Budget cuts take out local business resource

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Statewide budget cuts have taken a powerful resource away from local businesses.|ret||ret||tab|

The Missouri Department of Economic Development South-west Regon offce is closing June 3 due to the Missouri DED's loss of more than $20 million in general revenue funds. |ret||ret||tab|

The local office at 1736 E. Sunshine St., Ste. 702, is one of seven regional development offices forced to close. |ret||ret||tab|

The local DED office works with community leaders and development organizations to promote and assist with local business expansion and retention efforts. It also provides assistance in the areas of tax credits, finding financing, job training, site selection, and business planning, licensing and technology.|ret||ret||tab|

In the 18 months ending Dec. 31, 2001, the local office assisted in creating 2,618 jobs, of which 1,150 positions pay above the Springfield regional average of $12.50 per hour. |ret||ret||tab|

Budget crunch|ret||ret||tab|

The DED saw its fiscal-year 2002 general revenue budget of $63.58 million shrink to roughly $41 million after Gov. Bob Holden withheld about 35 percent of its funds.|ret||ret||tab|

Most of those state withholdings have turned into core cuts for fiscal year 2003, which begins July 1, said DED spokes-person Jim Grebing.|ret||ret||tab|

The new budget provides about $44 million in general revenue funding, but Grebing said the governor usually withholds at least 3 percent off the top and more throughout the year.|ret||ret||tab|

These financial actions do not sit well with DED Director Joseph Driskill, who spearheaded the legislation that created the regional offices in 1993.|ret||ret||tab|

"I disagree with the actions of the General Assembly in cutting the investment in these offices," Driskill said. |ret||ret||tab|

"I understand that we had to be a part of balancing the budget, and we'll do as well as we can with what we have."|ret||ret||tab|

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Statewide closings|ret||ret||tab|

Budget cuts have led to the elimination of 41 DED jobs throughout the state. Twenty-five employees among the regional offices will either lose their jobs or change positions within the state.|ret||ret||tab|

Other office closings are in Dexter, Houston, Moberly, Trenton, Kansas City and St. Louis.|ret||ret||tab|

"These regional development offices have had some good impact around the state, particularly in the small communities," Driskill said. "It's certainly sad to see them go, because they were producing a great amount of benefits. And I'm certainly not happy about the fact that we've had to lay off some excellent workers."|ret||ret||tab|

Three employees are affected in Springfield, including Regional Project Manager Jane Hood.|ret||ret||tab|

Hood, who opened the regional office in April 1995 and has worked for the DED since 1986, has accepted a project manager position in the Jefferson City office effective June 4. Community Development Specialist Pauline Gage also has been offered a position at the state capital, but she has not decided if she'll make the move. |ret||ret||tab|

Administrative Assistant Tracy Polk will transition to the Missouri Career Center in Springfield as business specialist.|ret||ret||tab|

Business losses|ret||ret||tab|

Area businesses now will have to look elsewhere than the regional DED office for local expansion and industry attraction assistance. |ret||ret||tab|

"We have no funding left for those services," Driskill said. "The bottom line is (that) we will do less than what we did before."|ret||ret||tab|

Now the department is left in a quandary.|ret||ret||tab|

"How do we still provide those services without having the ideal vehicle (of) the regional offices?" Grebing said. |ret||ret||tab|

The plan is to continue serving the communities from the Jefferson City office, Grebing said. |ret||ret||tab|

Hood, a Southwest Baptist University graduate and Miller native, hopes she will again work with the southwest Missouri area because of her contacts and rapport. |ret||ret||tab|

Her feeling is that the several projects she assisted in may not have been completed if the local assistance was not available. "Your voice is heard, I think, maybe a little bit better," on a local level, she said.|ret||ret||tab|

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On deck for the DED|ret||ret||tab|

The department now faces losing what its director worked hard to install. |ret||ret||tab|

In 1993, Driskill sponsored the legislation in the Missouri House of Representatives that led to the formation of the offices, and then fought for its funding after becoming DED director. |ret||ret||tab|

"These are his pet projects," Grebing said. "We recognize that in a tight budget situation things have to be done differently. We've now got to look beyond the convenience of those offices and find out how we get those services out there. We're not sure exactly how we're going to do that yet."|ret||ret||tab|

What is known is that the solution will come from Jefferson City.|ret||ret||tab|

"At some point, the leaders in the state are going to have to make some decisions as to what they want to invest in economic growth and economic development in all parts of the state," Driskill said. |ret||ret||tab|

"There were some headline efforts related to convention centers and stadium projects which are good economic development projects but very clearly there are needs all across the state, and we want to continue to address those needs." |ret||ret||tab|

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