Those guidelines, which should be in place in a few months, were a key recommendation Thursday of a legislative auditor general's report about the Governor's Office of Economic Development.
Several months ago, the Economic Development Office awarded a contract to EDCU, a private nonprofit company, to lure new businesses to Utah. The task formerly was handled by state employees who were fired when Gov. Jon Huntsman took office.
Thursday's audit said the state should craft guidelines that evaluate EDCU's performance based on what it actually accomplishes - arranging for companies to move to Utah or expand operations here - and not on its efforts to attract new companies, such as hosting executives. EDCU president Jeff Edwards said guidelines matching that suggestion are being drafted. Among other concerns, the auditor's report also questioned the use of one-time money to pay salaries of several state economic development employees instead of funding those salaries in the office's budget.
The economic development office is "now reliant on the outcome of its new budget request for the future financial health of several programs," the report said. "If funding is not increased, the division will need to reallocate existing program money to cover personnel costs next year, which could adversely affect the division's ability to proceed with the implementation of its initiatives."
House Speaker Greg Curtis, R-Sandy, is troubled by the use of one-time money. He said it puts the Legislature in a bad position of having to approve more one-time money next year. Otherwise, he said, the office will face cuts.
"You just can't hire people based on one-time money," he said.
lesley@sltrib.com

