BEDL 1.31.18

BEDL 1.31.18


Economic Development, and Labor Appropriations Subcommittee Wednesday, January 31, 2018, 8:00 a.m.

  1. 8:00 to 8:05 a.m. Call to Order and Minutes
  2. 8:05 to 8:30 a.m. Vote On Base Budgets
  3. 8:30 to 8:50 a.m. Heritage and Arts Building Blocks
  4. 8:50 to 9:15 a.m. Department of Alcoholic Beverage Control Building Blocks
  5. 9:15 to 9:45 a.m. Governor’s Office of Economic Development Building Blocks
  6. 9:45 to 9:55 a.m. Utah Cultural Alliance Annual Report
  7. 9:55 to 10:05 a.m. RFA – Chinese Descendants Golden Spike Conference – Rep. K. Kwan
  8. 10:05 to 10:15 a.m. RFA – Hill Air Force Base Air Show – Rep. S. Handy
  9. 10:15 to 10:25 a.m. RFA – Peace House Expansion – Sen. K. Van Tassell
  10. 10:25 to 10:35 a.m. RFA – Talent Ready Utah – Sen. A. Millner
  11. 10:35 to 10:45 a.m. RFA – Talent Development and Retention – Sen. A. Millner
  12. 10:45 to 10:50 a.m. Other Committee Business
  13. 10:50 a.m. Adjourn


Vote on base budget:

  • Federal Grants
  • Fees in house bill 8
    • Adopt fees in this in addition to those that are missing
  • Several motions in performance and non lapsing intent measures
  • What they’ll be held accountable in the next year
  • One change for Heritage and Arts:
    • Allows them to replace one book mobile, not new money just continuing to reallocate the funds for the fleet.
  • Pass all the motions in the base budget
  • Other potential motions: Governor’s Department of Economic Development
    • Youth impact project
    • Stem Lab project
    • Combined motion to move both of these projects
  • Anderegg: move to remove the DABC parents empowered motion from the list
    • More effective to have it be through the adults, not the kids. Thinks they should consider keeping this.
  • Sandall: We also looked into that, intent to cap it, not necessarily get rid of it. It won’t go away, but the money will be capped.
  • Hemmert: the cap is to keep it safe long term
  • Harper: do you remember the different interim committees? What’s the total amount of fiscal impact on this list?
  • Webb: The cuts recommended by the LFA were about 5.2 and these cuts are 6.2
  • Hemmert: That is just shy of two percent.
  • Wilko: we’re double checking on the numbers because we might have double added it, double checking and will get back
  • Moss: Wants to go back to parents empowered program
    • Is there anyone here who can speak to that? Costs do go up for advertising overtime.
  • Webb: they’re scheduled to testify on Friday
  • Wilson: Do we have a motion to adopt the entire two pages? Or any motions? Mr. Chair, do you want to do motions collectively or individual?
  • Webb: we’re going to do it item by item
  • Wilson: Question about a line item: What is the manufacturers extension partner is?
  • Sandall: Request is to take the money back pending any kind of response from them.
  • Webb: Really a little over 1% in regard to Harper’s question about money.
  • Henderson: Makes a motion to approve all items on the list unless someone has an objection.
  • Quin: Substitute motion that we address these by subject and by line item because there are a few things to address.
  • Webb: If you have a concern, let’s go through each. Ask the committee what they’d like to ask individually
  • Quin: that is the intention
  • Quin: Would like to see some additional cuts to the grant programs to further vet this out. Would like to have a discussion about further reductions in Ustar’s budget.
  • Webb: So your motion is to be 2.85 million as opposed to 850?
  • Quin: Just grant programs in general, not necessarily just Ustar. Make a reduction to the total grant program by 2.85 million as opposed to the 10 million (roughly)
  • Webb: Are we cutting off funding to existing programs and ongoing funds?
  • Moss: Just a point of information: on out of state travel, why we would reduce the $70,000?
  • Webb: I will rule that that is not in this motion.
  • Roll Call Vote:
    • Hemmert: No
    • Andrick: No
    • Bramble: No
    • Buxton: No
    • Harper: Aye
    • Henderson: Aye
    • Webb: No
    • Sandall: No
    • Moss: No
    • Peterson: No
    • Val Peterson: No
    • Quinn: Yes
    • Roberts: Yes
    • Weight: No
    • Westwood: No
    • Wilson: (just arrived)
  • Webb: The motion fails, 4 in favor, 12 against
  • Utah Science Technology and Research Institute: UStar
    • Staff Economist: decision for the committee to make
  • Anderegg : Moves to delete the cut to USTAR’s travel budget


