Making up for Lost Ground: Creating a Governor's Office of Economic Development
Full Report
Executive Summary
Press Release
FOR IMMEDIATE RELEASE
February 25, 2010
For Additional Information Contact:
Stuart Drown, Executive Director
(916) 445-2125
Commission Sets Stage for Economic Action Plan
The Little Hoover Commission on Thursday urged the governor and the Legislature to restructure the leadership and coordination of the state’s economic development programs. When the Technology, Trade and Commerce Agency was shuttered in 2003, largely due to controversy over its overseas trade offices, the state’s economic development programs were dispersed to various agencies and departments. The lack of a single state economic development organization created room for local economic development associations and regional collaborations to emerge and set bottom-up priorities for economic growth. The Commission calls on the state to once again play a leading role.
In its report, Making up for Lost Ground: Creating a Governor’s Office of Economic Development, the Commission recommends consolidating key existing economic development functions by establishing a new, lean economic development unit within the Governor’s Office. The new Governor’s Office of Economic Development should set policy for the state’s economic development activities, serve as a point-of-contact for businesses and the economic development community and market the state’s economic development programs and business opportunities.
Before the state can assess the need for a stand alone economic development department, the governor first must establish a vision for strong economic growth. This vision must articulate how the state’s economic develop assets will build on and promote the work done by local and regional economic development leaders.
Numerous economic development resources already exist within the state, though the Commission found that they are not organized in a way that businesses and cities can easily use them – or even locate them. Without leadership, the state’s patchwork structure of economic development efforts fails to meet the needs of those stakeholders who do the heavy lifting of maintaining and growing California’s businesses and jobs.
“There are simple things the state should have never stopped doing – acting as an ambassador for the state’s economic development activity, connecting businesses with local, regional, state, federal and private sector resources to help them grow or to keep them in California,” Little Hoover Commission Chairman Daniel Hancock said. “The state cannot always provide a handout, but it must do a better job with the handoff.”
In Making up for Lost Ground: Creating a Governor’s Office of Economic Development, the Commission recommends that the state:
- Create a high-profile office for economic development. The state must consolidate critical functions of existing state economic development entities under the Office of Economic Development. This office should function as a small coordinating entity in the Office of the Governor, rather than a new separate agency, as well as serve as the visible point of contact for existing and prospective businesses and economic development leaders. The office should use a well-publicized Web site and phone number and pull together experienced and trained economic development professionals to quickly deliver high-quality services.
- Create a series of Action Teams within the Governor’s Office of Economic Development. The state should move CalBIS from the Labor and Workforce Development agency to the Governor’s Office of Economic Development, where CalBIS can serve as the foundation for a more robust outreach unit. Its Action Teams should serve as liaisons to other state, local, federal and private efforts; by connecting local, regional, federal and private efforts with other state programs. The teams should be able to change structure as the governor deems appropriate to implement the state’s economic development strategic plan.
- Create a policy unit within the Governor’s Office of Economic Development to develop a statewide vision for economic growth. The policy unit should have statutory responsibility for strategic planning. The policy unit also should catalogue and promote the state’s toolbox of economic development resources; guide the development of outcome measures to evaluate performance of the state’s economic development programs; and, work with the Legislature to restructure economic development programs based on performance outcomes.
- Advocate for big picture prosperity and economic growth through the Governor’s Office of Economic Development. To ensure implementation of a cohesive statewide economic strategy, the Governor’s Office of Economic Development should serve on the Strategic Growth Council and as the state’s lead representative on Team California. The office should also work to expand the knowledge base of the Capitol community by coordinating policy briefings and training sessions with public and private partners.
The Little Hoover Commission is a bipartisan and independent state agency charged with recommending ways to increase the efficiency and effectiveness of state programs. The Commission’s recommendations are sent to the governor and the Legislature. To obtain a copy of the report, Making up for Lost Ground: Creating a Governor’s Office of Economic Development, contact the Commission or visit its Web site: www.lhc.ca.gov.
