Statewide Economic Development Strategy 2023

Introduction

DuringtheOneUtahSummitheldonMay10,2022,Gov.Coxunveiledthe UtahEconomicVision 2030,developedbytheUnifiedEconomicOpportunityCommission(UEOC).Thevisionoutlinesthe state'sstrategiesfortheyear2030,whichisto“createthestrongesteconomyintheworldwhile maintainingaworld-classqualityoflifeandcultivatingopportunitiesforallUtahns."

Accordingtothevision,thestateisexperiencingsignificantpopulationandeconomicgrowth,leadingto theemergenceofanewUtah.Thedocumentemphasizesthataccommodatingthisgrowthisthemost criticaleconomicchallengeintheforeseeablefuture.ItfurtherstatesthatUtah'sapproachto coordinatingandmanagingthisgrowthoverthenextdecadewillestablishaprecedentforeconomic andcommunityplanninginthecomingcentury.Lookingaheadto2030andbeyond,theprimary opportunityandchallengeforUtah'sleaderswillbefindingabalancetoleveragethemomentumof America'sfastest-growingeconomywithoutplacingexcessivestrainonthestate'scommunities.

Whilethisstrategicvisionpresentsvariousthemesandstrategies,theyallfocusoncoordinatedand optimalgrowth.Theburdenforexecutingthestate'seconomicstrategydoesnotfalltoanagencyor group;instead,itfallsonallofthosewhohavearoleinsupportingUtah'seconomy.Coordinationisthe quintessenceandinnovationwithinthisstrategy.

Thisstrategyprovidesacomprehensiveapproachtoeconomicgrowthandopportunity.Butaswithany strategy,itsefficacyandcredibilitydependonstakeholdersworkingtogether.Utah'sfoundingpioneers adoptedthisstrategy.Theuseofthehiveasthestatesymbol,theword"industry"recognizedtheentire hivewouldbenefitfromindustrysuccess.Asthisvisionwasestablished,wedefinethehiveas“our industries,communities,andindividuals.”

Under 63N-1a-301,theGovernor'sOfficeofEconomicOpportunity(GOEO)isresponsiblefor implementingthisstatewideeconomicdevelopmentstrategydevelopedbytheUEOCandprovidinga writtenreportannuallythatgivesanoverviewoftheperformanceandefficacyofthestrategy.This reportdetailstheannualactivitiesandimplementationoftheconfluenceofeconomicopportunitywith thestrategiesoutlinedintheUtahEconomicVision2030.Thedataprovidedisprimarilyassociatedwith thestate’sfiscalyearofJuly1,2022,toJune30,2023(FY2023)andbecomesthebaselineforfuture yearcomparisons.

AspartofGOEO’sanalysisofitsprogramstoensurealignmentwiththeprevailingeconomicconditions expectedinthenextfiscalyear,weaskedtheKemC.GardnerPolicyInstitutetoprovidean economic insightreport andrecommendedeconomicstrategiesforthefuture.Thisreportwaspresentedatthe firstUEOCmeetingfollowingthegenerallegislativesession.

8EconomicVision2030Strategies

1.Strategy:EducationandTalentPipeline

Purpose: BetteralignK-12andpost-secondaryeducationwithindustryandcreatethebest talentpipelineforUtahbusinessestoprovideopportunitiesforallUtahns.

Action: Helpstudentsgainmarket-relevantskills;providemorework based-learningprograms;createadditionalbusinessandeducationpartnerships.

Metric: Increasework-basedlearning,studentsenrolledandcompleters,andplacementsin targetedindustryprograms.

AnnualOverview: UndertheTalentReadyUtahportfolio,8,427individualsovermultipleyears wereabletoparticipateinprogramsdesignedtoaddresstargetedbusinessneedswhiletraining inahigh-skillandhigh-wageworkforce.Thiswillserveasabaselinemovingforward,andit’s expectedthatfutureyearswillincreaseenrollmentandbeginprovidingcompletiondataforthe programs.

Theseeffortsweredispersedthroughoutthestatesystemofhighereducationandafforded opportunitiesinbothurbanandruralareas.Theprogramsweredevelopedtofocusontargeted industryneedsallowingforaseamlesstransitionfromtrainingtofull-timeemploymentupon completion.

Themainprogramsusedtoaccomplishthiseffortareoutlinedinthechartbelow.They incorporatedgoalssuchasprovidingskill-basedtrainingtoyouthandadultlearners,allowing industryandeducationtoco-developtrainingprogramsforhigh-demandcareers,developing multidisciplinarytrainingprogramswithstackablecredentials,andexpandingcomputerscience

*DeepTechenrollmentisthemostrecentdatafromFY2022

*HealthcareTargetedWorkforceDevelopmentenrollmentisasofFY2024

*ComputerScienceTargetedWorkforceDevelopmentenrollmentisasofFY2024

OtherworkforcedevelopmentprogramshavealsoaugmentedtheUtahSystemofHigher Education(USHE)effortspreviouslymentioned.Forexample,GOEOofferedIndustrial AssistanceAccountfundingtovariouspartnerstosupporttheirtargetedtrainingefforts.These programsareledbyindustryassociationscollaboratingwiththeirmemberstodeveloplocal leadership,supportsmallbusinesses,andoffermicro-grantstocompaniesofferingtraining programs.

USHEalsocreated,throughlegislativefunding,theComputerScienceforUtahinitiativeand awarded$13milliontoK-12localeducationagenciestoimplementtheirComputerScience masterplans.Thegoalistoexpandcomputerscienceeducationacrossthestatedowntothe third-gradelevel.Thiswillincreasestudents'exposuretocomputerscience,cognitivelearning skills,andoveralldigitalliteracyacrossthestate.Inthe2022-2023schoolyear,therewere 559,527studentsservedacrossmorethan30schooldistricts.Thiseffortshouldsupportall studentsastheyenterthetargetedindustryprogramsoutlinedabove.

2.Strategy:CommunityandEconomicPlanning

Purpose: PlanningforeconomicgrowthiscriticaltomaintainingUtahns'qualityoflife.

Action: Coordinatedeffortsoneconomicgrowth;housingsolutions;enhancedplanningfor infrastructure,transportation,andwater;andincentivesforhousingandeconomicopportunity.

Metric: Coordinateregionalandstateplans.

AnnualOverview: Numerousessentialstrategiesandinitiativeshavebeenimplementedto concentrateonstatewidecommunityandeconomicplanning.Theseinclude:

●The Cox-Henderson’sOneUtahRoadmap (versions1and2)focusesonthe administration’stoppriorities,includingeconomicopportunity,education,rural,health, equityandopportunity,andstreamlinedgovernment.

●The UnifiedEconomicOpportunityCommission (UEOC)develops,directs,and coordinatesUtah'sstatewideandregionaleconomicdevelopmentstrategies.The commissioninformspolicydecisionsandworkstowardconsensusbuilding,bringing togetherthelegislativeandexecutivebranches,education,localgovernments,and subjectmatterexpertstodevelopmeaningfulsolutionstosomeofthestate’smost pressingeconomicchallenges.

● GuidingourGrowth,astatewideconversationabouthowwecankeepUtahagreat placeforourfamiliesandcommunitiesaswegrow.LedbytheGovernor’sOfficeof business.utah.gov

PlanningandBudget(GOPB),theconversationisabroadefforttoexplorewhatactions makesenseinthefaceofourongoingpopulationincrease.

