State

(Response Date)

No Change (1)

Increased
Support (2)

Decreased
Support (3)

Comments

Arkansas

(9/2/03)

X

A special session probably will be called in December 2003, but it will only address education reform. The cost of education reform probably will preempt increased funding elsewhere in the budget.

California

(8/11/03)

X

The Technology, Trade and Commerce Agency and most of its programs were eliminated in the budget. Some programs were moved to the Business Transportation and Housing Agency, including the small business expansion program, the Film Commission (permitting only), the manufacturing technology program, fee-based tourism programs, and the infrastructure bank.

Colorado

(8/19/03)

The state provided funding for an economic stimulus package that includes an increase of $9 million to promote tourism, $4 million for economic development grants and $7 million for employment centers. However, funding for state capital development projects has significantly decreased due to the state's revenue shortfall.

Connecticut

(9/15/03)

X

The state's two major quasi-public economic development agencies are largely self-funded and do not appear to have been affected by recent layoffs, but the governor is proposing to take "surplus money" from them to help fund the budget (HB 6589). The governor probably will request little, if any, new bonding authority for these agencies.

It is not clear how recent layoffs have affected the Department of Economic and Community Development. It also is not clear if the Legislature will reduce corporate business tax credits authorized for economic development purposes, but a law enacted last year reduced the amount of state reimbursement for the 100 percent property tax abatement for manufacturing machinery and equipment. As a result, municipalities requested authorization to tax the property for the 20 percent not reimbursed by the state. Business groups have opposed this move. PA 03-2 allows municipalities to impose a tax on some of the difference.

Despite the fiscal picture, the Legislature may create a new micro loan program that will make it easier for entrepreneurs to access micro loans.

Hawaii

(9/4/03)

X

Idaho

(8/12/03)

X

No significant bills increasing support for economic development were enacted this year, since the priority was to balance the budget. The sales tax and the cigarette tax were increased while agency budgets were reduced. The Department of Commerce's general fund appropriation was reduced by 6.7 percent.

Illinois

(8/25/03)

X

Indiana

(9/3/03)

X

Iowa

(8/12/03)

X

X

Cut the budget for the Department of Economic Development. Proposing investing millions to attract the biotech industry to the state.

Kansas

(9/18/03)

X

Maryland

(9/4/03)

X

The past two fiscal years have seen both a reduction in funding and the transfer of funds from economic development to revolving grant/local funds. FY02 appropriations $78.6 million, FY03 appropriations $58.2 million, total transfers last two sessions $31 million.

Michigan

(9/9/03)

X

Administration of economic development programs has seen budget reductions.

Mississippi

(9/15/03)

X

The general fund appropriation support for the Mississippi Development Authority has decreased. However, the Legislature has increased the amount of bonds that may be issued under some existing economic development programs to provide funding for other economic development programs.

Because of budget constraints, new economic development efforts were limited. In 2000 and 2001 the state enacted a number of economic development bills in its successful attempt to lure the new Nissan manufacturing plant and other industries to the state and enacted legislation for certain existing technology industries in 2002. The major thrust of economic development efforts in the 2003 session was the issuance of bonds to support certain economic development programs. "Decreased support" is marked because of reductions in general fund support for economic development programs (as well as for almost all other programs in state government).

Missouri

(9/8/03)

X

Montana
(9/5/03)

X

Efforts to assure reliable energy supplies and incentives for development of energy generation, along with measures to refine regulatory aspects related to energy development, had economic development components. Among the bills that passed were: HB509 extending transitions for a default energy supplier, SB487 setting higher limits for financing of energy projects, HB373 revising the strip and underground mine reclamation act, and HB443 revising the major facility siting act (SB409) for development of coal resources.

On bills related to restructuring of tax systems, the economic development component included efforts to decrease capital gains taxes and generally unsuccessful efforts to offset or replace income and property taxes with a sales tax. Among the bills that passed were: SB407, subtitled the Montana Economic Development Tax Act and providing for a limited sales tax and use tax, 5% of tax collections to retailers who collect the tax, capital gains credits and revisions to federal income tax deductions, among other tax-related changes.

