Program A: Administration

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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 provide administrative leadership, departmental support services, and encourage development of economic initiatives.

The goals of the Administration Program are:

1. Provide leadership for the development of effective economic development policy for the state.

2. Provide support services for agency programs.

3. Provide the highest quality legal assistance to department staff and regulatory assistance to department clients in a timely fashion.

4. Provide technical and financial assistance to economically disadvantaged businesses and to contractors.

5. Develop and administer initiatives based on technological development, deployment and innovation.

6. Develop human resources.

7. Provide for policy and decision making.

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

The Administration Program provides leadership and support services to the Department of Economic Development. The success of this program is reflected in the success of the other programs in the Department of Economic Development. Performance information consistent with this program's strategic plan and with the statewide model for administration/support service programs will be reported next year. The program did provide the following information for FY 1998-99.

1. The Administration Program, through the Executive Administration activity, will execute 175 technology agreements between the federal government and Louisiana private sector companies in FY 1998-99.

2. The Administration Program, through the Office of Policy and Research activity, will support the state's economic development marketing activities by responding to 1,500 requests for economic development information, preparing 45 specialized reports, conducting 75 project/program cost analyses, and improving communications with customers in FY 1998-99.

3. The Administration Program, through the economically disadvantaged business development activity, will certify 200 applicants by the end of FY 1998-99.

4. The Administration Program, through the economically disadvantaged business development activity, will provide $2,000,000 in bond guarantees by the end of FY 1998-99.

5. The Administration Program, through the economically disadvantaged business development activity, will provide management and technical assistance to 150 certified economically disadvantaged businesses by the end of FY 1998-99.

6. The Administration Program, through the Louisiana Economic Development Council activity, will produce a statewide economic development plan by December 31, 1998 and will meet with the cabinet advisory group during FY 1998-99 to assure that appropriate agencies' strategic plans coordinate with the statewide plan.

7. The Administration Program, through the Workforce Development and Training activity, will provide customized workforce training for 40 business projects in FY 1998-99.

1 Contingent upon renewal of Vendor's Compensation as the revenue source in the 1998 Special Session.

8. The Administration Program, through the legal activity, will manage an average of 205 open files at any one time during FY 1998-99.

9. The Administration Program, through the Office of Management and Finance activity will increase the level of customer satisfaction by 2% in FY 1998-99.

10. The Administration Program, through the economically disadvantaged business development activity, will generate 400 applicants by the end of FY 1998-99.

11. The Administration Program, through the economically disadvantaged business development activity, will establish 5 relationships through the mentor/protege program by the end of FY 1998-99.

12. The Administration Program will provide funding for construction of a building to house a high tech computer center and personnel information office for the U.S. Navy by Fall 1998.

13. The Administration Program, through the Economic Development Award Program, will facilitate the location/expansion of 24 businesses by making funds available to political subdivisions for public infrastructure projects in FY 1998-99.

14. The Administration Program, through the Regional Initiatives activity, will stimulate regional economic development efforts by awarding grants to 10 existing public/private organizations so that they may market their shared strength in FY 1998-99.

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 for $+178,667, Louisiana State Racing Commission for $+404,037, the Office of Financial Institutions for $+202,370, the Louisiana Board of Cosmetology for $+203,903, and the Louisiana Economic Development Corporation for $+131,825. These offices 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 Vendors' compensation collections and the La. Economic Development Fund. Statutory Dedications derived from Vendors' Compensation collections are for the Workforce Development and Training Fund for two purposes. The Workforce Development and Training fund will 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. Statutory Dedications derived from La. Economic Development Fund, based upon Act 1306 of the 1997 Legislative Session, and are for the Small Business Surety Bonding Fund. The Small Business Surety Bonding Fund Statutory dedication will be used to provide financial assistance to small businesses to mitigate the gap in the state bond surety bond-market. (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

$5,259,138	$13,642,478	72	ACT 18 FISCAL YEAR 1997-1998

			BA-7 TRANSACTIONS:
$0	$3,953,757	0	Carryforward BA-7s for the Workforce Development and Training Fund ($3,903,757), and Economic Development Award Program ($50,000)
$0	$8,848,645	0	Approved BA-7 for the Economic Development Award Program based upon enactment of Act 726 of 1997
$0	$2,000,000	0	Approved BA-7 for the Small Business Surety Bonding Fund based upon enactment of Act 1306 of 1997
$1,000,000	$1,000,000	0	Approved BA-7 transferring funds not required for the James River Corporation from the Office of Comemrce and Industry

