The Department of Economic Development seeks to promote job creation and long-term economic growth in Massachusetts by attracting new businesses to the Commonwealth, helping existing businesses expand, and assisting emerging firms to obtain resources necessary to prosper and grow. The Department's efforts to stimulate the economy are directed toward promoting the Commonwealth as an attractive location for business, industry, tourism, and film. The Department is also responsible for the implementation of a comprehensive state energy plan to increase energy-efficiency and reduce costs in the residential, commercial, and industrial sectors.

The Department of Economic Development fulfills its mission through the operation of seven units within the Department, including the Office of the Director. The Massachusetts Office of Business Development assists existing businesses in creating and retaining jobs, and attracts new companies by facilitating their relocation to Massachusetts. The Massachusetts Office of Travel and Tourism manages a year-round marketing program to promote the Commonwealth as a location for tourism, conventions, travel, and recreational activities. The Massachusetts International Trade Council administers corporate programs to increase international trade and export sales. The Division of Energy Resources develops and implements energy policies to ensure a reliable and affordable supply of energy for businesses and residents in Massachusetts. The State Office of Minority and Women Business Assistance certifies companies as minority and women-owned enterprises to create eligibility for federal, state, and local economic development programs. The Office of Film and Video Development promotes economic growth by encouraging motion picture and television production in Massachusetts.

Objectives

For Fiscal Year 1998, the Weld/Cellucci Administration's vision includes the full implementation of the Commonwealth's economic plan titled: "Choosing to Compete: A Statewide Strategy for Economic Growth and Job Creation." The Department of Economic Development will strive to better coordinate the activities of its agencies to facilitate the fulfillment of the Administration's vision. In Fiscal Year 1998, the Department will:

• continue operation of regional business development offices in Boston, Springfield, Worcester, Lowell, and Dartmouth;
• continue tax incentive programs offered to 137 communities in 34 Economic Target Areas (ETAs);
• increase the already $1 billion in private industries created in ETAs;
• dedicate $9.5 million to promote Massachusetts internationally and domestically;
• improve and streamline energy regulations, promote greater efficiency in energy use, and mobilize energy education; and
• provide marketing, employment, and strategic development assistance to minority-owned businesses.

Budget Recommendations

For many of the Department of Economic Development's programs, Fiscal Year 1998 funding is maintained at Fiscal Year 1997 spending levels. Account 7007-0350 consolidates funding for the Massachusetts Manufacturing Partnership (7007-0350) and the Massachusetts Manufacturing Network (7003-0904), which was funded in the Department of Labor and Workforce Development in Fiscal Year 1997. Consolidating these programs will allow the Department to improve coordination between the programs.

The account structure for Fiscal Year 1998 includes consolidation of seven of the Department's line-items, including all of the units within the Department and the line-item for the Residential Conservation Program. This will give the Department a unified identity and create management efficiencies by enabling it to improve the management of its resources.

Fiscal Year 1998 Spending in Fiscal Year 1997 Account Structure

FY98 Account Structure			FY97 Account Structure
7007-0010	Department of Economic Development	16,630,256	7007-0100	322,904
			7007-0300	3,760,121
			7007-0900	10,462,398
			7007-1300	777,000
			7007-1500	542,452
			7007-0600	565,738
			7007-0700	199,643

Budgetary Direct Appropriations

DEPARTMENT OF ECONOMIC DEVELOPMENT
7007-0010	For the department of economic development, which includes the Massachusetts office of business development, the office of travel and tourism, the Massachusetts film office, the Massachusetts international trade council, the Massachusetts office of minority and women business assistance, and the division of energy resources; provided, that not less than nine million dollars shall be expended for the domestic and international promotion of Massachusetts; provided further, that not less than seven hundred sixty-five thousand three hundred eighty-one dollars shall be expended for the division of energy resources and the residential conservation service program; provided further, that not less than five hundred forty-five thousand two hundred eleven dollars shall be expended for the Massachusetts office of minority and women business assistance; and provided further, that not less than one million seventy-seven thousand dollars shall be provided to the Massachusetts international trade council for the promotion of international trade	16,630,256
	Massachusetts Tourism Fund 67.58% General Fund 32.42%

MINORITY ECONOMIC AND COMMUNITY DEVELOPMENT GRANTS
7007-0101	For minority economic, community, and business development grants	495,000

