California Research Bureau, California State Library

California Research Bureau, California State Library

STATE GOVERNMENT
ECONOMIC DEVELOPMENT
PROGRAMS

By

Gus Koehler, Ph.D.
and
Costolino Hogan

(This issue summary will be updated from time to time.
Suggestions for subsequent editions would be gratefully received.)

November 26, 1996CRB-96-011

DIGEST

  1. CALIFORNIA'S ECONOMIC DEVELOPMENT PROGRAMS
    1. Research and Technology
    2. Product Development and Manufacturing Assistance
    3. Business Planning and Management
    4. Markets and Market Development
    5. Workforce Training
    6. Business/Government Relations
    7. Environmental Protection Technology
    8. Business Capital and Funding
  2. STATE GOVERNMENT ECONOMIC DEVELOPMENT PROGRAMS BY BUSINESS FUNCTION
    1. Product Development and Manufacturing Assistance
      1. Electric Car, Air Resources Board
      2. Energy Technologies Advancement Program, Energy Commission
      3. High Speed Ground Trains, Department of Transportation
      4. Office of Strategic Technology, Trade and Commerce Agency
      5. Project California, California Council on Science and Technology (CSST)
    2. Business Planning and Management
      1. Small Business Development Center Program, Trade and Commerce Agency

    3. Business/Government Relations
      1. Marketing and Advocacy Program, Trade and Commerce Agency
      2. Business Development, Trade and Commerce Agency
      3. Defense Conversion Unit, Office of Business Development
      4. California Film Commission, Trade and Commerce Agency
      5. Enterprise Zones, Trade and Commerce Agency
      6. Main Street, Trade and Commerce Agency
      7. Major Corporate Projects, Trade and Commerce Agency
      8. Office of Planning and Research, Governor's Office
      9. Regional Offices, Trade and Commerce Agency

    4. Business Capital & Funding
      1. Airport Assistance, Department of Transportation
      2. Alternative Energy Source Financing Authority
      3. Business and Industrial Development Corporations, Banking Department
      4. Community Development Block Grant, Department of Housing and Community Development
      5. Emergency Shelter Program, Department of Housing and Community Development
      6. Family Housing Demonstration Program, Department of Housing and Community Development
      7. Farm Energy Assistance Program, Energy Commission
      8. Cal. Industrial Development Financing Advisory Commission
      9. Mortgage Revenue Bond Program, Department of Housing and Community Development
      10. Pollution Control Financing Authority
      11. Office of Small Business Loan Program
      12. Repair Underground Storage Tank Program (RUST)
      13. Hazardous Waste Reduction Loan Program
      14. Rural and Urban Development Loan Program, Department of Housing and Community Development
      15. Small Business Energy Loan Program, Energy Commission
      16. Tax Credit Allocation Committee
      17. Urban Waterfront Area Restoration Financing Authority
    5. Markets & Market Development
      1. Agriculture Export Promotion Program, Food and Agriculture
      2. Energy Technology Export Program, Energy Commission
      3. International Trade and Investment, Trade and Commerce Agency
      4. California Export Finance Office, Trade and Commerce Agency
      5. Office of Export Development, Trade and Commerce Agency
      6. Office of Small and Minority Businesses, Department of General Services
      7. Division of Tourism, Trade and Commerce Agency
      8. Women and Minority Business Enterprise Clearinghouse, Public Utilities Commission
    6. Environmental Protection Technology
      1. Office of Pollution Prevention and Technology Development, Department of Toxic and Substances Control
      2. Office of Environmental Health Hazards Assessment, California Environmental Protection Agency


STATE GOVERNMENT AND CALIFORNIA UNIVERSITY ECONOMIC DEVELOPMENT PROGRAMS

DIGEST

Economic development is a process that state and local governments and private organizations engage in to stimulate or maintain business activity and create good jobs. California state government currently operates 84 economic development programs administered by 30 departments. In addition, the state's institutions of higher education have numerous programs. The large number of programs, dispersed throughout California state government, can be confusing to the analyst and the businessperson. It suggests the complex and imprecise nature of economic development processes, a certain amount of confusion over the best mechanisms to achieve economic growth and a correspondingly scattered public policy response.

This issue summary uses eight functional categories to conceptually organize this large and varied group of state programs:

State programs are grouped by these categories in Tables 2 and 3 and are described in detail in the last section of this report. Whenever possible, the following information is provided for each program: contact person, purpose, budget, funding source, number of personnel years (PYs), clients, service delivery, and program effectiveness. The California Research Bureau is appreciative of the assistance provided by the state program managers in gathering this information. Due to the considerable time lag in collecting data, program information is for FY 1995-96. Additional information is available on the California Home Page on the Internet at http://www.ca.gov.


CALIFORNIA'S ECONOMIC DEVELOPMENT PROGRAMS

Economic development is a broad and imprecise topic. For this reason there are many different interpretations about which government programs should be included under its rubric. In the largest sense, all programs which enhance the quality of life and contribute to public infrastructure and an educated citizenry are necessary for economic development. But the phrase is usually used to refer to a narrow set of programs which assist businesses to find capital, develop products, improve manufacturing processes, train and place workers, and successfully market products. Examples of programs that help this process include: research and technology development, venture capital funds, small business incubators, workforce preparation and placement, and marketing assistance. The economic development programs included in this catalogue carry out these activities.

This issue summary examines 42 state government programs in 18 agencies which directly address problems of business management, manufacturing improvement, workforce training and business retention, formation, and attraction. Special task forces which address specific problems such as environmental permitting are not included. Other programs, such as those located in the Youth Authority, are concerned with rehabilitation more than with economic development and are also excluded from the study.

Other reviews have identified varying numbers of associated programs, an indication of the loosely defined nature and only partially understood processes of economic development. In 1990, the Senate Advisory Commission on Cost Control in State Government identified 77 state economic development programs. The Assembly Office of Research counted 125 in 1993, including 26 University of California economic development programs. Neither study included the 27 commodity boards that promote agricultural products (nor are the boards discussed in this paper).

The following information is provided for each state government program: purpose, budget, funding source, number of person years (PYs), clients, service delivery method, program activity (if available), and a contact person and telephone number. Program information was gathered by interviewing program managers.

The large and varied number of agencies and programs is confusing for policy makers and analyst, not to mention the businessperson. To facilitate analysis, the following program categories are based on key business functions. They are directly related to how businesses form and carry out their activities.

Over thirty state agencies administer economic development programs in these seven categories.

Programs Listed by Business Function and Categories
TABLE 1
State Agencies with Economic Development Programs*
*Abbreviations identify departments in Tables 2 and 3.
Air Resources Board (ARB)
Alternative Energy Source Financing Authority
Department of Aging (DA)
Banking Department (B)
Community Colleges (CC)
California Conservation Corp. (CCC)
California Council on Science and
Technology (CCST)
California State University System
Department of Economic Opportunity (EO)
Department of Education (E)
Employment Development Department (EDD)
California Energy Commission (EC)
California Environmental Protection
Agency (CEPA)
Department of Food and Agriculture (FA)
Department of Economic Opportunity(EO)
Department of General Services (GS)
Governor's Office (G)

Department of Housing and Community
Development (HCD)
Industrial Development Financing Advisory
Commission
Department of Industrial Relations (IR)
Office of the Lieutenant Governor (LtG)
Military Department (MD)
Pollution Control Financing Authority
Public Utilities Commission (PUC)
Department of Social Services (SS)
California Tax Credit Allocation Committee
Department of Transportation (T)
Trade and Commerce Agency (TC)
Department of Toxics and Substances
Control (TSC)
Urban Waterfront Area Restoration
Financing Authority
University of California School System

