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Manufacturing Innovation Sunset Review: Proposed Final Report Joint Legislative Audit & Review Committee December 1, 2011 John Woolley, JLARC Staff Legislature.

Published byAmelia Haigh Modified over 10 years ago

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Presentation on theme: "Manufacturing Innovation Sunset Review: Proposed Final Report Joint Legislative Audit & Review Committee December 1, 2011 John Woolley, JLARC Staff Legislature."— Presentation transcript:

1 Manufacturing Innovation Sunset Review: Proposed Final Report Joint Legislative Audit & Review Committee December 1, 2011 John Woolley, JLARC Staff Legislature Should Allow Unused Program to Expire

2 December 1, 2011 Absent specific action by Legislature Created in 2008 to provide small manufacturers (100 or fewer employees) with a voucher to pay for services such as: strategic planning, business development, and supply chain management Allow the Program to expire because it isnt used Manufacturing Innovation Sunset Review2 Sunset Statutes Require JLARC to Review MIMES Program Report Pages 1 - 2 & 4 Washington Manufacturing Innovation and Modernization Extension Service Program (MIMES) Set to expire June 30, 2012 Recommendation:

3 December 1, 2011 Comply with Legislative intent? Sunset Statutes Require JLARC to Respond to Four Questions Manufacturing Innovation Sunset Review3 Report Pages 1 & 3-4 Does the Program: Operate efficiently? Meet its performance goals and targets? Duplicate services? No, because program has not been used. Could not assess, because program has not been used. No, but some possible overlap with programs providing general assistance to WA businesses

4 December 1, 2011 Additional reasons may include lower bank interest rates and the availability of grants with little out-of-pocket costs to the manufacturer. Possible Reasons Why Manufacturers Havent Used the MIMES Program Manufacturing Innovation Sunset Review4 Report Page 4 Department of Commerce Required application process for a voucher may have made it unattractive relative to some other types of personal and commercial small business loans such as credit cards and personal lines-of-credit. States one qualified service provider

5 December 1, 2011Manufacturing Innovation Sunset Review5 Recommendation: Allow Expiration Legislation that created the MIMES Program became law on June 12, 2008. Since that time, no manufacturer has used the Program. The Legislature should allow the Washington Manufacturing Innovation and Modernization Extension Service Program to expire. Department of Commerce: Concur OFM: No formal response Report Pages 4-9

6 December 1, 2011Manufacturing Innovation Sunset Review6 Contact Information Elisabeth Donner 360-786-5190 elisabeth.donner@leg.wa.gov www.jlarc.leg.wa.gov

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