Commerce & Labor requests increased legislative support

Expansion of Gov. Dirk Kempthorne's Rural Idaho Initiative, extension of the state's work force training incentive and increased support for the state's campaign to secure more high-technology companies are the top priorities for Idaho Commerce & Labor during this winter's legislative session.

"Governor Kempthorne and the Legislature have invested in rural infrastructure, worker training and science and technology and we have made significant progress in expanding our economy," Commerce & Labor Director Roger B. Madsen said. "But the competition for new and expanding businesses is only intensifying and Idaho must keep up if we want our economy to stay ahead."

Kempthorne's Rural Idaho Initiative, launched in mid-2001, has already funneled $10 million into two dozen rural communities for water, sewer and other improvements that have convinced businesses to relocate in those communities, providing scores of new jobs in areas that have not benefited as much as urban Idaho has from the last two decades of economic growth.

The department's proposal for 2006 would increase the funding pool used to finance $500,000 economic development grants from $2.85 million to $3.55 million with $500,000 of that amount targeted at attracting high technology companies to rural Idaho. In addition, the department hopes to increase the funding source used to pay economic development specialists serving key rural areas by $100,000, expanding the number from 12 to 14. The agency is also asking to maintain the $400,000 it uses to provide $50,000 Gem Community Grants to communities for smaller economic development projects.

Idaho Commerce & Labor will also ask for another five-year extension of the Workforce Development Training Fund through 2011. Since the fund was initiated in 1996, three percent of the unemployment insurance taxes paid by Idaho businesses have been used to train nearly 17,000 workers for jobs with 136 companies. The average wage for workers completing the training is nearly $11 an hour.

"As a businessman and Idaho resident, I appreciate our state going the extra mile to attract high-paying jobs by assisting businesses with the training often required to marry Idaho citizens with the available high-tech jobs," said Stanley Vogele, human resources manager for TSYS, which provides payment services to the financial and retail industries.

Vogele said the training fund, which provides up to $2,000 per worker in training support for new or expanding businesses, played a major role in the Georgia-based company's decision to locate a technology development center in Idaho.

In support of the state's effort to attract more science and technology companies, Commerce & Labor will propose $300,000 to expand the current TechConnect program into south central Idaho and tie that center in with the others in Boise, Coeur d'Alene and Pocatello/Idaho Falls to form a coordinated statewide network. The centers provide support for emerging high-technology businesses.

The department is proposing another $100,000 to provide assistance to small businesses trying to secure a greater share of the hundreds of millions of dollars the federal government issues in grants to underwrite innovative research.

Kempthorne recommended another $300,000 to bolster the state's export activities, which would double the international trade commitment with the new money financing a part-time office in Japan and increased promotional presence in Shanghai, China. Idaho currently has no representative in Japan and limited representation in China.

"Our trade with China, including Hong Kong, has nearly tripled in the last three years, putting China on the verge of becoming our leading trading partner," Madsen said. "The potential for that market is so significant that even with this modest increase, the payoff could be dramatic."

One of every 10 jobs in Idaho is linked to exports, and over 1,000 companies are already selling their goods and services in foreign markets.

In other areas, the department will seek a special $7 million allocation over two years from the Unemployment Insurance Trust Fund to offset reduced federal support for the unemployment insurance and employment services programs.