Money may get tighter for new EDC

As they prepare for the January 31 launch of their new “integrated” organization, the Spokane Area Economic Development Council and the Spokane Regional Chamber of Commerce are finding some future financial contributions could be tougher to come by.

Earlier this month, some county and city officials expressed reservations about rubber-stamping budget requests from one of the organizations, the Spokane EDC, which will be blended with the Chamber next month.

Officials say while they support the consolidation of two organizations, they’re struggling with budget constraints of their own. And at least one official thinks the EDC and the Spokane-based Institute for Systems Medicine stand to gain greater financial support from the Washington Legislature in the upcoming session.

At home, however, tougher applications processes and leaner budgets could make it more difficult for the consolidated Chamber and EDC to bring in the same level of county and city contributions the EDC has enjoyed in the past. The chamber receives no city or county funds.

“Don’t keep coming to us like we’re a cash cow, because we’re not,” said Mark Richard, a Spokane County commissioner who wanted to slash by more than half the $275,000 funding request the EDC presented recently to the county. He thought the county should cut contributions to other economic development entities as well, he said.

“We’ve got out own budget issues, our own priorities and we need to respectfully request these outside organizations be more aggressive (in making funding requests) with other municipal partners,” Richard said in a phone interview Friday.

Spokane City Councilwoman Mary Verner believes the city should tighten its process for appropriating money to area economic development groups, too. She’s quick to point out her suggestion has nothing to do with the EDC’s effectiveness and its mission.

“I think we should support the EDC,” she said in a phone interview Friday. “But my concern is we haven’t developed criteria for dealing with the many requests we receive from various economic development-related organizations.”

Verner said she’d like the city to implement a screening process like the one it uses when considering financial requests from human services agencies. Those requests are considered once a year, with city officials divvying up a designated amount of money based on the requests they deem most important in terms of services, target audiences and city priorities.

This year, the EDC operated on about a $1.2 million budget; 55 percent of it came from private investors and the rest from government agencies. Next year, it will receive $250,000 from the county, a $25,000 reduction from the total received in 2006 and from its 2007 request.

The city voted to send $95,000 to the EDC next year.

Meanwhile, the Chamber’s budget totaled $2.1 million this year; 50 percent came from member dues, 25 percent from events and the remainder from contracts and grants, said Rich Hadley, Chamber president who is also going to head the new, blended organization.

He said he understands the governments’ heightened insistence on accountability.

“It’s a very businesslike approach and we’re ready to meet with cities and others to work through the kind of (funding) systems” they may decide to adopt, he said.