1 A Review of State Economic Development Programs Legislative Audit Bureau August 2006.

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Presentation transcript:

1 A Review of State Economic Development Programs Legislative Audit Bureau August 2006

2 Scope of Effort u We identified 152 economic development programs u Eight state agencies are involved in administering these programs u The Department of Commerce is the lead agency for economic development

3 Expenditures and Staff u State agencies spent $152.8 million in the biennium u FTE staff worked on economic development as of June 30, 2005

4 Types of Assistance Provided

5 Targeted Programs

6 Duplication of Program Services u 34 programs provided assistance in purchasing fixed assets u 33 programs assisted businesses with operating expenses u 26 programs assisted with business planning u 26 programs assisted with marketing or promoting a business or product

7 Financial Assistance

8 Per Capita Grants and Loans

9 Development Zones

10 Measuring Results u Agencies report expected, rather than actual results u Project results are not consistently verified or compiled u Expected results may be double-counted

11 Recommendations to Commerce u Continue efforts to identify duplicative and outdated programs u Improve procedures for tracking and reporting actual results and long-term success u Improve tracking and reporting of development zone tax credits claimed u Provide additional information on the effectiveness of the Certified Capital Companies program u Report to the Joint Legislative Audit Committee by February 15, 2007

12 Other Agency Recommendations u We recommend that UW System and the Wisconsin Technical College System: –Designate an economic development liaison at each campus –Publish directories of their business assistance programs –Report to the Joint Legislative Audit Committee by February 15, 2007

13 Recommendations to the Legislature u Specify criteria for designation of future development zones u Establish clear, measurable goals to improve coordination u Reduce the number of programs by consolidating similar programs and eliminating inactive programs u Consolidate reporting requirements for state agencies u Improve transparency by making information more readily available to the public

14 A Review of State Economic Development Programs Legislative Audit Bureau August 2006