The following two tables list the state's economic development programs by business function category. Ranking the categories with the highest number of programs to the lowest leads to the following results:

1. Research and Technology: 118 programs (all U.C. and C.S.U.)[+]
2. Workforce Training: 20 programs [[daggerdbl]]
3. Business Capital and Funding: 17 programs
4. Business/Government Relations: 9 programs
5. Market and Market Development: 8 programs
6. Product Development and Manufacturing Assistance: 5 programs
7. Environmental Protection: 2 programs
8. Business Planning and Management: 1 program

TABLE 2
Economic Development Programs by Business Development Categories
(Note: Each program is followed by the initials of its department, as abbreviated in Table 1.)
Research & Technology Product Development & Manufacturing Business Planning & Management Markets & Market Development
California State University System (28 programs) Aerospace Supplier Improvement Program (CC) Small Business Development Center Program (TC) Agriculture Export Promotion Program (FA)
University of California (88 programs) California Manufacturing Excellence Program (TC) Small Business Marketing Program (TC) Business Enterprise Clearing House for Women and Minorities (PUC)

California Manufacturing Technology Center (TC) Workplace Learning Resources (CC) CAL-Mexico Affairs (TC)

Centers for Applied Competitive Technology (CC)
Centers for International Trade Development (CC)

Defense Industry Conversion Matching Grant Program
Energy Technology Export Program (EC)

Electric Car (ARB)
International Export Development Program (TC)

Energy Technologies Advancement Program (EC)
International Foreign Investment (TC)

High Speed Ground Trains (CT)
International Trade Offices (TC)

Project California (CST)
International Trade & Investment Program (TC)
(export)

PVA Appropriation for Federal Technology Match (TC)
Team California (TC)



Tourism Marketing Program (TC)



TABLE 3
Economic Development Programs by Business Development Categories
(Note: Each program is followed by the initials of its department, as abbreviated in Table 1.)
Business/Government Relations Environmental Protection Technology Business Capital & Funding Workforce Training[*]
Business Development (TC)

Examples:
Business Incubators
Community Assistance Program
Enterprise Zones
Main Street
Access to Environmental Information (CC) Airport Re-use Assistance (T) Adult Education & Vocational Education (E)
Alternative Technology Division (TSC) Alternative Energy Source Financing Authority ApprenticeshipTraining (IR)
Siting and Standards (TSC) Business & Industrial Development Corporation (B) Community Services (ED)
Environmental Technology Partnership (EPA,TC) California Loans for Environmental Assistance (TC) Dislocated Workers Program (EDD)
Commission on Economic Development (LtG) Office of Environmental Health Hazards Assessment
(CEPA)
Capital Access Program (PC) ED>Net (CC)
Council on California
Competitiveness (G)
Community Development Block Grant (HCD) Employment Training Program (EDD)
Film Commission Programs:
Shooting Site Selection, Permit Streamlining and Film Location Library(TC)
Planning and Environmental Analysis (TSC) Community Loan Guarantee Program (PC) Extended Veterans Services (EDD)
Waste Reduction (TSC) Conventional Loan Guarantee Program (PC) Food Stamp Employment and Training Program (SS)
Growth Management Council (TC)
Emergency Shelter Program (HCD) Greater Avenues for Independence (SS)
Major Corporate Projects (TC)
Family Housing Demonstration Program (HCD) Innovative Military Projects and Career Training (MD)
Office of Planning and Research: Base Closure (G)
Farm Energy Assistance Program (EC) Job Agent Program (EDD)
Permit Assistance (TC)
Industrial Development Financing Advisory Commission Job Service (Wagner-Peyser 90%) (EDD)
Pollution Prevention, Public & Regs. Assistance
Mortgage & Revenue Bonds & Purchase Assistance (HCD) Job Service Discretionary Funds (Wagner-Peyser 10% Projects) (EDD)
California Environmental Resources Evaluation System
Pollution Control Financing Authority Job Training Partnership (EDD)


Rental Housing Construction Program (HCD) Senior Community Service Employment (DA)


Rural & Urban Development Loan Program (HCD) Service Center Program (EDD)


Small Business Energy Loan Program (EC) State Education Coordination Grants(EDD)


Small Business Loan Program (Direct) (TC) Summer Youth Employment and Training (EDD)


Small Business Loan Program (Loan Guarantees) (TC) Training/Work Program (CCC)


State Assistance For Enterprise (B) Vocational Education(CC)


Tax Credit Allocation Committee


Underground Storage Tank Loan Program (TC)


Urban Waterfront Area Restoration Financing Authority




STATE GOVERNMENT ECONOMIC DEVELOPMENT PROGRAMS BY BUSINESS FUNCTION

PRODUCT DEVELOPMENT AND MANUFACTURING ASSISTANCE

Electric Car Program
Air Resources Board, Mobile Source Division

Contact Person: Jack KitowskiTelephone Number:818-350-6408

Purpose: The Mobile Source Division determines the progress that the state is making to meet the requirements of the 1990 vehicle emissions standard adopted by the Air Resources Board, to lower emissions standard for cars. A second objective is to assist agencies, local fleets and others to use electric cars to meet national air quality standards, particularly in Los Angeles.

Budget: $550,000 for the Electric Car Program in FY 1995-96.

Funding Source: State Funds (Motor Vehicle Account).

Number of PYs: 4

Clients: The public, guaranteed agencies, private fleets, electric car manufacturers and the battery industry.

Service Delivery: Regulations are developed and enforced to improve air quality and promote better use of technology.

Program Activity: Studies show an improvement in air quality of major California urban areas, particularly in the Los Angeles basin, due in part to standards adopted 10 years ago. Effects on air quality due to the implementation of new standards are just beginning to show and will be more visible in 2010 or 2020.

Energy Technologies Advancement Program
Energy Commission

Contact Person: George SimonsTelephone Number: 916-654-4659

Purpose: Co-funds research, development, and demonstration of cost effective and/or efficient energy technologies. The program provides research contracts and loans to California businesses to accomplish this goal. Applicants must provide 50 percent of the funding. Loans must be repaid regardless of project outcome. Repayment of research contracts is tied to royalty agreement conditions.

Budget: $1.4 million worth of contracts were awarded in FY 1994-95. Up to $2.3 million in contracts were awarded in FY 95-96.

Funding Source: Petroleum Violation Escrow Account and Energy Resources Policies Account

Number of PYs: 9

Clients: Small businesses who are alternative energy equipment manufacturers, local jurisdictions, universities, and national laboratories.

Service Delivery: Requests for Proposals are sent to previous clients. Public advertisements of the RFP are placed in local newspapers in accordance with state policy.

Program Activity: Since 1984, $19 million has been awarded for 58 loans.

High Speed Train Program
Department of Transportation

Contact Person: Dan LeavittTelephone Number: 916-324-1541

Purpose: To study the potential and feasibility of high speed trains connecting Los Angeles to San Francisco via the California Central Valley (After the first phase of construction this might include stops in Bakersfield, Fresno, Modesto, Tracey and into S.F. through Pleasanton). This transportation technology has been adopted by the State of California as an economic development priority.

Budget: $340,000 proposed for FY 1996-97

Funding Source: General Fund

Number of PYs: 4 proposed

Clients: Consultants, construction firms, and manufacturers of high speed train rolling stocks.

Service Delivery: The feasibility for the various links would be determined by studies of ridership, financial feasibility, and corridor analysis. A consortium franchise would undertake development of the project. The Department would evaluate proposals.

Program Activity: The program is in the development stage and has not established measures of activity.

