c. The recipient contributes the required match to the cost of the project; and
d. The recipient will use the grant proceeds to create or retain jobs, of which at least 80% will be filled by individuals who are parents of minor children and whose family income does not exceed 200% of the poverty line. [Items (a) through (c) are current law requirements.]
In awarding the grants, the Department would be required to consider the following criteria: (a) the potential of the project to promote economic development in the area; (b) the number of jobs likely to be created or retained; (c) whether the project will have a positive effect on the environment; (d) the amount and quality of the recipient's contribution to the project; and (e) the innovativeness of the recipient's proposal for remediation and redevelopment. If possible, the Department would weight the criteria by applying a 50% weight to the first two criteria, a 25% weight to the third criterion, a 15% weight to the fourth criterion and a 10% weight to the fifth criterion.
A total of $5,000,000 PR in federal TANF funds would be provided annually through a new, program revenue continuing appropriation. Current funding limits for the brownfields grant program would be modified to reflect the additional funds. Consequently, total brownfields grant program funds would be required to be annually allocated as follows: (a) $3,000,000 in grants that do not exceed $300,000; (b) $3,000,000 in grants that are greater than $300,000 but do not exceed $700,000; and (c) $4,000,000 in grants that are greater than $700,000 but do not exceed $1,250,000. (Currently, the maximum total amount of grants that can be made for each level of awards is $750,000, $1,750,000 and $2,500,000, respectively.) The maximum grant would remain $1,250,000. In addition, the current provision that annually seven grants be made to municipalities with populations of less than 30,000 would be expanded to require 14 grants to municipalities with populations of less than 50,000.
Commerce would be required to promulgate rules to establish the hours and benefits of employment for eligible low-income individuals who fill project jobs. Applicants for grants would be required to include in the grant application a plan for creating jobs, including those jobs that would be created for eligible low-income individuals.
The Brownfields Grant program was created in the 1997-99 biennial budget to provide financial assistance to persons (individuals, partnerships, corporations, or limited liability companies), municipalities and local development corporations that conduct brownfields redevelopment and related environmental remediation projects. Brownfields are abandoned, idle or underused industrial or commercial facilities or sites, the expansion or redevelopment of which is adversely affected by actual or perceived environmental contamination. Brownfields redevelopment includes any work or undertaking to: (a) acquire a brownfields facility; and (b) raze, demolish, remove, reconstruct, renovate or rehabilitate the facility or existing buildings, structures or other improvements at the site. The redevelopment project must be for promoting the facility or site for commercial, industrial or similar economic development purposes.
Grant recipients are required to provide cash or in-kind matches equal to a certain percent of project costs as follows: (a) 20% for grants of $300,000 or less; (b) 35% for grants between $300,000 and $700,000; and (c) 50% for grants between $700,000 and $1,250,000.
Base level funding of $5,000,000 SEG annually from the environmental fund is appropriated for brownfields grants.
[Bill Sections: 195, 206, 212, 1328 and 2938 thru 2951]
3. GAMING ECONOMIC DEVELOPMENT AND DIVERSIFICATION GRANT AND LOAN PROGRAMS
Funding Positions
PR $8,000,000 1.00
Governor: Create a gaming economic development grant and loan program and a gaming economic diversification grant and loan program to provide financial assistance to businesses that are a located in counties that are affected by Native American gaming operations. Of Wisconsin's 72 counties, 52 either have casinos or are adjacent to counties that do. A total of $2,500,000 in 1999-00, $5,500,000 in 2000-01 and 1.0 position in each year would be provided for grants and loans and to administer the programs. Of the amounts appropriated, not more than $100,000 annually could be expended for marketing the programs. Funding, under the bill, would be provided from tribal gaming revenue provided to the state under the recently completed state-tribal gaming compact amendments. [For more information on the proposed use of tribal gaming revenues, see the summary item relating to Tribal Gaming Revenue Allocations under "Administration -- Division of Gaming."]
Gaming Economic Development Grants and Loans. The gaming economic development grant and loan program would provide financial assistance to businesses located in Wisconsin counties in which a casino operated by a federally recognized American Indian tribe or band was located or to businesses located in adjacent counties. Commerce would be authorized to make a grant or loan to a qualified business if it determined that: (a) the business has been negatively impacted by the existence of the casino; and (b) the business has a legitimate need for the grant or loan to improve the profitability of the business.