2023GeneralLegislativeSession:

Goingintothe2023generallegislativesession,theUEOCcoordinatedwithhundredsof stakeholderstodevelopmeaningfulsolutionstosomeofthestate'smostpressingeconomic challenges.Alignedwiththe Gov.CoxFY24BudgetRecommendations,theUEOChelped developover50policyrecommendations.The UEOC’s2023Accomplishment document outlinesthelegislativeandfundingaccomplishmentsrelatedtocommunityandeconomic planningrootedinUEOCrecommendations.Highlightsinclude:

● Nearly$500milliontoaddressstatewidewaterconservationneeds,including$200 millionforagriculturalwateroptimization,$40millionforwaterreuseanddesalination, $50millionforWasatchFrontaqueductresilience,and$50millionforwater infrastructureprojects.

● Anincreasetotheeducationbudgetof$578millioninongoingrevenueand$339million inone-timefunds,anearly20%increase.Thatincludes$236millionfora6%increase inthevalueoftheweightedpupilunit.TheLegislatureappropriated$15billionforpublic educationandeducationprogramsfromallsources.

● Over$200millioninnewmoneyforaffordablehousingandhomelessnessinitiatives.

● Morethan$2billiontowardinfrastructureandtransportationimprovements.

● A$400milliontax-cutpackageplusanotherapproximately$239millioninvarioustax decreases,including$32.7milliontolowerthestatetaxongasbytwocentspergallon, $51millioninalow-incomehousingtaxcredit,and$146milliontomaintainthe decreasesofthebasicpropertytaxlevyfreeze(source).

StatewideGOEOprogramsandcoordinatedregionalandstatewideinitiatives:

●SharedLocalAdministrator

$1.58millioninongoingfunding.Thisnewprogramfunds10sharedadministratorswho helpalignlocalordinanceswithstatecode,optimizerevenuesourcesandexpenditures, promotebestpracticesinlocalgovernment,createlong-termstrategicplans,and completeawiderangeofothertasks.

Outcomes:ThisprogrambeganonJuly1,2023

● HousingandTransitReinvestmentZones(HTRZ) Createsanewdevelopmenttool(HTRZ)tohelpaddressUtah’shousingcrisisby facilitatingmixed-use,multi-family,andaffordablehousingdevelopmentswithina

1/3-mileradiusoffixedcommuterrailstations.AnHTRZallowsacitytousetaxdollars todevelophousingaroundexistingpublictransitstations,likeTRAXandFrontRunner.

Outcomes:Threecommunities'HTRZplanshavebeenapproved.Theseplansmore thandoubledthenumberofhousingunitsthatwouldhaveoccurredwithoutaproperty taxincentive.Thethreecommunitieshaveproposedtoaddapproximately23,000 housingunitsversusthestatusquoofaround11,000housingunits.Intheplans, communitiespledgedover2,500unitstobeavailabletoindividualswithAreaMedian Incomebetween60%and80%.Theofficeisexpectedtocontinuetoreviewand facilitatetheseplansthroughthenextfiscalyearuntilstatutorylimitsarereachedonthe numberofprojectspercounty.

●EconomicDevelopmentTaxIncrementFinancing(EDTIF)andRuralEconomic DevelopmentTaxIncrementFinancing(REDTIF)

TheUtahGovernor’sOfficeofEconomicOpportunityadministerstheUtahLegislature’s EconomicDevelopmentTaxIncrementFinancing(EDTIF)taxcreditprogram.Itprovides apost-performancetaxcreditthatofferscompaniesareductionintheirmarginaltax rates,upto30%ofnewstatetaxrevenues(Utahsales,corporateincome,andstate payrollwithholdingtaxes),duringadefinedperiod(typically5to10years).Createdby theLegislaturein2005,theEDTIFprogramisforcompaniesofferinghigh-wagejobs— payingatleast110%oftheaveragecountywage.Bydesign,theprogramhasa multipliereffect,creatingadditionaljobssupportingcorporateexpansionacrossUtah’s diverseeconomy.

ThetaxcreditisavailabletoUtahcompaniesexpandingandotherbusinessesrelocating orestablishingadditionaloperationsinUtah.Utah-basedcompanieshavemostoften usedthetaxcredit.Sinceitsinception,abouttwo-thirdsoftheprogram’staxcreditshave gonetoUtah-basedcompaniestohelpthemexpandandcreatemorejobsforUtahns.

Outcomes:Utahexperiencedagreaterthan500%increaseinnewcapitalinvestments thisfiscalyearcomparedtothe previousyear.Theaveragecapitalexpenditureper projectroseduetoincreasedinvestmentsinindustriessuchastechnologyand automation.FromJuly2022toJune2023,16companiesparticipatedinthestate’s EDTIF/REDTIFprogramandarecollectivelyprojectedtocreate3,630newjobs,make $12,347,247,968innewcapitalinvestments,paymorethan$574,641,262innewstate taxrevenue,andprovide$4,083,879,940innewstatewagesoverthenext20years.

“ThishasbeenahistoricandprosperousyearforUtah’seconomicgrowth,”saidRyan Starks,executivedirectoroftheUtahGovernor’sOfficeofEconomicOpportunity.“We metnewmilestones,includingthelargesteconomicinvestmentinUtahhistorywiththe expansionofTexasInstruments.TheEDTIFandREDTIFtaxincentiveprograms continuetoattractinvestmentsfromcompaniesrepresentingavarietyofindustries,andI wanttoexpressthankstoourteamfortheircollectiveefforts.”

InFY2023,theEDTIFprogramremainedstrong.Utahmaintaineditsstatusasoneof thebestlocationsforbusinesseslookingtoexpand.Trendsfortheyearincludedmore projectsthatchoselocationsawayfromtheWasatchFrontandintoruralUtah.

TheRuralEconomicDevelopmentTaxIncrementFinancing(REDTIF)taxcreditprogram isarecentruralmodificationoftheEDTIFprogramthatallowsprojectslocatedinrural areastoqualifyformoresignificantincentives.Withthistool,thestatehasseen unprecedentedeconomicopportunitiesflowtoitsmoreruralcommunities.Theprojected capitalinvestmentinruralUtahfromannouncedprojectsinFY2023amountstomore than$1.2billion,thesameasin2022,withmorethandoublethecapitalinvestmentof 2017-2021combinedthatruralUtahhasseenfromstateincentives.Countiesand municipalitiesparticipateintheincentivesprocessbypromoting,coordinating,and offeringsuitablelocationsandofficialpositionsonwhereandhowtheywanttodevelop. Withtheirsupport,GOEOhasapproved23REDTIFprojectssince2021,projecting 10,708newhigh-payingjobsinthefollowingcounties:Beaver,BoxElder,Cache,Iron, Juab,Tooele,andUintah.

●Utah’sCoordinatedActionPlanforWater

Utah’sCoordinatedActionPlanforWater isacollaborativeeffortto“Establisha statewidewatercooperativeactionplanthatprioritizesconservation,storage,agriculture preservation,anduseoptimization.”Thisplanisagroundbreakingefforttoplanforour state'sfuturedirectedbyGov.CoxandundertakenbytheGovernor’sOfficeofPlanning andBudget(GOPB),theDepartmentofNaturalResources(DNR),theDepartmentof EnvironmentalQuality,andtheDepartmentofAgricultureandFood.Thisdocumentwill guidetheworkofexecutivebranchagencies.