Fact Sheet
Study Description
For this study, the Commission reviewed the state's economic development activities. This study included an organizational evaluation of the state's coordination of economic development activities and assessed whether the various economic development offices are achieving their goals, and whether they overlap or leverage other federal, state or local programs.
Previous Studies
Agenda
Overview
In this report, the Commission sets the stage for an economic action plan that restructures the leadership and coordination of the state’s economic development programs.
During its review, the Commission found that the state’s economic development programs are dispersed to various agencies and departments, and are not organized in a way that businesses and cities can easily use them – or even locate them.
To streamline economic development organizations and activities, the Commission recommends creating a Governor’s Office of Economic Development to lead and serve as California's single point-of-contact for economic and business development efforts. The new office would house a policy division and action teams and would hold seats on key organizations.
Results
On April 8, 2010, Governor Arnold Schwarzenegger signed an Executive Order establishing the Office of Economic Development. Read the Commission's response here.

-
November 92009Economic Development10:00 a.m.Subcommittee MeetingPublic Notice
PUBLIC NOTICE
FOR IMMEDIATE RELEASE
October 30, 2009For Additional Information Contact:
Stuart Drown, Executive Director
(916) 445-2125Notice of Meeting - Location Change
The Economic Development Subcommittee of the Little Hoover Commission will hold an advisory committee meeting on Monday, November 9, 2009, from 10 a.m. to noon in the Sunset Room of the California Club located at 538 South Flower Street in Los Angeles, CA. The advisory committee will discuss the needs of local economic development stakeholders from the Southern California region.
All public notices for meetings are on the Commission’s Web site, www.lhc.ca.gov. Because of building security procedures, you are encouraged to contact the Commission office by Monday, November 2, 2009, if you plan on attending this meeting. Also, if you need reasonable accommodation due to a disability, please contact Stuart Drown at (916) 445-2125 or littlehoover@lhc.ca.gov by Monday, November 2, 2009.
-
October 222009Economic Development9:00 a.m., State Capitol, Room 437, Sacramento, CAPublic HearingAgenda
AGENDA
Public Hearing on Economic Development
Thursday, October 22, 2009, at 9:00 a.m.
State Capitol, Room 437
Sacramento, CA
Opening RemarksTeam California
- Mary Ingersoll, Executive Director, TeamCalifornia (Written Testimony)
- Michael Bushey, President, TeamCalifornia and Manager of Economic Development, Southern California Edison (Written Testimony)
Labor and Workforce Development Agency
- Jamie Fall, Deputy Secretary of Employment and Workforce Development, California Labor and Workforce Development Agency (Written Testimony)
Local Government Alignment
- William Bassitt, President and Chief Executive Officer, Stanislaus Economic Development and Workforce Alliance (Written Testimony)
- Bruce Stenslie, President and Chief Executive Officer, Economic Development Collaborative of Ventura County (Written Testimony)
State Treasurer's Office- Bill Lockyer, California State Treasurer (Written Testimony)
Public Comments
Public NoticePUBLIC NOTICE
FOR IMMEDIATE RELEASE
October 8, 2009For Additional Information Contact:
Stuart Drown, Executive Director
(916) 445-2125Notice of Meeting
On Thursday, October 22, 2009, the Little Hoover Commission will conduct a public hearing on the state’s economic development activities. The hearing will begin at 9 a.m. in Room 437 of the State Capitol in Sacramento.
In this study, the Commission is examining whether the state’s economic development offices overlap or leverage other federal, state and local programs. At this hearing, the Commission will discuss governance issues among the various key state agencies charged with managing economic development activities and examine how successful those agencies are in achieving their goals.
