Location:
ECONOMIC DEVELOPMENT; STATE AGENCIES;

OLR Research Report


February 26, 2010

 

2010-R-0047

ORGANIZATIONAL STRUCTURE AND COSTS OF THE STATE'S ECONOMIC DEVELOPMENT AGENCIES

By: Rute Pinho, Associate Analyst

You asked for the organizational structure and operating costs of the state's economic development agencies. For each agency, you wanted to know the number of employees and wage and fringe benefit costs by business unit or division.

SUMMARY

The Department of Economic and Community Development (DECD) did not provide us with the wage and benefit cost data we requested. Based on data included in DECD's Annual Report for FY 09, DECD had 95 permanent full-time employees paid from the General Fund (GF) and 59 permanent full-time employees paid from bond, federal, and private funds in FY 09. Based on DECD's annual report and the fringe benefit rate provided by the Office of Fiscal analysis, the agency spent an estimated $7.18 million in personal services for its GF employees in FY 09, which equates to an estimated $11.44 million in wages and fringe benefit costs. This total does not include costs for the additional 59 employees paid from other funds. The figures reflect DECD's costs prior to staff reductions included in the FY 10 – 11 budget and any other changes attributable to the 2009 early retirement incentive program.

The Commission on Culture and Tourism (CCCT) currently has 39 employees (full- and part-time) paid from the GF with total wage and benefit costs of $2.06 million. CCCT also has 5 employees (and one vacant position) paid through National Park Service funds, one employee

paid through National Endowment for the Arts funds, and two employees paid for with Community Investment Account bond funds, with total wage and benefit costs of approximately $421,000.

The state's two quasi-public economic development agencies, Connecticut Innovations (CI) and the Connecticut Development Authority (CDA), pay wages and benefits for their employees out of their own operating funds, not the GF. CI employs 55 people, with total budgeted wages and benefits of $7.85 million for FY 10. This includes 24 employees assigned to the Connecticut Clean Energy Fund (CCEF) and a number of employees who work on both CI and CCEF matters. CDA employs 26 people with total wage and benefit costs of approximately $3.74 million.

The organizational charts for these four agencies are included below.

WAGES AND BENEFIT COSTS

DECD

DECD did not provide us with the wage and benefit cost data we requested. Figure 1 shows DECD's programs and estimated wage and benefit costs based on data included in DECD's Annual Report for FY 09. It divides the agency and its employees into six programs: (1) administration, (2) responsible development, (3) economic development, (4) community development, (5) housing development and support services, and (6) strategy and policy. The programs do not correspond to DECD's business units or divisions. We have attached a copy of DECD's organizational chart as of June 30, 2009, also included in its annual report, at the end of this report.

At the end of FY 09, DECD had 95 permanent full-time employees paid from the GF and 59 permanent full-time employees paid from bond, federal, and private funds. The amounts listed in Figure 1 reflect the personal services expenses (wages only) for each program plus an additional 59.42% for estimated fringe benefit costs. (The Office of Fiscal Analysis (OFA) provided us with the fringe benefit rate for FY 09.) The agency spent an estimated $7.18 million in personal services for its GF employees in FY 09, which equates to an estimated $11.44 million in wage and fringe benefit costs. This does not include wage and benefit costs for the additional 59 employees paid from other funds.

The FY 10-11 budget reduces the number of DECD's permanent full-time employees from 95 to 86. This includes a transfer of four film division employees from CCCT to DECD. The figures below reflect DECD's organizational structure and costs prior to these staff changes and any other changes attributable to the 2009 early retirement incentive program.

Figure 1: DECD: Estimated FY 09 Wage and Benefit Costs by Agency Program


CCCT

Figure 2 shows the number of employees and wage and benefit costs for FY 10 for the CCCT's four divisions: the (1) executive director's office, (2) arts, (3) tourism, and (4) historic preservation and museum. The amounts listed are based on FY 10 data provided by CCCT.

CCCT currently has 39 employees (full- and part-time) paid from the GF with total wage and benefit costs of $2.06 million. CCCT also has 5 employees (and one vacant position) paid through National Park Service funds, one employee paid through National Endowment for the Arts funds, and two employees paid for with Community Investment Account bond funds, with total wage and benefit costs of approximately $421,000. Figure 2 displays this information.

Figure 2: CCCT: FY 10 Employees and Wage and Benefit Costs


CI

CI employs 55 people, with total budgeted wages and benefits of $7.85 million for FY 10. This includes 24 employees assigned to the CCEF and a number of employees who work on both CI and CCEF matters. Figure 3 shows the number of employees and wage and benefit costs by department. The wages and benefits are also broken out by CI and CCEF.

Figure 3: CI: FY 10 Employees and Wage and Benefit Costs by Division


CDA

CDA currently employs 26 people with total wage and benefit costs of approximately $3.74 million. Figure 4 shows employees and wage and benefit costs by business unit, based on information provided by CDA.

Figure 4: CDA: FY 09 Employees by Division


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