Outcomes:Theplanwasreleasedinfourchaptersthroughout2022.Theintroductionto theplanandChapter1,InvestinginInfrastructure,wasreleasedonJan.12,2022. Chapter2,VibrantCommunities,wasreleasedonApr.27,2022.Chapter3,Productive Agriculture,wasreleasedonJuly27,2022.ThefullreportwasreleasedonNov.30, 2022.Utah’sCoordinatedActionPlanforWaterwillbeassessed,reviewed,and refreshedasneeded.

GOEOisassistingthefour-partplanofInvestinginInfrastructure,committingtovibrant communitiesthroughefficientwateruse,productiveagriculture,andhealthywatersand watersheds.Specifically,programstiedtoinvestingininfrastructureandefficientwater usearethelocalmatchinggrant,strategicinnovationairandwatergrant,andthewater infrastructureproject.

●DepartmentofNaturalResourcesIsraelWaterMission

Gov.CoxledatrademissiontoIsraelandtheUnitedArabEmirates(UAE)fromSept. 8-17,2022,tohelpUtahbusinessescapitalizeonemergingopportunitiesandbuild economicbridges.

Outcome:Followingthegovernor-ledtrademissiontoIsrael,DNRandGOEO coordinatedareturntripwithadelegationofUtahwaterexperts.Israelleadstheworldin waterinnovation,andtheUtahdelegationspentfivedayslearningbestpracticesfrom globalexperts.UtahattendeesincludedrepresentativesfromDNR,UtahState University,UtahDepartmentofAgricultureandFood,ColoradoRiverAuthority,Utah Senate,UtahHouseofRepresentatives,andvariouswaterconservancydistricts.In Israel,thedelegationmetwithgovernmentleaders,WaterTechandAgTechcompanies, andeducationalinstitutionstotourresearchanddevelopmentcenters,desalination plants,andwastewatertreatmentfacilities.

●StateofUtahCoordinatedActionPlanforEconomicVision2030

RepresentativesofGOEO,andGOPB,alongwiththestate’ssevenAssociationsof Government,business,andeconomicdevelopmentprofessionalsrepresentingallstate geographicareas,providedinputforthecoordinatedactionplan.Engagementsessions includedstakeholderinterviewsandworkshops,severalon-sitemeetings,roundtable discussions,astatewidebusinesssurvey,andweeklyinter-departmentalinputover10 months.Theplanningeffortaimedtoreviewupdatedresearchandanalyses,examine post-pandemicchallenges,andarticulatethecompetitiveadvantagesanduniquevalue propositionforthestateanditsregions.Thepurposeofthiswastoalignstate,regional, andlocaleffortstoaccomplishmutualpriorities.

This report advancestheEconomicVision2030.Thepurposeistounifythegoalsand directionofstategovernmentwiththoseofsevenregionsinthestate.Thisinvolves, amongotherthings,aligningeachregion’sexistingComprehensiveEconomic DevelopmentStrategiesdevelopedbyeachofthestate’sAssociationofGovernments (AOG).Theoverarchingobjectivesaretooptimizegrowthandexpandprosperity throughoutallcounties.

Outcomes:ThestateofUtahhasbeguntheprocessofintegratingitscoreeconomic developmentfunctionswithitsenviable,largerassetbase.Astrongorganizationaleffort isneededtopulltheeffortstogethertoprovidethetoolsnecessarytoprepareUtah’s economicdevelopmentprofessionalstomeettomorrow’schallenges.GOEOwillbe leadingthiseffortwithastrongstakeholderteam.

Thiscollaborativeeffortexploresnewwaystocoordinatebettersupportservicesand fundingforlocalprojectsutilizingtheAOGframework.Forexample,GOPBandGOEO arecoordinatingwithSixCountyAOGonapilotprogramtoestablishplanningand infrastructureprioritieswithtwocommunitiesandonecounty.Projectswouldbe proposedandevaluatedagainstsetcriteriaandpresentedtoaboardthatwouldselect finalprojectsandhelpmatchstatefundingsourcestoadvancethoseprojects.Thepilot programteststheconceptofaggregatingdecision-makingandresourcedeployment amongstmultiplestateagenciestoachievegreatersynergiesandcommunityimpact.

●GuidingOurGrowth

A statewideconversation aboutkeepingUtahagreatplaceforourfamiliesand communitiesaswegrow.Theconversationisabroadefforttoexplorewhatactions makesenseinthefaceofourongoingpopulationincreases.

Outcomes:Theeffortstartedinfall2021whentheGovernor’sOfficeofPlanningand Budget(GOPB)wasaskedtoworkwithcommunitypartnerstodevelopaproposalfora statewidegrowthconversation.GOPBteamedupwithorganizationsfromalloverthe state,providingavarietyofperspectivesandexpertiseareastocompletethistask. Thesegroupsincludethestate’ssevenassociationsofgovernment,UtahLeagueof CitiesandTowns,EnvisionUtah,KemC.GardnerPolicyInstitute,UtahLandUse Institute,andtheDepartmentofWorkforceServices.Thisstatewideconversationwas initiatedinJuly2022andwillrunthroughDecember2023.Theeffortisorganizedinto threephases.Publicandstakeholderparticipationopportunitiesareincludedinallthree phases.ThegeneroussupportoftheUtahLegislaturefundstheeffort.

3. Strategy:EconomicOpportunityforAll

Purpose: Increaseearningpotentialtocreateadditionaleconomicopportunitieswhile supportingasolidbusinessworkforce.

Action: Enhancetrainingandeducationopportunitiesforunderservedpopulationswhile creatingpartnershipsfordiversity,equity,andinclusion.

Metric: Increasethepercentageofminoritiesandwomenenrollinginandcompletingtargeted industryprograms.

AnnualOverview: Thestatehasexecutedamyriadofinitiativestargetedtowardeconomic upwardmobilityofminoritiesandwomen.Wecontinuetodevelopdatatoensureweareona successfultrajectory.Initialdatathatestablishabaselineinclude:

1. Immigrantlaborpopulation: Immigrantsareanimportantpartofthelabormarketand contributetoeconomicgrowth.InUtah,immigrantscomprise11%ofthelabormarketin skilledandunskilledworkers,asopposedto17%nationally.TheUtahCenterfor Immigration&IntegrationisworkingtoincreasepathwaysforimmigrantsinUtahinkey sectorslikehealthcareandmanufacturing.Numerousinitiativesareinplaytoincrease Utah’simmigrantlaborparticipation.

2. Nationalrankingondiversity: Utahisthe 34th mostraciallyandethnicallydiversestate intheU.S.,justbelowPennsylvaniaandaboveseverallargerstateslikeOhio,Indiana, Minnesota,Missouri,andWisconsin.

3. Nationalrankingofwomen’sequality: Utahhasbeennamedastheworststateinthe nationforwomen’sequalityyearafteryearby WalletHub.Theirassessmentisbasedon

17keyindicatorsacrossthreeequalitycategories:workplaceenvironment,education andhealth,andpoliticalempowerment.