Two types of awards could be made under the program: (a) a grant of up to $15,000 for professional services; and (b) a grant or loan of up to $100,000 for fixed asset financing. Professional services would include: (a) preparation of preliminary feasibility studies, feasibility studies or business and financial plans; (b) providing a financial package; (c) engineering studies, appraisals or marketing assistance; and (d) related legal, accounting or managerial services. Award recipients would be required to provide a cash match of at least 25% of the cost of the project. Grants or loans could not be made for purposes related to tourism unless the Department of Tourism concurred in the award. Commerce could waive the matching requirement if it determined that the business was subject to extreme financial hardship. The Department would also be authorized to forgive all or any part of a loan made under the program.
The program would be provided $2,500,000 in 1999-00 and $3,000,000 in 2000-01 and 1.0 position in each year to fund grants and loans and to administer both of the gaming grant and loan programs. Of the total amount provided, $114,000 in 1999-00 and $125,900 in 2000-01 would fund the position and related administrative costs. In addition, the Department would be required to make grants to Brown County of $500,000 in 1999-00 and $1,000,000 in 2000-01. (These funds would be provided in the 1999-01 biennium only and would be used to support construction of a new arena.) Consequently, the total amount of funding available for gaming economic development grants and loans would be $1,886,000 in 1999-00 and $1,874,100 in 2000-01.
In addition, gaming economic development loans that were repaid would be placed in a program revenue repayments appropriation and could be used to make additional grants and loans.
Gaming Economic Diversification Grants and Loans. The gaming economic diversification grant and loan program would provide grants and loans beginning in July, 2000, to businesses located in counties in which a casino operated by a federally recognized American Indian tribe was located in this state or to businesses located in adjacent counties. Commerce would be authorized to make a grant or loan to an eligible business for the purpose of diversifying the economy of a community in proximity to a casino. In determining whether to make an award, the Department would be required to consider all of the following: (a) a project's potential to retain or increase the number of jobs; (b) a project's potential to provide for significant capital investment; and (c) a project's contribution to the economy of the community in proximity to the casino and of the state. Grant or loan recipients would be required to provide a cash match equal to 25% of the project's cost. Awards could not be made for tourism related projects unless the Department of Tourism concurred in the award.
Funding of $2,500,000 would be provided in 2000-01 for gaming economic diversification grants and loans. In addition, a separate, program revenue appropriation would be created for loan repayments.
[Bill Sections: 203, 205, 207 thru 209, 558, 559, 2952, 2953, 9110(1) and 9410(4)&(5)]
4. NATIVE AMERICAN ECONOMIC DEVELOPMENT APPROPRIATIONS FUNDING CONVERSION
Funding Positions
GPR - $201,400 - 1.00
PR 201,400 1.00
Total $0 0.00
Governor: Convert $100,700 and 1.0 position annually from GPR to PR for the Department's Native American liaison and Native American economic development liaison and technical assistance grants. The current appropriations used to fund the liaison, economic development liaison grant and technical assistance grant would be converted from GPR to PR. Funding, under the bill, would be provided from tribal gaming revenue provided to the state under the recently completed state-tribal gaming compact amendments. [For more information on the proposed use of tribal gaming revenues, see the summary item relating to Tribal Gaming Revenue Allocations under "Administration -- Division of Gaming."] Base level funding would be maintained for each appropriation as follows: (a) American Indian economic development; liaison--$50,700 PR and 1.0 PR position annually; (b) American Indian economic development; technical assistance--$25,000 PR annually; and (c) American Indian economic development; liaison-grants--$25,000 PR annually.
Currently, a program planning analyst position provides technical and economic development assistance to Native American entrepreneurs and tribal communities. The Department also administers two grant programs which provide funds to the Great Lakes Inter-Tribal Council--an economic development liaison grant and an economic development technical assistance grant.
The economic development liaison grant program provides monies to the Council to partially fund a Council liaison between American Indians, Indian businesses and Indian tribes interested in targeted economic assistance programs and the state agencies that administer them.
The technical assistance grant program provides funding to the Great Lakes Inter-Tribal Council for a position that provides technical assistance for economic development on or near Indian reservations. Entities that are eligible for technical assistance are tribal enterprises, Indian businesses located on Indian reservations and other Indian businesses that directly benefit the economies of Indian reservations.
