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F I S C A L I M P A C T R E P O R T

SPONSOR M. J. Garcia

ORIGINAL DATE

LAST UPDATED

1/23/07

HB

SHORT TITLE Cooperative Advertising Program

SB 58

ANALYST Earnest

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY07

FY08

$600.0

Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

Duplicates Appropriation in the General Appropriation Act

SOURCES OF INFORMATION

LFC Files

Responses Not Received From

Economic Development Department (EDD)

SUMMARY

Synopsis of Bill

Senate Bill 58 appropriates $600 thousand from the general fund to the Economic Development

Department to support the cooperative advertising program.

FISCAL IMPLICATIONS

The appropriation of $600 thousand contained in this bill is a recurring expense to the general

fund. Any unexpended or unencumbered balance remaining at the end of fiscal year 2008 shall

revert to the general fund.

SIGNIFICANT ISSUES

The cooperative advertising program at EDD provides matching funds to local economic devel-

opment organizations to support marketing and advertising needs in communities across the

state. In FY07, EDD awarded $200 thousand to about 45 communities.

Senate Bill 58 – Page

2

EDD requested an additional $300 thousand for this program in FY08, bringing total funding to

$500 thousand. The LFC recommendation (House Bill 7) includes an additional $150 thousand.,

for a total of $350 thousand.

PERFORMANCE IMPLICATIONS

With an additional $300 thousand, the department estimated an increase of 15 to 25 participants

with average awards of $8 to $10 thousand. With a $600 thousand increase, these figures might

double.

ADMINISTRATIVE IMPLICATIONS

EDD should be able to manage an increase in funding for this program with existing resources.

CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP

This appropriation duplicates an appropriation in the General Appropriation Act, but at a higher

funding level.

OTHER SUBSTANTIVE ISSUES

The Tourism Department also runs cooperative advertising program, funded at about $1 million

in FY07.

BE/mt