StatewideGOEOprogramsandinitiativescoordinatingopportunityforall:

●ABolderWayForward

SeveralGOEOteammembersleadcommitteesandworkinggroupsaspartoftheUtah Women&LeadershipProject’s ABolderWayForward initiative.

Outcomes:ThisinitiativewillbeginexecutinginFY2024

●APEXTraining/Outreach

TheUtahAPEXAccelerator’smissionistohelpUtahbusinessessuccessfullycompete inthegovernmentmarketplacebyprovidingknowledgeableandoutstandingcustomer service.GOEOhasAPEXofficeslocatedthroughoutthestate.

Outcomes:Lastyear,our APEXAccelerator teamhostedadiversevendortrainingfor nearly100sociallyandeconomicallydisadvantagedbusinessestolearnaboutfree resourcesandservicestopursuenewgovernmentcontractopportunities.

Additionally,APEXhasafederallymandatedFY2024objectivetoincreaseequityand inclusioninthefollowingareaswithspecificgoalsforeach:

●IncreasethenumberofDefenseIndustrialBase(DIB)andGovernmentIndustrial Base(GIB)-readySmallDisadvantagedBusinesses(SDB):29businesses

●IncreasethenumberofDIBandGIB-readyHistoricallyUnder-utilizedBusiness Zone(HUBZone):15businesses

●IncreasethenumberofDIBandGIB-readyService-DisabledVeteran-Owned SmallBusinesses(SDVOSB):22businesses

●IncreasethenumberofDIBandGIB-readyWomen-OwnedSmallBusinesses (WOSB):31businesses

●PromotesubcontractingopportunitiesforSDB,HUBZone,SDVOSB,WOSB,and otherunderrepresentedsmallbusinesses.

●EncourageandsupportparticipationinMentor-ProtégéProgram.

● WorkforceInitiatives

Thestate’sTalentReadyUtahinitiativeprovidesprogramssupportingwomenand minoritiesenrollinginandcompletingworkforcetrainingandcertificateprograms.

Outcomes:

SaltLakeCommunityCollege(SLCC)wasawarded$139,580throughTalentReady Utah’sUtahWorksprogramforitsmanufacturingcurriculum,whichteaches

manufacturing-specificEnglishasaSecondLanguage(ESL).Thisprogramservedover 370studentsduringFY23.

SLCCwasalsoawarded$211,560throughtheHealthcareWorkforceInitiativein FY2023foritsExpandingOn-rampAccesstoHealthcareWorkforceEducation Pathways–CertifiedNursingAssistantprogram,whichallowedthemtoservestudents inWestValleywhodidnotpreviouslyhaveaccessandincludeswrap-aroundservices suchasESL,eveningandSaturdayclasses,andtransportationservices.

Increasedearningpotentialisonemetricforahealthybusinessworkforce.Anotheris trainingandspecializededucationopenlyavailabletoprovideadditionalopportunitiesfor professionalgrowth.

●BuildingBelongingintheWorkplace

Thisprogramaimstoidentifyandpromoteactionablesolutionstoracialdisparitiesby engagingwithcommunitiesofcolorandcatalyzingprivate,philanthropic,andpublic partnerships.

Outcomes:Ourteamsupportedandworkedwiththe CenterforEconomicOpportunity& Belonging tocreate atoolkitforbuildingculturesofbelonging intheworkplace.

●OneUtahSummit

TheEconomicSummit,EnergySummit,GlobalForum,andUtahRuralSummit combinedtocreateabiannualsummitcalledtheOneUtahSummit.TheOneUtah Summitoccurseveryspringandfall,alternatingbetweensouthernandnorthernUtah locations.Thesummit'spurposeistobringtogetherthestate’sbestandbrightest governmentandbusinessleaderstodiscussUtah’seconomicdevelopmenttrendsand topics.

Outcomes:Withseveralpartners,ourofficehasleddiscussionswithhundredsof industryleadersondiversity,equity,andinclusioninathrivingworkforce.NubiaPeña, SeniorAdvisortoGov.CoxonEquityandOpportunityanddirectoroftheUtahDivision ofMulticulturalAffairs,moderatedthe“OneUtahStrategiesforaThrivingWorkforce” breakoutsession.Thediscussionontheimportanceoffocusingonadiverseworkforce aswellasstrategies,includedleadersfromthepublicandprivatesectorsincluding BrockBlake,Lendio;NatalieEl-Deiry,GOEO’sImmigrationandNewAmerican Integration;DaveNeilsen,Overstock;andMindyYoung,EqualityUtah.

● Governor’sIndustryRoundtable

Thisisacontinuationoftheroundtableluncheonswithindustry.Theroundtableis focusedoneconomicinclusion,expandingaccesstoqualityjobs,andgrowing leadershippathwaysforincreasedrepresentationinconjunctionwithNubiaPeña.

Outcome:TheroundtablewashostedattheGovernor'sMansiononMay31,2023.As Utahcontinuestogrow,companiesaretaskedwithconsideringthechangingneedsof ourdiversifyingworkforceandcreatinginitiativesthatgenerateinclusion,support,and retentionofgreattalent.Ninecompanieswereinvitedtodiscusshowtheyareworking throughthechallengesandinvestinginprograms,practices,andpoliciesthatsupporta laborforcethatcanremaincompetitiveandattractivetocurrentandfutureemployees. Aftertheroundtablediscussion,Gov.Cox,NubiaPeña,andGOEOstaffvisitedthreeof thecompaniesattheirrespectivebusinessestofurthertheongoingdiscussion.

●StatewideDigitalConnectivityPlan

Our UtahBroadbandCenter workswithstakeholderswhoaredeliveringstatewide broadbandaccess.Thecenteradministersprogramsandgrantstohelpcommunities gainorimprovebroadbandinfrastructure,accesstodigitaldevices,anddigitalliteracy education,therebyincreasingeducation,workforceskills,healthcare,commerce,and economicopportunities.

Outcomes:UndertheoversightofthelegislativelyappointedUtahBroadbandCenter AdvisoryCommission,theUtahBroadbandCenterdevelopedanewstatewidefive-year DigitalConnectivityPlanthatwillaugmenttheeffortsofthefederalBroadband,Equity, Access,andDeployment(BEAD)program.Thestatewillreceive$317.4millionto ensureallbroadbandserviceableUtahlocationshavehigh-speedinternetaccess. The DigitalEquityAct(DEA)programwasofferedinadditiontothestateBEADprogram. Theprimarygoalwastopromotedigitalequityandinclusionthroughoutthestate.Atotal of33BroadbandandDigitalAccessPlanninggrantswereawardedtolocaland statewideentitiestocompletelocalbroadbandanddigitalaccessstrategicplans, amplifyingthestate’sBEADandDEAefforts.Theyseektoaddresscommunityvision, partnerships,gapassessments,andothercomponentsofthecommunity.

Localoutreachwascompletedwithall29countiesandtheeightfederallyrecognized tribes.Mostoutreacheventswereheldinperson,andresponseswereusedtodevelop thestate’sbroadbandplan.One-on-onemeetingswereheldwitheveryinternetservice provider,andunservedandunderservedbroadbandareasinthestatewereidentified. Nearly300stakeholdersjoinedourfederalpartnerstoattendtheInternetforAll:Utah BroadbandConfluence,wherethefive-yearplanswerepublishedforpubliccomment.