Office of Strategic Technology
Trade and Commerce Agency

Contact Person: Steve JarvisTelephone Number: 818-568-3066

Purpose: Facilitates the formation of joint state/federal/academic/private sector partnerships and alliances to maximize the business creation potential of California's technological assets. Administers the Regional Technology Alliances in the Bay Area, Los Angeles and San Diego and the California Space and Technology Alliance based in the Central Coast. Works with defense industry companies to facilitate and support spin-off technology for commercial products. Works with federal laboratories and Cal EPA to develop and commercialize environmental technology.

Budget: $7.9 million for FY 94-95 in state funds

Funding Source: General Fund, Federal and private industry match

Number of PYs: 7

Clients: California's universities and businesses

Service Delivery: Challenge grants are awarded to industry/university partnerships, small business, and large business consortia.

Program Activity: See legislative report on program effectiveness located on Internet at http://www.cal.gov/commerce.


Project California, Council on Science and Technology (CCST)

Contact Person: Susan HackwoodPhone Number: 714-442-7800

John Sterns, Director,
Project California
916-492-0996

Purpose: The Council on Science and Technology is a non-profit corporation formed by a Joint Resolution of the California Legislature with the support of the Governor. The Council works to:

Project California was launched in the summer of 1992 by the California Council on Science and Technology as a collaborative effort between the State of California, industry, labor and academia to develop globally competitive, high-technology clusters of transportation businesses in California. Budget: $4.207 million for FYs 1995-97

Funding Source: $1.72 million from federal government, $1.30 million from state government, and $1.187 million from the private sector

Number of PYs: 5

Clients: Private industry and state government

Service Delivery: Program information is made available through forums, conferences, and presentations to private groups. The implementation program consists of nine initiatives:

Program Activity: No precise measures of activity have been devised by program staff.



BUSINESS PLANNING AND MANAGEMENT

Small Business Development Center Program
Office of Small Business
Trade and Commerce Agency

Contact Person: Kim NeriTelephone Number: 916-324-1295

Purpose: Through local centers, the program provides small businesses with the following services: business planning and management assistance; marketing advice; help with expanding into international markets; assistance with obtaining and developing economic and business data; assistance with access to capital; permits and licensing assistance; and access to other pertinent federal, state, or local programs.

Budget: $12 million in FY 1995-96

Funding Source: $2.3 million State General Fund, $5.9 million federal Small Business Administration, $1.5 million from the Community College Chancellor's Office, and $2.1 million local and in-kind match.

Number of PYs: 7

Clients: Small businesses

Service Delivery: There are 28 Small Business Development Centers (SBDCs), with an additional 17 satellite locations throughout the state, that contract on a yearly basis to provide specific services. While all SBDCs provide general business assistance services, each center develops its own targeted services to address local business issues. For example, SBDCs that have programs to address military base closure and defense conversion are: Inland Empire, Valley Sierra, Orange County, Southern California, Gavilan College, Cabrillo College, and Greater Sacramento.

Program Activity: In 1995, 16,873 small businesses received 93,924 hours of counseling. Nearly 1,500 training events were held, with 28,182 people in attendance. Center clients reported 3,444 jobs created and 7,842 jobs retained. The types of businesses served were as follows: service, 47 percent; retail, 23 percent; manufacturing, 11 percent; wholesale, 8 percent; construction, 3 percent; agriculture, 2 percent; and, other, 6 percent. Staff is completing a data base information system that will electronically track additional economic impact data.



BUSINESS/GOVERNMENT RELATIONS

Marketing and Advocacy Program
Office of Small Business
Trade and Commerce Agency

Contact Person: Koki TanakaTelephone Number: 916-323-9881

Purpose: The program serves as an advocate for small businesses, including making recommendations on legislation and regulations. Specific assistance is provided to small businesses on a variety of matters such as problems they may encounter with state agencies or licensing requirements. The program markets agency programs to small businesses.

Budget: $250,000 for FY 1995-96

Funding Source: General Fund

Number of PYs: 5

Clients: Small businesses

Service Delivery: The program organizes and participates in small business conferences, seminars and workshops throughout the year to market small business programs. It also publishes reports, handbooks, brochures and other material in hard copies and through the Internet. The Help Line toll free number (1-800-303-6600) operates as an automatic interactive phone service which provides information on 50 different subjects such as federal and state loans, state procurement, management and technical assistance, certification and registration and available publications.

Program Activity: The Help Line receives an average of 1000 calls per month. Of these about 950 calls are handled by the automated system with no staff intervention. An average of 50 callers leave messages monthly that require staff assistance. An additional 150 calls are received monthly outside the automated system for which analysts in the office provide assistance.

In 1994-95, the office distributed over 20,000 brochures, annual reports and other publications through mailings and 18 conferences. At the end of FY 1995-96, the program organized or participated in 24 conferences with over 30,000 attendees. The program expected to distribute more than 25,000 brochures and other publications in 1995-96.



Business Development
Trade and Commerce Agency

Contact Person: Pat NoyesPhone Number: 916-322-1502

Purpose: This Office administers many programs through its Local Development, Defense Conversion, and Enterprise Zone units. Program responsibilities include defense industry conversion and military base reuse; tax and other business incentives; bond financing; rural infrastructure; and federal public finance issues. The office also provides staff for the California Defense Conversion Council.

Budget: $2,762,290 in FY 1995-96

Funding Source: General Fund, Federal Trust Funds, Federal Economic Development Grant and Loan Program Fund, Federal Rural Economic Development Fund, California Economic Development Financing Authority Fund.

Numbers of PYs: 12 distributed across 8 programs.

Clients: Local governments, non-profit organizations, and small, medium and large businesses.

Service Delivery: Services include:

Activities include the Main Street Program, Team California, Public Finance, Rural Economic Development Infrastructure Program, Sudden and Severe Economic Dislocation Loan Program, Old Growth Diversification Loan Program and the California Economic Development Financing Authority.

Program Activity: Program evaluation measures are being developed.


Defense Conversion Unit
Office of Business Development
Trade and Commerce Agency

Contact Person: Paul HillerPhone Number:(916) 322-3498

Purpose: The Defense Conversion Unit is responsible for the following:

Budget: $1,080,000 in FY 1995-96

Funding Source: General Fund; grants from the Department of Defense, Office of Economic Adjustment and the U.S. Department of Commerce, Economic Development Administration; and state funds from the Economic Development Grant and Loan Program.

Number of PYs: Four permanent and four limited term positions.

Clients: Defense-impacted communities, including communities with closing military bases.

Service Delivery: The Trade and Commerce Agency Bay Area and Los Angeles Regional Offices provide technical assistance to impacted communities. The state agencies that are members of the Defense Conversion Council provide a network to assist on defense conversion issues. The CEDAR Internet information system provides an on-line library on defense conversion for businesses, communities and workers.

Program Activity: Approximately $1.5 million in California Defense Adjustment Matching Grant awards were made to 19 applicants during 1993-94 fiscal year, another $1 million was awarded to 14 applicants in fiscal year 1995-96. State funding leveraged more than $2.6 million in local funds and $9.0 million in federal support for local reuse planning and implementation initiatives.


California Film Commission
Trade and Commerce

Contact Person: Pamela PowellPhone Number: 213-736-2465

Purpose: The Commission is responsible for promoting, increasing, and retaining the production of motion pictures, television programs, and commercials within the state. The Commission provides a variety of film location assistance including site development and permit assistance. The Commission also works with local communities to encourage the development of local film production programs.

Budget: $848,000 for FY 1994-95.

Funding Source: General Fund.

Number of PYs: 8

Clients: Film production companies, commercial TV producers, amateur photographers, and anyone wanting to know about film-making.

Service Delivery: The Commission's library, located in Hollywood, provides resource reference materials that clients and potential clients can access and use in the development of a film product. The Commission also works with local governments to facilitate film production.

