The Trade and
Commerce Agency promotes business development, job creation, and job retention
efforts. The Governor’s Budget proposes $319 million and 356 personnel
years for the Agency. Services to the business community are provided through
the offices of Permit Assistance, Strategic Technology, Business Development,
Tourism, Marketing and Communications, California-Mexico Affairs, and the
California Film Commission. In fiscal year 2000-01, the Agency has proposed a
number of initiatives that support the theme of California’s new economy. (See
also the California’s New Economy section.)
Initiatives to Foster the New
- Next Generation Internet—The
Budget includes $5.0 million for the State to partner with federal, private
and other public entities to develop two "Next Generation Internet"
centers. The centers will be laboratories available to the business and
academic sectors to develop commercial applications using high-speed Internet
(Internet2) technologies. The primary goal is to help California’s high-tech
industries maintain their world-wide leadership.
- Connecting Rural Communities—The
Administration proposes $2.1 million to develop and administer a demonstration
grant program for electronic commerce in rural regions. Coordinated through CSU
Fresno, the program’s objective is to assist rural areas—where private
communication companies have not provided economical Internet access—with
planning funding needed to compete for federal grants for communication
- Commercial Space—
The Budget proposes $4.1 million to support the commercial space and aerospace
industries. Of this, $2.4 million is for competitive grants, $1.0 million
is to continue the campaign to locate launch and production facilities for the
VentureStar reusable launch vehicle in California, $250,000 is for consultant
support to secure the Joint Strike Fighter project, $213,000 is to construct an
aerospace supplier data base, and the balance is for agency support.
- Biomass Grants—The
Budget includes $10.0 million for a 2000-01 grant program to facilitate the
ability of the emerging biomass industry to convert agricultural waste into
clean energy. The program will be replaced by a tax credit for 2001-02 and
- Rural Investment Tax Exemption—Through
its California Infrastructure and Economic Development Bank, the Agency will
authorize $5.0 million in state sales tax exemptions for businesses in high
unemployment areas that meet specified investment and job-creation criteria.
Trade and Commerce Agency recommends increased funding for the California
Technology Investment Partnership (CalTIP) program by $2.2 million to meet
growth in demand. The program supports California’s new economy by
accelerating the development and commercialization of new products and services
through grants to high-technology firms. State grants are matched with private
and federal funds.
- Manufacturing Technology Program—To
maintain the program’s current size ($33.0 million in total grants from all
fund sources), the Budget proposes an increase of $1.2 million in state support
to compensate for scheduled reductions in federal matching grants. The program
supports the state’s manufacturing sector by providing grants to manufacturing
businesses to assist in upgrading and developing new manufacturing technology.
Other Business/Job Retention and
- Small Business Loan Guarantees—The
Budget provides $3.0 million to expand the Small Business Loan Guarantee
Program to the leveraged ratio of 4:1 allowed under statute. With this
augmentation, the program can better serve California’s small businesses by
increasing the volume of its loan guarantees from the current level of about
$99 million to $124 million.
- Military Base Closures—Pursuant
to Chapter 425, Statutes of 1999, the Trade and Commerce Agency proposes
$970,000 for permanent support of the Office of Military Base Retention and for
a two-year competitive grant program ($400,000 each year) to communities
potentially affected by future military base closures or losses of military
missions. Grants will support planning and liaison activities with the federal
government, helping communities and base management to make the case for
retaining and expanding missions on California’s bases.
- Infrastructure Bank—The
Trade and Commerce Agency administers the California Infrastructure and Economic
Development Bank. In 1999-00, the Bank was capitalized with $425.0 million
from the General Fund (in addition to $50.0 million provided in 1998), providing
a significant source of financial assistance for public infrastructure projects
that support economic development. The Bank is authorized to issue bonds against
these assets, leveraging its loan capacity to three or four times its initial
capitalization. The Bank’s board approved loan guidelines in December of 1999.
Pre-applications may be filed with the Bank now. It is expected that review of
loan applications and loan awards will begin in early spring of 2000. The Budget
anticipates a total of $295 million in loans in 1999-00 and 2000-01.
the Budget Summary Table of Contents
the top of this page.
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