●CenterforImmigrationandIntegration

Thepurposeofthisofficeistobeaone-stopresourceforindividualsandbusinesses seekingimmigrationguidanceandinformationonUtah’sforeignlaborrulesand regulations.Thecentercoordinateswithstateandfederalgovernmentpartnersto facilitatethesuccessfuluseofforeignlaborprogramsandcoordinateswithotherentities engagedininternationalefforts.

Outcomes:TheNewAmericanTaskForce,undertheleadershipofourCenterfor ImmigrationandIntegration,surveyedover6,500internationallytrainedprofessionals andUtahnewcomerstohelpidentifywaystheseworkerscancontributetoUtah’s workforce.Inaddition,thecenterconvenesagroupofover120stakeholdersstatewide toinformandmakerecommendationsonimmigrationandintegration,emphasizing workforceandeconomicopportunity.

●SuazoBusinessCenter

The SuazoBusinessCenter enrolled190studentsinbusinessdevelopmentclasses, accordingtoits2022annualreport.Thecenteroffered27courses.Thestudentswere 75%femaleand25%male.

Thecenter’sclientimpactsupportsmorefemaleentrepreneursthanmales(53% comparedto47%).Itsserviceshelpedlow-to-moderateincomehouseholds(97%),and over96%ofclientsclassifyasminorities.

●UtahInnovationCenter

The UtahInnovationCenter servesasacatalystfortechnologyinnovationinUtah.

Outcomes:Thecenterheldeventsorgavepresentationsincollaborationwiththe Women’sBusinessCenterofUtah,SuazoBusinessCenter,KinectCapital’sWeROC conference,andShePlace&SheMoney.Theteamalsomentoredwomenentrepreneurs fortheWeROC(WomenEntrepreneursRealizingOpportunitiesforCapital)conference astheypreparedtopitchtheirbusinessestoinvestors.

Thecenterprovidedthreemicrograntstowomen-ownedcompaniesandtwoto minority-ownedbusinessesduringFY2023.Itprovidedtwononrecourseloansto minority-ownedcompaniesduringthesameperiod.

InFY2023,theUtahInnovationCenterbeganaconcertedefforttoidentifyandconduct outreachtounderservedpopulationsinthetechnologyinnovationspace.Thecenter’s outreachincludescontacting22groupsandconducting14callsormeetingstotarget outreacheventstoconnectwithminoritiesandwomentoaccessthecenter’sservices. Basedontheseefforts,plansforFY2024includeoutreacheventsfortargetedgroups intendingtoincreasethenumberofminoritiesandwomenparticipatinginthecenter’s offerings.

●UtahSmallBusinessCreditInitiative

The UtahSmallBusinessCreditInitiative(USBCI) isanewfederalloanprogram.It includes$69millioninfundingtoexpandaccesstocapitalforsmallbusinessesinUtah, especiallyforunderservedcommunities.

USBCIhelpsexpandaccesstocapitalforsmallbusinessesemergingfromthe pandemic,createhigh-payingjobs,andbuildecosystemsofopportunityand entrepreneurshipinUtah.Weanticipatetheprogramwillstimulateupto$690millionof privateinvestmentinUtah'ssmallbusinesses.

TheAmericanRescuePlanActof2021authorizedandfundedthisinitiative.The Governor’sOfficeofEconomicOpportunityworkscloselywiththeU.S.Departmentof theTreasurytoadministerthisinitiative.

Outcomes:USBCIoffersloanswithatargetsizeof$25,000to$3milliontoUtahsmall businessesthroughtwolendingprograms:aCapitalAccessProgramandaLoan ParticipationProgram.EachprogramprovidescapitaltoUtahsmallbusinesses,witha federallymandatedgoalofreaching29%ofloandeploymentsinunderserved communities.Weincludesociallyandeconomicallydisadvantagedbusinessesinthe program’simplementationthroughUSBCI’sactivecommunityengagementprocess.

Theinitiativehasseverallendingpartnersundercontract.Lenderswillofferloansto businessesinFY24,whichwillprovidemetricsanddatalaterthisfiscalyear.

●InspireInUtahCampaign

InspireInUtah isaninitiativetohelpsupportwomenentrepreneursandwomeninthe workplaceateverylevel.

Outcomes:

ResourcesforWomen–Thewebsiteprovidesresourcesforwomentosupportbusiness success.Wehavegatheredvitalresourcesfornetworking,training,funding,and employment.

100CompaniesChampioningWomen–AspartofInspireInUtah,theinitiativefocuses onrecognizingandhighlightingthestoriesof100Utahcompaniesthatoffer family-friendlypoliciesandpractices,aswellaswomen-specificinitiativesknownto impacttherecruiting,hiring,retaining,andadvancingofwomenemployees,managers, andleaders.Throughsharingthesuccessstoriesofthese100companies,theinitiative aspirestocreateapositiverippleeffect,encouragingmorebusinessesinUtahtoadopt inclusiveandprogressivepoliciesthatbenefitboththeiremployeesandtheoverall businessecosystem.InJuly2023,Gov.Coxandourofficehostedarecognition luncheoncelebratingthecompaniesofthe2023cohort.Applicationsfor2024openedas ofAugust2023forasecondroundofcompaniesuntilspringof2024oruntil100 companiesareselected.

●Utah’sBusinessDiversitySummit

HostedbytheSaltLakeChamberandotherpartners(includingGOEO),theevent featuresexpertspeakersonbusinessdiversity.Itaimsatfosteringmorediversityin businessesacrossthestate.Thesummittargetsbusinesseswithandwithout well-establisheddiversityprograms.Theeventprovidesattendeeswithresourcesand networkingopportunities.

Outcomes:InpartnershipwiththeSaltLakeChamber,ourteamhelpedorganizeand supportUtah’sBusinessDiversitySummitforthesecondyear.Thesummitwasheldin connectionwiththeOneUtahSpringSummit.Teammemberspresentedand participatedintheconferenceonfosteringdiversity,equity,andinclusiontocreate economicopportunitiesforallUtahns.

Dataischallengingtocurateforunderservedcommunitiesorsociallyandeconomically disadvantagedbusinessowners.Astatewideapproachtogatheringthisdataisanopportunity forresearchfundinginUtah.

4.Strategy:LowRegulations,LowTaxes

Purpose: AstableregulatoryandtaxenvironmentiscriticaltoensuringUtahremainsaglobal businessdestination.

Action: Keeptaxesandregulationsatanappropriateminimum.Ensurethestatehasenough revenuetopayforfuturegrowth.

Metric: Completeanannualreviewofthestate'soveralltaxburdencomparedtootherstates (OfficeofRegulatoryRelief).

AnnualOverview: InMarch2023, WalletHub rankedUtahthe27thhigheststateforoverall totaltaxburdenat8.08%basedonpropertytaxes,individualincometaxes,andsalesand excisetaxesasashareoftotalpersonalincomeinthestate.Alaskahadthelowestoveralltax burden,at5.06%.ThestatewiththehighestoveralltaxburdenwasNewYork,at12.47%. Belowaretherankingsinrelationtoneighboringstates.

RegionalRankings

In2022,theMercedesCenteratGeorgeMasonUniversityrankedUtahasthe15th least-regulatedstatebymeasuringtheregulatoryrestrictionsinstatecodebycountingthe wordsandphrases:shall,must,maynot,prohibited,andrequired.

