ECONOMIC DEVELOPMENT;

You asked if the law requires the state’s economic development agencies to create performance measures for their programs

SUMMARY

The law does not require these agencies to create performance measures, but it imposes other requirements that could allow them to create these measures. The agencies are the Department of Economic and Community Development (DECD), the Connecticut Development Authority (CDA), and Connecticut Innovations, Inc. The latter two are largely self-funded quasi-public agencies that operate with considerable autonomy.

PERFORMANCE MEASURES

Performance measures are statistical indicators that show the extent to which a program is achieving its goals. Since goals can be broad and general, performance measures express the goals as outcomes that can be described and measured. For example, a performance measure for a business loan program whose goal is to strengthen the state’s economy might be the number of new manufacturing jobs the borrower creates. In constructing the measure, the program’s planners would have to define “manufacturing job” and develop a system that collects data only on those new jobs the program created.

The law requires the agencies to develop goals and collect data the legislature identified. But it does not require them to create performance measures based these goals.

GOAL SETTING REQUIREMENTS

Performance measures reflect a program’s goals, which can be board and general. The law requires the economic development agencies to set goals for each of their programs, and each business they assist must identify the goal it will address as a result of receiving the assistance (CGS § 32-450). But it does not require the agencies to convert these goals into performance measures.

The law also requires DECD to set goals for each of the state’s 17 enterprise zones and evaluate them based on these goals. The enterprise zone program offers businesses tax incentives and state funding if they locate or expand in the zones. The zones’ implicit goal is to revitalize an economically distressed area by stimulating development there. An area qualifies for zone designation based on statutory criteria that reflect poverty and unemployment.

DATA COLLECTION

The law requires agencies to collect data on the businesses they assist and report it to the legislature. The report must list each business that received assistance, the number of jobs it planned to create or retain when it applied for assistance, the number it created or retained after it received the assistance, and the projected and actual wages for these jobs (CGS §§ 32-1h, 32-11a (c), and 32-47a). This information could be used to create performance measures for programs whose goal is to create or retain jobs.

EVALUATION

The law requires DECD to annually evaluate all economic development programs, including CDA’s and CII’s. It must so based on objectives, measures, and standards DECD must develop in consultation with these agencies and the Legislative Program Review and Investigations Committee (CGS § 32-1i). DECD has evaluated its program and submitted a report to the Connecticut Economic Conference Board for inclusion in its annual report. We will provide you a copy of that report when it is available.

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