State cuts could impact Grant EDC

MOSES LAKE - The Grant County Economic Development Council (EDC) is bracing itself for budget cuts on the state level next year.

A planned 11 percent reduction to a contract the EDC has with the state Department of Commerce (DOC) would mean the EDC has $7,878 less to work with, explained Jon Smith, the EDC's managing director, on Wednesday.

Grant EDC contracts with the DOC to implement its goals and objectives in five target areas. They are: business recruitment, business retention expansion, business start-up assistance, readiness and capacity/asset building and support for regional research and planning.

There are many things the state cannot do from a centralized office, so statewide, some economic development councils assist locally.

The contract ends in June. It's not known if it will be renewed.

"We just have a good partnership with them, to do certain services," he said. "Those line up pretty well with what we're trying to do anyway."

For example, car maker BMW called the state first, and the state then contacted the EDC to assist the company, he said.

As a result, a joint venture between BMW Group and SGL Group was brought to Moses Lake.

As part of the contract, the EDC also tracks first-time inbound visits made by companies.

About 10 site visits are likely to have been completed this year, with one of the companies expected to make an announcement next year, Smith said.

"We do outreach to local businesses and are involved with things like TransCo," he noted.

To address budget impacts, The EDC does have reserves to cover deficits this year and next year.

This year, the EDC is operating on a deficit of about $24,000 and is anticipating another deficit of $35,000.

The EDC has two options: it can increase funds or decrease services.

"Right now, we're not decreasing services," Smith said. "We're using reserves to continue what we've done."

The EDC's reserve fund was $350,000 at the end of November.