California Budget Eliminates Funding for Lead S&T Agency

In signing his state's fiscal year 2003-04 budget on August 2, California Governor Gray Davis shaved General Fund expenditures by $7 billion in an effort to address a $38.2 billion budget shortfall. Among those cuts was funding for the California Technology, Trade and Commerce Agency (TTCA), the state's principal catalyst for innovation, investment and economic opportunity.

Gov. Davis stated in a press release that "neither party would embrace" his original budget request, which included funding for TTCA. The approved $71.1 billion spending plan is minus $17 million to $18 million per year for the agency, to be phased out by January 1, 2004. Some of the work performed by TTCA will be carried on by the Business, Transportation and Housing Agency, including management of the Small Business Loan Guarantee and Manufacturing Technology Programs.

The elimination of TTCA means California will be without its lead technology-based economic development organization, the Division of Science, Technology and Innovation. Since 1999, TTCA has awarded 246 grants totaling more than $72 million through programs such as the California Technology Investment Partnership (CALTIP). The total number of jobs estimated to have been created and maintained by the agency equals about 18,900.

The cuts to California's General Fund expenditures over 2002-2003 marks the fourth time in 50 years that such spending has been reduced as compared to the previous year. More information on TTCA is available at: http://commerce.ca.gov/state/ttca/ttca_homepage.jsp