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Program A: Administration

Program Authorization: R.S. 36:101 et. Seq.; R.S. 51:2386 et. seq; R.S. 36:4(Q); R.S. 36:109(C); R.S. 51:1751et seq; R.S. 51:935; R.S.51:2331 et seq; R.S. 51:2312.1

PROGRAM DESCRIPTION

The mission of the Administration Program is to develop and implement policies/programs designed to promote growth opportunities for business, facilitate meaningful employment opportunities to Louisiana citizens and market the state as a location for business and industry.

The goals of the Administration Program are:

  1. Provide timely, accurate and high quality information and services to internal and external clients.
  2. Develop Human Resources to meet the continuing demands of DED programs/policies.
  3. Improve internal communications to promote greater understanding of the Office of Management and Finance services/activities.
  4. Strengthen management skills of certified economically disadvantaged businesses to enable them to stabilize and grow.
  5. Assist Louisiana companies to become more globally competitive, create stronger research/development initiatives and foster the development and expansion of federal technologies available for commercialization through the science and technology activity.
  6. Execute, manage and monitor employer assistance programs to encourage location, expansion and stabilization of job creating entities in Louisiana.
  7. Provide timely and accurate response to legal needs of the Department.

 

Economic Development Award Program (EDAP)

During FY 1998-99 the Department of Economic Development provided financial assistance to facilitate the location/expansion of new and existing businesses, and workforce development and training programs through the Economic Development Award Program and Workforce Projects. Some of the projects that were provided assistance during the FY 1998-99 are as follows:

Economic Development Award Projects

Time Trend Computers: ($500,000) for renovations to three buildings in England Airpark for the manufacturing, sales, and distribution of Time Trend Computers due to projected increases in production volume.

Volth Sulzer/Field Container: ($500,000) for a new frontage road along the south side of Interstate 20. There is currently only one entrance to the West Monroe plant site. The Frontage Road is needed to accommodate expanding operations in West Monroe and the high volume of trucks leaving in and out of the industrial center.

Yuba Heath Transfer: ($425,000 dedication from the legislature) for land acquisition and site improvements in the Livingston Parish Industrial Park for the start-up of Yuba’s new facility. The company will manufacture shell and tube heat exchangers, feed water heaters, and offer after market repair to oil refineries and chemical companies. Yuba will construct a building at a cost of $1,870,000 and invest $1,787,000 in capital equipment.

Workforce Projects

Yuba Heat Transfer: ($250,000) to train 63 new employees and 3 current employees at its new facility in Walker. The skills covered include: safety training and standard personnel courses as mandated by federal law, etc.

West Telemarketing: ($250,000) to provide training to 1,394 new employees at its new Baton Rouge facility. This facility will be a combined call center providing two different types of services to clients: Direct Response and Custom Operator Services. The facility will staff the following positions: direct response telemarketing and custom operator services telemarketing representatives, trainers, advisors, technicians, computer technicians, maintenance technician, and other administrative and support personnel

CenturyTel Service Group, Inc.: ($250,000) for training 144 employees in the fields of network engineers, internet administrators, network operations center technicians and security systems monitoring technicians.

Cytec Industries: ($132,072) to train 408 current employees at one of their 20 plants, the Fortier Manufacturing Complex, located in Waggaman. The training will be accomplished through the use of CD ROM and intranet training in the following areas: (1) Generic – Programs that will provide more generic job knowledge and basic literacy training. (2) Job Specific – Cytec has tentatively agreed to purchase the ATR "PRISM" software training modules. This includes training documentation, CD developer, test developer and troubleshooting software. This is necessary to track the CD ROM and intranet training and to provide a method for creating their own job specific training.

UNO/AVONDALE – U.S. Navy Information Technology Center

Status Report

Phase 1

Phase 1 of the U.S. Navy Information Technology Center will be completed by February 20, 1999. This phase of the project includes the completion of the construction of two buildings to house 1,000 positions at a cost of $24 million over four years. Phase 1 is currently in its third year of funding.

Phase 2

Phase 2 of the project will begin in March 1999. This phase of construction will consist of the addition of a third building that will staff an additional 500 jobs. In addition, a parking garage will also be added. The garage will hold approximately 1,000 cars. It is anticipated that the building will be completed and fully occupied by January 2000 at a cost of $25 million over the next 4 years. The project is currently in its second year of funding.

Louisiana Statewide Consortium

In an effort to meet the increasing demand of technology-related jobs, the Louisiana Statewide Consortium was established. The Consortium is a partnership consisting of participants from the business sector, higher education, and government. Approximately 40 companies are participating in the Consortium. Among the 40 companies participating in the partnership, approximately 25% are Louisiana based.