[Bill Sections: 197 thru 199, 555 thru 557, 3022 and 3023]
5. PHYSICIAN AND HEALTH CARE PROVIDER LOAN ASSISTANCE PROGRAMS FUNDING CONVERSION
GPR - $777,400
PR 777,400
Total $0
Governor: Convert $388,700 annually from GPR to PR for the Physician Loan Assistance Program (PLAP) and Health Care Provider Loan Assistance Program (HCPLAP) and a related contract with the UW Office of Rural Health. The current appropriation used to fund the programs would be converted from GPR to PR. Funding, under the bill, would be provided from tribal gaming revenue provided to the state under the recently completed state-tribal gaming compact amendments. [For more information on the proposed use of tribal gaming revenues, see the summary item relating to Tribal Gaming Revenue Allocations under "Administration -- Division of Gaming."]
The Physician Loan Assistance Program (PLAP) and the Health Care Provider Loan Assistance Program (HCPLAP) programs provide loan repayments for physicians and certain health care professionals who practice in areas in the state which have a shortage of physicians or health care professionals.
[Bill Sections: 202, 562, 2957 thru 2964 and 9210(1)]
6. POSITION TRANSFER TO ADMINISTRATIVE SERVICES
Funding Positions
GPR - $572,400 - 4.50
FED - 322,800 - 3.00
PR 1,292,800 8.00
SEG 79,000 - 0.50
Total $476,600 0.00
Governor: Provide $482,900 PR and 8.0 PR positions annually and delete $161,400 FED, 3.0 FED positions, $286,200 GPR, 4.5 GPR positions, $35,300 SEG and 0.5 SEG positions annually to reflect the transfer of administrative positions to the Department's administrative services charge-back appropriation. The source of program revenue is fees charged to the Department's programs for administrative services provided.
Further, provide $163,200 PR and $74,600 SEG in 1999-00 and $163,800 PR and $75,000 SEG in 2000-01 in various appropriations to fund increased charges for administrative services performed for the various programs. The increased administrative charges would reflect position transfers, pay plan and fringe benefit costs and position reclassifications. This provision would increase expenditure authority in appropriations that would be charged for the increased costs of administrative services.
7. APPLICATIONS DEVELOPMENT POSITIONS
Funding Positions
PR $328,500 3.00
Governor: Provide $156,200 in 1999-00 and $172,300 in 2000-01 and 3.0 positions annually for the Administrative Services Division. The positions would be used for applications development and maintenance of the Department’s computer systems. The source of program revenue is fees charged to the Department’s programs for services provided.
8. WISCONSIN DEVELOPMENT FUND -- FUNDING PROVISIONS
Governor: Provide funding through the Wisconsin Development Fund (WDF) GPR and program revenue repayments appropriations as follows:
a. Annual base level GPR funding of $7,503,800.
b. Annual base level funding of $1,500,000 PR for the program revenue repayments appropriation. [An additional $1,000,000 in annual expenditure authority is provided for the newly created manufacturing extension grants. This funding is reflected under the WDF item #10 for that program.]
c. Authorize the Department to provide an additional $50,000, or a total of $100,000, in WDF funds in fiscal year 1999-00 to a nonprofit organization that provides assistance to organizations and individuals in urban areas. (The funding is the final year of a three-year grant for Reggie White's Wisconsin Urban Hope Initiative that provides entrepreneurial opportunities for individuals in Wisconsin's central cities. State funding is matched by private funds.) The funds must be used in accordance with a memorandum of understanding with DOA that specifies how the monies must be allocated for assistance.
d. Authorize the Department to make a loan of up to $600,000 in WDF funds for a project that includes a pedestrian bridge if all of the following apply: (1) the person submits a plan to the Department detailing the use of the loan and the Secretary of Commerce approves the plan; (2) the person enters into a written agreement with the Department that specifies the loan terms and the conditions for use of the loan proceeds, including reporting and auditing requirements; (3) the person agrees in writing to submit to the Department, within six months after spending the full amount of the loan, a report detailing how the proceeds were used. Loan repayments would be placed in the WDF program revenue appropriation. No loan proceeds could be paid for this purpose after June 30, 2000.
e. Authorize the Department to make a grant of not more than $1,000,000 from the WDF GPR appropriation to a consortium for a manufacturing technology training center if all of the following apply: (1) the consortium is located in the Racine-Kenosha area; (2) the consortium submits a plan to the Department detailing the proposed use of the grant and the Secretary approves the plan; (3) the consortium enters into a written agreement with the Department that specifies the conditions for use of the grant proceeds, including reporting and auditing requirements; and (4) the consortium agrees in writing to submit to the Department, within six months after spending the full amount of the grant, a report detailing how the grant proceeds were used. The Department could not disburse more than $500,000 in grant proceeds in each year of the 1999-2001 biennium. No grants could be paid for this purpose after June 30, 2001.
