Proposed ED budget cuts from FY2015 state budget proposals
As data from the proposed FY2015 State Budgets is being released, C2ER has been updating the C2ER State Economic Development Program Expenditures Database. The proposed budgets provide information on eliminated programs and decreased funding for economic development financing, with many affecting small business development related programs. (Meanwhile, more than a dozen governors have announced new legislative and budget proposals to support workforce development efforts in their state.)
Back on February 12, we highlighted trends in CO, HI, and MD. Here are highlights from MA, WV, and TN:
- Massachusetts Gov. Deval Patrick’s FY 2015 Budget eliminates the Massachusetts Biotechnology Research Program, Microlending Program, Small Business Association Layoff Aversion Grant Program, and Massachusetts Workforce Professional Association. The Advanced Manufacturing Futures Program was eliminated because its entire FY14 funding came from one-time revenues.
- West Virginia’s FY 2015 Governor’s Proposed Budget recommends zero funding for multiple West Virginia Development Office programs in FY2015, including Leverage Technology and Small Business Development, Small Business Development, and Industrial Park Assistance, due to a decrease in General Revenue funding. Funding for Recreational Grants and Economic Development Loans was also removed entirely in FY2015.
- Tennessee Gov. Bill Haslam’s proposed FY 2015 Budget includes major funding reductions for Innovation Programs and Business Development Programs in the TN Department of Economic and Community Development. The Innovation Programs’ $10 million reduction between FY14 and FY15 is mainly due to reduced federal funding from the State Small Business Credit Initiative for the INCITE Co-Investment Fund, a venture capital program. Due to a complete elimination of funding from DECD Reserves, the state funding for Business Development Programs decreased nearly $10 million from FY14 funding levels.
For more information and updates, visit the C2ER State Economic Development Program Expenditures Database.