ANALYSIS OF THE GOVERNOR’S BUDGET RECOMMENDATIONS FY 2021 ECONOMIC DEVELOPMENT APPROPRIATIONS SUBCOMMITTEE JANUARY 2020 Analysis of the Governor’s Budget Recommendations | LSA – Fiscal Services Division (Blank Page) Table of Contents Analysis of the Governor’s Budget Recommendations Page Subcommittee Members and Staff ........................................................................................................ 1 Summary of FY 2021 Recommendations .............................................................................................. 3 Department of Cultural Affairs (DCA) ............................................................................................... 4 Iowa Economic Development Authority (IEDA) ................................................................................ 7 Iowa Finance Authority (IFA) ............................................................................................................ 11 Iowa Workforce Development (IWD) ................................................................................................ 13 Public Employment Relations Board (PERB) ................................................................................... 17 Board of Regents Economic Development Programs ...................................................................... 19 College Student Aid Commission ..................................................................................................... 22 Comparisons to Other States — Gross Domestic Product ............................................................... 24 Reports Required to Be Filed with the General Assembly ................................................................ 25 Appendices A – Appropriations Tracking ............................................................................................................. 26 General Fund Tracking.............................................................................................................. 27 Other Funds Tracking................................................................................................................ 29 Full-Time Equivalent (FTE) Positions Tracking ......................................................................... 30 B – Appropriations Activity FY 2019 ................................................................................................. 33 C – Sample of Budget Schedules 1 and 6 ....................................................................................... 37 D – Report on Federal Grants .......................................................................................................... 39 Table of Contents | LSA – Fiscal Services Division (Blank Page) Economic Development Subcommittee Members Analysis of the Governor’s Budget Recommendations SENATE HOUSE Mark S. Lofgren, Chairperson Ray Sorensen, Chairperson Thomas A. Greene, Vice Chairperson Thomas D. Gerhold, Vice Chairperson William A. Dotzler Jr., Ranking Member Kirsten Running-Marquardt, Ranking Member Chris Cournoyer Mary A. Gaskill Jackie Smith Mary Ann Hanusa Heather Matson Andy McKean Jeff Shipley Skyler Wheeler LEGISLATIVE SERVICES AGENCY Fiscal Services Division Legal Services Division Ron Robinson (515.281.6256) Kathleen O’Connor (515.281.6329) [email protected] [email protected] Timothy McDermott (515.725.8090) [email protected] Economic Development Subcommittee Members | LSA – Fiscal Services Division 1 State of Iowa As Of: 01/13/2020 88th General Assembly Joint Economic Development Appropriations Subcommittee Chair Chair Vice Chair Vice Chair Ranking Member Ranking Member Senator Representative Representative Senator Senator Representative Lofgren, Mark S. Sorensen, Ray Gerhold, Thomas D. Greene, Thomas A. Dotzler, William A. Running-Marquardt, Kirsten Senator Representative Representative Representative Representative Representative Cournoyer, Chris Gaskill, Mary A. Hanusa, Mary Ann Matson, Heather McKean, Andy Shipley, Jeff Senator Representative Smith, Jackie Wheeler, Skyler 2 Economic Development Appropriations Subcommittee Fiscal Staff: Ron Robinson Analysis of Governor’s Budget Economic Development Appropriations Subcommittee | LSA – Fiscal Services Division 3 Economic Development Appropriations Subcommittee DEPARTMENT OF CULTURAL AFFAIRS Overview and Funding History Agency Overview: The Iowa Department of Cultural Affairs (DCA) has primary responsibility for the development of the State’s interest in the areas of the arts, history, and other cultural matters. In fulfilling this responsibility, the DCA is advised and assisted by the State Historical Board of Trustees and the Iowa Arts Council. Economic Development Appropriations Subcommittee | LSA – Fiscal Services Division 4 Economic