The Commission will hear from the executive director and president of TeamCalifornia, who will discuss that organization’s role in coordinating economic development activities in the state. A representative of the California Labor and Workforce Development Agency will talk about how the state aligns its workforce development programs into a larger economic development strategy and how activities are organized within the agency help achieve this goal. A panel of local economic development experts from the Economic Development Collaborative of Ventura County and the Stanislaus Economic Development and Workforce Alliance will share best practices from their organizations’ experience in coordinating economic and workforce development activities and will discuss how the state’s workforce development programs might be better organized and coordinated to improve regional and statewide economic growth. Finally, the State Treasurer will discuss that office’s role in economic development financing programs and how it coordinates with other state agencies and local organizations.
There will be an opportunity for public comment at the end of the hearing. The Commission also encourages written comments. A business meeting will follow the hearing.
All public notices for meetings are on the Commission’s Web site, www.lhc.ca.gov. If you need reasonable accommodation due to a disability, please contact Stuart Drown at (916) 445-2125 or littlehoover@lhc.ca.gov by Thursday, October 15, 2009.
- Mary Ingersoll, Executive Director, TeamCalifornia (Written Testimony)
-
October 212009Economic Development1:00 - 3:00 p.m., Legislative Counsel Conference Room, Lower Level,Subcommittee MeetingPublic Notice
PUBLIC NOTICE
FOR IMMEDIATE RELEASE
October 7, 2009For Additional Information Contact:
Stuart Drown, Executive Director
(916) 445-2125Notice of Meeting
The Economic Development Subcommittee of the Little Hoover Commission will meet on Wednesday, October 21, 2009, from 1-3 p.m. in the Legislative Counsel Conference Room located in the lower level of 925 L Street in Sacramento, CA. The subcommittee will discuss the governance of key state economic development activities.
All public notices for meetings are on the Commission’s Web site, www.lhc.ca.gov. If you need reasonable accommodation due to a disability, please contact Stuart Drown at (916) 445-2125 or littlehoover@lhc.ca.gov by Wednesday, October 14, 2009.
-
August 272009Economic Development9:00 a.m., State Capitol, Room 437, Sacramento, CAPublic HearingAgenda
AGENDA
Public Hearing on Economic Development
Thursday, August 27, 2009, at 9:00 a.m.
State Capitol, Room 437
Sacramento, CA
Opening RemarksIdentifying Demand for the State's Role in Economic Development
- Max Neiman, Associate Director, Public Policy Institute of California (Written Testimony, Attachment)
Assessing the State's Coordination of Economic Development Activities
- Brian McGowan, Deputy Secretary for Economic Development and Commerce, Business, Transportation and Housing Agency (Written Testimony)
Defining the State's Role in Economic Development
- William "Bill" Allen, President and Chief Executive Officer, Los Angeles County Economic Development Corporation (Written Testimony)
- Bruce Kern, Executive Director, East Bay Economic Development Alliance
Building a Regional Model for Economic Development in California
- Peter E. Weber, member, California Partnership for the San Joaquin Valley (Written Testimony)
Comments Submitted by Members of the Public-
California Space Authority (Written Comments)
-
Wayne Schell, President & CEO, California Association for Local Economic Development (Written Comments)
Public NoticePUBLIC NOTICE
FOR IMMEDIATE RELEASE
August 13, 2009For Additional Information Contact:
Stuart Drown, Executive Director
(916) 445-2125Notice of Meeting
On Thursday, August 27, 2009, the Little Hoover Commission will conduct a public hearing on the state’s economic development activities. The hearing will begin at 9 a.m. in Room 437 of the State Capitol in Sacramento.
In this study, the Commission will examine whether the state’s economic development offices overlap or leverage other federal, state and local programs. At this hearing, the Commission will learn how the state’s current economic development activities are organized, coordinated and marketed.
The Commission will hear from the Public Policy Institute of California about local perceptions and demand concerning state economic development assistance. The deputy secretary for economic development and commerce of the Business, Transportation and Housing Agency will discuss the function and coordination of the state’s various economic development organizations. The executive officers of the Los Angeles County Economic Development Corporation and the East Bay Economic Development Alliance will share ideas about the state’s role in economic development from the local perspective. A member of the California Partnership for the San Joaquin Valley will talk about building a regional governance model for economic development in California.
