DED initiates reorganization in face of budget cuts

Missouri Department of Economic Development Director Joseph L. Driskill announced July 30 a major reorganization of the department that will focus on new business recruitment, while helping exising businesses succeed.

Driskill said the reorganization is necessary to enable the department to remain effective despite significant budget and staff cuts, and the changing nature of business competition.

"Frankly, there are some activities DED has done in the past that we can no longer afford to do in the same way, but our goals remain the same: to bring success to the businesses, communities and workers of Missouri," said Driskill. "That is why this reorganization is so important, because we must target our efforts to increase efficiency and reduce costs, eliminate duplication of programs and services, streamline our organizational structure, and expand outreach. More than ever, we will need to work closely with our partners across the state."

Driskill pointed out that some of the services previously provided by the department that are also available from other agencies and organizations will be reduced by DED.

"The Department of Economic Development is responsible for helping the businesses, communities, and families of Missouri achieve economic growth," said Driskill. "One of the ways we do this is by focusing on the unique needs of each region of the state and working with our partners in those regions to ensure needs are met. The regional development teams we are forming as part of our reorganization will help us strengthen those partnerships and target our services toward the creation and retention of jobs."

Two DED divisions Business Expansion and Attraction, and Business Development have been merged into a new Division of Business Services. Phil Tate, who has been director of Business Expansion and Attraction, will serve as interim director.

Tate said he looks forward to the challenge of combining the divisions to improve efficiency and target state efforts. "Because of the major budget and staff cuts we have experienced over the past three years, we have no choice but to do more with less and change the way we do business," said Tate.

In fiscal year 2001 the two divisions had a combined general revenue budget of $16.8 million and 67 staff positions. In fiscal year 2004, the two divisions will have a combined general revenue budget of $7.3 million and 39 staff. A retirement incentive bill passed by the legislature, which limits the number of vacancies that can be filled, will reduce staff to 34.

In the past three years, general revenue funding and staff positions for the Department of Economic Development have been cut in half.

Previous sections existing within the two old divisions have been dissolved and the services have been distributed among teams: business recruitment and marketing; business success; and financial services.

The business recruitment and marketing team will aggressively market Missouri as a great place to do business, both domestically and internationally. This team's goals will be to increase awareness of Missouri, increase the number of leads, and add to the number of businesses and employees in the state.

Members of the business success team will be responsible for helping Missouri companies increase sales and become more successful, promote international sales opportunities, and help transition companies toward technology and new approaches to sustain competitiveness.

The financial services team will coordinate financial assistance and proposals available to businesses and administer grant, loan and tax-credit programs.

"Clearly, this is a major restructuring for our department, but it is necessary for us to continue to be effective in providing services," said Driskill. "By collapsing our organizational structure and focusing more on services and regions than on programs and department divisions, we expect to be more effective in using the limited state resources that are available to us."