OLR Research Report


December 13, 2004

 

2004-R-0950

ORGANIZATIONAL STRUCTURES OF ECONOMIC DEVELOPMENT ORIENTED AGENCIES IN SELECTED STATES

By: John Rappa, Principal Analyst

James J. Fazzalaro, Principal Analyst

You asked for an overview of the organizational structures used in certain other states with respect to state agencies providing economic development related programs and services. You wanted to know if any of the selected states (1) group all of the related agencies under one roof, instead of in several free standing agencies or (2) provide “one stop shopping” for delivering economic development related services and, if so, what agency coordinates.

Given the relatively contrained time frame for providing a response, we have confined our research to information readily available through sources such as agency websites. We were able to get information from these sources for 15 states as follows: California, Connecticut, Illinois, Massachusetts, Maine, New Hampshire, New Jersey, New York, Ohio, Oregon, Pennsylvania, Rhode Island, Texas, Vermont, and Washington.

SUMMARY

The predominant approach in the 15 states we looked at was, like Connecticut, to have multiple relatively freestanding agencies responsible for different aspects of economic development. We found three states (California, New York, and Vermont) that vary from this approach by placing several departments with responsibilities for different economic development activities within a single overarching agency. Even in these cases however, these states still had economic development entities that existed outside this structure as freestanding bodies. Two states (Massachusetts and Pennsylvania) have a third variation in which an entity associated with the governor’s office performs certain coordinating functions among the independent agencies.

Most states, including Connecticut, have economic development agencies websites that provide one-stop information on aid, taxes, regulations, and economic conditions.

AGENCY STRUCTURE FOR ECONOMIC DEVELOPMENT ENTITIES

We found three basic structural variants among the states examined. The predominant approach evidenced by most of the states was to have multiple relatively freestanding agencies responsible for different aspects of economic development. Connecticut, Illinois, Maine, New Hampshire, New Jersey, Ohio, Oregon, Rhode Island, Texas, and Washington appear to use this approach. Three states—California, New York, and Vermont—follow a structural model that appears to place several departments with responsibility for different aspects of economic development together within a single overarching agency. However, in no state did this appear to be all-inclusive. For example, in California the overarching agency called the Business, Transportation, and Housing Agency includes 16 subordinate departments including: Housing and Community Development, Office of Military and Aerospace Support, Commerce and Economic Development, and California Housing Agency. But the California Infrastructure and Economic Development Bank exists as a separate freestanding entity.

The Vermont Agency of Commerce and Community Development includes the Economic Development, Housing and Community Affairs, and Tourism and Marketing departments, but the Vermont Economic Development Authority, Vermont Economic Progress Council, Vermont Film Corporation, and Department of Taxes all exist separately outside of the overarching agency. In New York, the Empire State Development Corporation also includes the Job Development Authority, but several other entities including the housing finance agency; film and television development office; housing and community renewal office; and science, technology, and academic research office all exist separately.

Massachusetts and Pennsylvania exemplify the third variant we found. In these states, an entity associated with the governor’s office orchestrates the functions of several departments and freestanding offices. In Massachusetts, this coordinating function is performed by the Executive Office for Economic Development Business Resource Team. It coordinates the functions of the Department of Business and Technology, the Office of Consumer Affairs and Business Regulation, the Department of Labor, and the Department of Workforce Development. In Pennsylvania, a group of projects managers on the Governor’s Action Team work with staff in various program offices to help coordinate resources, provide technical assistance, and assist businesses in reaching their goals. The Governor’s Action Team is part of the state Department of Economic Development. In both states, however, other entities with different roles in economic development still exist outside these coordinating structures.

Most state economic development agency web pages provide one-stop information about economic development aid and taxes, regulations, and economic conditions. In Connecticut, the non-profit Connecticut Economic Resource Center also provides on-line access to information about federal, state, and local economic development agencies and programs. Its Program Finder allows businesses and other groups to search for information by agency, program, and key word (http: //products. cerc. com/brinfo. nsf/homepagefrm?OpenForm).

Table 1 shows the data for the 15 states.

Table 1: Selected States Economic Development Agency Structures

State

Agencies Under One Roof

Coordinating Agency

Agencies under Their Own Roofs

Lead Agency

Subordinate Agencies

California

Business, Transportation, and Housing Agency

16 Departments, including:

Housing and Community Development

Office of Military and Aerospace Support

Commerce and Economic Development Program

California Housing Finance Agency

 

California Infrastructure and Economic Development Bank

Connecticut

     

Department of Economic and Community Development

Connecticut Development Authority

Connecticut Housing Finance Authority

Connecticut Innovations, Inc.

-Continued-

State

Agencies Under One Roof

Coordinating Agency

Agencies under Their Own Roofs

Illinois

     

Department of Commerce and Economic Opportunity

Illinois Finance Authority

Illinois Housing Development Authority

Massachusetts

   

Executive Office for Economic Development, Business Resource Team

Department of Business and Technology

Office of Consumer Affairs and Business Regulation

Department of Labor

Department of Workforce Development

Department of Housing and Community Development

Mass Development (Finance Authority)

Massachusetts Technology Collaborative

Massachusetts Housing Finance Agency

Maine

     

Department of Economic and Community Development

Finance Authority of Maine

Maine State Housing Authority

New Hampshire

     

Department of Resources and Economic Development

Department of Cultural Resources

New Hampshire Business Finance Authority

Community Development Finance Authority

New Hampshire Housing Finance Authority

-Continued-

State

Agencies Under One Roof

Coordinating Agency

Agencies under Their Own Roofs

New Jersey

     

New Jersey Commerce and Economic Growth Commission

New Jersey Redevelopment Authority

New Jersey Economic Development Authority

New Jersey Commission on Science and Technology

Department of Community Affairs

New York

Empire State Development Corporation

Job Development Authority

 

Division of Housing and Community Renewal

New York State Office of Science, Technology and Academic Research

Governor’s Office for Motion Picture and Television Development

New York State Housing Finance Agency

Ohio

     

Ohio Department of Development

Ohio Venture Capital Authority

Ohio Housing Finance Authority

Ohio Tax Credit Authority

Oregon

     

Department of Land Conservation and Economic Development

Department of Economic and Community Development

Oregon Housing and Community Services (state housing finance agency)

Oregon Film and Video Office

Pennsylvania

   

Governor’s Action Team

Department of Community and Economic Development

Pennsylvania Economic Development Finance Authority

Ben Franklin Technology Development Authority

-Continued-

State

Agencies Under One Roof

Coordinating Agency

Agencies under Their Own Roofs

Rhode Island

     

Rhode Island Economic Development Corporation

Rhode Island State Council on the Arts, Film and Television Office

Rhode Island Mortgage and Housing Finance Corporation

Municipal Affairs

Texas

     

Texas Economic Development

Department of Housing and Community Affairs

Vermont

Agency of Commerce and Community Development

Departments of:

Economic Development

Housing and Community Affairs

Tourism and Marketing

 

Vermont Economic Development Authority

Vermont Economic Progress Council

Vermont Film Corporation

Department of Taxes

Washington

     

Department of Community, Trade, and Economic Development

Washington Technology Center

Department of Revenue

JR/JF: ts