Olympia may cut EDC funding

budgets: County Economic Development Council could lose $10,000 as city looks to save $4 million

ROLF BOONE; The Olympian | • Published November 13, 2009

Comments (0)

The Thurston County Economic Development Council faces $10,000 in possible budget cuts, which could undercut its efforts to retain and expand business opportunities in South Sound, as well as recruit, officials with the 27-year-old organization said Thursday.

The $10,080 in cuts could come as part of $4 million in cuts the city of Olympia proposes to its $98.1 million budget for 2010. Officials are considering cutting the city’s contribution to economic development, as well as money that goes to outside social-service programs.

EDC Executive Director Michael Cade, board President Joseph Beaulieu and board member Mike Edwards testified on behalf of the economic-development group at Tuesday’s City Council meeting.

The EDC, which operates on an annual budget of $550,000, receives funding from public agencies, such as local governments in Thurston County; grants; and money from the private sector in the form of membership dues, Cade said. The EDC has a five-person staff, he said.

The EDC also receives funding from Lacey, Tumwater, the Port of Olympia, Yelm and Tenino, Cade said. The port is the largest source of public funding, at $27,000, followed by Lacey at $25,000. Cade said he has not been notified that any other jurisdictions plan to cut EDC funding.

Although the EDC will continue to work with Olympia officials, “our ability to leverage resources and work with our partners will be curtailed,” Cade said about the potential budget cuts.

The EDC board would address specific cuts to the group’s operations, he said. Board President Beaulieu said the EDC has a contingency plan because officials had anticipated that the budget might take a hit amid the slower economy. The larger issue, he said, is that the cuts would be more symbolic than financially significant.

“It’s something we would not like to see,” Beaulieu said.

City Councilman, downtown business owner and past EDC board member Joe Hyer said the city is “scrubbing the budget” to find money for both outside social-service programs and the EDC. But if it comes down to a choice, he prefers to fund social-service programs, saying that not doing so is “a real problem for our values.”

Hyer acknowledged that the EDC has become a much better organization now that it is more involved in the community, citing its efforts to bring living-wage jobs to the area.

He also praised the EDC’s efforts to acknowledge small businesses through its annual awards show.

As recently as a few years ago, the EDC was a small, fairly inward-looking organization that didn’t have broad appeal, he said. The city’s view at one time was to not fund the EDC at all, but that has changed.

“I’m very supportive of the EDC,” Hyer said.

Among the group’s recent accomplishments, Cade said, was helping to recruit two manufacturers to South Sound: Gerbing’s Heated Clothing to Tumwater and Earth Friendly Products to Hawks Prairie. In the past two years, the EDC also has helped local businesses secure about $30 million in contracts tied to state and federal agencies, he said.

“We support a lot of small businesses and entrepreneurs,” Cade said.

Rolf Boone: 360-754-5403

rboone@theolympian.com