appropriations; new economy
cluster; infrastructure
DPA |
Committee on Commerce and Economic Development |
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Committee on Appropriations |
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Caucus and COW |
This bill as introduced contains Appropriation and PROP 108 clauses. |
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As Passed the House |
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HB 2438 appropriates $10 Million for FY 2001-02 and FY 2002-03 from the State General Fund to the Department of Commerce development grants for active economic clusters and related foundation implementing organizations. The Legislative intent is to provide support for Arizona's new economy by encouraging investment in our active economic clusters, their implementing organizations and foundations.
An economic cluster is a geographic concentration of competitive businesses working interdependently in related industries doing business with each other. Each cluster of companies transacts business both inside and outside the region, by supplying raw materials and related components for the businesses and services. Clusters create an atmosphere for start-up companies that encourages the production of diverse pools of experienced workers, attracts suppliers and fosters competition in order to stimulate further growth and innovation.
Nationally, clusters employ 57% of the workforce, generating 61% of the nation's output and producing 78% of the nation's exports. Arizona is widely known as a pioneer in cluster and foundation-based economic development. Many of our clusters represent high-tech jobs that pay an average of 50% higher than the average private sector job.
In order to remain competitive in the new economy and foster continued economic growth, HB 2438 appropriates monies for the next two fiscal years.