Program Activity: The Commission issued a record number of permits for filming on state-owned and operated property during 1995: 1642 permits covering 2866 days of filming , an increase of more than 14 percent from 1994, and 39 percent in 1993. The commission offers low cost service to film makers and can issue a permit for a production crew in as little as 24 hours.


Enterprise Zones
Trade and Commerce Agency

Contact Person: Patrick NevisPhone Number: 916-324-8211

Purpose: To spur business investment and job creation in economically-depressed areas of California by providing public-sector incentives to attract private-sector companies.

Budget: $286,000 in FY 1995-96

Funding Source: General Fund.

Number of PYs: 4

Clients: Companies located within Enterprise Zones

Service Delivery:

Tax credits and benefits to qualified companies include:

Many Enterprise Zone Communities also offer several of the following local incentives:

Program Activity: Questions abound concerning the effectiveness of Enterprise Zones in California and elsewhere. Despite numerous studies, it has not been possible to establish a direct correlation between the incentives offered by the programs and an increase in jobs or investment. This is due to many factors, but usually because this program is only one of many that a business is able to use.

Nevertheless, there are data to suggest that Enterprise Zones in California are effective in helping to revitalize distressed areas. For example, a November 1995, study by the California State Auditor found that in 19 of 25 Enterprise Zones job growth outperformed that in the surrounding county.


Main Street
Trade and Commerce Agency

Contact Person: Keith KjelstromPhone Number: 916-322-3536

Purpose: To provide technical assistance and training to towns and cities seeking to revitalize their downtown areas. Activities include stimulating business reinvestment, rehabilitating older buildings, retaining existing businesses, and promoting new business starts.

Budget: $200,000 in FY 1995-96

Funding Source: $125,000 from the General Fund and $75,000 from the State Rural Economic Development Infrastructure Program. Cities pay for staff to implement their own projects.

Number of PYs: 2

Clients: During the program's first ten years, it primarily targeted small communities of less that 50,000 people. Recent designations of official California Main Street cities include communities of all sizes. Currently 40 cities participate in the program.

Service Delivery: Technical assistance and training is provided. The program emphasizes organization, design, promotion, and economic restructuring to achieve economic recovery. Services are provided on-site, at regional conferences, and through a quarterly newsletter and other publications

Program Activity: Staff track job creation, business starts, and the amount of private investment made in the community as indicators of the success of the program. Statistics gathered in March 1996, show the following for the 40 cities aided by the program.


Major Corporate Projects
Trade and Commerce Agency

Contact Person: Leslie BridgemanPhone Number: 916-322-7371

Purpose: Much of the business retention, attraction, and expansion activities in California occurs simultaneously in multiple areas, which requires central coordination by the Office of Major Corporate Projects. The Office works in conjunction with the Agency's Regional Offices on major projects. These major projects, which usually require a "Red Team", typically involve multi-million dollar investments and Fortune 500 corporations. Through its participation in the International Development Research Council (IDRC), the Office has developed excellent relationships with major corporate decision-makers throughout the United States.

Budget: $231,000 in FY 1995-96

Funding Source: General Fund

Number of PYs: 1.5

Clients: Major corporations

Service Delivery: Direct personal contact with Fortune 500 companies is maintained on a regular basis. The IDRC is a key element in developing project proposals.

Program Activity: Major focus is on retaining California companies and attracting new investment to the State. MCP also coordinates California business missions to the East Coast each year.


Office of Planning and Research,
Growth Management Council, and Council on California Competitiveness
Governor's Office

Contact Person: Lee GrissomTelephone Number: 916-322-0514

Purpose: The Governor's Office of Planning and Research (OPR) conducts research on State issues and provides policy planning guidance to the Governor on a wide range of topics. OPR advises applicants and government agencies on provisions of the California Environmental Quality Act, and operates the State Clearinghouse for environmental and federal grant documents. The Office coordinates military base closure policy for the administration.

The Council on California Competitiveness advises the Governor on ways to remove barriers to economic growth and increased state revenues. The Council's study, "California's Jobs and Future", analyzed the state of California's economy, in 1992.

The Growth Management Council, created by Executive Order in 1991, is composed of the Agency Secretaries and Department Directors whose responsibilities (business, transportation, housing, health and welfare, finance, environmental protection and resources) are critical to how the State manages growth. A 1993 report discusses managing California's growth, "Strategic Growth: Taking Charge of the Future".

Budget: $3.870 million in FY 1994-95 for the Governor's Office of Planning and Research which supports these activities.

Funding Source: $2.9 million General Fund, $459,000 Property Aquisition Law Recovery Account, and $412,000 Reimbursement from other state agencies (for example, base closure consulting). OPR's Office of Asset Management is funded by leasing of state properties.

Number of PYs: The entire staff of the Office of Planning and Research is composed of 55 members. These two specific councils are inactive and have no staff assigned to them.

Clients: The Governor and other policy makers

Service Delivery: Publishes reports on key issues.

Program Activity: Measured by the usefulness of reports and services to clientele.


Regional Offices
Trade and Commerce Agency

Contact Person:Telephone Number:
San Francisco Bay Area:
Los Angeles:
Sacramento:
San Diego:
Tina Frank
Laurel Shockly
Richard Machado
Judy Jarvis
(408) 277-9799
(818) 683-2616
(916) 322-5665
(619) 645-2657

Purpose: To work with local economic development organizations and other government agencies to retain existing businesses and attract new business to California.

Budget: $2.5 million for FY 1994-95.

Funding Source: General Fund.

Number of PYs: 29

Clients: Medium to large businesses and local economic development agencies.

Service Delivery: There are four offices, located in San Diego, Los Angeles, San Jose, and Sacramento. They provide one-to-one problem solving, site location and ombudsman services to companies interested in locating or expanding in California. Information provided includes tax benefits, identification of financial assistance, employment and training resources, and other incentives.

Program Activity: According to the agency, each year over 100 businesses have been attracted to, or retained in, California due to the efforts of the Regional Offices. This has resulted in several thousand new jobs for California.



BUSINESS CAPITAL AND FUNDING

Airport Assistance
Aeronautic Program, Department of Transportation

Contact Person: Marlin BeckwithPhone Number: 916-322-9941

Purpose: To foster and promote the development of a safe, efficient, and dependable air transportation system.

Budget: $11 million for FY 1995-96 ($8.5 million Aeronautics Account; $2.5 million Local Airport Loan Account).

Funding Source: State tax on fuel; interest/principal on loans administered by the program.

Number of PYs: 30

Clients: Public agencies which operate public use airports.

Service Delivery: Issues permits and annually inspects heliports and public-use airports; makes recommendations regarding proposed school sites within two miles of an airport runway; and authorizes helicopter landing sites near schools. Provides for the integration of aviation into regional and national transportation system planning. Produces studies and projections of supply and demand for airports. Administers noise regulation and land use planning laws that foster compatible land use around airports and encourage environmental mitigation measures. Publishes the Airport Land Use Planning Handbook.

Provides grants and loans for safety, maintenance, and capital improvements projects at airports. There are three grant programs:

Approximately $2.5 million is available each year for discretionary grants, $2.5 million for loans, and $1.4 million for state matching of federal grants.

Program Activity: In FY 1994-95, 145 Annual Grants were provided to airports, as well as 18 discretionary grants and 16 loans. The federal matching program awarded its first grant in June 1995.


Alternative Energy Source Financing Authority

Contact Person: Keith SeegmillerPhone Number: 916-654-5610

Purpose: The program emphasizes projects that are energy-related and qualify for federal tax exempt revenue bonds. The Authority issues revenue bonds, enters into loan agreements to finance projects, and assists small businesses in locating funding sources for projects not approved by the Authority.

