You asked if Connecticut ever regionalized economic development, and if so, what the history of that practice was. You also wanted to know how many towns have full-time economic development coordinators or directors and the name of each regional planning agency, regional council of government, and regional economic development commission or corporation operating in Connecticut. (We answered your other questions about regional economic development districts in an earlier report (2005-R-0826)).

SUMMARY

Regionalized Economic Development

Regionalizing economic development means planning and implementing policies and programs on a regional, as opposed to a local or statewide, basis. The state has, at different times, incorporated regional concepts in its economic development planning process, funded plans prepared by regional planning organizations, financed large scale development projects implemented by regional economic development corporations, and capitalized revolving loan funds administered by these corporations. The state did this in addition to implementing statewide policies and programs.

During the mid 1990s, the state combined its housing and economic development departments and tried implementing programs and services on a regional level. But the Department of Economic and Community Development (DECD) ended this practice after several years because it proved costly and difficult to supervise.

Tourism promotion appears to be the only exception to the way the state generally administers economic development. The state has funded regional tourism districts since 1982, when there were 19. The legislature reduced the number of districts to 11 in 1992 and 5 in 2003. The state also operated a tourism office, which was housed in the DECD until the legislature moved it in 2003 to the newly established Connecticut Commission on Culture and Tourism (CCCT).

Local Economic Development Officials

At least 24 towns have full-time “economic development directors” and 15 have full-time “economic development coordinators. ” At least seven other towns have similar positions: three have economic development specialists, two have marketing and business development directors, and two have an economic development officer or administrator.

Regional Planning Organizations

The state is divided into 15 planning regions, and towns within them may create three types of regional planning organizations: regional councils of government (RCOGs), regional planning agencies (RPAs), and regional councils of elected officials (RCEOs). RCOGs operate in eight regions, RPAs in five, and RCEOs in two. Stafford and Union are the only towns outside of a region and that belong to no regional planning organization.

REGIONALIZED ECONOMIC DEVELOPMENT

Planning

The state has funded regional planning and incorporated regional concepts in its statewide economic development planning process.

During the early 1990s, DECD's predecessor agency, the Department of Economic Development, provided funds to regional planning organizations for regional economic development. The organizations used the funds to prepare strategic plans, establish regional economic databases, market their regions, and coordinate with federal and local agencies (CGS § 32-7).

During the mid 1990s, DECD provided “planning and coordination grants” to several regional organizations under the Regional Economic Development Act program (PA 93-382), which also provided grants for infrastructure projects. An organization had to prepare and submit a plan to the DECD commissioner in order to receive project grants. Attachment 1 lists the organizations that received the planning grants.

The legislature authorized $ 60 million for the grants. After all the funds were committed, DECD stopped funding regional planning but continued providing funds to regional organizations under other programs. The organizations used some of the funds to prepare feasibility studies and project plans.

Besides funding regional planning, DECD has incorporated some regional planning concepts in its statewide planning, which attempts to identify and nurture the state's major business sectors. The process recognizes that the businesses within each sector tend to locate near one another. The geographic clustering of related businesses reveals regions that do not fall within traditional political boundaries. Identifying regional clusters allows the state to concentrate resources on those factors that attract businesses to, and retain them in, a region. Some include access to airports, research universities, and labor pools.

DECD began identifying, organizing, and funding the state's major business clusters in 1998. It helped businesses in each cluster establish an organization and process to identify and address their common needs and concerns. For example, five Bristol-area spring manufacturers collaborated with the New Spring and Metal Stamping Association, vocational-technical high schools, and community colleges to develop a specialized curriculum to attract new workers and upgrade the skills of the incumbent workers.

You can obtain more information about clusters at DECD's web site (http: //www. ct. gov/ecd/site/default. asp).

Nonprofit organizations with a statewide perspective have also prepared economic development plans using regions as their geographic unit of analysis. For example, the Connecticut Regional Institute for the 21^st Century defined Connecticut's strategic framework based on newly forming trading blocks and super regions (Connecticut Strategic Economic Framework, Michael Gallis and Associates, 1999).

Formed in 2000, the Hartford-Springfield Economic Partnership sees the area along I-91 from Northampton, Massachusetts to Middletown, Connecticut as a single economic region sharing a common history, workforce, colleges and universities, and businesses. The 16 public and private partner organizations work together to market the region and its cultural and economic assets (http: //www. hartfordspringfield. com/).