The Wisconsin Development Fund (WDF) consists of eight programs: (1) technology development grants and loans; (2) customized labor training grants and loans; (3) major economic development grants and loans; (4) Wisconsin trade project; (5) employe ownership assistance grants; (6) manufacturing assistance grants; (7) revolving loan fund capitalization grants; and (8) the rapid response fund. The WDF is funded through both a general purpose revenue (GPR) and a program revenue (PR) appropriation. The GPR appropriation is the primary source of funding for the WDF program.
The program revenue repayments appropriation was established to operate similar to a revolving loan fund. Amounts received from WDF loan repayments are credited to the repayments appropriation and these monies can be used to fund WDF grants and loans. The program revenue repayments appropriation is a continuing appropriation and, consequently, unappropriated and unexpended amounts remain in the appropriation balance and can be used to fund future grants and loans.
Under a provision of 1997 Wisconsin Act 27 (the 1997-99 biennial budget), the Department was authorized to provide financial assistance from the WDF to a nonprofit organization that provides assistance to organizations and individuals (Reggie White's Urban Hope Initiative). A total of $50,000 annually was required to be allocated to the project in 1997-98, 1998-99 and 1999-00. Commerce was required to enter into a memorandum of understanding with DOA that specified how Commerce could use the monies allocated for assistance. A grant of $100,000 was awarded in 1997-98 under this provision.
Act 27 also authorized the Department to provide loans from the WDF totaling not more than $1,200,000 for projects that included a pedestrian bridge. Loans could not be made for this purpose after January 1, 1999.
[Bill Sections: 196, 204, 2931 thru 2933 and 9110(4)&(5)]
9. WISCONSIN DEVELOPMENT FUND -- ADMINISTRATIVE PROVISIONS
PR-REV $47,000
Governor: Make the following modifications to Wisconsin Development Fund (WDF) administrative provisions:
a. Authorize the Department to charge the 1.5% loan origination fee on all WDF awards of $100,000 or more. The Department indicates that applying the loan origination fee to more WDF awards and reducing the threshold amount at which it would be imposed would have raised an additional $23,500 over the past year.
b. Authorize the Department to expend up to 1% of the moneys appropriated under the WDF GPR appropriation for (1) evaluations of proposed technical research projects that apply for technology development grants and loans; and (2) evaluation costs, collection costs, foreclosure costs and other costs, excluding staff salaries, that are associated with administering the WDF loan portfolio. Current law provisions, which give authority to the Development Finance Board to use this funding for certain evaluations and grants, would be deleted.
c. Change the definition of job used for the WDF to mean a position providing full-time equivalent employment.
The WDF currently consists of eight programs: (1) technology development grants and loans; (2) customized labor training grants and loans (CLT); (3) major economic development grants and loans (MED); (4) Wisconsin trade project; (5) employe ownership assistance grants; (6) manufacturing assessment grants; (7) revolving loan fund capitalization grants; and (8) rapid response fund loans. Commerce is authorized to charge a 1.5% loan origination fee on CLT and MED awards over $200,000. Fees are used to fund administrative expenses.
The Development Finance Board is currently authorized to expend or encumber up to 1% of the amount appropriated for the WDF GPR appropriation for: (1) evaluations of proposed technology development grant or loan projects; and (2) grants to small businesses for preparing proposals for the federal small business innovative research program. Under WDF provisions, a job is defined to mean a regular, nonseasonal full-time position in which an individual, as a condition of employment, is required to work at least 2,080 hours per year, including paid leave and holidays.
[Bill Sections: 2985, 2993, 2996 and 2998]
10. WISCONSIN DEVELOPMENT FUND -- MANUFACTURING EXTENSION CENTER GRANTS
PR $2,000,000
Governor: Repeal the manufacturing assistance grant program, including the manufacturing assessments, customized supplier training and technology transfer subprograms, and create a manufacturing extension center grant program under the Wisconsin Development Fund (WDF). The new manufacturing extension center grant program would provide grants to technology-based nonprofit organizations to provide support for manufacturing extension centers. A technology-based nonprofit organization would be defined as a nonprofit corporation as defined under state law or an organization that is exempt from federal taxation under the federal Internal Revenue Code (IRC) and that has a mission to transfer technology to businesses in the state. Technology would include biotechnology, which would mean technology related to life sciences. Business would be defined to mean a company located in the state, that has made a firm commitment to locate a facility in Wisconsin or a group of companies of which at least 80% are located in Wisconsin.