Budget: $110,000 for FY 1995-96.

Funding Source: Self generating from fees and new bonds.

Number of PYs: 2

Clients: Large and small businesses.

Service Delivery: The Alternative Energy Financing Authority is authorized to issue up to $200 million in revenue bonds to finance alternative energy projects. The debt is paid by the companies who borrow the money. Industries may use bond funds to finance the construction and installation of alternative power generation and other energy sources. Since the Federal Tax Reform Act of 1986, projects over $10 million are generally not eligible for financing using federally tax-exempt bonds.

Program Activity: As of Sept. 30 1996, $174,845,000 in bonds had been sold. Nineteen projects were funded, ranging from $30 million to $800,000. Each project had to provide an alternative to fossil fuels. The last major project involved the construction of the Arroyo Energy co-generation facility near San Diego, California in October 1993, at cost of $55 million.


Business and Industrial Development Corporations and
the State Assistance Fund for Enterprise
Department of Banking

Contact Person: James BrodieTelephone Number: 415-263-8575

Purpose: Business and Industrial Development Corporations (BIDCOs) are privately-funded, state-licensed lending institutions. They pool public and private resources and share risks to grant low-interest, long-term loans to small businesses (principally federal Small Business Administration loans). A BIDCO may also purchase equity in a small firm. The Banking Department regulates BIDCOs by licensing and auditing them. There are four BIDCOs in the state. It has not been profitable to start a BIDCO in the last few years because BIDCO cannot take additional deposits to support new loans after the initial capitalization has been lent due to a change in their enabling state legislation.

The State Assistance Fund for Enterprise is a state government non-profit BIDCO (SAFE/BIDCO). Its purpose is to:

The SAFE/BIDCO makes SBA-guaranteed loans to businesses that are a good risks but cannot obtain a loan from a bank. The SAFE/BIDCO must ensure that its reserve fund is sufficient to cover all expected obligations arising from small business loan defaults.

Budget: No government funding after start up. The SAFE/BIDCO was capitalized in 1977 with $1.5 million from the General Fund, $1 million from the Energy Resources Program Account, and $1.5 million from the Petroleum Violation Escrow account. No additional allocations have been made from these sources.

Funding Source: Private corporations establishing a BIDCO. State funds capitalized for the SAFE/BIDCO.

Number of PYs: None for BIDCOs. Three for SAFE/BIDCO.

Clients: Small businesses.

Service Delivery: Loans are provided through four regional corporations: one in Santa Rosa, and three in Los Angeles.

Program Activity: The only operating BIDCO in the state is a SAFE/BIDCO agency in Santa Rosa, California. It should be noted that SAFE/BIDCO was established by the Legislature to perform the activities of a regular BIDCO for the public sector, administering public funds and services. It operates as a quasi-public/non-profit entity restricted by laws pertaining to both BIDCOs and Offices of Small Business. In short, it is a special type of BIDCO in that it is a public agency and not a private group of lenders.

In the fiscal year 1995-96 the Santa Rosa SAFE/BIDCO closed 41 loans totaling $2,114,156. Six other loans were closed that involved action not traditionally apart of SAFE/BIDCO financial services. These totaled $113,500 and the agency provided full staff support as well as monetary resources.

In the past, services of regular BIDCOs have been absorbed by banks or have gone out of business.


Community Development Block Grant
Department of Housing and Community Development

Contact Person: Bill PavailTelephone Number: 916-327-8887

Purpose: Provides federal grants to local communities to finance housing rehabilitation, public facilities and community development projects. Planning and technical assistance grants are also available. At least 51 percent of grant funds statewide must be used for housing programs, 30 percent for economic development activities, and 10 percent for planning and technical assistance. Grants can be used as a local match for other federal economic development programs.

Budget: $43,254,000 for FY 1994-95.

Funding Source: Federal block grant funds.

Number of PYs: 12

Clients: Cities under 50,000 population and counties under 200,000 population. Larger jurisdictions receive direct funding from the U.S. Department of Housing and Urban Development.

Service Delivery: Requests For Proposals are sent out to cities, counties and consultants on a continuous basis. Grant and planning technical assistance is provided to communities that are seeking block grant funds for the first time.

Program Activity: Measures of activity include the number of responses to the Request for Proposals (RFPs) that are sent out and the number that successfully obtain funding from the program. Further measures of activity have not been developed.


Emergency Housing Assistance Program
Department of Housing and Community Development

Contact Person: Tom BettencourtPhone Number: 916-327 3649

Purpose: Provides emergency grant funds to emergency shelter providers for homeless individuals and families.

Budget: $2 million for FY 1994-95.

Funding Source: Emergency Housing Assistance Fund.

Number of PYs: 7

Clients: Local government agencies and non-profit corporations that shelter the homeless on an emergency basis. Shelters must provide staff and support services to residents.

Service Delivery: Each county receives a grant allocation. Twenty percent of the total allocation is made available to non-urban counties. In some counties, an authorized local board of shelter service providers may distribute, rank, and prioritize applications for funding. Final award confirmation is made by Department of Housing and Community Development. Where no local board exists, applications are submitted directly to the State. Grants are made for rehabilitation, renovation, expansion of existing facilities, site acquisition (including lease or purchase of an existing site or facility), equipment purchase, vouchers, and administration of the award (limited to no more than five percent of a single award).

Program Activity: The department does not have sufficient staff to maintain a database would connects the grants administered by the program to various shelters. Staff state that the program has offered 430,000 person/shelter/days of service over the life of the program. (The statistical unit of person/shelter/days describes one homeless person being served in a shelter for one night.)

Family Housing Demonstration Program
Department of Housing and Community Development

Contact Person: Russ SchmunkTelephone Number: 916-327-2867

Purpose: Provide low interest, deferred loans to low-income families for new affordable rental or cooperative housing that provides on-site support services.

Budget: $15 million for FY 1994-95

Funding Source: General Obligation Bonds of 1988.

PYs: 2.5

Clients: Local government agencies and non-profit housing development organizations.

Service Delivery: Applications for loans are submitted through a Request For Proposal (RFP) process. The applications are rated and ranked by the Department's loan unit. Loans are made and limited partnerships are entered into with low income families.

Program Activity: Program activity for the life of the program stands as follows.


Farm Energy Assistance Program
Energy Commission

Contact Person:Ricardo Amon
Liz Boynton
Telephone Number: 916-654-4019
916-654-4089

Purpose: This program conducts market research to assess the potential for energy efficiency gains in the agricultural sector. The program funds applied research demonstration projects designed to monitor and evaluate targeted technologies and farming practices, promotes technology implementation by providing direct low-interest loans, and develops educational materials and instructional tools to support the delivery of training courses and field days.

Budget: $640,000 in loan funds for FY 1996-97 and 1997-98;

$100,000 in technical assistance for FYs 1996-97 and 1997-98.

Funding Source: Petroleum Violation Escrow Account

Number of PYs: 2

Clients: The program assists farmers who are engaged in the production of food and fiber, diary producers, cattle ranchers, greenhouse businesses and irrigation districts.

Service Delivery: Loan funds are available through a competitive Request for Proposals process. Technical assistance is provided to loan recipients to monitor and evaluate project results. Educational materials are available from project sources. Training courses are delivered throughout the state. Information about current projects can be accessed via Internet Home Page at http://www.sarep.ucdavis.edu/aeap.

Program Activity: Program participants have received 39 grants and 70 loans to install new technologies, develop management skills and test alternative farming practices. Participants have benefited from direct cost savings. Many have attended program-sponsored training courses, and some have been involved in designing, supplying, and installing irrigation systems funded by program loans. Other benefits result from loan fund infusions into the rural economy, including new revenues to equipment manufacturers and dealers, seed and input suppliers, and consultants and skilled workers. The agricultural sector benefits from the improved knowledge level of those designing, producing, and managing energy systems.


