From Deseret News archives:
Boost in funding is sought for economic development
Martin Frey, managing director of economic development for the Governor's Office of Economic Development, briefed the GOED board Friday on priorities and strategies for the 2006-07 fiscal year prior to an afternoon meeting with Gov. Jon Huntsman Jr.
The board, with a few exceptions, seemed to concur with his approach but took no vote on the matter.
Frey noted that the state's economic development/business recruitment budget from the general fund has been flat for years, at about $8 million. To keep up with inflation, the figure should be much higher, he said.
"We should be north of $16 (million) or $17 million. What we as a state have actually done is decrease the proportion of the state budget that we invest in economic development over the years, and what we're proposing is that we actually significantly invest to catch up," Frey told the board.
"We feel that the return (on investment) is sold. We feel that the management team that we brought in place is robust and very talented and can lead and build the programs we're talking about. And we're not talking about building and adding a whole bunch of new people. We're talking about putting the dollars into the programs that make that engine turn or make that cycle spin."
Board member Gerald Sherratt called a $16 million figure "modest."
"And it's more important to us now than it was then, and it should have been going up all along," he said.
"We're not actually starting out with a number," Frey said after the board meeting. "I'm going to walk through and get the governor's ideas on concepts and which programs he sees as priorities and which ones he doesn't. He's asked us to come back with a proposal on what we thought were the priorities, and I want to validate it with him. And for each one of these programs, there's kind of a range — how deep should government's role be and can we partner and leverage with other people? — and we're trying to build those partnerships so we can do more with less."
Among the concepts for helping create new businesses in Utah are aligning the U-STAR initiative — to boost university research — to industry needs, capitalizing on industry-driven research and finding ways to help the state's companies get federal research grants.
To help existing companies grow, the office is proposing starting a revolving loan program that may especially help rural Utah, finding ways to increase early-stage angel funding, finding ways to build more business and technology parks, creating the Utah Business Link and business research center and boosting business development in the defense contracting sector.
To help retain companies, the office will look for ways to help companies get talented workers they seek, enhance industry-driven education, brand the state to outside tourists and provide funds for energy-related initiatives.
"Yeah, I think we've taken on a lot, but it fills holes" in the state's economic development efforts, Frey said. "This isn't about big government. . . . It's about investing in the state."
E-mail: bwallace@desnews.com
