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Economic Development proposes slight budget cut as construction mitigation grants wind down
Summary
Salt Lake City—s Department of Economic Development proposed a FY27 budget of $2,564,887, an ~11.4% decrease from FY26 driven largely by a planned reduction in construction mitigation grant funding as bond-era projects finish.
Salt Lake City—s Department of Economic Development presented a proposed FY27 budget of $2,564,887 at the council—s May 19 work session, a decrease of about $331,000 (roughly 11.44%) from the prior year. Director Lorena Rifo Jensen said the reduction is primarily tied to a planned wind-down of the construction mitigation grant program as anticipated projects come to a close. "This year's budget proposes a decrease in the amount of funding for the construction mitigation grant program due to a wind down of anticipated projects," Rifo Jensen said during her overview.
Staff described the program as responsive to pockets of heavy construction where small businesses may be disrupted. Deputy director Jake Maxwell explained staff estimates for current-year spending ranged from about $165,000 to $210,000 and that with a $145,000 decrease the department expects to maintain a similar budgetary posture next year. Council members asked whether mitigation grants are funded from the general fund; staff confirmed they are and outlined a current balance in the mid-hundreds of thousands. Council members also urged the administration to keep future scaling and eligibility conversations on the table so reductions do not become permanent when neighborhoods face new construction impacts.
The presentation highlighted other department accomplishments, including workforce partnerships and a loan-fund success story: Rifo Jensen noted the department helped businesses create "over 1,000 jobs" and cited a capital investment figure. Council members praised the department for attracting Western Governors University to downtown and recommended the department consider prioritizing support for small and immigrant-owned businesses in future allocations. The department signaled it will rename the mitigation effort the "business support program" and return with parameters for expanding eligibility to utilities and non-road projects. No formal action was taken at the work session; the item was presented for policy discussion and will return as part of the regular budget process.