Talent Ready Utah:

  • Bring together education and workforce
  • A committee from talent ready Utah that include
  • Millner’s support
  • What they have done
    • Pathways programs
    • IT
    • Life sciences
    • Aerospace
  • Industry and Education and State Government
  • This bill will help talent ready Utah be even better in the future
  • To help bring programs and funding together. Have some very targeted legislation. Broad industry support for information technology.
  • Millner: Requesting $250,000 ongoing and $150,000 one time
  • Hemmert: Partner with Utah Futures
  • Millner: An opportunity to implement and integrate workplace learning
  • Weight: How does this work in high school classrooms?
    • Response: Millner: Start to align that ask what are our priorities? How do we work with industry to make this work?
      • Being able to have work based learning experiences with students
      • Summer internship opportunities for teachers
    • Weight: Question. Are there classroom teachers involved in an advisory capacity?
    • Response Millner: Opportunity for a larger group of stakeholders in planning



Talent Development and Retention: Senate Bill 104

  • Trying to build capacity in the technical positions that companies need.
  • Be able to build a pipeline of students to go into these programs
  • There’s a pathway by which they could do that without ending up with lots of debt
  • This proposes for students who don’t have scholarships, but go into a program that are in high demand in Utah they would provide an incentive loan program
  • Incentive loan program: only for tuition, fees and books
    • Need that kind of support as a full time student
    • Need an incentive to keep them here
    • If they go to work for a Utah company then they would have loan forgiveness. For every year they stay here they will get a 25% loan forgiveness
    • If they don’t stay in Utah then they would be required to pay the loan back


  • Proposing 2.5 million dollars, and additional 250 thousand in ongoing and 150 in one time
  • Roberts: Do I not have to make payments for a year? Or does the loan go down?
  • Millner: you’re paying on that loan for the first year
  • Roberts: So we are reducing principal
  • Millner: Every year is 25%
  • Millner: You are paying along the way, after four years though we think we’ll keep them here.
  • Roberts: Why are they going elsewhere? Why are they leaving Utah
    • Response: not a singular answer to your question. We have the jobs, we just need an incentive to keep people here. Default answer is to get the education and to get somewhere
  • Anderegg: Struggling with the bill.
  • Millner: BA/BS level is where we need to start.
  • Webb: time is up


Heritage and Arts

  • Building Blocks for Our Budget
  • Creating Economic Stability
    • These grants provide economic stability to nonprofit organizations
    • Support for grants and programs which are funded by a mix of federal and state dollars
    • Revenues have not kept pace with inflation
    • Since 2012 our budget has only increased by 1.6 %
    • Recession cuts have never been restored
    • Many of the Programs are structurally imbalanced and lack the money to maintain the
    • Make progress in restoring some of these cuts to reduce the gap
    • Indian Affairs
      • Not creating a new position, its stabilizing funding for a needed position
    • $75,000 for ongoing and supplemental
    • Collections Manager
      • Working in multiple locations,
      • Happens because of the structural imbalance
      • Allow one person to focus exclusively on this position rather than be spread thin doing too many jobs b/c of structural imbalance
      • $90,000 of general fund ongoing
    • Forensic Anthropologist
      • Need a second for this position
      • The work didn’t end after the four days
      • Worked with part timers to look over 5000 artifacts
      • She is the only person legally certified to analyze remains, we need to remedy this for the state, developers and the tribes
    • Grant Funding
      • Grants vs Direct Appropriations
        • Demand has steadily grown
        • Request for $500,000 to continue supporting these nonprofits who desperately need this money
        • When we provide grants we invest in communities
        • Improve quality of life and local economies
        • Arts orgs and museums can support a museum with tough times
        • Those organizations need sustained support from gov. funding


