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Program A: Business Recruitment and Retention

Program Authorization: R.S. 36:103 et. seq.; R.S. 25:315 et. seq.; R.S. 33:4702(H); R.S. 51-1921-1932; R.S. 47:3201-3206, 3204(J); R.S. 30:142D.5(a-c) R.S. 47:4301-4319; R.S. 36:101(c); R.S. 36:108(e); R.S. 47:34; R.S. 47:1951.1-1951.3; R.S. 39:991-997; R.S. 47:6005; R.S. 46:813-814; R.S. 17:3388; RS 51:2401 et seq.; RS 36:4(B)(1)(bb) and (cc); RS 51:1781-1787; RS 47:1121-1128; Art VII, Part II, Section 21 (F&I)

PROGRAM DESCRIPTION

The mission of the Business Recruitment and Retention Program is to market Louisiana as a business and industrial location; help Louisiana companies find international markets for their goods and services; and administer Louisiana's business incentives.

The goals of the Business Recruitment and Retention Program are:

  1. Increase the number of U.S. companies operating in the state.
  2. Increase the number of international companies operating in the state.
  3. Increase the sales of Louisiana goods and services in international markets.
  4. Make Louisiana’s business incentives effective business recruitment/expansion devices.
  5. Develop and implement Red River infrastructure projects.

The Business Recruitment and Retention program markets Louisiana as a business location to U.S. companies and assists resident industry in expansion/retention matters.

The Business Recruitment and Retention Program includes the following activities: Executive Administration, Business Incentives, National Marketing, International Marketing, International Trade, Business Services, and Red River Development Council.

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 Business Recruitment and Retention program is funded with State General Fund, Interagency Transfers, Fees and Self-generated Revenues, and Federal Funds. Interagency Transfers are provided by the Department of Environmental Quality for support of one position to assist in assessing and developing expertise for marketing recycled materials. Fees and Self-generated Revenues are from the Business Incentives Division, which was authorized by Act 684 of the 1986 Louisiana Legislature, to establish and collect certain fees from persons/businesses applying for business incentives granted by the department. Other fees are derived from Investor-owned utilities as a matching share for costs associated with Louisiana's European office. Federal Funds are provided from the Department of Commerce Market Development Cooperative Program (Federal grant) to plan, develop and implement a statewide export promotion program targeting companies in the environmental products, services, technologies, power generation equipment and services and the oil and gas industries.

ANALYSIS OF RECOMMENDATION

GENERAL FUND

TOTAL

T.O.

DESCRIPTION

 

 

 

 

 

$11,568,594

$12,494,787

46

 

ACT 19 FISCAL YEAR 1998-1999

 

 

 

 

 

 

 

 

 

BA-7 TRANSACTIONS:

$418,987

$418,987

0

 

Carry forward for Caddo parish for construction and infrastructure improvements for a manufacturing facility located in Shreveport

$2,547,040

$2,547,040

0

 

Carry forward for Bienville Parish Police Jury for Poultry Hatchery, for land acquisition, planning, design, engineering, utility relocation.

$50,000

$50,000

0

 

Carry forward for Richland Parish for land acquisition, planning, engineering, surveying and related work to construct an industrial park.

$100,000

$100,000

0

 

Carry forward for Town of Rayville for land acquisition, planning, engineering, surveying and related work to construct an industrial park access road.

$247, 956

$247,956

0

 

Carry forward for Lincoln Parish Police Jury for a wastewater treatment system to treat surface runoff from the Randall Foods feed mill.

$0

$150,000

0

 

Increase Federal Funds for a grant from the U.S. Environmental Project whose purpose is to implement a higher focused marketing effort with Indonesia, Malaysia and Thailand.

 

 

 

 

 

$14,932,577

$16,008,770

46

 

EXISTING OPERATING BUDGET - November 20, 1998

 

 

 

 

 

$25,833

$34,014

0

 

Annualization of FY 1998 - 1999 Classified State Employees Merit Increase

$30,787

$39,200

0

 

Classified State Employees Merit Increases for FY 1999 - 2000

$0

($3,037)

0

 

Attrition Adjustment

$13,333

$13,333

0

 

Risk Management Adjustment

$168,334

$168,334

0

 

Salary Base Adjustment

$258

$258

0

 

Legislative Auditor Fees

($433)

($433)

0

 

UPS Fees

$662

$662

0

 

Civil Service Fees

($418,987)

($418,987)

0

 

Nonrecurring Carry forward for Caddo parish for construction and infrastructure improvements for a manufacturing facility located in Shreveport

($2,547,040)

($2,547,040)

0

 

Nonrecurring Carry forward for Bienville Parish Police Jury for Poultry Hatchery, for land acquisition, planning, design, engineering, utility relocation.

($50,000)

($50,000)

0

 

Nonrecurring Carry forward for Richland Parish for land acquisition, planning, engineering, surveying and related work to construct an industrial park.

($100,000)

($100,000)

0

 

Nonrecurring Carry forward for Town of Rayville for land acquisition, planning, engineering, surveying and related work to construct an industrial park access road.

