FY 2016 Appropriation

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.

Funding History

Funding Issues

Business Resource Centers

Business Resource Centers are certified one-stop resource centers providing coordination of business support, education, tracking of clients, access to sources of funding, training, technical expertise, talent, and networking for new and existing businesses.

Compliance Staff for Incentives

Contract workload for incentives is increasing as the GOED board issues new incentives each year. Additional staff could help ensure that the companies receiving the incentives are complying with their contractual obligations.
Appropriation Overview

During the 2015 General Session, the Legislature appropriated for Fiscal Year 2016, $11,639,100 from all sources for Business Development. This is a 6.9 percent reduction from Fiscal Year 2015 revised estimated amounts from all sources. The total includes $10,021,300 from the General/Education Funds, an increase of 17.4 percent from revised Fiscal Year 2015 estimates.

Appropriation Adjustments

In addition to statewide compensation and internal service fund cost increases, the following appropriation adjustments were made during the 2015 General Session:

DescriptionOngoingOne-Time Amendments to Economic Development$100,000$0
OngoingOne-TimeFinancing Source
$100,000$0General Fund
Enactment of this legislation could forgo $14,600,000 in aggregate Education Fund over a 5 to 10 year period. Enactment of this legislation could cost the Governor's Office of Economic Development $210,000 ongoing from the General Fund beginning in FY 2016 for staff associated with compliance and reporting requirements and audit costs.
Business Resource Centers$0$125,000
OngoingOne-TimeFinancing Source
$0$125,000General Fund, One-time
Business Resource Centers are certified one-stop resource centers providing coordination of business support, education, tracking of clients, access to sources of funding, training, technical expertise, talent, and networking for new and existing businesses.
Compliance Staff for Incentives$110,000$0
OngoingOne-TimeFinancing Source
$110,000$0General Fund
Contract workload for incentives is increasing as the GOED board issues new incentives each year. Additional staff could help ensure that the companies receiving the incentives are complying with their contractual obligations.
International Trade and Relations$0$100,000
OngoingOne-TimeFinancing Source
$0$100,000General Fund, One-time
To support the task force for International Trade and Relations.
Rural Outreach Coordinator Position$80,000$0
OngoingOne-TimeFinancing Source
$80,000$0General Fund
FTE dedicated to Rural Outreach throughout the state.
Technology Commercialization Innovation Program$0$1,000,000
OngoingOne-TimeFinancing Source
$0$1,000,000General Fund, One-time
Matching grants for companies who have attracted phase 1 SBIR-STTR funding.

GOED Manages a Contract With EDCUtah, who provides Businesss Development Services on Behalf of the State. The services include developing a strategic recruitment plan, providing research and analysis services, building relationships with the site selector community, participating in trade shows, and liasing with local communities, among other things.

Over the last 5 fiscal years, EDCUtah has maintained an active project list that averaged 193 projects.

Those business development efforts resulted in GOED offering post-performance tax credit and/or grant incentives to 87 companies from FY 2010 to FY 2014

Below, is the graphical representations of the number of jobs incented, new state revenue projected, and new state wages projected in historical context for the Business Development line item: New State WagesNew State RevenueNumber of Jobs Incented

Intent Language

HB0003: Item 59

Under Section 63J-1-603 of the Utah Code, the Legislature intends that appropriations provided for the Governor's Office of Economic Development Business Development, Laws of Utah 2014, Chapter 10, Item 11 shall not lapse at the close of FY 2015. The use of any non-lapsing funds is limited to Business Cluster support: $75,000; Business Resource Centers: $350,000; Technology Commercialization and Innovation Program contracts: $3,000,000; International Development contracts and support: $500,000; Procurement and Technical Assistance Center contracts: $175,000; Rural Development contracts and support: $200,000; and Corporate Recruitment contracts and support: $100,000.

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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.