Annual Report continued

After becoming the first department in state government to undergo Haslam's top-to-bottom review, ECD saw a significant realignment of departmental resources accompanied by a reduction in overall staff size by more than 40 percent. At the same time, the business development team, which includes those on the frontlines of recruiting and retaining companies, grew by more than 70 percent. Additionally, ECD was able to significantly lower the average cost of incentives per new job created compared to the previous decade. In 2011, the average incentive cost per job was $2,640 versus $5,586 for the years 2002-2010, a reduction of more than 50 percent.

The top-to-bottom review resulted in the Jobs4TN economic development plan announced in April 2011. This new strategy narrowed ECD's focus to key sectors where the state holds a unique competitive advantage along with a renewed emphasis on assisting existing Tennessee companies that create the vast majority of all new jobs in the state. Other components included a decentralization of ECD with the establishment of jobs base camps in nine regions throughout the state, a $50 million investment in innovation through the INCITE program, and a review of burdensome and business-inhibiting federal and state regulations.

next: Key Results

1 | 2 | 3

*The Tennessee Department of Economic and Community Development's mission is to develop strategies that help make Tennessee the number-one location in the Southeast for high quality jobs. The department seeks to attract new corporate investment in Tennessee and works with Tennessee companies to facilitate expansion and economic growth.

Table of Contents

In 2011:

• ECD had one of the most productive years in state history. Job creation hit its highest mark in five years, since the recession's onset.

• Average incentive cost per job was $2,640 vs. $5,586 for 2002-2010.