OPEGA REVIEW FINAL FINAL Economic Development Economic Development REPORT REPORT Programs in Maine Programs in Maine a repor a report by by the Office of Program Evaluation & Government Accountability November 2006 2006
About the Review About the Review OPEGA Final Report: Ec OPEGA Final Report: Economic Developmen onomic Development Programs in Main t Programs in Maine e Slide 2 Slide 2
Purpose ――――――――――――――――― OPEGA Sought to Answer the Questions … OPEGA Sought to Answer the Questions … 1) Are sufficient program controls in place to assure that Economic Development programs are cost-beneficial and effective? 2) Which economic development programs should be considered for a more in-depth review? OPEGA also assessed the degree of transparency and accountability provided by the overall framework of the State’s economic development programs. OPEGA Final Report: Economic Developmen OPEGA Final Report: Ec onomic Development Programs in Main t Programs in Maine e Slide 3 Slide 3
Methods ――――――――――――――――― To answer these questions, OPEGA ……. To answer these questions, OPEGA ……. • researched relevant State statutes, history, and processes related to economic development programs as well as national trends in monitoring their effectiveness; • tested compliance with certain statutory provisions in 5 MRSA §§13070-J,K &O for the 13 programs of specific interest to AFA; • created a working definition to identify “similar” programs; • gathered information on 46 programs meeting the working definition; and • performed a risk assessment of the 46 programs based on information provided by the managing agencies. OPEGA Final Report: Economic Developmen OPEGA Final Report: Ec onomic Development Programs in Main t Programs in Maine e Slide 4 Slide 4
Methods ―――――――――――――――― Since there is no one generally accepted definition of Economic Development Programs, OPEGA created the definition below with the help of representatives from the primary State agencies involved in the review. Activities which distribute, impact or risk State funds, where the primary purpose is to stimulate the economy, expand or maintain employment opportunities, or encourage the establishment and growth of commerce and industry. OPEGA Final Report: Economic Developmen OPEGA Final Report: Ec onomic Development Programs in Main t Programs in Maine e Slide 5 Slide 5
Background Background OPEGA Final Report: Ec OPEGA Final Report: Economic Developmen onomic Development Programs in Main t Programs in Maine e Slide 6 Slide 6
Background ―――――――――――――― High-level Funding Flow for Economic Development Programs High-level Funding Flow for Economic Development Programs Federal Agencies Federal Agencies State & Quasi-State Agencies State & Quasi-State Agencies Regional COGs & DCs Regional COGs & DCs Comm Community Agencies unity Agencies OPEGA Final Report: Economic Developmen OPEGA Final Report: Ec onomic Development Programs in Main t Programs in Maine e Slide 7 Slide 7
Background ―――――――――――――― State resources distributed or revenue forgone for the State resources distributed or revenue forgone for the programs reviewed as p programs revi ewed as per r the administering agencies the administering agencies • $602,181,397 for period 2003 through 2005 • $200,727,132 annual average Additional administrative costs reported for 21 of the 46 Additional administrative costs reported for 21 of the 46 programs programs • $21,922,486 for period 2003 through 2005 • $7,307,495 annual average OPEGA Final Report: Ec OPEGA Final Report: Economic Developmen onomic Development Programs in Main t Programs in Maine e Slide 8 Slide 8
Background ―――――――――――――――― Percent of Funds & Number of Programs by Type of Funding Percent of Funds & Number of Programs by Type of Funding Perc rcent o of A Avg A Annua nnual Funds Funds Dis Distribut ributed d Number of Number of programs reviewed programs reviewed 1% 1% 0, 0% 0, 0% 4% 4% 3% 3% 3% 3% Ta Tax I Incentives ives 15 15 Lo Loan an S Support 6 10% 10% Grants Gr 3 Loan Lo ans 8 79% 79% Traini ning ng/Assi ssist stance ce 12 12 Other Ot 2 xx xx OPEGA Final Report: Economic Developmen OPEGA Final Report: Ec onomic Development Programs in Main t Programs in Maine e Slide 9 Slide 9