 

Louisiana: Vision 2020

Vision 2020, Louisiana’s strategic plan, will be used as a state-of-the art marketing tool for the Governor, Legislature and economic development entities statewide. The Joint Legislative Committee on the Budget will use it as a blueprint to prioritize state spending and budgeting. The plan is exciting, visionary, and image-enhancing and reflects the vision, mission and philosophy of the state for generations to come.

Status:

The Louisiana Economic Development Council is charged (Act. No. 30, H.B. No. 26) with developing a 20-year master strategic plan for economic development for the State of Louisiana. In accordance with Act 30, a series of eight public hearings were held in each of the state’s planning districts to present the plan and receive input, comments and suggestions. Additionally, the plan was posted on the Internet. All comments and suggestions from the public were reviewed and incorporated into the plan prior to its completion.

Ten task forces developed nearly 100 measurable benchmarks in five-year reporting increments. The benchmarks will be placed under the appropriate goals of the plan and become part of the final document. The Council will meet to review the final plan in February, then a meeting of the Council and Cabinet Advisory Group (CAG) will be held in March to review the plan. The plan will then be presented to the House and Senate Commerce Committee Chairpersons for their review and comments. Hearings with the Executive Committee of the Council may be held if deemed necessary by the Chairpersons. House and Senate Commerce Committees will then forward recommendations and comments to the Louisiana Economic Development Council.

In March, 1999, the Council will meet with the Governor presiding to adopt the final plan. It will then be submitted to the Legislature for the Spring 1999 Session. At that time, the Legislature will review a resolution to accept the plan and vote for amendment, rejection or approval. Following approval of the plan by the Legislature, the Executive Committee of the Council will meet quarterly with the Cabinet Advisory Group to exchange information and facilitate implementation of the annual action plans.

Annually, the Council is to submit to the governor, president of the Senate, speaker of the House of Representatives, the chairman of the Senate Committee on Commerce and the chairman of the House Committee on Commerce a report entitled, "Economic Development Action Plan." As outlined in Act 30, it will consist of recommended strategies and action plans for implementation in the next fiscal year, including budgetary, legislative, regulatory, program, and private sector initiatives. Strategies and action plans will have measurable goals and objectives integrated with the master plan.

The Administration Program includes the following activities: Executive Administration, Legal Division, Office of Management and Finance, Office of Policy and Research, Economically Disadvantaged Business Development, Louisiana Economic Development Council, Economic Development Award Program, Regional Initiatives Program, Workforce Development and Training.

 

OBJECTIVES AND PERFORMANCE INDICATORS

Unless otherwise indicated, all objectives are to be accomplished during or by the end of FY 1999-2000. Performance indicators are made up of two parts: name and value. The indicator name describes what is being measured. The indicator value is the numeric value or level achieved within a given measurement period. For budgeting purposes, performance indicator values are shown for the prior fiscal year, the current fiscal year, and alternative funding scenarios (continuation budget level and Executive Budget recommendation level) for the ensuing fiscal year (the fiscal year of the budget document).

 

 

 

 

 

RESOURCE ALLOCATION FOR THE PROGRAM

SOURCE OF FUNDING

The sources of funding for this program are from the General Fund, Interagency Transfers, and Fees and Self-generated Revenues, Statutory Dedications and Federal funds. Interagency Transfers include funds from the Office of Commerce and Industry , Louisiana State Racing Commission , the Office of Financial Institutions, the Louisiana Board of Cosmetology, and the Louisiana Economic Development Corporation; these agencies, all within the Department of Economic Development, provide Interagency Transfers for fiscal, human resources, purchasing, information systems and legal support services through the Office of the Secretary - Administration Program. The Fees and Self-generated Revenues are reimbursements for fiscal support services provided in conjunction with the sale of the Directory of Louisiana Manufacturers. Statutory Dedications are derived from 1) the Vendors' Compensation collections for the Workforce Development and Training Fund to provide funding for customized and specialized training programs to existing and prospective Louisiana businesses, and for a Marketing Education grant to support and promote entrepreneurship in public schools 2) the La. Economic Development Fund, based upon Act 1306 of the 1997 Legislative Session, 3) the Small Business Surety Bonding Fund will be used to provide financial assistance to small businesses to mitigate the gap in the state bond surety bond-market, and the Marketing Fund created by Act 50 of 1998 for marketing education. (Per R.S.39:32B.(8), see table below for a listing of expenditures out of each statutory dedicated fund). Federal Funds are provided from a grant to support the implementation of the statewide economic development strategic plan of the Louisiana Economic Development Council

ANALYSIS OF RECOMMENDATION

GENERAL FUND

TOTAL

T.O.

