Economic Development offices face shutdown from recession

JEFFERSON CITY, Mo. -- Bootheel lawmakers are worried state budget cuts could have a devastating impact on the region's ability to attract and retain companies at a time when economic growth is needed most.

Under Gov. Bob Holden's proposed budget for the upcoming state fiscal year, the Department of Economic Development would close its seven regional field offices, including one in Dexter.

State Rep. Rob Mayer, R-Dexter, said the local office has been invaluable in fostering development throughout Southeast Missouri.

"It's a competitive world and our businesses and industries need every edge to compete," Mayer said. "If the office closes, I don't see us going through a period of dramatic downturn, but over the long haul I see it having a serious impact."

Closure of the offices would eliminate 21 jobs -- three at each office -- and save the state $896,476. DED's budget as a whole is slated to drop 7.6 percent with $21.4 million in cuts and the loss of 41 full-time positions, including those at the field offices.

DED career centers throughout the state, including one in Cape Girardeau, will remain open. Those centers provide job training and placement, among other services.

Holden has called for $480 million in core budget cuts spread among all state departments.

Finding money

Finding the revenue to save the regional offices is a priority for several Bootheel legislators. However, with lawmakers around the state digging deep for money to preserve a variety of programs and services, keeping the offices will be a tough task.

State Rep. Phillip Britt, D-Kennett, said economic development director Joe Driskill doesn't have any fat left to cut in his department's budget without harming programs that provide direct financial assistance to businesses.

"Joe Driskill had a really tough decision to make: Sacrifice those people out in the field offices or take the money that goes directly into factories for job training," Britt said. "We will try to find the money to keep both."

Unless the money is found, the offices will close July 1.

Driskill sponsored the legislation authorizing the field offices while representing Poplar Bluff in the House of Representatives in the early 1990s. He helped secure the funding to open the offices shortly after being appointed DED director in 1993.

The purpose of the regional offices is to have knowledgeable department personnel in all areas of the state to foster partnerships with existing businesses, help communities apply for and receive financial grants and be on hand to meet with representatives of companies considering moving into any given region of the state.

Janet Coleman, executive director of the Dexter Chamber of Commerce, said area businesses have come to rely on the local office.

"We need the contact with DED that we currently have in Southeast Missouri," Coleman said. "Having someone here you can get answers out of is invaluable. Before we had the regional office, we had to go to Jefferson City to get anything."

Office space offer

Coleman said the chamber may offer DED free office space, but admitted that might not make a difference. State costs for leasing buildings and offices are under the Office of Administration's budget, so donated space wouldn't reduce the nearly $900,000 needed to fill the hole in DED's budget. The money allocated to the offices -- roughly $128,000 each -- goes for employee salaries, expenses and equipment.

Mike Seabaugh, who heads the Dexter office, was attending a conference in California and was unavailable for comment.

Jim Grebing, DED spokesman, said the regional offices have proved beneficial to the state and that Driskill would work with lawmakers and local officials to find alternatives.

"Our preference would be to keep these offices open, but tough choices have to be made," Grebing said.

If the offices are closed, Grebing said reopening them in the future when funding is available would be a priority. In the meantime, he said DED would continue to be active throughout the state and that programs and services wouldn't suffer.

"At the end of the day what is most important is not the offices but that we provide the quality services to those who most need them," Grebing said.

mpowers@semissourian.com

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