HighesttolowestregulatedstatesbyMercedesCenteratGeorgeMasonUniversity

Thisdataandrankingswillserveasabaselinemovingforward. StatewideGOEOprogramscoordinatinglowregulation:

●UtahOfficeofRegulatoryRelief

Toassistwiththeregulatoryrestrictionswithinthestate,the OfficeofRegulatoryRelief administersageneralregulatorysandbox.Aregulatorysandboxcreatesasafespacefor businessestoexperimentwithnewandinnovativeideasinthemarketwithoutthe burdenofregulatorybarriers.Asasandboxparticipanttestsitsidea,stateregulators collectdataabouthowwellthebusinessandideaworkwithoutburdensomeregulations.

Regulatorsevaluatetheexperiment'sresultsattheendofthepredeterminedperiod. Onceregulatorshavegatheredallthefacts,theyprovidethemtotheLegislature.

TheOfficeofRegulatoryReliefalsoinvitesresidentsandbusinessestosuggestlaws andregulationsthatcouldbemodifiedoreliminatedtoreduceregulatoryburden. Feedbackandsuggestionscanbesenttoregrelief@utah.gov.

Outcomes:

SandboxWaivers–Sinceitsinception,theofficehasapprovedtwoapplications. Additionally,duringthe2023legislativesession,Utahpassed HouseBill289 tocreate thestate’sNoncustodialBlockchainRegistrywithintheOfficeofRegulatoryRelief. BasedontherecommendationoftheBlockchainandDigitalInnovationTaskForce, noncustodialblockchaincompaniescanapplytobeaddedtotheregistryandreceivea certificateofregistrationfromGOEO.TheNoncustodialBlockchainRegistryconsistsof businessnamesandtheirauthorizedagentsinthestate,ifany.Anonlineapplication hasbeencreatedforthisinitiative.

5.Strategy:StrongTargetedIndustries

Purpose: Buildingtargetedindustrieshelpsensurethoseindustriesremainresilientandkeep Utah'seconomyasthepremierglobaleconomy.

Action: Developandrecruitheadquarters,strengthenworkforceprograms,supportinnovative techdevelopment,andhelpcreatehigher-payingjobsforUtahns.

Metric: Experiencegrowthintargetedindustriestospurregionaldevelopment.

AnnualOverview:Utahstrivestoestablishsustainableadvantagesinemergingandmature sectors.Thestatebringstogetherstakeholdersandformulatesstrategiestosupportand enhancespecificindustrieswithinitsrobustanddiverseeconomy.Programscateringto industries,communities,andindividualsplayacrucialroleinshapingthestate'sfuture economiclandscape.Akeyaspectoftheseprogramsisthestate'sfocusontargetedindustries. GOEOwillassessandpresentitstargetedindustryplantothelegislativestandingcommittee, thegovernor,andthecabinet.Themostrecentreviewoccurredin2020,andsubsequent evaluationswillbeconductedeveryfiveyears.GOEOreliesonrecommendationstoidentify targetedindustries,whichKemC.GardnerandEDCUtahindependentlyreview.Belowisalist ofUtah'scurrenttargetedindustries.

Targetedindustryperformanceoutputs:

Source:JobsEQ,Dataasof2022Q4

GDPGrowth

Source:JobsEQ,Dataasof2021

StatewideGOEOprogramsandinitiativessupportingstrongtargetedindustries:

●CorporateRecruitmentandRetention

GOEOhascontractedwiththeEconomicDevelopmentCorporationofUtah(EDCUtah)toassist withUtah'scorporaterecruitmentandretentionefforts.Asastatewideeconomicdevelopment organization,EDCUtahspecializesincorporaterecruitment,economicresearch,siteselector marketing,andcommunitydevelopment.Underthispartnership,corporaterecruitmentand retentioneffortsalignwiththestate’stargetedindustries.

Outcomes:

GlobalStrategyOutreach– ForFY22-23,103domesticand46internationalrecruitment meetingswereheld.Thisresultedinninenewprojects.Outreachrecruitmentstrategically focusedonCalifornia(BayArea)andNewYorkCity.

IndustryProfiles–Utahhasthemostdiversestateeconomyinthenation,andseveralverticals aretheenginesthatdriveourgrowth.Throughourpartner,EDCUtah,we’veproducedconcise, highlyvisual profiles foreverymajorindustryinUtah.

EconomicDevelopment(andRural)TaxIncrementFinancing(EDTIF/REDTIF)taxcredit program–theEDTIFprogramisavailableforcompaniesexpandingintargetedindustriesin urbancounties.Additionally,theofficemayauthorizetaxcreditstoruralcommunities(notethat non-retailprojectsmaybeapprovedunderREDTIFforruralareasoutsideofthesetargeted industries.)InFY23,theaveragecapitalexpenditureperprojectroseduetoincreased investmentsinourtargetedindustries,suchastechnologyandautomation.Wemetnew milestones,suchasanagreementwith TexasInstruments,whoplantoadd800new,high-tech jobsandinvest$11billioninUtah.Thisinvestmentisthemostsignificanteconomicinvestment inUtahhistory.ThefollowingoutlinesEDTIF/REDTIFawardsassociatedwithourtargeted industries.

●Governor’sIndustryRoundtables

GOEOorganizesroundtablediscussionswithGov.Coxandtargetedindustryleaders.Thisis vitaltounderstandingtheneedsofourtargetedindustriesregardingissueswithstatepolicy, regulations,ecosystemgaps,workforceneeds,etc.

Outcomes:GovernorRoundtablesheldwithatargetedindustryfocus: 8/24/22:LifeScience–MedicalDevice–addressedEPAissuewithsterilizationandworkforce 11/30/22:FinTech–DigitalIdentity,personaldatasecurity,nationalrecognitionofUtahHub 1/25/23:Aerospace/Drone–Autonomousregulations,Innovation,Labor 4/26/23:Entrepreneurship–WhereUtahexcels/fallsshort,resourcesandpolicies.

6.Strategy:StartupState

Purpose: Startupsandentrepreneursarepullingtheglobaleconomy,andUtahmustcontinue investmenttofosternewbusinesses.

Action: Supportmorepatentandtechprivatizationefforts,strengthenentrepreneurship educationinschools,recruitmoreearly-stagecapitaltothestate,andincreasementorship opportunities.

Metric: Increasethenumberofpatents,newstartups,andventurecapital.

AnnualOverview: TheUniversityofUtahResearchFoundationwasthetoppatentearnerin Utahlastyear.Theuniversitywasissued38patentsfromtheU.S.PatentandTrademarkOffice withinthestate,comprising19.7%ofallpatentsconsideredforthestatewideanalysis.The UniversityofUtahResearchFoundationwonpatentsin2022for boneimplanttechnology anda magnet-propelled "soft"robot capableoftravelingthroughthehumanbody.

In2022,venturecapitalavailableinUtahrankedNo.12at$2.54billionintheU.S.,whereas California,NewYork,andMassachusettsheldthetopthreespots,Virginia($3.1B)rankedjust aboveUtah,andNewJersey($2.34B)rankedjustbelow.

GrowUtah listsUtahinvestorsandfundingsourcescategorizedunderthefollowingheadings, withdozensofresources:

Thesitelistshundredsofentrepreneurgroups,associations,incubators,university organizations,andmeetupsacrosstheUtahentrepreneurecosystem.