DESCRIPTION

 

 

 

 

 

$13,993,692

$31,666,573

79

 

ACT 19 FISCAL YEAR 1998-1999

 

 

 

 

 

 

 

 

 

BA-7 TRANSACTIONS:

$946,279

$13,436,894

0

 

Carry forward for Regional Initiatives programs totaling $946,279; Economic Development Awards from HB 693 of 1997 totaling $6,986,745; and Workforce Development and Training totaling $5,503,870.

$0

$1,300,000

0

 

Economic Development Award Program based upon Unappropriated funds and additional projected revenues to be utilized for six (6) applicants that will assist in the generation of 408 jobs and the retention of 51 jobs; the private investment in these applications total $34.5 million.

 

 

 

 

 

$14,939,971

$46,403,467

79

 

EXISTING OPERATING BUDGET - November 20, 1998

 

 

 

 

 

($946,279)

($13,436,894)

0

 

Nonrecurring Carry forward for Regional Initiatives programs totaling $946,279; Economic Development Awards from HB 693 of 1997 totaling $6,986,745; and Workforce Development and Training totaling $5,503,870.

$0

($1,300,000)

0

 

Non-Recurring for the Economic Development Award Program based upon Unappropriated funds and additional projected revenues to be utilized for six (6) applicants that will assist in the generation of 408 jobs and the retention of 51 jobs; the private investment in these applications total $34.5 million.

($780,000)

($780,000)

0

 

Nonrecurring Carry forward adjustment for the Economic Development Award to the Town of Coushatta

$12,270

$12,270

0

 

Acquisitions and Major Repairs

($45,183)

($76,417)

0

Nonrecurring Acquisitions and Major Repairs

$53,273

$70,576

0

 

Annualization of FY 1998 - 1999 Classified State Employees Merit Increase

$43,684

$56,964

0

 

Classified State Employees Merit Increases for FY 1999 - 2000

($4,625)

($4,625)

0

 

Attrition Adjustment(s)

$345,579

$345,579

0

 

Salary Base Adjustment(s)

$16,832

$16,832

0

 

Risk Management Adjustment(s)

$405

$405

0

 

Legislative Auditor Fees

$88

$88

0

 

UPS Fees

$1,186

$1,186

0

 

Civil Service Fees

($40,000)

($40,000)

0

 

Other Non-Recurring Adjustment (s) - for Economic Development Award to the Natchitoches Police Jury

$0

($2,300,000)

0

 

Other Non-Recurring Adjustment (s) - for Economic Development Award to the City of Colfax

$0

($1,250,000)

0

 

Other Non-Recurring Adjustment (s) - for Economic Development Award for EDAP line item appropriation

$3,250,000

$0

0

 

Means of Financing Substitution - Replace general fund for Statutory Dedication for Phase II funding of the U. S. Navy Information Technology Center/UNO Technology Park.

$32,759

$54,895

0

 

Other Technical Adjustments - Transfer In - Ombudsman program from Commerce and Industry

$0

$1,300

0

 

Federal Grant up to award amount

$200,000

$200,000

0

 

Funding for the Re-Engineering of the Department of Economic Development

$100,000

$100,000

0

 

Funding for Biomedical Research Foundation seed for the Consortium for Education, Research and Technology of North Louisiana.

$294,000

$294,000

0

 

Funding increase for the LSU Economic Development Foundation

$50,000

$50,000

0

 

Funding for the Summit of Digital Infrastructure

 

 

 

 

 

$17,523,960

$28,419,626

79

 

GRAND TOTAL RECOMMENDED

 

 

 

 

 

$2,583,989

($17,983,841)

0

 

DIFFERENCE (TOTAL RECOMMENDATION AND EXISTING OPERATING BUDGET)

The total means of financing for this program is recommended at 61.2% of the existing operating budget. It represents 53% of the total request ($53,638,720) for this program. The major changes reflected in the analysis of recommendation include: decreased funding for a non-recurring carry forward for the Economic Development Award Program (EDAP) -$13.4 million; decreased funding for a non-recurring adjustment for expenses associated with economic development in the Town of Coushatta -$780,000; decreased funding for a non-recurring adjustment for expenses associated with economic development in the City of Colfax -$2,300,000; decreased funding for a non-recurring adjustment for expenses associated with economic development for the Natchitoches Police Jury -$40,000 ; decreased funding for a non-recurring adjustment for Economic Development Award Projects -$2,550,000; increased funding for the Reengineering of the Department of Economic Development $200,000; increased funding for the Biomedical Research Foundation $100,000; increased funding for the LSU Economic Development Foundation $294,000; increased funding for the Summit of Digital Infrastructure $50,000. There was also a Means of Financing adjustment to replace non-recurring Statutory Dedications with an increase in general fund to maintain commitment for the U.S. Navy Information Technology Center - Phase II $3,250,000.

