"We want the public to have the opportunity to see upfront what kind of incentives we are offering for different types of projects," Huntsman's chief economic adviser, Chris Roybal, said Tuesday.
Last week, the Huntsman administration sought an attorney general's opinion on whether the state could stop divulging the amount of taxpayer money promised to individual companies in exchange for bringing new jobs to Utah.
The state considered disclosing only the funding given to companies that ultimately come to Utah - long after the state has committed to giving them what could be millions of dollars from the state's Industrial Assistance Fund.
But by Tuesday, Roybal had reversed direction. In fact, he said the state is talking about ways to provide even greater public disclosure of state-administered incentives and just how much the state is getting in return.
"There is a lot of concern about how states spend incentive dollars," Roybal said. "We'd like to see a higher level of scrutiny."
Last week, Roybal justified a more clandestine approach, saying some companies do not want states to disclose incentives being offered until the firm finalizes expansion plans. Public disclosure too early in the process can prompt a company to locate elsewhere, he said.
In addition, keeping amounts of incentives private also would minimize prospects of other states trying to top Utah's offers.
Industrial Assistance Fund money, which comes in the form of cash grants, is doled out at monthly meetings of the state Board of Business and Economic Development, whose 15 members determine which companies are promised incentives, what type and how much.
When Roybal floated the revised approach to notification, board member Jerry Oldroyd supported the idea of publicly naming companies and the amounts they receive after - not before - they opt to come to Utah.
Conversely, fellow board member Cliff White advocated public disclosure as early as possible. "It is the public's business and it should be done publicly," he said.
Up to now, the board always has divulged the amount it offered to companies. Sometimes the amount has been accompanied by a recipient's name. In other cases, the names of recipient companies have remained sealed until after they committed to build or expand in the state.
While Huntsman has abandoned the notion of changing the state's disclosure policy, Roybal said the governor will make a mark on the program by selecting new people to oversee how the incentives are doled out.
Besides appointing new board members, Roybal said Utah will hire a new "incentives manager" this month to fill a position formerly held by Mark Renda, one of several economic development staff members terminated earlier this year after Huntsman took office.
Utah Taxpayer Association Vice President Mike Jerman applauded Huntsman's decision to continue public disclosure of incentives. His organization wants to ensure incentive money is well-spent and that neither the state nor municipalities subsidize companies that would expand without incentives.
Public disclosure helps with that analysis, he said, adding: "Since tax dollars are being spent, this type of information needs to be disclosed."
lesley@sltrib.com