There will be an opportunity for public comment at the end of the hearing. The Commission also encourages written comments. A business meeting will follow the hearing.
All public notices for meetings are on the Commission’s Web site, www.lhc.ca.gov. If you need reasonable accommodation due to a disability, please contact Stuart Drown at (916) 445-2125 or littlehoover@lhc.ca.gov by Thursday, August 20, 2009.
- Max Neiman, Associate Director, Public Policy Institute of California (Written Testimony, Attachment)

-
November 92009Economic Development10:00 a.m.Subcommittee MeetingPublic Notice
PUBLIC NOTICE
FOR IMMEDIATE RELEASE
October 30, 2009For Additional Information Contact:
Stuart Drown, Executive Director
(916) 445-2125Notice of Meeting - Location Change
The Economic Development Subcommittee of the Little Hoover Commission will hold an advisory committee meeting on Monday, November 9, 2009, from 10 a.m. to noon in the Sunset Room of the California Club located at 538 South Flower Street in Los Angeles, CA. The advisory committee will discuss the needs of local economic development stakeholders from the Southern California region.
All public notices for meetings are on the Commission’s Web site, www.lhc.ca.gov. Because of building security procedures, you are encouraged to contact the Commission office by Monday, November 2, 2009, if you plan on attending this meeting. Also, if you need reasonable accommodation due to a disability, please contact Stuart Drown at (916) 445-2125 or littlehoover@lhc.ca.gov by Monday, November 2, 2009.
-
October 222009Economic Development9:00 a.m., State Capitol, Room 437, Sacramento, CAPublic HearingAgenda
AGENDA
Public Hearing on Economic Development
Thursday, October 22, 2009, at 9:00 a.m.
State Capitol, Room 437
Sacramento, CA
Opening RemarksTeam California
- Mary Ingersoll, Executive Director, TeamCalifornia (Written Testimony)
- Michael Bushey, President, TeamCalifornia and Manager of Economic Development, Southern California Edison (Written Testimony)
Labor and Workforce Development Agency
- Jamie Fall, Deputy Secretary of Employment and Workforce Development, California Labor and Workforce Development Agency (Written Testimony)
Local Government Alignment
- William Bassitt, President and Chief Executive Officer, Stanislaus Economic Development and Workforce Alliance (Written Testimony)
- Bruce Stenslie, President and Chief Executive Officer, Economic Development Collaborative of Ventura County (Written Testimony)
State Treasurer's Office- Bill Lockyer, California State Treasurer (Written Testimony)
Public Comments
Public NoticePUBLIC NOTICE
FOR IMMEDIATE RELEASE
October 8, 2009For Additional Information Contact:
Stuart Drown, Executive Director
(916) 445-2125Notice of Meeting
On Thursday, October 22, 2009, the Little Hoover Commission will conduct a public hearing on the state’s economic development activities. The hearing will begin at 9 a.m. in Room 437 of the State Capitol in Sacramento.
In this study, the Commission is examining whether the state’s economic development offices overlap or leverage other federal, state and local programs. At this hearing, the Commission will discuss governance issues among the various key state agencies charged with managing economic development activities and examine how successful those agencies are in achieving their goals.
The Commission will hear from the executive director and president of TeamCalifornia, who will discuss that organization’s role in coordinating economic development activities in the state. A representative of the California Labor and Workforce Development Agency will talk about how the state aligns its workforce development programs into a larger economic development strategy and how activities are organized within the agency help achieve this goal. A panel of local economic development experts from the Economic Development Collaborative of Ventura County and the Stanislaus Economic Development and Workforce Alliance will share best practices from their organizations’ experience in coordinating economic and workforce development activities and will discuss how the state’s workforce development programs might be better organized and coordinated to improve regional and statewide economic growth. Finally, the State Treasurer will discuss that office’s role in economic development financing programs and how it coordinates with other state agencies and local organizations.
There will be an opportunity for public comment at the end of the hearing. The Commission also encourages written comments. A business meeting will follow the hearing.
