ARIZONA STATE SENATE

RESEARCH STAFF

JULIE SZPERLING

LEGISLATIVE RESEARCH ANALYST

COMMERCE COMMITTEE

DEBBIE JOHNSTON

ASSISTANT STAFF DIRECTOR

Telephone: (602) 542-3171

Facsimile: (602) 542-7833

TO: MEMBERS OF THE SENATE

APPROPRIATIONS COMMITTEE

DATE: April 16, 2001

SUBJECT: Strike Everything Amendment to H.B. 2205

Purpose

Appropriates $2.5 million in each of FY 2001-2002 and FY 2002-2003 from the state general fund to the Arizona Department of Commerce for initiatives relating to the Arizona Partnership for the New Economy, including funding for economic clusters.

Background

The Arizona Partnership for the New Economy (APNE) was formed by the Governor in November 1999 to look at ways of sustaining the strength of Arizona’s economy and global competitiveness. The Governor charged the 36-member public-private partnership with the following: (1) defining the new economy and its importance to Arizona; (2) assessing the State’s current readiness and establishing benchmarks for measuring progress; and (3) developing strategies for correcting perceived deficiencies in responding to opportunities.

The members of APNE have met over the past year and a half and have developed recommendations relating to strengthening Arizona’s position in the new economy. The recommendations build upon the “cluster” based economic development strategy crafted under the Governor’s Strategic Partnership for Economic Development. The initiatives sponsored by APNE attempt to support and strengthen industry clusters by focussing on “foundations” necessary to business generation, such as telecommunications infrastructure, access to capital, workforce development and quality of life.

The strike-everything amendment to H.B. 2205 appropriates $5 million over the biennium to fund APNE initiatives. The initiatives funded include:

· Developing telecommunications infrastructure.

· Establishing an electronic government institute.

· Developing and coordinating industry cluster businesses.

· Creating a single point of on-line access (i.e., a web-based portal) to aggregate electronic courses and workforce development resources.

· Developing new economy/electronic marketing strategies.

Provisions:

1. Appropriates $2.5 million from the state general fund in each of FY 2001-2002 and FY 2002-2003 to the Department of Commerce for initiatives recommended by APNE. The following amounts are allocated each fiscal year for the initiatives listed:

· $1 million for telecommunications infrastructure development.

· $250,000 for electronic government.

· $500,000 for industry cluster business development and coordination.

· $250,000 for electronic learning.

· $500,000 for new economy marketing development.

The appropriations are exempt from lapsing, except that monies remaining unexpended and unencumbered on June 30, 2003 revert to the state general fund.

2. Provides for a general effective date.

JS/DJ/cmh