$6,259,138	$29,444,880	72	EXISTING OPERATING BUDGET - December 10, 1997

$0	($3,903,757)	0	Non-Recurring Adjustment for the BA-7 Carryforward for the Workforce Development and Training Fund
$0	($50,000)	0	Non-recurring BA-7 carrfoward Adjustment for the Economic Development Award Fund
$0	($4,500,000)	0	Non-recurring Adjustment for Economic Development Award Fund as it is not considered permanent
($1,000,000)	($1,000,000)	0	Non-Recurring Adjustment Regional Initiatives Program as it is not considred permanent
($1,000,000)	($1,000,000)	0	Non-recurring Adjustment for Economic Development Award Program (BA-7 Transferred funding for James River corporation to the Office of Secretary)
$0	($4,348,645)	0	Non-Recurring Adjustment Economic Development Award Program, prior year contracts completed
($15,645)	($15,645)	0	Non-Recurring Adjustment, Professional Services contract completed for the Card catalog system
($9,750)	($9,750)	0	Non-Recurring Adjjustment for Training Grants
($55,491)	($55,491)	0	Non-Recurring Adjustment for Global Economic Development Award Program, prior year contracts completed
($2,850)	($2,850)	0	Non-Recurring Adjjustment for Legal Services
($250,000)	($250,000)	0	Non-Recurring Adjustment for La/ Partnership for Technology and Innovation
$45,776	$45,776	0	Equipment/Major Repair Adjustment(s) (Non-recurring: Replacement: +$45,776 for replacement of obsolete computer equipment)
$42,835	$55,075	0	Annualization of 1997- 98 Merit Pay Adjustment(s)
$37,340	$47,867	0	1998 - 99 Merit Pay Adjustment(s)
($91,138)	($91,138)	(2)	Personnel Reduction(s) (IS Tech. $39,168, and EDRA 2, $39,096 and Related Benefits at 16.45%)
$13,151	$13,151	0	Attrition Adjustment(s)
($14,946)	($14,946)	0	Retirement Rate Adjusment(s)
($24,832)	($24,832)	0	Reductions in various Expenditure Categories; Including reductions to fully fund salaries
($30,778)	($30,778)	0	Risk Management Adjustment(s)
$106,944	$106,944	0	Adjustment for Rent Expense in Baton Rouge
$689	$689	0	Adjustment for Civil Service, Training and other statewide Interagency transfer activities
$203	$203	0	U P S Fees
$1,295	$1,295	0	Legislative Auditor Fees
$6,000,000	$6,000,000	0	Naval Reserve Force systems Executive Office for Manpower and Personnel, transferred from La. Economic Development Corporation
$0	$39,893	1	Transfer from Racing Commission for an Information System Technician
$0	$110,021	2	Transfer from Louisiana State Board of Cosmetology for Information Systems Technicians
$16,131	$16,131	0	Adjustment for LSU Clearinghouse contract for Statewide DataBase.
$10,013	$10,013	0	Adjustment for Economically Disadvantaged Business Services, Mentor/Protege Program
$28,000	$28,000	0	Adjustment for the Economic Services Project
$0	$166,860	3	Additional Support Services for three positions

$10,066,085	$20,788,966	76	GRAND TOTAL RECOMMENDED

$3,806,974	($8,655,914)	4	DIFFERENCE (TOTAL RECOMMENDATION AND EXISTING OPERATING BUDGET)

The total means of financing for this program is recommended at 70.6% of the existing operating budget. It represents 48.5% of the total request ($ 42,867,666) for this program. Significant reductions in this program are attributable to the elimination of the non-recurring one-time carryforward of funding for the Workforce Development and Training fund of (-$3.9 million) and to the elimination of funding for the Economic Development Award Program (EDAP) of (-$4.5 million) and the Regional Initiatives Program (RIP) of (-$1.0 million). Both the Economic Development Award Program and the Regional Initiatives Programs are not considered permanent recurring expenses of the State. These decreases are offset by the funding of the Naval Reserve Force Systems Executive Office for Manpower and Personnel transferred from the Louisiana Economic Development Corporation. At the recommended level of funding, approximately the same level of services will be provided by this program, as the elimination of EDAP and RIP is offset with the Naval Reserve Manpower Program. The total recommended amount above includes $7,500,000 of Supplementary Recommendations of which $0 is State General Fund for the Workforce Development and Training Program for customized, specialized training to existing and prospective La. businesses as a means of improving the competitiveness and productivity of La.'s Workforce. Of the $7,500,000 Supplementary Recommendation, $1,000,000 has been recommended for a Marketing Education grant to support and promote entrepreneurship in Public Schools. Funding of these Supplementary Recommendations is dependent upon enabling legislation that will renew the provisions of R.S. 47:318 that directs vendor compensation collections into the Workforce Development and Training Fund.

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

$2,150		Legal services in personnel matters, training and other professional services as deemed required for the overall effectiveness and efficiency of the Department
$18,486		Design of Economic Development Information Clearinghouse data base architecture, and other economic modeling, forecasting deemed appropriate and required
$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

$32,300		Specialized marketing research
$10,013		Disadvantaged Business Services, Mentor/Protege Program

$211,649		TOTAL PROFESSIONAL SERVICES

OTHER CHARGES

$513,798		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		Naval Reserve Force Systems Executive Office for Manpower and Personnel
$1,000,000		Marketing Education Grant - to promote and support entrepreneurship in Public Schools
$6,500,000		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
$12,664		Legislative Auditor expenses

$16,106,652		TOTAL OTHER CHARGES

		Interagency Transfers
$7,215		Pro-rata share of the cost of operations of the Department of Civil Service
$1,028		Pro-rata share of the cost of the Comprehensive Public Training Program (CPTP)
$2,101		Pro-rata share of the cost of the Uniform Payroll System

$10,344		TOTAL INTERAGENCY TRANSFERS

ACQUISITIONS AND MAJOR REPAIRS

$45,776		Replacement of Obsolete computer and office equipment
$17,662		Additional office equipment, personal computers, etc., for new office and Management and Finance positions

$63,438		TOTAL ACQUISTIONS AND MAJOR REPAIRS

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