California Industrial Development Financing Advisory Commission

Contact Person: Joanie Jones-KellyPhone Number: 916-653-3843

Purpose: The Commission was created by the California Industrial Development Financing Act in 1980. The Act allows cities and counties to establish Industrial Development Authorities which are empowered to issue Industrial Development Revenue Bonds (Private Activity Bonds) under terms and conditions specified by the Commission. The proceeds of the bonds provide industry with an alternative method of financing the capital outlay required to acquire, construct or rehabilitate facilities. Bonds are subject to the State's "private activity" bond ceiling, as specified in the Federal Tax Reform Act of 1986 and allocated by the California Debt Limit Allocation Committee.

Budget: $205,000 for FY 1994-95.

Funding Source: Fees collected from applicants for financing under the Act.

Number of PYs: 1.5

Clients: Cities and businesses.

Service Delivery: Businesses apply through local Industrial Development Authorities. Commission staff review projects to determine financial viability and to ensure that a manufacturing activity is involved. There is currently a waiting list of companies. Federal sunset legislation has ended the program several times over the past three years. For example, the program ran for nine months in 1991 and six months in 1992. This intermittent activity has hindered the program's usefulness by creating uncertainty and impeding planning.

Program Activity: The program is intended to increase jobs in California. Thrity million dollars in bonds were sold in 1992. Loss of the federal tax exemption and the closure and then re-establishment of the program kept bond sales down. In contrast, in 1985 sales reached the $350 million ceiling established at the time.


Mortgage Revenue Bond Program
California Housing Finance Agency

Contact Person: Dick SchermerhornTelephone Number: 916-322-1376

Purpose: Provides mortgage funds at below market interest rates to first time buyers for the construction and/or rehabilitation of homes and multiple family dwellings. Loans are sold at 1 percent below the conventional loan market rate, making them very attractive to home buyers.

Budget: $100 million for FY 1994-95, for multi-family structures; $500 billion for single family homes.

Funding Source: Private Activity Bond (non-governmental). The program is funded from fees which are included in the financing cost (and federal programming taxes).

Number of PYs: 134

Clients: Low and moderate income first-time home buyers and profit and non-profit housing programs sponsors.

Service Delivery: Mortgage and brokerage services for multiple dwelling purchases and underwriting service for single family homes.

Program Activity: 55,000 homes financed since the program began in 1975.


Pollution Control Financing Authority

Contact Person: Jim BulgrinTelephone Number: 916-654-5610

Purpose: The program was established to provide businesses with a method of financing pollution control facilities to comply with state environmental standards and regulations. Industrial firms and agricultural producers receive loans from the sale of Authority revenue bonds for the acquisition, construction, or installation of pollution control facilities.

The Federal Reform Act of 1986 constrained the ability of the Authority to issue tax-exempt bonds for private uses by imposing a ceiling on the total amount of tax exempt bonds which can be sold in each state. Thus the program must compete with other bond-selling agencies for debt allocation.

Budget: Self-supporting from fee revenues. Program was not able to provide exact budget information before printing.

Funding Source: Transaction fees and federal programming taxes.

Number of PYs: 10

Clients: Companies that have received financing include food processors, manufacturers, recreational facilities, waste disposal and resource recovery firms, metal platers, public utilities, and refiners.

Service Delivery: For the most part, bond financing is made available to relatively large, financially viable businesses. In recent years, funds have been made available to implement the California Solid Waste Management Act of 1989. Integrated waste management programs are expected to be a large component of future bonds due to federal tax law exceptions which do not limit the amount of bond sales for this purpose.

Program Activity: Bonds totaling $7.95 billion have been sold since 1974, when the agency was formed. Of this amount, $3.7 billion has been redeemed. Projects ranging from $75,000 to approximately $500 million (Diablo Canyon Nuclear Power Plant) have been financed.

Office of Small Business Loan Program
Office of Small Business
Trade and Commerce Agency

Loan Guarantee Program

Contact Person: Small Business Financial Development Corporations (SBFDC's) below:

Northern Sacramento Valley RegionCal Capital Corp.Sacramento916-442-1729

Northern Coastal RegionSAFE-BIDCO Corp.Santa Rosa707-557-8621

San Francisco Bay RegionBay Area Corp.Oakland
San Jose

510-450-1930
408-280-1820
Central Coastal RegionCalif. Coastal Corp.Salinas
Santa Barbara
Santa Maria

408-424-1099
805-562-9251
805-349-0798
Central California RegionValley Corp.Fresno
Bakersfield

209-271-9030
805-322-7889
Los Angeles Metro RegionHancock Corp.
Pacific Coast Corp.
Los Angeles
Los Angeles
213-382-4300
213-739-2999

Southern California RegionCal. Southern Corp.San Diego
San Bernardino
619-232-7771
909-384-9006

Purpose: The program provides loan guarantees to banks or other lenders that make loans to small businesses for revolving lines of credit, small loans, and agricultural loans. The guarantees are issued through the small business financial development corporations listed above. The program also provides management assistance and surety bond guarantees for businesses that compete for public works.

Budget: $2 million in FY 1995-96 for loan losses and $338,000 for administration of state operations. Any unused funds are transferred to the state Loan Guarantee Trust Fund. The program operated with a $33 million trust fund in 1995 to back up the guarantees issued.

Funding Source: General Fund

Clients: Small businesses

Service Delivery: Loan applications are generated and received by any of the eight Small Business Financial Development Corporations listed above.

Program Activity: The program issued 362 loan guarantees totaling $33.9 million to small businesses in 1995 and 334 loan guarantees totaling $36 million in 1994. As of December 1995, the 744 loan guarantees were distributed as follows: agriculture, 6 percent; construction, 9 percent; manufacture, 19 percent; wholesale, 10 percent; retail, 23 percent; service, 25 percent; and other, 8 percent.


Repair Underground Storage Tank Program (RUST)

Contact: Small Business Financial Development Corporations listed in the previous program description.

Purpose: The program provides direct low interest loans to small companies with underground storage tanks that need to be replaced or repaired. Banks typically will not loan on projects that carry a potential liability. The goal of the program is to keep independently owned small gas stations and other businesses in compliance with environmental requirements regarding underground tanks.

Budget: The RUST Program received $6.5 million in lendable funds for FY 1995-96.

Funding Source: State Petroleum Underground Storage Tank Fund. The money for this fund comes from a portion of taxes levied on petroleum purchases in California.

Clients: Small businesses

Service Delivery: Loan applications are generated and received by the eight Small Business Financial Development Corporations listed in the previous program description.

Program Activity: In 1995, the program funded 47 loans totaling $9,582,247. In 1994, the program funded 47 loans for $6,580,248. The program started in January of 1990, and to date it has funded 156 loans totaling $24,690,513. In 1996, the program is expected to fund 70 loans, for a total of $13,500,000.


Hazardous Waste Reduction Loan Program

Contact: Small Business Financial Development Corporations (see previous 2 program descriptions)

Purpose: The program provides loans to small businesses to install equipment that reduces hazardous solid waste. Hazardous waste recycling equipment or new processing equipment can be purchased with loan funds.

Budget: Funds are appropriated yearly from the continuing monthly loan payments. Approximately $750,000 was available in FY 1995-96.

Funding Source: Hazardous Waste Reduction Account which is funded by interest paid by borrowers.

Number of PYs: 1

Clients: Small businesses.

Service Delivery: Loan applications are generated and received by any of the eight Small Business Financial Development Corporations on page 28.

