You wanted to know the total value of financial assistance the
state's economic development agencies provided to businesses from FYs 1995-01
and the total number of jobs they created as a result of that assistance.
TOTAL VALUE OF ACTIVE ASSISTANCE
All of the state's economic development agencies annually report
the total value of "active financial assistance," which includes
businesses that received assistance during the year or that are repaying the
agencies for assistance they received in prior years. Some report on businesses
that repaid the assistance. The agencies are the Department of Economic and
Community Development (DECD), the Connecticut Development Authority (CDA), and
Connecticut Innovations, Inc. (CII).
As Table 1 shows, the total value of active financial assistance
provided to businesses during FYs 1995-01 was over $ 342 million. The agencies
actually spent less than this because the total includes the value of loan
guarantees, which commit state dollars only if a borrower defaults on a loan
made by a private lender.
Table 1: Total Value of
Active Financial Assistance FYs 1995-01
Fiscal Year
DECD
CDA
CII
Total
1995
23,674,000
17,876,150
800,000
42,351,445
1996
8,562,000
9,934,366
1,050,000
19,548,362
1997
10,596,000
9,951,056
2,998,000
23,547,053
1998
11,849,000
23,855,161
4,647,000
40,353,159
1999
8,288,000
47,359,211
9,675,000
65,324,210
2000
1,825,000
20,963,943
32,948,000
55,738,943
2001
32,321,000
42,848,995
21,225,000
96,032,996
Total
97,115,000
172,424,882
73,343,000
342,882,182
Sources: DECD, Report on New and Outstanding Financial
Assistance, July 1,
1991-June 30,
2001, Schedule 1
CDA, Annual Report FYE June 30, 2001, Section 5
CII, Job Creation or Retention, FY 1990-June 2001, Active
Assistance for Economic Development
Active financial assistance includes different types of assistance.
DECD provides grants to prepare sites for development and makes or guarantees
loans for capital improvements. CDA makes or guarantees loans for working
capital, capital improvements, and job training. CII invests in businesses
developing new, innovative products and services. It also finances the
development of laboratories for new, start-up biotechnology companies.
TOTAL JOBS CREATED
As discussed in Attachment 1, (2001-R-0693) the law indirectly requires
businesses to estimate the number of jobs they plan to create
or retain when they apply for state assistance. Not all businesses receiving
assistance are required to create jobs. As Table 2 shows, those in the active
assistance category for FYs 1995-01 that are required to create jobs created
over 13,000 full- and part-time jobs as of June 30,
2001.
This total is not a final total since the businesses may still create more jobs
as they pay off loans, make royalty payments, or provide other forms of
compensation to the agencies.
Table 2: Total Jobs Created
as of June 30, 2001 Resulting from Active
Financial Assistance From FY 1995-01
Fiscal Year
DECD
CDA
CII
Total
1995
3,159
350
169
3,678
1996
1,757
384
339
2,480
1997
1,200
159
133
1,492
1998
590
2,220
154
2,964
1999
82
794
106
982
2000
34
73
156
263
2001
1,012
229
20
1,261
Total
7,834
4,209
1,077
13,120
Sources: DECD, Report on New and Outstanding Financial
Assistance, July 1,
1991-June 30,2002, Schedule
2
CDA.Annual
Report FYE June 30,2001, Section 5
CII, Job Creation or
Retention FY 1990-June 2001, Job Count