Tag Archives: economic development

President’s Budget Overview for Economic Development and Statistics

Economic Development Related Cuts

  • The Budget proposes to eliminate funding for many independent agencies, including: the Appalachian Regional Commission; the Delta Regional Authority; the Denali Commission; the Northern Border Regional Commission.
  • Eliminates the Economic Development Administration, which provides small grants with limited measurable impacts and duplicates other Federal programs, such as Rural Utilities Service grants at the U.S. Department of Agriculture and formula grants to States from the Department of Transportation. By terminating this agency, the Budget saves $221 million from the 2017 annualized CR level.
  • Eliminates the Minority Business Development Agency, which is duplicative of other Federal, State, local, and private sector efforts that promote minority business entrepreneurship including Small Business Administration District Offices and Small Business Development Centers.
  • Saves $124 million by discontinuing Federal funding for the Manufacturing Extension Partnership (MEP) program, which subsidizes up to half the cost of State centers, which provide consulting services to small- and medium-size manufacturers. By eliminating Federal funding, MEP centers would transition solely to non-Federal revenue sources, as was originally intended when the program was established.
  • Reduces duplicative and underperforming USDA programs by eliminating discretionary activities of the Rural Business and Cooperative Service, a savings of $95 million from the 2017 annualized CR level.
  • Eliminates the Advanced Research Projects Agency-Energy, the Title 17 Innovative Technology Loan Guarantee Program, and the Advanced Technology Vehicle Manufacturing Program because the private sector is better positioned to finance disruptive energy research and development and to commercialize innovative technologies.
  • Expands DOL Reemployment and Eligibility Assessments, an evidence-based activity that saves an average of $536 per claimant in unemployment insurance benefit costs by reducing improper payments and getting claimants back to work more quickly and at higher wages.
  • Decreases Federal support for DOL job training and employment service formula grants, shifting more responsibility for funding these services to states, localities, and employers.
  • Helps states expand apprenticeships, an evidence-based approach to preparing workers for jobs.
  • Eliminates funding for the Essential Air Service (EAS) program, which was originally conceived of as a temporary program nearly 40 years ago to provide subsidized commercial air service to rural airports. EAS flights are not full and have high subsidy costs per passenger. Several EAS-eligible communities are relatively close to major airports, and communities that have EAS could be served by other existing modes of transportation. This proposal would result in a discretionary savings of $175 million from the 2017 annualized CR level.
  • Eliminates funding for the unauthorized TIGER discretionary grant program, which awards grants to projects that are generally eligible for funding under existing surface transportation formula programs, saving $499 million from the 2017 annualized CR level. Further, DOT’s Nationally Significant Freight and Highway Projects grant program, authorized by the FAST Act of 2015, supports larger highway and multimodal freight projects with demonstrable national or regional benefits. This grant program is authorized at an annual average of $900 million through 2020.
  • Eliminates funding for Community Development Financial Institutions (CDFI) Fund grants, a savings of $210 million from the 2017 annualized CR level. The CDFI Fund was created more than 20 years ago to jump-start a now mature industry where private institutions have ready access to the capital needed to extend credit and provide financial services to underserved communities.
  • Achieves $12 million in cost savings from the 2017 annualized CR level through identifying and eliminating those SBA grant programs where the private sector provides effective mechanisms to foster local business development and investment. Eliminations include PRIME technical assistance grants, Regional Innovation Clusters, and Growth Accelerators.

Statistics Related News

  • Provides $1.5 billion, an increase of more than $100 million, for the U.S. Census Bureau to continue preparations for the 2020 Decennial Census. This additional funding prioritizes fundamental investments in information technology and field infrastructure, which would allow the bureau to more effectively administer the 2020 Decennial Census.
  • Consolidates the mission, policy support, and administrative functions of the Economics and Statistics Administration within the Bureau of Economic Analysis, the U.S. Census Bureau, and the Department of Commerce’s Office of the Secretary.
  • Reduces funding for USDA’s statistical capabilities, while maintaining core Departmental analytical functions, such as the funding necessary to complete the Census of Agriculture.

State Economic Development Program Expenditures: FY2014-FY2016 Update

The Council for Community and Economic Research (C2ER) has updated its State Economic Development Program Expenditures Database as part of a continuous effort to track investments in economic development across all fifty states. The database now includes all Governor Recommended Budgets for fiscal year 2016. Read the full report on this update here.

Expenditures14

According to the Database, in FY2016 U.S. states are collectively proposing to spend $6.97 billion on economic development investments, representing a slight dip from FY2015 spending levels. In FY2015, states appropriated $7.05 billion for economic development, which was a 7 percent increase over actual economic development spending of $6.65 billion in FY14. Continue reading

Funding Highlights From Proposed FY2016 State Budgets

C2ER staffers are busy digging through the newest proposed state budgets for FY2016. As we update the State Economic Development Program Expenditures Database, a number of programs have stood out. The proposed budgets include new programs as well as some major funding increases in economic development financing, infrastructure and construction, research and development, and employment training. Continue reading

GASB State Tax Incentive Rule

GASB Tax Incentive Picture Beginning in 2017, those interested in incentives and tax abatement expenditures spending will likely have access to significantly more data than is currently available. The Governmental Accounting Standards Board (GASB), the independent organization which “establishes financial accounting and reporting standards for state and local governments,” is asking for public comments on a proposed change to current standards for property and tax abatement agreements. Continue reading

State Business Incentives Database Debuts New User Site

The Council for Community and Economic Research has launched the newest iteration of the State Business Incentives Database website. New features make finding up-to-date information on state incentive programs even easier for economic developers, business development finance professionals, economic researchers, and other users. Continue reading

Incentives in the News: The Brookings Institute and Job Incentives

A recently released report from the Brookings Institute highlights the most promising ways they believe cities, states, and regions can move forward in attracting businesses and creating jobs in a responsible and fair way. The study also confirms analysis done by C2ER of the State Business Incentives Database. Continue reading

C2ER Updates State Business Incentives Database

C2ER has just finished its latest update of the State Business Incentives Database. This makes the State Business Incentives Database even more valuable to users who need the most up-to-date information on state programs.

Continue reading

Managing Data Challenges

This post originally appeared on the Smart Incentives blog, written by CREC Senior Research Fellow, Ellen Harpel.

Data is one of the key elements of the Smart Incentives 4×4 framework that enables communities to make sound investment decisions. Unfortunately, good data on how well incentive programs work is often lacking. This lack of data hinders both economic development professionals in their day-to-day work and policymakers in their leadership and oversight roles. Continue reading

Examining Historic Tax Credits

An old shoe factory in St. Paul is transformed into an LEED-certified affordable housing structure. Across the river in Minneapolis a disused library building becomes a neighborhood career and technology center. These are just two of the projects benefiting from the Minnesota Historic Structure Rehabilitation State Tax Credit. Continue reading

C2ER, Harvard present cluster mapping training

Coming up in a few weeks, C2ER will be a presenting a new training course, Cluster Mapping for Economic Development. This is a one-day training course delivered by the U.S. Cluster Mapping Project at Harvard Business School. This in-person training session will introduce attendees to important cluster concepts, and how the U.S. Cluster Mapping Project’s newly revamped webtool can help to inform economic development strategies and activities.

To learn more about the class, you can watch this short video with Sarah Jane Maxted from the U.S. Cluster Mapping Project. Sarah Jane talks about the tool itself and what skills attendees can expect to take away from the training.

The first class takes place in Boston on June 25, then is presented a second time in Sacramento on July 29, paired with a second day of learning on July 30, The Basics of Economic Impact Analysis.

Check the C2ER training page for details, agenda, and registration.