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California DOGE

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0509 - Governor's Office of Business and Economic Development

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Budget Trends and Highlights (2022-2025)

Position Growth

  • Overall Growth: 7.2% increase in positions from 2022-23 (163.5) to 2024-25 (175.3)
  • Recent Expansion: The 2024-25 budget maintains the same number of positions (175.3) as 2023-24
  • Major Staffing Initiatives:
    • Office of the Small Business Advocate increased from 17.8 positions in 2022-23 to 21.8 positions in 2024-25 (22.5% growth)
    • Community Reinvestment Grants Program increased from 9.2 positions in 2022-23 to 13.0 positions in 2024-25 (41.3% growth)
    • Local Equity Grant Program increased from 2.5 positions in 2022-23 to 4.0 positions in 2024-25 (60% growth)

Budget Fluctuations

  • Total Budget Reduction: 88.7% decrease from 2022-23 ($2.36 billion) to 2024-25 ($265.9 million)
  • General Fund Support: Decreased from $1.89 billion in 2022-23 to $181.0 million in 2024-25 (90.4% reduction)
  • One-time Funding: Significant one-time funding in 2022-23 for pandemic recovery and small business support

Program Funding (2024-25)

  • GO-Biz: $73.1 million (Code 0220)
  • Infrastructure, Finance and Economic Development: $72.1 million (Code 0235)
  • Community Reinvestment Grants Program: $50.0 million (Code 0240)
  • Office of the Small Business Advocate: $49.6 million (Code 0230)
  • Local Equity Grant Program: $15.8 million (Code 0245)
  • California Business Investment Services: $5.4 million (Code 0225)

Major Funding Codes and Sources

The Governor's Office of Business and Economic Development receives funding from various sources, each designated by specific budgetCodes in the state budget:

Program Codes

  • 0220 - GO-Biz: Core operations of the Governor's Office of Business and Economic Development
  • 0225 - California Business Investment Services: Business attraction, retention, and expansion services
  • 0230 - Office of the Small Business Advocate: Support for small businesses and entrepreneurs
  • 0235 - Infrastructure, Finance and Economic Development: Infrastructure financing and economic development programs
  • 0240 - Community Reinvestment Grants Program: Cannabis tax-funded community reinvestment
  • 0245 - Local Equity Grant Program: Support for cannabis equity programs

Funding Source Codes

  • 0001 - General Fund: State's primary operating fund ($181.0 million in 2024-25)
  • 0649 - California Infrastructure and Economic Development Bank Fund: Supports IBank operations ($13.5 million in 2024-25)
  • 0995 - Reimbursements: Recovery of costs from other entities ($1.5 million in 2024-25)
  • 3348 - Cannabis Tax Fund - GO-Biz Allocation 2: Cannabis tax revenue for community reinvestment ($50.0 million in 2024-25)
  • 3376 - Cannabis Tax Fund - GO-Biz: Cannabis tax revenue for local equity programs ($15.8 million in 2024-25)
  • 3237 - Cost of Implementation Account, Air Pollution Control Fund: Supports climate-related economic development ($1.9 million in 2024-25)

Major Projects and Initiatives

Business Development and Investment

GO-Biz leads California's business attraction, retention, and expansion efforts:

  1. California Competes Tax Credit: Allocates income tax credits to businesses that create jobs and make capital investments in California, with $110 million available in 2024-25.

  2. California Competes Grant Program: Provides grants to businesses creating high-quality jobs in California, with $60 million allocated in 2024-25.

  3. Foreign Direct Investment Program: Attracts international businesses to establish or expand operations in California through trade missions, investment summits, and targeted outreach.

Small Business Support

The Office of the Small Business Advocate implements programs to support California's small businesses:

  1. Small Business Technical Assistance Program: Provides funding to technical assistance centers that offer free or low-cost consulting and training to small businesses.

  2. California Dream Fund: Provides microgrants to new small businesses that complete intensive entrepreneurial training programs.

  3. California Rebuilding Fund: Offers low-interest loans to small businesses, particularly those in underserved communities, to help them adapt and grow.

Infrastructure and Economic Development

The Infrastructure and Economic Development unit manages financing programs for public infrastructure and private development:

  1. Infrastructure State Revolving Fund: Provides low-cost financing for public infrastructure projects, with $50 million in recapitalization funding in 2024-25.

  2. Climate Catalyst Revolving Loan Fund: Provides low-interest loans for climate-related projects that face market barriers to traditional financing.

  3. Jump Start Loan Program: Offers microloans to underserved small businesses in low-wealth communities.

Cannabis Equity and Community Reinvestment

GO-Biz administers cannabis tax-funded programs to support communities impacted by cannabis prohibition:

  1. Community Reinvestment Grants Program: Provides grants to local health departments and community-based nonprofits to support job placement, mental health treatment, substance use disorder treatment, and legal services.

  2. Cannabis Equity Grants Program: Provides funding to local jurisdictions to support cannabis equity program applicants and licensees.

Administrative Structure

GO-Biz is organized into specialized units to support California's economic development:

  1. Executive Office: Provides overall leadership and strategic direction for the organization.

  2. California Business Investment Services (CalBIS): Serves as the state's primary entity for business attraction, retention, and expansion services.

  3. Office of the Small Business Advocate (CalOSBA): Supports economic growth and innovation by helping California's small businesses and entrepreneurs.

  4. International Affairs and Trade: Promotes California exports and attracts foreign direct investment.

  5. California Infrastructure and Economic Development Bank (IBank): Provides financing for public infrastructure, private development, and small businesses.

  6. California Film Commission: Enhances California's position as a premier location for motion picture production.

  7. California Tourism Commission (Visit California): Markets California as a travel destination.

  8. Innovation and Entrepreneurship: Supports California's innovation ecosystem and emerging industries.

  9. Cannabis Equity and Grant Programs: Administers cannabis tax-funded grant programs.

Funding Allocation Process

  1. Budget Development: GO-Biz works with the Department of Finance to develop budget proposals for economic development programs.

  2. Legislative Appropriation: The Legislature reviews GO-Biz budget proposals and makes appropriations through the annual Budget Act.

  3. Program Implementation: Funding is allocated to specific programs and initiatives based on statutory requirements and economic development priorities.

  4. Competitive Grant Processes: Many GO-Biz programs, such as the California Competes Tax Credit and Small Business Technical Assistance Program, allocate funding through competitive application processes.

  5. Performance Monitoring: GO-Biz monitors the implementation and effectiveness of funded programs, with a focus on job creation, business growth, and economic impact.

Sources