Background ―――――――――――――――― Percent of Funds & Number of Programs by Market Segment Percent of Funds & Number of Programs by Market Segment Percent of Avg Annual Funds Distributed Number of Number of programs reviewed programs reviewed 0.1% 2% 11 11 Agriculture/Aquaculture 2% 1 Technologies 43% 3% 1 Shipbuilders 7% 7 Other Misc 0% 5 Business Stage or Size 43% 15 15 All or Many Businesses 6 Manufacturing x OPEGA Final Report: Economic Developmen OPEGA Final Report: Ec onomic Development Programs in Main t Programs in Maine e Slide 10 Slide 10
Background ―――――――――――――― Primary State and quasi-state agencies managing Primary State and quasi-state agencies managing the programs reviewed the programs reviewed • Department of Labor – 2 programs • Maine Revenue Services – 12 programs • Department of Agriculture, Food & Rural Resources – 6 programs • Finance Authority of Maine – 11 programs • Department of Economic and Community Development – 2 programs OPEGA Final Report: Economic Developmen OPEGA Final Report: Ec onomic Development Programs in Main t Programs in Maine e Slide 11 Slide 11
Background ―――――――――――――― Current relevant statutes Current relevant statutes • Individual enacting statutes and related rules for each program • 5 MRSA §§13051-13060 (establishes and describes responsibilities of DECD) • 5 MRSA §§13070-J, K & O (specifies monitoring and reporting requirements for a few specific programs) OPEGA Final Report: Economic Developmen OPEGA Final Report: Ec onomic Development Programs in Main t Programs in Maine e Slide 12 Slide 12
Background ―――――――――――――――― Creation and Oversight of Programs Creation and Oversight of Programs •Any legislative committee may be involved in the creation or oversight of these programs. •These bills may be referred to any joint standing committee. •EDPs are proposed in various types of bills, including single topic, larger multi-purpose, or biennial budget bills. •Reports are not standardized, are given to one of several different joint standing committees, or may not be formally presented to any committee. OPEGA Final Report: Economic Developmen OPEGA Final Report: Ec onomic Development Programs in Main t Programs in Maine e Slide 13 Slide 13
Background ―――――――――――――― Timeline of Key Legislative Activity on Economic Development Timeline of Key Legislative Activity on Economic Development AFA Committee requests OPEGA revi AFA Committee requests OPEGA review of economic development ew of economic development 2006 2006 programs programs 2001 2001 EDIC releases final report and sunsets soon after EDIC releases final report and sunsets soon after 5 MRSA §13070-O req 5 MRS §13070-O requires evalu ires evaluation of ne ion of new economic w economic 1999 1999 development proposals development proposals 5 MRS 5 MRSA §13070-J creates the EDIC a §13070-J creates the EDIC and reporting requ d reporting requirements irements 1997 1997 for some programs for some programs Joint Select Committee on Econom Joint Select Committee on Economic ic Development releases report Development releases report 1987 1987 and DECD is created and DECD is created Joint Standing Committee on State Government releases report Joint Standing Committee on Stat e Government releases report 1985 1985 on economic development on economic development OPEGA Final Report: Ec OPEGA Final Report: Economic Developmen onomic Development Programs in Main t Programs in Maine e Slide 14 Slide 14
Best Practices Best Practices OPEGA Final Report: Ec OPEGA Final Report: Economic Developmen onomic Development Programs in Main t Programs in Maine e Slide 15 Slide 15
Best Practices ――――――――――――― Evaluation & Monitoring Of Economic Development Programs OPEGA studied reports from many private, non-profit and government groups. These reports explain the need for many factors required for successful evaluation and monitoring of economic development programs. The following list is a summary from those reports: • Purpose - Purpose - what problem is the program meant to address? hat problem is the program meant to address? • Clear & measurable goals directly supporting the purpose Clear & measurable goals directly supporting the purpose • Relevant, meaningful and auditable measures Relevant, meaningful and auditable measures • Collection of accurate and reliable data Collection of accurate and reliable data • Independent audits Independent audits OPEGA Final Report: Economic Developmen OPEGA Final Report: Ec onomic Development Programs in Main t Programs in Maine e Slide 16 Slide 16
Recommend
More recommend