Development Appropriations Subcommittee General Fund Recommendations Actual Estimated Gov Rec Gov Rec vs FY 2019 FY 2020 FY 2021 Est FY 2020 (1) (2) (3) (4) Cultural Affairs, Department of Cultural Affairs, Dept. of Administration Division $ 168,637 $ 168,637 $ 170,162 $ 1,525 Community Cultural Grants 172,090 172,090 172,090 0 Historical Division 3,027,797 3,142,351 3,195,504 53,153 Historic Sites 426,398 426,398 432,907 6,509 Arts Division 1,217,188 1,317,188 1,429,005 111,817 Great Places 150,000 150,000 151,232 1,232 Records Center Rent 227,243 227,243 0 -227,243 Cultural Trust Grants 75,000 150,000 150,000 0 County Endowment Funding - DCA Grants 448,403 448,403 448,403 0 Total Cultural Affairs, Department of $ 5,912,756 $ 6,202,310 $ 6,149,303 $ -53,007 Governor’s Recommendations FY 2021 — Significant Changes Administration Division $1,525 An increase for salary adjustment. Historical Division $53,153 An increase for salary adjustment. Historic Sites $6,509 An increase for salary adjustment. Arts Division $111,817 • An increase of $11,817 for salary adjustment. • An increase of $100,000 for the following: • Staffing, programming, and promotion of the film and media industry. • Greenlight Grants to support home-grown Iowa film and digital media productions that benefit Iowans and small businesses in the State. Eligible projects must be ready for production, contain excellent content that advances Iowa’s brand and demonstrates public value. The Program is administered by the Iowa Arts Council on behalf of Produce Iowa. • Producer Zone Grants to help prepare communities to host film and media production crews and invest in Iowa film and media productions. Great Places $1,232 An increase for salary adjustment. Records Center Rent $-227,243 The appropriation is no longer needed due to the elimination of the lease. Discussion Items Original FY 2020 General Fund Appropriations — The original FY 2020 General Fund appropriations included the following changes compared to actual FY 2019: • Historical Division — A general increase of $100,000. • Arts Division — A general increase of $100,000. • Cultural Trust Grants — A general increase of $75,000. Activity Review — The Subcommittee may want to hear from the DCA about the DCA’s current efforts related to the archival of former Governors’ papers and battle flag preservation. These items no longer have separate appropriations and are under the purview of the Historical Division. Economic Development Appropriations Subcommittee | LSA – Fiscal Services Division 5 Economic Development Appropriations Subcommittee Historical Building — The Subcommittee may want to hear from the DCA about the status of the Historical Building project. This project will renovate collection and storage areas; replace the heating, ventilation, and air conditioning (HVAC); create a vapor barrier; and repair other museum components. Economic Development Appropriations Subcommittee | LSA – Fiscal Services Division 6 Economic Development Appropriations Subcommittee IOWA ECONOMIC DEVELOPMENT AUTHORITY Overview and Funding History Agency Overview: The Iowa Economic Development Authority (IEDA) is responsible for fostering the economic vitality of the State by working in focused partnerships with businesses, entrepreneurs, communities, and educational entities. The IEDA’s primary responsibilities are in the areas of finance, marketing, local government and service coordination, exporting, tourism, job training and entrepreneurial assistance, and small business. Economic Development Appropriations Subcommittee | LSA – Fiscal Services Division 7 Economic Development Appropriations Subcommittee General Fund Recommendations Actual Estimated Gov Rec Gov Rec vs FY 2019 FY 2020 FY 2021 Est FY 2020 (1) (2) (3) (4) Economic Development Authority Economic Development Authority Economic Development Appropriation $ 13,413,379 $ 13,318,553 $ 13,898,101 $ 579,548 World Food Prize 400,000 375,000 1,000,000 625,000 Iowa Comm. Volunteer Ser. - Promise 168,201 168,201 168,201 0 Councils of Governments (COGs) Assistance 200,000 275,000 275,000 0 Registered Apprenticeship Program 1,000,000 1,000,000 1,600,000 600,000 Tourism Marketing - Adjusted Gross Receipts 878,011 900,000 900,000 0 Total Economic Development Authority $ 16,059,591 $ 16,036,754 $ 17,841,302 $ 1,804,548 Governor’s Recommendations FY 2021 — Significant Changes Economic Development Appropriation $579,548 • An increase of $79,548 for salary adjustment. • An increase of $500,000 for “This is Iowa” marketing. World Food Prize $625,000 An increase of $625,000 for the World Food Prize, bringing the total appropriation to $1,000,000. Iowa Code section 15.368(1) appropriates $1,000,000 annually from the General Fund for the World Food Prize award.