Local economic development organizations received support from HB76, which established certified regional economic development councils, and from SB131 allowing the Board of Investments to purchase certain types of local development loans.

Workforce Training received support from HB564, which set up a grant program for primary industry retraining of workers, and from support given two-year educational colleges and 4-year colleges in the general funding bill, HB2.

Nevada

(8/19/03)

X

The passage of the revenue package to fund the budget was the top concern in the state of Nevada during the 2003 legislative sessions.

New Jersey

(8/15/03)

X

Increased support for certain economic development programs but decreased support for others.

New York

(9/9/03)

X

North Carolina

(8/19/03)

X

Although no new funds were appropriated in this fiscal year, the 2003-05 budget increases funding for economic development by $1 million in the 2004-05 fiscal year.

North Dakota

(8/22/03)

X

As compared to the 2001-03 biennium, there will be a decrease in general fund spending for programs known as "Growing North Dakota" during the 2003-05 biennium.

Oregon

(8/25/03)

Oregon has been the state in recession the deepest and longest, so many issues and bills this session are being viewed in the context of economic development, including the biggest issues and bills, or budget and revenue packages. Good schools are necessary or it will hurt the economy in the long run, some say, and raising taxes will hurt the economy. The longest session in Oregon history wrestled with this basic economic dilemma. With reluctance to raise revenue (taxes) and therefore facing budget cuts all over, it has been a chore to find resources to boost economic development. Bills are basically rearrangements of spending or configurations for spending of revenue that would result from that spending (baseball), slight changes of emphasis to give Oregon a "leg up " in competitive markets or borrowing.

Pennsylvania

(9/10/03)

X

Still involved in negotiations with the governor's office as to the final form of all of these proposals.

South Dakota

(8/19/03)

X

SB58 would make $3 million available from REDI fund.

Tennessee

(8/13/03)

X

Tennessee balanced its FY 2003-04 budget without raising taxes. A 9% across-the-board cut was made on all programs funded with state general fund dollars, except for K-12 education. The "cut" also included reducing state-shared tax revenue funds that were normally granted to local governments. Many departments made moving in-house previously contracted work a priority, in an effort to save money and boost employee morale. The Department of Economic and Community Development successfully did this by bringing their advertising and creative services in-house. The governor also created a Jobs Cabinet through executive order (E.O. No. 6) to "formulate regional job-creation strategies, launch a county-by-county review of economic development and to reassess Tennessee's workforce-training programs" by "pooling state resources and data to accelerate job creation and business growth statewide."

All programs funded with state general fund dollars were reduced 9% to address the overall shortfall for FY 2003-04. This includes reducing grants to local governments for infrastructure improvements. The department also brought advertising/creative services in-house.

Texas

(9/12/03)

X

Funding for economic development increased by $295 million with creation of the Texas Enterprise Fund (SB1771). If voters approve a constitutional amendment (SJR55), the state will issue $250 million in general obligation bonds for defense base development. Financing mechanisms for rural development and local development districts were broadened.

Washington

(8/19/03)

X

X

The amount of the state funding on economic development depends on whether Boeing assembles the 7E7 in Washington, as the state passed a bill allowing between $2 and $4 billion in tax incentives. Also had a tax incentive bill for the building of new semiconductor facilities. State funded many capital projects; however, the day to day program funding remained steady with some targeted cuts.

Wisconsin

(8/22/03)

X

The total budget for the Department of Commerce's Division of Economic and Community Development decreased from $69,058,400 in 2002-03 to $63,353,500 in 2003-04.

Wyoming

(9/18/03)

X

Supporting development of local infrastructure to recruit businesses was one of the four major themes leadership identified for action. Four bills were introduced on this theme, but only the Business Ready Communities Program, HB 264, passed. The program received an $8.4 million appropriation to fund infrastructure development efforts by cities, towns, counties, and joint powers boards.