PROFESSIONAL CHARGES

$50,000

 

Operations of the State of Louisiana, Technology Center Office, John Stennis Space Center (a NASA facility), to coordinate and direct technology transfer projects with Louisiana businesses and industries

 

 

$10,000

 

Legal services in personnel matters, training and other professional services as deemed required for the overall effectiveness and efficiency of the Department

$98,700

 

Analysis of global, hemispheric and national economies, their impact on Louisiana; the nature of the competitive environment in which Louisiana's workforce and business community must compete; the broad trends of economic change to provide a needs assessment and baseline analysis of various facets of the Louisiana economy; and an analysis of the sustain ability of the current Louisiana economy over time, as deemed required by the Economic Development Council

 

 

$3,600

 

Automation of card catalog in order to make collection more accessible to users

$25,750

 

Specialized marketing research

$500

 

Restructuring of the Louisiana Municipal Community Achievement Awards program

$14,386

 

Information Clearinghouse Data Base Development

$49,200

 

Contract to maintain the military segment of the state economy

$10,013

 

Disadvantaged Business Services, Mentor/Protege Program

 

 

 

$262,149

 

TOTAL PROFESSIONAL SERVICES

OTHER CHARGES

$483,098

 

To provide funding to the State Office of Small Business Development Centers and other economically disadvantaged businesses, by subcontracting services with certified public accountants, management consultants, marketing specialists and other technical service providers. This will provide a funding source to produce a curriculum of telecourses for the Louisiana Contractors Accreditation Institute to benefit small Louisiana contractors. Funding will be provided for economically disadvantaged businesses to participate in specialized workshops. The first of two workshops emphasize entry strategies for start-up ventures through a 32 hour course. The second workshop works with business owners on planning, researching, and evaluating the strategic growth and operation aspects of their businesses. The two workshops culminate in the development of a viable business plan by each entrepreneur.

$5,190

 

Economically Disadvantaged Business Development Special Marketing Activities - Provides funding for special ceremonies and activities to promote the continued economic activity and interest in Louisiana markets (e.g. Trade Fairs, Recognition Program for outstanding economically disadvantaged business firms, etc.)

$75,000

 

Provide funding for administrative services which will facilitate the planning, coordinating and performance of economic education activities of the state Economics America Office and by university and college based Centers for Economic Education. Provides for the ongoing operations and mission of the Louisiana Council for Economic Education; i.e., to improve the level of economic literacy of Louisiana Citizens through EconomicsAmerica programs. Examples of this are to teach children how school is related to the real world of work, productivity, and income through student programs such as the "Stock Market" Game and by training teachers. Funding is provided as a grant to the Louisiana Council for Economic Education, a 501 (3) Corporation whose mission is to improve the level of economic literacy of Louisiana citizens. Funding will pay approximately half of the expenses of the State Office of the Council. This includes salaries for two employees, travel, operating expenses, and supplies. Office space is provided by LSU.

$6,000,000

 

University of New Orleans Research and Technology - Phase I for the Construction of two (2) buildings to house 1,000 positions; this is year three (3) of a four (4) year $24 million commitment.

$6,250,000

 

University of New Orleans Research and Technology - Phase II for the Construction of a third building of 100,000 square feet; and a 1,000 car parking garage; this is year two (2) of a four (4) year $25 million commitment.

$1,332,679

 

Marketing Education Grant - to promote and support entrepreneurship in Public Schools

$6,167,321

 

Workforce Development and Training - to provide customized workforce training to existing and prospective LA businesses

$2,000,000

 

Small Business Surety Bonding - to provide financial assistance to small businesses to mitigate gaps in the state surety bond-market

$2,400

 

Governor's Military Advisory Commission special events

$13,069`

 

Legislative Auditor expenses

$200,000

 

Re-Engineering of the Department of Economic Development

$100,000

 

Biomedical Research Foundation seed for the Consortium for Education, Research and Technology of North Louisiana.

$294,000

 

Funding increase for the LSU Economic Development Foundation

$50,000

 

Funding for the Summit of Digital Infrastructure

 

 

$22,972,757

 

TOTAL OTHER CHARGES

 

 

 

 

 

Interagency Transfers

$8,401

 

Pro-rata share of the cost of operations of the Department of Civil Service

$48,095

 

Ombudsman activity to the Office of the Governor

$1,028

 

Pro-rata share of the cost of the Comprehensive Public Training Program (CPTP)

$2,189

 

Pro-rata share of the cost of the Uniform Payroll System

 

 

 

$59,713

 

TOTAL INTERAGENCY TRANSFERS

ACQUISITIONS AND MAJOR REPAIRS

$12,270

 

Replacement equipment

 

 

 

$12,270

 

TOTAL ACQUISTIONS AND MAJOR REPAIRS


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