All public notices for meetings are on the Commission’s Web site, www.lhc.ca.gov. If you need reasonable accommodation due to a disability, please contact Stuart Drown at (916) 445-2125 or littlehoover@lhc.ca.gov by Thursday, October 15, 2009.
- Mary Ingersoll, Executive Director, TeamCalifornia (Written Testimony)
-
October 212009Economic Development1:00 - 3:00 p.m., Legislative Counsel Conference Room, Lower Level,Subcommittee MeetingPublic Notice
PUBLIC NOTICE
FOR IMMEDIATE RELEASE
October 7, 2009For Additional Information Contact:
Stuart Drown, Executive Director
(916) 445-2125Notice of Meeting
The Economic Development Subcommittee of the Little Hoover Commission will meet on Wednesday, October 21, 2009, from 1-3 p.m. in the Legislative Counsel Conference Room located in the lower level of 925 L Street in Sacramento, CA. The subcommittee will discuss the governance of key state economic development activities.
All public notices for meetings are on the Commission’s Web site, www.lhc.ca.gov. If you need reasonable accommodation due to a disability, please contact Stuart Drown at (916) 445-2125 or littlehoover@lhc.ca.gov by Wednesday, October 14, 2009.
-
August 272009Economic Development9:00 a.m., State Capitol, Room 437, Sacramento, CAPublic HearingAgenda
AGENDA
Public Hearing on Economic Development
Thursday, August 27, 2009, at 9:00 a.m.
State Capitol, Room 437
Sacramento, CA
Opening RemarksIdentifying Demand for the State's Role in Economic Development
- Max Neiman, Associate Director, Public Policy Institute of California (Written Testimony, Attachment)
Assessing the State's Coordination of Economic Development Activities
- Brian McGowan, Deputy Secretary for Economic Development and Commerce, Business, Transportation and Housing Agency (Written Testimony)
Defining the State's Role in Economic Development
- William "Bill" Allen, President and Chief Executive Officer, Los Angeles County Economic Development Corporation (Written Testimony)
- Bruce Kern, Executive Director, East Bay Economic Development Alliance
Building a Regional Model for Economic Development in California
- Peter E. Weber, member, California Partnership for the San Joaquin Valley (Written Testimony)
Comments Submitted by Members of the Public-
California Space Authority (Written Comments)
-
Wayne Schell, President & CEO, California Association for Local Economic Development (Written Comments)
Public NoticePUBLIC NOTICE
FOR IMMEDIATE RELEASE
August 13, 2009For Additional Information Contact:
Stuart Drown, Executive Director
(916) 445-2125Notice of Meeting
On Thursday, August 27, 2009, the Little Hoover Commission will conduct a public hearing on the state’s economic development activities. The hearing will begin at 9 a.m. in Room 437 of the State Capitol in Sacramento.
In this study, the Commission will examine whether the state’s economic development offices overlap or leverage other federal, state and local programs. At this hearing, the Commission will learn how the state’s current economic development activities are organized, coordinated and marketed.
The Commission will hear from the Public Policy Institute of California about local perceptions and demand concerning state economic development assistance. The deputy secretary for economic development and commerce of the Business, Transportation and Housing Agency will discuss the function and coordination of the state’s various economic development organizations. The executive officers of the Los Angeles County Economic Development Corporation and the East Bay Economic Development Alliance will share ideas about the state’s role in economic development from the local perspective. A member of the California Partnership for the San Joaquin Valley will talk about building a regional governance model for economic development in California.
There will be an opportunity for public comment at the end of the hearing. The Commission also encourages written comments. A business meeting will follow the hearing.
All public notices for meetings are on the Commission’s Web site, www.lhc.ca.gov. If you need reasonable accommodation due to a disability, please contact Stuart Drown at (916) 445-2125 or littlehoover@lhc.ca.gov by Thursday, August 20, 2009.
- Max Neiman, Associate Director, Public Policy Institute of California (Written Testimony, Attachment)