MASSACHUSETTS MANUFACTURING PARTNERSHIP AND NETWORK
7007-0350	For the state matching grant to the Massachusetts manufacturing partnership and for the Massachusetts manufacturing network to provide manufacturing extension services, alternative deployment pilot projects, technology access programs, and technology deployment programs; provided, that the department of economic development shall collaborate with the corporation for business, work, and learning to administer said programs; provided further, that said department shall apply for federal matching grants, which include but are not limited to, funds from the technology reinvestment program in the Advanced Research Projects Agency of the Department of Defense; and provided further, that no funds shall be expended from this item prior to the receipt of federal funds	1,350,000
	General Fund 77.78% Commonwealth Economic Development Fund 22.22%

SMALL BUSINESS DEVELOPMENT CENTER STATE MATCH
7007-0800	For the state match for a small business development center; provided, that no funds shall be expended from this account until such time as the United States Small Business Administration has executed a grant or contract with the university of Massachusetts at Amherst for the operation of said center; and provided further, that the funds expended from this item shall not exceed twenty-five percent of the gross operating cost of said center	747,203

FINANCIAL ASSISTANCE TO LOCAL TOURIST COUNCILS
7007-1000	For financial assistance to local tourist councils pursuant to section fourteen of chapter twenty-three A of the General Laws	4,921,000
	Massachusetts Tourism Fund 100%

PROGRAM TO ENHANCE PROSPECTS OF FEDERAL TECHNOLOGY FUNDING
7007-1200	For a program to create and maintain a more favorable and responsive environment for the formation, growth, attraction, and retention of technology-intensive industries in the commonwealth through the support of activities for clusters of technology-intensive firms; provided, that any said cluster shall include firms and universities concerned with federal technology funding and medical device manufacturing; provided further, that amounts appropriated herein shall be held and applied by the Massachusetts technology park corporation and administered through its Massachusetts technology collaborative; provided further, that said corporation shall establish an independent advisory panel that includes representatives from Massachusetts's industry, universities, and government agencies to advise said corporation relative to the most effective application of funds appropriated herein; and provided further, that funds appropriated herein shall be used solely for the purposes of providing technical assistance and proposal support to applicants or prospective applicants	875,000

Federal Grant Spending

MASSACHUSETTS FISHERIES INITIATIVE
7007-0002	For the purposes of a federally funded grant entitled, Massachusetts Fisheries Initiative	558,000

MASSACHUSETTS MODERNIZATION PARTNERSHIP
7007-0211	For the purposes of a federally funded grant entitled, Massachusetts Modernization Partnership	2,923,440

ECONOMIC PLANNING ASSISTANCE - UNITED STATES DEPARTMENT OF COMMERCE
7007-7000	For the purposes of a federally funded grant entitled, Economic Planning Assistance - United States Department of Commerce	66,313

URBAN ENTERPRISE PROGRAM
7007-9007	For the purposes of a federally funded grant entitled, Urban Enterprise Program	3,000,000

STATE HEATING OIL AND PROPANE PROGRAM
7007-9720	For the purposes of a federally funded grant entitled, State Heating Oil And Propane Program	22,725

STATE ENERGY PLAN
7007-9743	For the purposes of a federally funded grant entitled, State Energy Plan	708,283

NORTHEAST REGIONAL BIOMASS PROGRAM
7007-9757	For the purposes of a federally funded grant entitled, Northeast Regional Biomass Program	29,956

Trust and Other Spending

9000-0001

FILM OFFICE - PROMOTIONAL EVENTS

60,000

9000-0501

OFFICE OF TRAVEL AND TOURISM ANNUAL GOVERNOR'S TOURISM CONFERENCE

76,200

9000-1809

INDUSTRY SPECIALIST PROGRAM

30,000

9000-2220

STATE OFFICE OF MINORITY AND WOMEN BUSINESS ASSISTANCE - MBTA\TURNPIKE

240,000

9000-9008

SEAPORT ADVISORY COUNCIL

20,000

9200-9765

ELECTRIC VEHICLES DEPARTMENT OF DEFENSE ADVANCED RESEARCH PROJECT

12,607

9275-7016

STRIPPER OIL WELL

4,700,647

9275-7030

ELECTRIC VEHICLE DEMONSTRATION - NON-FEDERAL

45,000

9275-7040

TELECOMMMUTING INITIATIVE DONATIONS FROM PRIVATE FIRMS

2,120