Program Activity: As of October 1996, the program has funded 73 loans totaling $5,273,000. In 1996, the program has funded 5 loans totaling $342,000 and 9 loans still in negotiation represent $534,000.


Rural and Urban Predevelopment Loan Program
Department of Housing and Community Development

Contact Person: Ray BulfordTelephone Number: 916-324-3785

Purpose: Provides predevelopment capital for new low-income housing projects. Eligible costs include site control, engineering studies, architectural plans, site fees, application fees, legal services, permits, bonding and site preparation. Loans are also made to purchase land for future low-income housing development.

Budget: $2 million in FY 1994-95

Funding Source: State funds including the Rural Predevelopment Loan Fund and Urban Predevelopment Loan Fund.

Number of PYs: 1

Clients: Non-profit corporations and local governments.

Service Delivery: Applicants submit requests for loans through a continuous application process. Loans are awarded by the Department of Housing and Community Development, Loan and Grant Committee.

Program Activity: The urban component of the program became inactive in 1994 due to lack of funds. Since the program's creation, the rural component assisted 6,176 units, including:

In fiscal year 1995-96, the program assisted 185 units of new-owner occupied housing.


Small Business Energy Loan Program
Energy Commission

Contact Person: Philip MisemerTelephone Number: 916-654-4552

Purpose: Provides low interest loans to purchase or demonstrate low energy use technologies. Demonstration projects offer an opportunity for companies who have developed an approved technology to market it.

Budget: $600,000 in FY 1995-96.

Funding Source: Petroleum Violation Escrow Account.

Number of PYs: 0.8

Clients: Small businesses.

Service Delivery: Requests for loans are solicited from businesses through newspaper advertising. Loans and demonstration projects are approved based on the likely success of the proposed project and on probable ability to repay the loan.

Program Activity: The program has made 15 loans and funded 9 demonstration projects. Available data suggest that increased employment and energy saving are a result. Examples of successful demonstration projects sited by the program include: wood waste recovery and burning to produce energy; micro-co-generation projects; and use of ice production machines to cool medium sized buildings.


Tax Credit Allocation Committee

Contact Person: Don MaddyTelephone Number: 916-654-6340

Purpose: The Tax Credit Allocation Committee was created in 1987. The Low Income Housing Tax Credit Program was established by the 1986 Federal Tax Reform Act to foster development of affordable single and multiple family rental housing.

Budget: $1.5 million for FY 1995-96.

Funding Source: Tax Credit Allocation Fees.

Number of PYs: 14

Clients: Profit and nonprofit developers and local independent housing authorities.

Service Delivery: Tax credits are provided to developers for affordable rental housing.

Program Activity: Since 1987, the Committee has provided tax credits to 888 active projects creating some 49,338 units of housing. In 1995, the program offset development cost on approximately $549,000,000 worth of development for 5,415 housing units. For the last 3 years, credit demand has exceeded the federally-established ceiling. The federal ceiling is calculated by using per capita dollar amounts issued by the IRS. The amount of tax credit for a state can be calculated by multiplying this per capita index by the population of a given state. For California the federal ceiling stands at approximately $39,000,000.

The urban core areas of Los Angeles city have received the most allocation awards, followed by Santa Clara. The cities of San Francisco, San Diego, and Sacramento have also been the beneficiaries of housing credits.


Urban Waterfront Area Restoration Financing Authority

Contact Person: Mark BeyelerTelephone Number: 510-286-4158

Purpose: The Authority can issue up to $650 million in revenue bonds to make loans, acquire property title, underwrite developments or directly undertake a variety of urban waterfront development projects.

Budget: FY 1995-96, no apportionment from the General fund. A small operating budget comes from the General Obligation Park and Recreation Bond.

Funding Source: Government Obligation Bonds proceeds. The federal TaxReform Act of 1986 required that bonds generally must not exceed the state's "private activity" bond limit of $10 million in order for the bonds to be federally tax-exempt, unless the issuer qualifies as a private, non-profit organization.

Number of PYs: 4 at the Coastal Conservancy.

Clients: Publicly and privately financed projects that provide visitor-serving facilities, waterfront-dependent industries, public recreation and erosion control facilities. The State Coastal Conservancy must approve both the project and a master plan for waterfront restoration.

Service Delivery: By application to the Authority.

Program Activity: $3.3 million in revenue bonds have been sold for the Santa Monica International American Youth Hostel. No other project has been carried out.



MARKETS AND MARKET DEVELOPMENT

Agricultural Export Promotion Program
Food and Agriculture

Contact Person: Seth HoytTelephone Number: 916-654-0389

Purpose: The program works with small agribusiness companies to market their products nationally and abroad. In 1989, the program offered matching grant funds to agribusinesses to finance a wide variety of promotional and marketing activities aimed at opening foreign markets to California agricultural products.

Budget: $23,000 for FY 1994-95.

Funding Source: General Fund and California Agriculture Export Account.

Number of PYs: 3

Clients: Small agricultural food producers and food processing companies, California agricultural industry marketers, and overseas buyers and importers.

Service Delivery: Staff provides promotional and marketing services.

Program Activity: Client input and feedback.


Energy Technology Export Program
Energy Commission

Contact Person: Tim OlsonTelephone Number: 916-654-4528

Purpose: The program markets California energy-generating products and other energy-related equipment to foreign countries. Possible projects can include power generating, methods for improving energy use efficiency, and resource development (oil and gas) within a 2 to 5 year time-frame. The program also provides loans from the International Energy Fund for feasibility studies and other activities directly related to a particular project. The borrower must match the funds and repay the loan when the project becomes profitable.

Budget: Approximately $600,000 for FY 1994-95. Funding sources are: Energy Resource Program Account (electricity surcharge), $250,000; General Fund, $175,000; federal Export Trade and Development Grant, $200,000; grants from various sources including the National Association of State Development Agencies, $100,000; and various special funds such as the International Geothermal Fund, $108,000. The exact amount varies from year to year according to grant and federal funding levels.

Funding Source: Federal, state, consumers and private industry.

Number of PYs: 7

Clients: Over the entire life of the program about 700 firms, 85 percent of which are small businesses that sell energy generation, conservation, or related technologies, have utilized the services of this program.

Service Delivery: The program develops trade opportunities by working directly with foreign government energy administrators. Staff develop and coordinate trade missions and help facilitate appropriate foreign and California government relations so that business projects can be initiated and completed. Potential areas of development are announced four times a year in the Department Energy Export Bulletin mailed to the business community.

Program Activity: Program staff estimate that for every dollar spent, $37 is generated in export sales. Success varies by the company and project. An example of a large project is a $50 million co-generation project in Australia. The sale of solar voltaic kits for village electrification in Africa is an example of a small project.

The program is in the process of creating a survey instrument to send to 100-150 of the companies who have worked with it to better evaluate its activities.


International Trade and Investment Division
Trade and Commerce Agency

Contact Person: Brenda LopesTelephone Number: 916-324-5511

Purpose: This agency division is composed of the Office of Export Development, California Export Finance Office, Cal-Mexico Affairs, Trade Policy and Research, the Governor's Overseas Trade Offices, and the International Office of Foreign Investment. The California State Trade Commission advises on trade policy issues.

Budget: $11.6 million for FY 1995-96.

Funding Source: General Fund.

Number of PYs: 83.5

Clients: California businesses.

Service Delivery: The International Trade and Investment Division assists or represents the interests of California companies in foreign market transactions through trade delegations, missions, seminars, and other promotional tools. The Overseas Trade Offices provide both technical assistance and loan guarantees to small and medium-sized businesses engaged in export transactions. The Office of Foreign Investment tries to attract foreign companies to locate in the state.