In order to obtain a manufacturing extension center grant, the technology-based nonprofit organization would be required to submit a plan to Commerce that detailed its proposed expenditures and performance measures related to the project and the Secretary of Commerce would have to approve the plan. A technology-based nonprofit organization that received a grant could not receive any other grants or loans under the WDF. Grant recipients would be required to provide a cash match of at least 25% of the cost of the project.
Annual expenditure authority of $1,000,000 would be provided under the WDF repayments appropriation. Commerce could not award more than $1,000,000 in manufacturing extension center grants in a fiscal year.
Commerce could not encumber any funds for manufacturing extension center grants after June 30, 2001.
Currently, the manufacturing assistance grants program consists of three subprograms—the manufacturing assessments, customized supplier training and technology transfer programs. The total amount of grants awarded through all three subprograms cannot exceed $750,000 in a fiscal biennium.
The manufacturing assessment grant program provides funds to small businesses for manufacturing assessments and plans. The maximum grant amount is $2,500. Grants must be used to fund manufacturing assessments and related plans that are designed to assist eligible businesses in adopting readily available and reasonably standardized new manufacturing processes and techniques. The assessments help a company define a basic course of action, recommend strategies and improvements and identify resources to assist in the implementation of actions. Assessments can include: (1) employe attitude surveys, descriptions of basic job skills and identification of potential training needs; (2) review of the current use of technologies; (3) review of order placement, manufacturing and distribution processes; (4) analysis of marketing activities; and (5) identification of financial needs.
The supplier training program provides funding to manufacturers or consortiums of manufacturers of original equipment to fund customized training for employes of supplier businesses. Grants are used to fund costs incurred to have the employes of Wisconsin-based suppliers trained to meet the specific needs of manufacturers of original equipment. Grant funds can be used to cover 50% of the costs of trainers, training materials and related facilities. To be eligible for funding the training must: (1) focus on new technology, industrial skills or manufacturing processes; and (2) be customized to meet the specific needs of the manufacturers of original equipment and the Wisconsin-based suppliers. The maximum amount of a grant that can be awarded to an original equipment manufacturer is $100,000. Each member of a consortium of such businesses is eligible for a grant of $100,000. The maximum amount of a grant that can be used to train employes of any single Wisconsin-based supplier is $20,000. The total amount of grants made through this subprogram cannot exceed $500,000 in a fiscal biennium.
The manufacturing extension grant program provides funds to nonprofit technology-based organizations to provide support for manufacturing extension centers that transfer state-of-the-art technological advances to small- and medium-sized Wisconsin businesses using innovative training methodologies. Financing is provided as grants. Grants can only fund up to 50% of the costs directly related to technology transfer activities between businesses and the organizations that receive the grants. A maximum of $250,000 in total technology transfer grants can be made in a biennium. Grants can be used to fund costs directly related to technology transfer activities. Eligible costs include capital equipment and operating costs for teaching factories, training in new technologies and related services.
[Bill Sections: 204, 2979, 2984, 2986 thru 2992 and 2994, 2995 and 2997]
11. WISCONSIN DEVELOPMENT FUND -- URBAN EARLY PLANNING GRANT PROGRAM
Governor: Create an urban area early planning grant program under the WDF to provide grants to persons for early planning projects. An early planning project would be the preliminary stages of considering and planning the expansion or start-up of a business that is or will be located in an urban area in the state. An urban area would be (a) a city, village or town that is located in a county with a population density of at least 150 persons per square mile; or (b) a city, village or town with a population of more than 6,000.
In order to receive a grant, a person would be required to submit an application to Commerce, in a form determined by the Department, which contained or described all of the following:
a. The location of the new or expanding business.
b. The ownership structure of the new or expanding business.
c. The product or service provided by the new or expanding business.
d. The market for the product or service provided.
e. Competition within the market.
f. Any competitive advantages of the new or expanding business.
g. The person's estimate of the gross revenue of the new or expanding business over a period specified by Commerce.