  • Webb: is there a handout with exact dollar amounts?
  • Response: About $725,000
  • No further questions


Governor’s Office of Economic Development (GOED)

  • Talent Ready Utah
    • $250,000 ongoing
    • $150,000 one time
  • Mega-Sites
    • $225,000
    • a lot in rural Utah
    • prepare and develop to make attractive for industry to go in
    • minimize risk for the clients
    • identify opportunities
  • Tourism and Marketing Performance Fund
    • Key driver of the economy in the state
    • Request: $1,500,000 (ongoing)
    • Targeted to get people out into other areas of Utah
  • Sundance
    • $750,000 (one-time)
    • generates $14 million in state and local taxes
    • $151.5 million in economic impact
    • $90.9 million publicity value
  • Utah Olympic Legacy Foundation
    • $5.9 million (one-time)
    • over 600 seasonal employees
    • like to be able to maintain and update these venues
  • Branding Campaign
    • $250,000 (one-time)
    • attract workers to the state
    • people don’t know what you have here, brand yourselves better
    • dispel the stereotypes about Utah
  • Budget Request: Inland Port Exploratory Committee
    • $475,000 (one time)


Utah Cultural Alliance:

  • #1 Nonprofits
  • #2 For Profits
  • Three Legged Stool
    • Nonprofit
      • Donations: public
      • Earned income
      • Donations: private
    • Top 5 Facts
      • CBs employed nearly 80,000 utah’s in the state
      • CB generated 3.5 billion in earnings
      • CB represent 3.9% of Ut’s total employement
      • 3 education programs serve 1.5 million kids
      • income from historic rehabilitation projects
    • Sources of Data
      • ACPSA
      • WESTAF’s Creative Vitality Index
      • AFTA’s Arts and Economic Prosperity Five Report
      • Board oF Ed
      • Preservation Utah Study
    • Collectively these three cities 414 million
    • Almost 14,000 jobs
    • Historic Preservation Using Tax Credits 19090-2012
      • Federal Projects Spent


–Chinese Descendants Golden Spike Conference – Rep. K. Kwan

  • Gather those stories and continue those stories
  • Introduce Max Chang
  • Request funding for 2018 and 2019 golden spike conferences
  • May 10, 1969
  • 50,000 Chinese workers helped build the pacific section of the railroad
    • paid less than others and given more dangerous tasks
  • First conference to celebrate and recognize those who helped build this great state of Utah
  • Arts components
  • Heritage and Arts
  • Using the Chinese railroad wormer’s contributions in Utah as a pivot point, historians, genealogists, railroad descendants and enthusiasts to trace the events leading up to the migration of Chinese labor to America.
  • Buxton: opportunity to recognize and celebrate those people
    • Encourage all of you to support this


Warriors Over the Wasatch

  • RFA
  • Every two years
  • Saw over 600,000 visitors
  • It’s free
  • As a foundation they raise funds for both public and private organizations
  • Pulls from a six state region
  • STEM City
  • $250,000 one time RFA


Peace House Expansion RFA FY19

  • serves Wasatch summit county
    • receive people from all over the state
    • for families or people who need to leave abusive relationships
    • help them prepare to go back into the real world
    • revolutionize the way they provide services to those in Wasatch and summit county
    • a place that is safe and protective
    • grow, recover and heal
    • 1 in 3 women will experience domestic abuse in her life
    • 1 in 5 homeless Utahns report experiencing domestic violence
  • Demand is greater than what they can accommodate with their current facility
  • Total Costs $11,647,000
    • Including hard and soft costs
    • Raised 88% of their goals ($10,240,634)
    • Now requesting the remaining $1.4 million
  • Bramble: this is a building request, is it appropriate we provide the money?
  • Moss: Outcomes are what is critical, the benefit to the community. The building is the means to get that.
  • Rep Peterson: Assuming we fund it, how long will it take to finish it?
    • The first quarter of 2019

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