Committee reviews Economic Development Fund; defers MOVE program policy changes and urges SBIR reauthorization

County staff summarized the Economic Development Fund for FY27, reporting a $4,170,000 total and noting program‑level balances across the MOVE program, biotech investor incentives, SBIR/STTR local matching grants, microlending, and the Jobs Initiative.

Staff told the committee the MOVE program had received a $500,000 supplemental in November and currently has no remaining unencumbered funds; they described MOVE as a high‑volume program with a low barrier to entry and a resulting backlog of approved awards. The Jobs Initiative, staff said, is a one‑time $20,000,000 appropriation and will continue to process applications over a multi‑year horizon.

Committee members pressed staff for clarity on two recommended reductions flagged in the packet. Dennis Heppen of the Department of Finance said certain biotech investor incentive payments are legally owed and are not eligible for cuts because the county is contractually obligated to reimburse investors when state reports identify eligible claims. Staff and program managers also explained the SBIR/STTR local matching grant program had sunset in July; although the county executive transmitted a reauthorization bill in January, that bill had not been introduced due to legal drafting issues. Program managers said five SBIR matching applications were in the queue and cannot be processed until the program is reauthorized.

Council members advocated preserving SBIR matching funds this year to avoid harming small companies that expected matching awards; staff and council members proposed either preserving a modest contingency for SBIR reactivation or restoring funding once the legal issues are resolved. On the MOVE backlog, staff described tradeoffs between maintaining a backlog (which effectively means the county continues accepting applications until funds run out) and raising eligibility criteria to reduce fiscal exposure; council members asked that staff prepare a fall work session to assess MOVE eligibility, outcomes and long‑term sustainability.

After discussion, the committee accepted the county executive's EDF recommendations for FY27 as presented but directed staff to return with deeper analysis in the fall on MOVE program policy (eligibility, outcomes tracking and backlog management) and to work to address SBIR reauthorization so pending applications can be processed.

Next steps: staff will supply additional data and policy options at a fall work session; council members placed the MOVE program review on the calendar and requested a report on pending SBIR applications and potential short‑term funding options.