($247, 956)

($247,956)

0

 

Nonrecurring Carry forward for Lincoln Parish Police Jury for a wastewater treatment system to treat surface runoff from the Randall Foods feed mill.

$0

($60,000)

0

 

Other Nonrecurring Adjustments - Louisiana - Indonesia Pollution Prevention Project that was federally funded.

($200,000)

($200,000)

0

 

Other Nonrecurring Adjustments - Macon Ridge Louisiana Economic Development efforts, to enhance regional economic development efforts

($300,000)

($300,000)

0

 

Other Nonrecurring Adjustments - Northeast Louisiana Louisiana Economic Development efforts, to enhance regional economic development efforts

($50,000)

($50,000)

0

 

Other Nonrecurring Adjustments - Northwest and North Central Louisiana Louisiana Economic Development efforts, to enhance regional economic development efforts

$796,153

$796,153

0

 

Other Annualization - Avondale - funding for the 3rd year of a $40 million obligation

($16,494)

$9,169

0

 

Other Adjustments - Indirect Cost Adjustment for services from the Office of the Secretary

($54,895)

($54,895)

0

 

Other Technical Adjustments - Transfer funding to Office of the Secretary for the Ombudsman program

$82,000

$82,000

0

 

New and Expanded Adjustments - Funding for the Louisiana Resource Center for Educators (LRCE)

 

 

 

 

 

$12,064,132

$13,119,545

46

 

GRAND TOTAL RECOMMENDED

 

 

 

 

 

($2,868,445)

($2,889,225)

0

 

DIFFERENCE (TOTAL RECOMMENDATION AND EXISTING OPERATING BUDGET)

The total means of financing for this program is recommended at 82% of the existing operating budget. It represents 92.8% of the total request ($14,130,643) for this program. The major changes reflected in the analysis of recommendation include: decreased funding for a non-recurring carry forward for Governor's Initiatives funded in the Supplemental Appropriations Bill (Act 319): Bienville Parish Police Jury -$2.7 million, Caddo Parish -$450,000 and Lincoln Parish Police Jury -$300,000, Richland Parish -$50,000, Richland Parish -$50,000, Town of Rayville -$100,000; decreased funding for a non-recurring adjustment for Macon Ridge -$200,000; decreased funding for a non-recurring adjustment for Northeast Louisiana -$300,000; decreased funding for a non-recurring adjustment for Indonesia Pollution Prevention Project -60,000; and increased funding for Year 3 of $40 million commitment for the UNO/Avondale Project $796,153; and increased funding for the Louisiana Resource Center for Educators $82,000.

 

PROFESSIONAL SERVICES

$87,038

 

Representative for Mexico Contract to promote Louisiana's economic development and trade internationally

$134,822

 

Representative for Taiwan Contract to promote Louisiana's economic development and trade internationally

$81,000

 

Representative for Europe Contract to promote Louisiana's economic development and trade internationally

 

 

 

$302,860

 

TOTAL PROFESSIONAL SERVICES

OTHER CHARGES

$1,000,000

 

New Orleans Sugar Bowl - to augment the Sugar Bowl's bid to be a member of the College Football Alliance

$250,000

 

Funding provided to support the Independence Bowl in Shreveport

$500,000

 

METROVISION Partnership - for the nine parish regional economic development organization in the Greater New Orleans area and to market the METROVISION and River Region nationally and internationally to new companies, and to create new jobs in the region

$50,000

 

Department of Defense federal grant to develop a local economic diversification strategy to assist communities impacted by Department of Defense activities.

 

 

266,636

 

Special Marketing Activities- to provide for group activities, prospects, special ceremonies, and activities to promote economic activity and stimulate interest in the Louisiana market

$252,078

 

Small Business Development Centers (SBDC) - Maintenance and provision of management assistance and business counseling to Louisiana small businesses

$337,000

 

Louisiana Resource Center for Educators to provide resource materials for teachers statewide, including books, kits, videos, cassettes, etc.

$80,000

 

Enterprise Zone Technical Assistance - to provide funding for the local Planning Districts who will be responsible for providing information on approximately 1,200 Enterprise Zones located in the 64 parishes to local and parish offices. The Planning Districts will also be required to make appearances at hearings, plus respond to requests for information from local officials.

 

 

$8,334

 

Legislative Auditor charges

$7,054,081

 

University of New Orleans Research and Technology - Avondale - for Debt Retirement of Bonds used to fund construction of 200,000 square foot building to house state-of-the-art Ship Design Facility; this is a 15 year contract in which the state has a 7 year commitment of $40 million

 

$9,798,129

 

TOTAL OTHER CHARGES

 

 

 

 

 

Interagency Transfers:

$6,125

 

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

$517

 

Pro-rate share of cost of operations for the Comprehensive Public Training Program

$1,324

 

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

$187,836

 

Support services provided by the Office of Management and Finance

 

 

 

$195,802

 

TOTAL INTERAGENCY TRANSFERS

ACQUISITIONS AND MAJOR REPAIRS

This program does not have funding for Acquisitions and Major Repairs for fiscal year 1999-2000


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