GOED progressing on Legislature-ordered economic activity review

The Governor’s Office of Economic Development (GOED) is continuing its months-long work reviewing economic development activities in the state.

Charged in SB172 with undertaking the review, and with a report due this fall to legislative committees, GOED has formed the Utah Economic Development Strategic Planning Committee and several subcommittees to study the matter. It also has contracted with the Center for Regional Economic Competitiveness, an independent, not-for-profit organization, to provide expert opinion and prepare the report.{mprestriction ids="1,3"}

“Where necessary, we’ll make recommendations for ways to improve,” Val Hale, GOED’s executive director, said at the recent Utah Economic Summit. “We welcome the opportunity to take a look a fresh look at the state’s philosophy and approach to economic development.”

SB172 requires GOED to consult with other state agencies involved in economic development and produce a written strategic plan “that contains a coordinated economic development strategy for the state” and states that the strategy consist “of a limited set of clear, concise and defined principles and goals.”

The bill requires GOED to “establish specific principles and make specific recommendations to decrease competition and increase communication and cooperation among state-level economic development agencies, providers and administrators of economic development programs in the state, nonprofit entities that participate in economic development in the state, and local governments.”

It also requires GOED to recommend “a fundamental realignment of economic development programs in the state to ensure each program’s purpose is congruent with the mission of the organization within which the program is located.”

GOED also is to establish goals and principles to ensure the strategy works for both urban and rural areas of the state, and to provide recommendations on how existing rural economic development programs should be restructured or realigned. GOED also must assess the effectiveness of the state’s economic development incentives and make recommendations regarding them.

At the summit, Hale encouraged audience members to get involved with the new subcommittees. “If you have thoughts and ideas about these topics, please reach out in the next month or so and we’ll put you in contact with the appropriate subcommittee chair to share your ideas,” he said.

At the May meeting of the GOED board, Hale listed the subcommittees and their areas of study: incentives, workforce development, rural economic development, realignment/reorganization, measurement and metrics, tourism and event sponsorships, innovation, venture capital, economic clusters, public/private partnerships, entrepreneurship and small business, and international trade.

Each subcommittee will study objectives, goals, recommendations and, if applicable, a proposed budget.

Jerry Oldroyd, chairman of the GOED board, said the review is “something I think could be very transformational for the state.”

“The last, at least, five years there’s been significant discussion about changing economic development,” he said. “And it varies. In good times, [people say] ‘We could do away with economic development.’ In bad times, [they say] ‘Why in the hell haven’t we done more in economic development?’ It’s very schizophrenic that way.”

“This [review] will have broad ramifications going forward, hopefully. … I’m hoping that this can move economic development forward for, really, the next decade,” Oldroyd said.

Hale said bringing in various agencies to discuss economic development in a broad way is a first.

“We’re going to bring in every entity that has a touchpoint with economic development and have them around the table to talk about this,” he said. “And I think that’s good because we really do need to look at the long-term impact of economic development on the state.”{/mprestriction}