Program Activity: According to the Division, the combined annual export sales generated by its loan guarantee program is estimated to be $624 million. Net tax benefits generated by the program, after deducting General Fund costs, are estimated to be $8.7 million.


California Export Finance Office (CEFO)
Trade and Commerce Agency

Contact Person: Jim NewtonTelephone Number: 714-562-5519

Purpose: Provides working capital loan guarantees to financial institutions for export business loans for small and medium sized California companies.

Budget: $1,026,668 for FY 96-97

Funding Source: Various sources

Number of PYs: 12

Clients: Small and medium sized businesses which are involved in high technology, general manufacturing, export trading or food and agriculture.

Services Delivery: Loan guarantees to banks provide collateral for small and medium-sized California businesses.

Program Activity: As of October 1996, the total fund balance was $11,631,000. This is presently securing $19,952,151 in guarantees and $67,500 in preliminary commitments, for a total amount of $20,019,651 encumbered over the life of the program. Fiscal year 1996 activity indicates the office has supported $35,819,000 in sales activity.

The number of documented business export transactions, letters of credit, and purchase orders of sales from buyers are used to evaluate the program.


Office of Export Development (OED)
Trade and Commerce Agency

Contact Person: Sean RandolphTelephone Number: 310-590-5965

Purpose: Offers marketing services specifically designed to help California's small and medium-sized companies export their products. Program staff attend the world's leading trade shows, subsidize the costs for small businesses who wish to attend, organize California displays, and help exhibitors meet with qualified buyers.

Budget: $1.4 million for FY 1994-95.

Funding Source: 25 percent General Fund, the remainder from fees paid by participants at California international trade shows.

Number of PYs: 7

Clients: California companies whose annual sales range from $5 million to $100 million.

Service Delivery: Services are delivered through international trade shows, publications promoting California products, and automated trade library services containing database market research and other information.

Program Activity: Assisted California firms to sell an estimated $65 million in goods and services through trade shows and other marketing and promotional activities.


Office of Small and Minority Businesses
Department of General Services

Contact Person: Olive FindletonTelephone Number: 916-324-2181

Purpose: Aids and counsels small businesses competing for state procurement and construction contracts. An automated telephone information service (Teletask) offers information about state contracting opportunities. The department also maintains the State Contract Registry on an Internet website at http://www.dgs.ca.gov/osmb.

Budget: $2.3 million for FY 1995-96.

Funding Source: Fee for service and advertising fees.

Number of PYs: 26.6

Clients: Business community

Service Delivery: Program staff work with state agencies and advertise Requests For Proposals in the State Contract Registry. They also certify small businesses as being eligible for the program. The Teletask automated telephone answers the most commonly asked questions about the Office of Small and Minority Business programs.

Program Activity: For minority and women-owned small businesses the goal is: 3 percent for disabled veterans; 5 percent for women-owned business enterprises; and 15 percent for minority business enterprises.


Division of Tourism
Trade and Commerce Agency

Contact Person: John PoimirooTelephone Number: 916-322-2881

Purpose: The Division of Tourism markets and promotes travel to and in California.

Budget: $7.2 million for FY 1995-96.

Funding Source: General Fund

Number of PYs: 17

Clients: Destination-marketing organizations, travel-related businesses and associations and tourists.

Service Delivery: Develops and implements the annual Tourism Marketing Plan. The plan includes a national advertising campaign, publications, distribution of travel literature, cooperative promotions, media relations, and marketing and research.

Program Activity: According to a report prepared by an outside consultant in 1994, total spending by non-residents attributed to the program was estimated to be $43,874,000 (an increase of 33.9 percent over 1992) generating tax revenues of $1,671,620. Calcualtions included the number of non-residents who decided to visit the state after receiving state information packets, the number of tourists who extended their stay as a result of state tourist packets, and daily expenditure information from the 1994 Direction and Destinations Index For California.

The program estimates a 1994 return on investment of $44.04 for each dollar spent on the program. Tax return on state investment was $1.68.


Women and Minority Business Enterprise Clearinghouse
Public Utilities Commission

Contact Person: Philip BremondTelephone Number: 415-703-1267

Purpose: The program assists minority and women-owned businesses to obtain public utility contracts. The Public Utilities Commission encourages the 30 utilities under its supervision to conduct a certain portion of their contract business with women and minority-owned firms.

Budget: In 1994, The percentage of minority and women contracts came from the approximate $6-7 billion in procurement contracts under the PUC jurisdiction.

Funding Source: 30 licensed public utilities in California (fifteen non-cellular and fifteen cellular).

Number of PYs: 27

Clients: Businesses owned by women, minorities and disabled veterans.

Service Delivery: Outreach programs of the 30 utility agencies seek to identify and actively involve women and minority firms in contracting. The program participates in trade fairs, business seminars, workshops, and counseling.

Program Activity: The program is evaluated through disclosure reports filed by the 30 utility agencies with the California Public Utilities Commission. The Public Utilities Commission established procurement goals of not less than 20 percent for women and minority enterprises.

In 1996, this program organization was sent out to bid. It will continue to function, but under the management of an outside contractor.



ENVIRONMENTAL PROTECTION

Office of Pollution Prevention and Technology Development
Department of Toxic Substances Control

Contact Person: James T. AllenTelephone Number: 916-322-2822

Purpose: This office was established to prevent pollution and to improve hazardous waste control.

Budget: $3.5 million for FY 1994-95.

Funding Source: Hazardous Waste Control Fund; fees are paid by hazardous waste generators, federal grants and fees for services paid by vendors for technology certification.

Number of PYs: 45

Clients: Industry, businesses and other government agencies and the public.

Service Delivery: Services are delivered through the Department's Technology Development Branch and Pollution Prevention Branch. Program activities include: demonstration of innovative technologies; operation of a technology clearinghouse; review and evaluation of pollution prevention plans; industry/public awareness and education; and technology certification.

Program Activity: It is very difficult to separate the effects of government pollution reduction programs from actions taken by private industry. Program activity is measured by the number of publications distributed, the number of facilities implementing pollution prevention programs, participation in government workshops, and industry evaluation of government assistance. Hazardous waste reduction program results show that nearly 1 out of every 2 generators that prepared a source reduction plan has profited by the process, and has realized at least a ten percent reduction in hazardous waste generation. Additionally, nearly 1 out of every 10 has realized reductions greater than 50 percent in the first year alone.


Office of Environmental Health Hazard Assessment
California Environmental Protection Agency

Contact Person: James StrattonPhone Number: 916-324-3272

Purpose: Provides information and technical support to federal, state, and local governmental entities about remediation of toxic contamination at military bases and other government-owned sites. The program provides technical input and risk assessment services to communities and individuals involved with toxic clean-up. It also provides public health oversight to regulatory programs responsible for remediating environmental problems, and assists other state agencies to support local efforts to integrate military base land re-use planning with environmental clean-up priorities.

Budget: $12,622,000 for FY 1994-95; $13,149,000 for FY 1995-96; and

$11,791,000 proposed for FY 1996-97.

Funding Source: Reimbursement: $6,749,000; General Fund: $4,100,000; Environmental License Plant Fund: $942,000.

Number of PYs: 135 in FY 1995-96; 138.5 in FY 1996-97.

Clients: Federal, state, and local government departments involved in toxic and air resources management.

Service Delivery: Functions and responsibilities include:

[+] These programs are not listed in this publication. See "State Government and Economic Development Programs" First Edition 1993.

[[daggerdbl]] These programs are discussed in CRB report "Overview of Job Training Programs" by Alicia Bugarin, May 1996

[*] Again, these programs are discussed in CRB report "Overview of Job Training Programs" by Alicia Bugarin, May 1996