State-Funded, Regionally Implemented Projects and Programs

DECD has funded projects and programs under the Regional Economic Development (REG), Manufacturing Assistance Act (MAA), and Urban Act (UA) programs that regional organizations planned and implemented. The organizations have used the funds to clean up contaminated sites, improve roads and provide other infrastructure, help businesses obtain federal contracts, make loans to small businesses, establish job training programs, develop cultural attractions, and prepare project plans and feasibility studies.

DECD can fund regional planning and infrastructure development projects under the REG, but, as noted above, the legislature has authorized no new bonds for it in decade (CGS § 32-325). By law, the funds go only to regional planning organizations and regional economic development commissions. (The Middlesex County Revitalization Commission appears to be the only example of the latter. ) The program's criteria favor projects that will boost manufacturing and strengthen the economic bases of the 17 towns with locally designated, state approved enterprise zones (i. e. , targeted investment communities).

Regional planning organizations, nonprofit organizations, cities and towns, and private businesses all qualify for MAA funds. Regional and municipal organizations use these funds to develope industrial parks, improve downtown areas, and capitalize revolving loan funds. Businesses use the funds to acquire and develop land, construct or rehabilitate buildings, and purchase new machinery.

Only regional and municipal organizations qualify for UA funds, and they can use them to implement a wide range of physical development projects.

As noted above, the former Department of Economic Development provided funds to regional organizations during the early 1990s to help them market and promote their respective regions as well as for strategic planning.

Attachment 2 identifies the regional organizations that received economic development funds and how they used the money.

Regional Administration

During the mid-1990s, the state implemented housing and economic development programs through regional offices after merging the departments of Housing and Economic Development into a combined Department of Economic and Community Development. One of the reasons for merging these departments was to “increase the number of field based staff directly for serving customers” (Reorganization Plan, February 1996, p. ii).

The new DECD initially administered programs out of 18 regional offices, most of which were affiliated with the Labor Department. But it ended this practice in order to cut administrative costs and improve supervision and management, DECD legislative liaison Joe Oros stated. DECD still provides technical assistance on a regional basis and sends staff into the field to work with municipal officials, regional developers, and business executives, he added.

Tourism Promotion

While DECD's effort to regionalize services lasted only a few years, the state has relied on regional district organizations (and a statewide tourism office) to promote tourism since 1982. The state initially funded 19 district organizations by sharing with them a portion of the lodgings tax revenue generated in their respective districts.

Towns initially formed these districts on their own under a statutory procedure. In 1992, the legislature ended this practice and designated 11 regional districts in law. In 2003, the legislature reduced the number to five, changed their funding source to the General Fund, and made them and the tourism office part of the CCCT.

Boards consisting of municipal representatives still govern the districts, but the law requires the CCCT to review and approve their budgets. This power seems to complement the commission's statutory duties, which include preparing a strategic tourism promotion plans, marketing the state's tourism assets, and ensuring that the districts cooperate with each other. (CGS § 10-196).

MUNICIPAL ECONOMIC DEVELOPMENT OFFICIALS

As Table 1 shows, at least 46 towns have full-time economic development officials, who hold various titles. Most of the other towns assign economic development duties to officials performing other functions. These include chief elected officials, town planners, and community and economic development coordinators. Attachment 3 is a list of towns' economic development contacts.

Table 1: Local Economic Development Officials

Source: Connecticut Economic Resource Center

REGIONAL ORGANIZATIONS

Regional Planning Organizations

Regional councils of governments (RCOGs) and regional planning agencies (RPAs) are two types of regional planning organizations towns may create in a state-designated planning region. The other type is regional councils of elected officials (RCEOs). Towns that create a RCOG cannot create an RPA. But they must create a regional planning commission to prepare regional plans. Towns that create an RCEO may establish a separate RPA.

Table 1 lists the planning organizations serving the 15 planning regions. (Stafford and Union are the only towns that do not fall within a region. )

Table 2: Regional Planning Organizations

Regional Development Commissions and Corporations

As Table 3 shows, there are at least 11 regional nonprofit economic development corporations and one regional economic development commission, which the legislature created by special act. And two regional planning organizations created special committees to prepare regional economic development plans. Attachment 4 is a 2003 OLR report describing 10 regional nonprofit economic development agencies and the programs they implement (2003-R-0472).

Table 3: Regional Economic Development Organizations

Attachment 1: Organizations Receiving Planning and Coordination Grants

*Source: DECD, Report on Active Financial Assistance for Economic Development (FY 91-98 and November 2004)

Attachment 2: State Funding for Regional Economic Development Corporations: January 1, 1994-June 30, 2004

(in millions)

Attachment 2: Continued

Attachment 2: Continued

Source: CGS §32-1h Report on Active Financial Assistance for Economic Development, DECD, November 2004.

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