Appropriations committee in Idaho tightens belt on Commerce budget

A $33.8 million budget for the state's Department of Commerce in fiscal 2009 was approved Monday by the Legislature's Joint Finance and Appropriations Committee. The appropriation is a steep reduction from last year's actual budget of $47.7 million, and even less than Gov. C.L. "Butch" Otter's recommendation of $34.2 million.

The agency had originally requested $42.4 million.

The Department of Commerce was split from the Department of Labor in 2007. The split was reflected in the commerce department's fiscal 2008 budget.

The department's reduced budget is mostly due to reduced spending from dedicated funding sources, like the Economic Recovery Fund. Dedicated funding accounted for $23.4 million of the department's budget last year; this year that number is only $9 million.

Last year, $22 million in one time expenditures came out of dedicated sources Budget and Policy Analyst Keith Bybee told the committee.  

The department is funding 56 full time positions, down from 57 a year ago. Funding from the state's general fund and federal sources remains about the same - at $7 million and $16 million, respectively.

The committee voted to include six line item expenditures - four of them recommended by Otter - as part of the commerce department's 2009 budget.

The governor's first three recommendations, which include the Business and Jobs Development Fund to recruit companies to Idaho, the Rural Initiative Program, and expanding the state's trade office in India, are budgeted at $1.8 million of one-time appropriations. Transferring the Idaho Rural Partnership to the Department of Agriculture would remove $305,600 from the commerce department's budget.

The committee also voted to continue funding the Small Business Assistance Grants program, and set aside $150,000 for Idaho TechConnect - which was considerably less than the $450,000 that had been requested.

"[We] originally intended for a much more aggressive budget," Sen. Stan Bastian, R-Eagle, said. "We feel it's important for economic devolvement. "

The budget emphasizes business retention and recruitment, he said.

Along with the budget, the committee also approved additional sections of legislative intent that will guide how some of the appropriations will be spent. Those guidelines require TechConnect to meet with the interim JFAC committee to explain the organization's activity, and also require TechConnect to continue reporting to the Department of Commerce on a quarterly basis.

"We get a lot of mail about TechConnect," Sen. Elliot Werk, D-Boise, said. "It's been very difficult to get any reasonable information about TechConnect. I'll support the budget, but I'm getting to the point where if we can't get details in the future, I don't know if I'll be able to support it. "