Department of Economic Development
The enacted budget passed by the Legislature made the following changes to the Executive Budget (analysis as of March 30, 2006):
- Denies the Executive proposal to make the UDC loan powers permanent, but extended the loan powers until July 1, 2007.
- Reduces the proposed maintenance undistributed appropriations for the Economic Development Program by $225,000 in the international trade account. According to the senate this reflects the Legislature’s rejection of the creation of an office in Shanghai, China. The appropriation is still $800,000 more than the enacted appropriation for SFY 2005-06.
- Allows DED to accept federal or municipal certification of Minority and Women Business Enterprises (MWBE).
- Creates a statewide advocate for MWBE within DED - the head of this program is in the unclassified service and makes unedited annual reports on his/her activities to the Governor and the Legislature.
- Requires a disparity study of MWBE programs within 18 months to be done by an entity independent of the department and selected through a request for proposal process.
· Appoints the current NYSTAR board as the interim board of the Foundation for Science, Technology and Innovation (Foundation) which was created last year.
- Appoints the NYSTAR Executive Director as interim Executive Director of the Foundation.
- Requires the Foundation to develop a strategic plan to encourage cutting-edge research and develop a statewide intellectual property policy to assure that innovations resulting from academic research are commercialized in New York State.
· Specifically states that the purpose of the Foundation’s Regional Partnership program is to promote regional economic assistance to certify partnerships that promote technology enhancement and innovation which will work in coordination with technology development organizations
· Makes the Foundation’s Regional Partnerships eligible for grants and loans from the Urban Development Corporation’s (UDC) JOBS NOW and Economic development fund programs.
· UDC is authorized to provide assistance to Regional Partnerships and industry clusters.
- Requires the Foundation to prepare annual reports on effectiveness of Regional Partnerships and all state programs to promote science, research, development and commercialization.
· Requires an annual report on each program the Foundation administers and, in cooperation with UDC, the centers of excellence program.
· NYSTAR appropriations are transferred to new Foundation and “where appropriate” made available to Regional Partnerships.
· UDC must submit a comprehensive financial plan to the Legislature and Governor.
· Requires DED to develop a statewide master plan for marketing.
· Enacts new guidelines for the I Love NY brand.
· Creates an “Explore NY” grant program for counties and regions.
· Requires DED to create a State marketing and Tourism internet website and to annually evaluate its effectiveness.
Senate:
- Reduced the maintenance undistributed appropriation for services and expenses to promote international trade by $625,000. The Report of the Senate Finance Committee states that $225,000 of this reduction is to deny the creation of an office in Shanghai, China. The remaining $400,000 decrease is to provide only half of the Executive Budget’s requested appropriation for the new Small Business Pollution prevention program established in 2005.
- Denied the Executive proposal to make the UDC loan powers permanent, but extended the loan powers until July 1, 2007.
Assembly:
- Denied the Executive proposal to make the UDC loan powers permanent, but extended the loan powers until July 1, 2007.
- Reduced the maintenance undistributed appropriation for services and expenses to promote international trade by $225,000. The Report of the Senate Finance Committee states that this funding was to establish an office in Shanghai, China.
- Although there is virtually no change in DED’s appropriations, the Assembly has proposed bill language some of which has the potential to have a negative impact on having DED civil servant professionals carrying out DED’s mission. For example, the Assembly has proposed the following:
- Allocating UDC funds to the Science & Technology Foundation Regional Partnerships.
- Allowing UDC to review proposals by regional partnerships.
- Proposing an Innovation Accountability Board, but does not appear to provide funding.
- Proposing a New York State Marketing Act.
- Proposing UDC directed Export Trade Development Projects.
- Proposing a new Micro Business Outreach program.
- Giving local governments the authority to certify MWBEs.
PEF is lobbying the Budget Conference Committee to not include the Assembly provisions in the final enacted budget.
The Executive Budget recommends (analysis as of January 24, 2006):
· Proposes no change to the FTE level of 215
· Recommends an All-Funds increase of $1.6 million (4.6 percent). $1 million of this increase is a Maintenance Undistributed for services & expenses to promote international trade. Assembly analysis indicates that $225,000 of this appropriation is for a new office in Shanghai, China.
· Proposes a $274,000 or 14.4% increase in funds for personal service in the Marketing Program, but no change in the FTE level.
Program Details-State Operations
Enacted
Proposed
Enacted
Change in
Percent
Program
2005-06 Budget
2006-07 Budget
2006-07 Budget
Appropriation
Change
All Funds
$35,901,900
$37,552,900
$37,327,900
$1,426,000
4.0%
General Fund
$29,487,000
$31,138,000
$30,913,000
$1,426,000
4.8%
Special Revenue-Federal
$1,000,000
$1,000,000
$1,000,000
$0
0.0%
Special Revenue-Other
$5,414,900
$5,414,900
$5,414,900
$0
0.0%
Administration
$4,819,900
$4,974,900
$4,974,900
$155,000
3.2%
Personal Service
$2,273,000
$2,416,000
$2,416,000
$143,000
6.3%
Nonpersonal Service
$807,000
$819,000
$819,000
$12,000
1.5%
Special Revenue-Other (SRO)
$1,739,900
$1,739,900
$1,739,900
$0
0.0%
Commerce Econ Dev Asst Acct - (SRO)
$900,000
$900,000
$900,000
$0
0.0%
non-personal service
$900,000
$900,000
$900,000
$0
0.0%
Public Service Acct - (SRO)
$839,900
$839,900
$839,900
$0
0.0%
personal service
$487,100
$487,100
$487,100
$0
0.0%
non-personal service
$142,800
$116,000
$116,000
($26,800)
-18.8%
fringe benefits
$210,000
$236,800
$236,800
$26,800
12.8%
Clean Air Program
$500,000
$500,000
$500,000
$0
0.0%
Special Revenue-Other (SRO)
$500,000
$500,000
$500,000
$0
0.0%
Clean Air Acct - (SRO)
$500,000
$500,000
$500,000
$0
0.0%
personal service
$195,000
$195,000
$195,000
$0
0.0%
non-personal service
$240,000
$210,000
$210,000
($30,000)
-12.5%
fringe benefits
$65,000
$95,000
$95,000
$30,000
46.2%
Economic Development
$14,962,000
$16,174,000
$15,949,000
$987,000
6.6%
Personal Service
$8,486,000
$8,624,000
$8,624,000
$138,000
1.6%
Nonpersonal Service
$3,306,000
$3,355,000
$3,355,000
$49,000
1.5%
Maintenance Undist. (services & exp to promote intntl trade)
$1,000,000
$2,025,000
$1,800,000
$800,000
80.0%
Special Revenue-Federal (SRF)
$1,000,000
$1,000,000
$1,000,000
$0
0.0%
Special Revenue-Other (SRO)
$1,170,000
$1,170,000
$1,170,000
$0
0.0%
Miscellaneous Grants - (SRF)
$1,000,000
$1,000,000
$1,000,000
$0
0.0%
non-personal service
$1,000,000
$1,000,000
$1,000,000
$0
0.0%
Minority & Women's BusDev Acct - (SRO)
$70,000
$70,000
$70,000
$0
0.0%
Maintenance Undist.
$70,000
$70,000
$70,000
$0
0.0%
Procurement Opp Newsltr - (SRO)
$1,100,000
$1,100,000
$1,100,000
$0
0.0%