Compendium of Budget Information for the 2012 General Session
| Business, Economic Development, & Labor Appropriations Subcommittee | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Subcommittee Table of Contents | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 Under Section 63J-1-603 of the Utah Code, the Legislature intends that appropriations provided for the Business Development line item in Item 87 of Chapter 2 Laws of Utah 2010 and Item 81 of Chapter 383 Laws of Utah 2007 not lapse at the close of Fiscal Year 2011. The use of any nonlapsing funds is limited to Business Cluster support - $50,000, Centers of Excellence contracts - $3,000,000, Business Marketing Initiative - $500,000, International Development contracts and support - $200,000, Procurement and Technical Assistance Center contracts - $150,000, Rural Development contracts and support - $200,000, Corporate Recruitment contracts and support - $75,000, and relocation expenses - $400,000. Funding Detail
Function 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-1-606 and is responsible for all statewide initiatives 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. Technology, Commercialization and Innovation Program The Technology, Commercialization and Innovation Program (TCIP) is given statutory authority under UCA 63M-1-1112 and 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. TCIP, formerly known as the Centers of Excellence program was created by statute in 1986. The TCIP program follows the Licensee Grant provisions of the TCIP legislation and continues as a grant program focusing on licensee grant funding. 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. The competitive process for TCIP grants is intended to encourage and develop technologies that create Utah jobs. The Director of the TCIP operates under the oversight of the State Advisory Council on Science and Technology (SAC) and the GOED Board. 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. Targeted Economic Clusters in Utah include:
Business Resource Centers Business Resource Centers are established by the Governor's Office of Economic Development in partnership with state public institutions of higher education. They provide private sector businesses with coordinated one-stop shop technical assistance, as well as access to statewide resources and programs. Each center accomodates the local character of the communities they serve, with partners from federal, state, local, and public or private business service providers. The goal of a BRC is to assist Utah companies with services that will allow new and existing businesses to succeed and grow, ultimately employing Utah citizens. Statutory Authority The Utah Legislature provided for the establishment of Business Resource Centers (BRC) through the Utah Business Resource Centers Act,UCA 63M-1-2704. Funding Detail The Business Creation Program contains General Fund for the State Science Advisor, Technology, Commercialization and Innovation Program, Business Cluster Development program, and the Informal Science Education program.
Function Business Growth is charged with promoting the vitality, expansion and retention of existing Utah businesses. Business Growth ensures statewide coverage, oversight, and implementation of programs to help existing businesses. It drives industry partnering by building strong industry associations and establishing a business development strategy for each industry. Specific programs include: Business Marketing, 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. 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 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. Rural 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: 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 State 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 eight 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). 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. 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:
Statutory Authority The statutory responsibility for Business Growth is found in UCA 63M-1-304 Funding Detail Funding for business growth is used for staff support and pass through. Most of the funding comes from the General Fund.
Program: Corporate Recruitment and Incentives Function 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. GOED represents the state with regard to incentive commitments and partners with UECUtah to help make a company's relocation as smooth as possible. 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. The Corporate Recruitment and Incentives staff also administers statutory programs created by the Legislature to induce economic activity in Utah. These program include the Economic Development Zone Tax Increment Financing (EDTIF), Industrial Assistance Fund (IAF), and the Motion Picture Incentive Fund. Funding Detail
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