StatewideGOEOinitiativessupportUtahastheStartupState:

●Entrepreneur-In-Residence

InJanuary2023,Gov.CoxappointedBradBonham,amemberoftheGOEO Board,asthestate’sfirstentrepreneur-in-residence.Inthisrole,Bonhamwill adviseonentrepreneurshipeducation,culture,andresourceswithinthestate andrecommendhowtoenhancethestate’sentrepreneurshipecosystem. BonhampresentedhisstrategytoGov.CoxinMay2023.Bonhamworkswith GOEOanditsUtahInnovationCentertoaccomplishthegovernor’scharge. Additionalpurpose,action,andmetricdatawillberecommendedtotheUEOC forstatewideeconomicdevelopmentstrategyupdates.

Outcomes:ExecuteastatewidestartupbrandtoreinforceUtah’suniqueselling propositionastheworld’sstartupcapitolwillbegininFY2024.

●UtahTechnologyInnovationFund

TheUtahInnovationCenterhelpsdrivethestate’stechnologyinnovation ecosystemopportunitiesthroughthefederalSmallBusinessInnovationResearch (SBIR)andSmallBusinessTechnologyTransfer(STTR)programs.This non-dilutivefundingmechanism–bothgrantsandcontracts–isdedicatedtothe researchanddevelopment(R&D)ofnewtechnology.

Acrossthenation,startupsandsmallbusinessesfromdiversetechnologyareas andmarketscompeteforthisfederalfundingtostimulatetechnologyinnovation andprovidebroadsocietalimpact.

TheUtahInnovationCenterhelpsthestate’ssmalltechnologybusinessesto successfullywinR&Dfundingandcommercializelife-changingtechnologiesthat benefitusathomeandaroundtheworld.

Outcomes:FY2022,theUtahInnovationCenterisproudtohavefacilitatedUtah smallbusinessesreceivingover$50millionindirectfundingand$100millionin follow-onfunding.Inaddition,theUtahInnovationCenterteampromotes technology-basedeconomicdevelopmenteffortsbyconnectingandcollaborating withmembersofUtah’sworld-classindustry,highereducation,and entrepreneurshipsupportorganizations.Theteamoffersitsservicesstatewide, freeofcharge,givingUtah’stechnology-orientedcompaniesadistinctadvantage intoday’scompetitiveenvironment.

7.Strategy:RuralAffairs

Purpose: Utahmustprovideeconomicopportunitiesthroughoutthestate.Ruraleconomic opportunityandjobcreationoftenlagbehindthestate.

Action: Investinruralinfrastructure,buildeconomicgrowthanddiversification,andprovide mentoringtoruralcommunities.

Metric: Decreaseruralunemploymentrates,increasethenumberofcommunitieswithplans, andinvestininfrastructureprojects.

AnnualOverview: GOEOhascreatedthe“outreachmanager”servicemodelinthepastyear. Thishasbeenahugesuccesswithoutreachmanagersresidingintheareastheyareserving. Theyprovidementorshiptotheseruralcommunities,resourceinformation,economic developmentassistance,etc.Theyareimmersedintheircommunitiesanddedicatedto providingneededresourcesandeconomicopportunitiesforallofUtah’sruralcounties.

UnemploymentratesfellinthefollowingcountiesinJune2022vs.June2023:Carbon,Emery, Garfield,SanJuan,Uintah,andWayne.

RuralCommunityPlans:

Overthepastyear,representativesofGOEOandGOPB,alongwiththestate’sseven AssociationsofGovernment,businessandeconomicdevelopmentprofessionalsrepresenting allgeographicareasofthestate,providedinputforthedevelopmentofthe StateofUtah CoordinatedActionPlanforEconomicVision2030.Thepurposeistounifythegoalsand directionofstategovernmentwiththoseofsevenregionsinUtah.Thisinvolves,amongother things,aligningeachregion’sexistingcomprehensiveeconomicdevelopmentstrategies developedbyeachofthestate’sAssociationofGovernments(AOG).Theoverarching objectivesaretooptimizegrowthandexpandprosperitythroughoutallcounties.GOEOwillbe leadingthiseffortwithastrongstakeholderteam.

Additionally,underourUtahOfficeofTourism,thetourismindustry'spost-pandemicleisureand hospitalityjobrecoverycontinuedthrough2022.Ruralareassawhealthierrecoveryearlyon, withurbanareasfollowing.In2022,statewideleisureandhospitalityjobssurpassed2019levels by4.9%.Ruralgrowthduringthattimeoutpacedurbangrowth,6.4%versus4.2%,withrural growthdeceleratingfrom2021-2022. Note:“urban”includesSaltLake,Weber,Davis,andUtah counties;“rural”includesallothercounties;“leisureandhospitality”includesNAICS71*and 72*.

StatewideGOEOprogramsandinitiativessupportingruralaffairs:

●RuralOpportunityProgram

TheRuralOpportunityProgramwascreatedtoincludethreegrantfundingopportunities thatbenefitruralUtah.TheyaretheRuralCountyGrant,theRuralCommunities OpportunityGrant,andtheRuralEmploymentDevelopmentGrant.Over$11millionfrom thesethreegrantswasawardedinFY23.

Outcomes:

RuralCountyGrant(RCG)

TheRCGawards$200,000toeachofthe24ruralcountiesinUtah.Eachcounty,with theadviceoftheircountyeconomicopportunityadvisorycommittees,planandcarryout projectsandactivitiesthatenhancebusinessandgeneraleconomicdevelopment. Theseprojectsandactivitiesincludebusinessrecruitment,development,andexpansion; workforcetraininganddevelopment;andinfrastructure,industrialbuildingdevelopment, andcapitalfacilitiesimprovementsforbusinessdevelopment.InFY23,$4.8millionwas distributedtoruralcounties.

RuralCommunitiesOpportunityGrant(RCOG)

TheRCOGexpandsopportunitiestoruralcommunities–notonlytheruralcountiesbut alsothecitiesandtownswithinthem.TheRCOGisacompetitivefundingopportunity; eachapplicationisscoredbasedonthequalityoftheapplication,theproposedbudget,

theeconomicdevelopmentprojectsandactivitiesproposed,andthepurposes,goals, andmeasurableoutcomesrelatedtoimprovingtheoveralleconomy.Awardstorural communitiesmaybeupto$600,000.InFY23, over$6millionwasawarded to18rural communitiesforbusinessrecruitment,development,andexpansion;workforcetraining anddevelopment;andinfrastructure,industrialbuildingdevelopment,andcapital facilitiesimprovementsforbusinessdevelopment.

RuralEmploymentDevelopmentGrant(REDI)

TheREDIgrantisadirect-to-businessopportunity.Growingbusinessescreatingnew jobsinruralUtahapplytoreceive$5,000to$6,000pernewhigh-payingpositionthey createaftera12-monthemploymentretentionperiod.Contractsforthisgrantextend acrossfiscalyears,butinFY23,$333,000waspaidouttoemployerscreatingruraljobs.

●UtahRuralJobsAct

TheUtahRuralJobsprogramenableseligiblesmallbusinessesinaruralcountyto expandandcreatehigh-payingjobsbyprovidingflexibleandaffordablecapitaltosmall businessesintheseareas.

