (UCA 63C-10-102) (SB50, 2004 General Session).
The Office of Rural Development runs two programs that offer tax credits to Utah businesses. The Utah Enterprise Zones program provides Stat personal and corporate income tax credits for investment and job creation in rural counties.
Recycling Market Development Zones encourage businesses that are involved in recycling.
The International Trade and Diplomacy Office
The International Trade and Diplomacy Office helps Utah companies develop markets for their products and services in foreign countries. The mission of International Development is to create jobs by increasing Utah's exports and international presence. International fulfills its mission by identifying receptive global markets for Utah goods and services, by cultivating Utah's positive business image, developing an informed leadership and constituency for international trade in Utah and branding Utah for international audiences. In addition, the program provides diplomacy advice and leverages diplomatic contacts to develop and expand foreign markets for Utah.
International Trade and Diplomacy focuses on the following activities:
Procurement Technical Assistance (PTAC)
The PTAC program is a federal program that matches federal and state funds to proactively assist Utah businesses in securing contracts from federal, State, and local agencies for their products. PTAC provides training, counseling, workshops, and mentors to assist companies in meeting their business and marketing goals. There are 8 offices located throughout the State to assist businesses statewide.
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) and passes through a $900,000 appropriation to UMEP. The UMEP is focused on helping small manufacturers in Utah improve the productivity, efficiency, and profitability of their businesses. The managing director of Business and Economic Development serves on the Technical Advisory Board of UMEP.
UMEP provides counseling and support services to Utah's small manufacturing community. The UMEP is funded by federal appropriations from the 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 centers are funded by federal, state, local and private resources to serve manufacturers.
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.
Centers often help small firms overcome barriers in locating and obtaining private sector resources.
Business Accelerator Support
Business Growth provides financial and staff support to a number of 'business accelerators' operating in Utah. Business accelerators are typically non-profit entities that provide services to Utah technology companies. A sample of those organizations includes:
The statutory responsibility for Business Growth is found in UCA 63M-1-304
Funding for business growth is used for staff support and pass through. Most of the funding comes from the General Fund.
The mission of Corporate Recruitment and Incentives is to create high-paying, high-quality jobs by recruiting new or expanding companies to the state. GOED contracts with the Economic Development Corporation of Utah (EDCUtah) to help identify and recruit companies.
EDCUtah is responsible for pursuing targeted companies for Utah, following all recruitment leads, and in conjunction with GOED staff assisting companies through the relocation process. EDCUtah's activities include but are not limited to, the following: Trade Shows and Conferences, site selection, interaction with local government entities and data gathering.
EDCUtah does not represent the State with regard to incentives commitments as this is a governmental function handled exclusively by GOED. GOED works in close partnership with ECDUtah to make a company's relocation to Utah as smooth as possible.