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 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 of Economic Development fulfills its mission through the operation of six 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 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

The Department of Economic Development will strive to better coordinate the activities of its units to facilitate the fulfillment of the Cellucci Administration's vision as outlined in the State's economic development plan: "Choosing to Compete." In Fiscal Year 1999, the Department will:

• continue tax incentive programs offered to 147 communities in 34 Economic Target Areas;
• increase the already $2 billion in private industries created in Economic Target Areas;
• dedicate $6.5 million to promote Massachusetts internationally and domestically, which will generate $15.7 billion in spending from over 28 million annual visitors;
• provide marketing, employment, and strategic development assistance to minority-owned businesses;
• increase employment opportunities in Massachusetts by expanding the state's export industry to competitively compete with other states; and
• provide support for a south coast regional economic development initiative.

Budget Recommendations

The amount recommended for Fiscal Year 1999 will enable the Department of Economic Development to provide the same level of services as in Fiscal Year 1998, and achieve the objectives outlined above. The recommendation includes $250,000 to fund a new economic development initiative in the south coast region of Massachusetts. As a result of the recently enacted energy restructuring bill, the Division of Energy Resources (7007-0600 and 7007-0700) was transferred to the Office of Consumer Affairs and Business Regulation.

Budgetary Direct Appropriations

DEPARTMENT OF ECONOMIC DEVELOPMENT ADMINISTRATION
7007-0100	For the operation of the office of the director of the department of economic development	463,414

MINORITY ECONOMIC AND COMMUNITY DEVELOPMENT GRANTS
7007-0101	For minority economic, community, and business development grants, including grants to public or non-public entities	440,000

SOUTH COAST REGIONAL ECONOMIC DEVELOPMENT INITIATIVE
7007-0103	For a south coast region economic development initiative	250,000
	Local Aid Fund 100%

MASSACHUSETTS OFFICE OF BUSINESS DEVELOPMENT
7007-0300	For the operation of the Massachusetts office of business development, including grants to public or non-public entities	4,359,449

MASSACHUSETTS MANUFACTURING PARTNERSHIP
7007-0350	For a state matching grant to the Massachusetts manufacturing partnership; provided, that the expenditure of funds from this item shall be contingent upon prior receipt of federal funds from the National Institute of Standards and Technology of the Department of Commerce	675,000

DEVENS ENTERPRISE COMMISSION
7007-0515	For the operation of the Devens enterprise commission; provided, that said commission shall collaborate with the department of economic development on a plan to render the commission financially self-sufficient within three years; and provided further, that said plan shall be submitted to the house and senate committees on ways and means and the secretary of administration and finance not later than October 1, 1998	230,000

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 item until 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 25 per cent of the gross operating cost of said center	747,203

OFFICE OF TRAVEL AND TOURISM
7007-0900	For the operation of the office of travel and tourism and the office of film and video, including grants to public or non-public entities	10,990,635
	Massachusetts Tourism Fund 100%

LOCAL TOURIST COUNCILS FINANCIAL ASSISTANCE
7007-1000	For financial assistance to local tourist councils pursuant to section 14 of chapter 23A of the General Laws	5,187,000
	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 industry for the commonwealth through the support of activities of clusters of technology-intensive organizations; provided, that any portfolio of such clusters 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 the 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 applications or prospective applicants	900,000

MASSACHUSETTS INTERNATIONAL TRADE COUNCIL
7007-1300	For the operation of the Massachusetts international trade council	864,000
	Massachusetts Tourism Fund 100%

OFFICE OF MINORITY AND WOMEN BUSINESS ASSISTANCE
7007-1500	For the operation of the state office of minority and women business assistance	563,729

Federal Grant Spending

MASSACHUSETTS FISHERIES INITIATIVE
7007-0002	For the purposes of a federally funded grant entitled, Massachusetts Fisheries Initiative	300,000

MASSACHUSETTS MODERNIZATION PARTNERSHIP
7007-0211	For the purposes of a federally funded grant entitled, Massachusetts Modernization Partnership	2,356,000

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	18,896

URBAN ENTERPRISE PROGRAM
7007-9007	For the purposes of a federally funded grant entitled, Urban Enterprise Program	3,693,449

Trust and Other Spending

9000-0001

FILM OFFICE - PROMOTIONAL EVENTS

8,000

9000-0501

OFFICE OF TRAVEL AND TOURISM ANNUAL GOVERNOR`S TOURISM CONFERENCE

88,000

9000-1809

INDUSTRY SPECIALIST PROGRAM

93,631

9000-2220

STATE OFFICE OF MINORITY AND WOMEN BUSINESS ASSISTANCE

240,000

9000-9008

SEAPORT ADVISORY COUNCIL

4,000