TheUtahRuralJobsAct(RJA)providesflexibleandaffordablecapitalthatenables eligiblesmallbusinessesinruralUtahtoexpandandcreatehigh-wagejobs.The programhasthreetypesofparticipants:

1.Investorswhoprovidecapitalinvestmenttoaruralinvestmentcompany.

2.Ruralinvestmentcompaniesthatraisefundsfrominvestorstobeinvestedin eligiblesmallbusinesses.

3.Eligiblesmallbusinessesthatmayreceiveupto$5millionincapitalthrough equityordebtloansforbusinessdevelopmentandexpansionneeds.

Outcomes:

TheRJAprovidedover$42millioninFY22andisauthorizedtoaddanother$42million inFY23.Itisexpectedthatthisinvestmentwillgenerate$84millionininvestmentloans toUtahbusinessesinexchangefor$48.72millionintaxcredits.

●UtahOfficeofTourism

TheUtahOfficeofTourism(UOT)providesprogramsandservicestoruralcommunities intheformofgrants,marketingprogramsandservices,pass-throughfunding,and servicessupport.

Outcomes:

Grantsforruralcommunities–39ofthe59co-opmarketinggrants(nearly67%)totaling $3.4millionwereawardedtotourismindustrynonprofitorganizationsinruralcounties throughtheUtahOfficeofTourismduringthefiscalyear.Atotalof13communitieswere awardeddestinationdevelopmentsub-grantsfromthefederalEconomicDevelopment

Agency(EDA)grant,with10of13beingruralcommunities.Atotalof$385,000was awardedinfiscalyear2022/2023.ProgramsfundedbytheEDAgrantweredevelopedto benefitruralcommunities,includingnicheaudienceresearchtoguidedestination productdevelopmentandacertifiedcommunityprogramtoindicatethepotentialof communitiesastourismdestinationstotravelersandhelptrainfront-linestaff.

Marketing – UOTFY23SouthernUtahadvertisingcampaign,primarilypromotingrural regionsofUtah,ledtomoreactive,qualitytripswithhigheraveragevisitorspendingand increasedsocialmediaadvocacy.Advertisinginfluencedapproximately777,000Utah leisuretripsandabout$1.6billioninvisitorspending.

GOEO/UOTJobCreation–fournewhiresatGOEOandUOTareremoteworkersfrom ruralUtah,includingtwooutreachmanagers,acommunityandpartnerrelationsdirector, andgrantspecialist.Thesepositionswillprovidementoringtoruralareasandacrossthe state.TheirbackgroundfocusesonsupportingandbuildingtheeconomyinruralUtah.

● RuralFilmIncentiveProgram

InJuly2022,theUtahMotionPictureIncentive Programexpandedtoincludeanadditional$12 millionintaxcreditsearmarkedforproductionsthat shoot75%ofproductiondaysinselectrural counties.

Outcomes:Ruralincentiveprogrambythenumbers:

● $93millionspendinruralcounties

● Economicimpactofgreaterthan$60million annually

● Increasedindustryawarenessandinterest

● 1000+jobs

8.Strategy:InternationalConnections

Purpose: MaintainingandgrowingUtah'spresenceintheglobaleconomyiscriticaltothe state'srobusteconomy.

Action: AccelerateglobalgrowthforUtahbusinesses,attractinternationalinvestment,expand Utah'sglobalnetwork,optimizesupplychainsforUtahcompanies,andelevateUtah'sglobal status.

Metric: Increasethenumberofjobssupportedbyinternationaltrade(#/%),changeinexports ($value/%),totaltradevolume($),businessexporting(#/%),andforeigndirectinvestment stock($).

AnnualOverview: In2022,Utahexported$16,591,800,839ingoodsandimported $19,108,367,824foratotalof$35,700,168,663intradevolume.Since2018,Utah’sexports haveincreasedby15.3%andby$2.2billion.However,thestatedidexperiencean8.3% decreaseinexportsfrom2021to2022afterahistorichighin2021.20%ofUtahjobsrelyon internationaltrade(433,000),and3,064Utahcompaniesexportedgoodsin2020.In2020, sevenGreenfieldforeigndirectinvestmentprojectswereannouncedinUtahfromthefollowing sourcemarkets:theUnitedKingdom,Spain,China,andCanada.WiththesupportofWorld TradeCenterUtah,398companiesreceivedassistanceinutilizinginternationalservices.

UtahExports(WorldTotalandUtah’sTop3TradePartners)

StatewideGOEOprogramsandinitiativessupportinginternationalconnections:

●TradeMissions

InpartnershipwithWorldTradeCenterUtah(WTCUtah),GOEO’sinternationalteam hasorganizedtwogovernor-ledtrademissionsinthepastfiscalyearincludingoneto IsraelandtheUnitedArabEmiratesandonetoFranceandtheUnitedKingdom.

Outcomes:IntheMiddleEast,64government,business,andcommunityleaders participatedinover100meetings,withcompaniesfocusingonconnectionsinaerospace anddefenseaswellaslifesciences.Atotalof41businessesparticipatedin83 engagementsthroughouttheEuropeantrademission,focusingonlifesciences, consumergoods,andinnovation.

Besideskeybusinessconnections,GOEOhelpedfacilitatetwotradeagreementswith foreigncounterpartsthatwillhelpincreaseinternationalengagementforthestateof Utah.Gov.CoxsignedaLetterofIntentwithRégionSudofFrance,supportingtourism andcollaborationinnewtechnologies,innovation,andhealthcare.Utahthenbecame thefifthstatetosignaMemorandumofUnderstandingwiththeUnitedKingdom, formalizingourrelationshipandfocusingonourpriorityareas,includingtargeted industries,academiccooperation,supplychainresilience,andaddressingfurthertrade barriers.

●Tourism

TheUtahOfficeofTourismfocusedoninboundvisitorrecovery,withtheteamexecuting eightinternationalmissionsandtradeshows.TheseincludeBrandUSATravelWeek EU,theTorontoSkiShow,theNetherland/BelgiumSalesMission,theAustralia/New ZealandSalesMission,theIndiaSalesMission,theBrandUSAMexicoMission,the CanadaMediaMission,andtheGovernor’sParisandLondonTradeMission.

Outcomes:InternationaldeplanedpassengercountsatSLCInternationalAirportclimbed above2019in2022(up5%)andwere42.9%abovethe2019baselineinQ1of2023 (vs.Q1of2019).

●DiplomaticHosting

Internationaltradereliesonrelationshipsfosteredthroughdiplomacy,ahighlyformalized interactiongovernedbyspecificexpectationsandprotocol.Thepartnershipsand alliancesdevelopedthroughdiplomaticrelationsarecrucialtopromotingUtah’s businesscommunityandrecruitingforeigndirectinvestmentinthestate.GOEOserves astheofficialdiplomaticarmofthestateofUtah.

Outcomes:Inthepastfiscalyear,GOEOhosted35delegationsfrom42countries.Many ofthesediplomaticvisitsincludedabusinessroundtableluncheon,co-hostedbyGOEO andWTCUtah,forUtahbusinessestomeetdiplomatsandlearnaboutexpandinginto internationalmarkets.Oneoftheseroundtableswasadirectbyproductofthetrade missiontotheMiddleEast–theMinisterofA.I.fromtheUnitedArabEmiratestraveled toUtahtoreconnectwiththegovernorandmeetwithbusinessandcommunityleaders.