Regional economic planning offices for state close

'PAINFUL CUTS'

By Scott Moyers ~ Southeast Missourian

Seven regional economic development offices across the state, including Southeast Missouri's office in Dexter, will close on Monday. They represent more casualties of the state's biggest budget crisis in more than two decades.

"This is not a choice we wanted to make," said Missouri Department of Economic Development spokesman Jim Grebing. "It's a painful cut, but this is one of the unfortunate realities of Missouri's general revenue shortfall."

In 1995, the regional offices were set up in the state's outlying areas to help create new jobs and assist businesses in coming up with capital to expand or relocate.

But Grebing said something had to give when the department learned its budget would be slashed by more than $20 million next year.

"With this budget, a lot of good programs are being cut and this is one of them," Grebing said. "Everyone agrees that these offices have been very effective, but you can't spend more money than you have."

The closings are expected to save the state $1 million in personnel costs, eliminating 25 positions in the offices in Dexter, Trenton, Moberly, Houston, Springfield, St. Louis and Kansas City.

However, most of those people -- including Dexter's project manager, Mike Seabaugh -- have been shifted into other openings that will send them back to Jefferson City, Grebing said.

Those people will fill unfilled positions, Grebing said, that were in the department's budget. Seniority played a factor in deciding who got to maintain employment and who didn't, he said.

He said that facilities' overhead won't save money, because those expenses -- electricity, phone, etc. -- all came from the state's General Accounting Office budget.

In 2001, the Dexter office, which served 19 Southeast Missouri counties, helped with 17 projects, which represented 1,628 new jobs and $133 million in private investment.

So far this year, the office worked on six projects, assisting in $44 million in investment and helping create 575 new jobs, according to state figures.

The Dexter-based office recruited businesses to come here, such as Renaissance Aircraft. It assisted BioKyowa Inc. to attain governmental permits for a $50 million expansion. It has helped businesses find buildings, attain tax credits and get job training.

Services remain

Grebing emphasized that the services that the regional offices provided are not being eliminated.

"It's not the physical offices that are provided," Grebing said. "It's the services. Those aren't going anywhere."

Grebing said they are reorganizing to determine how those services will be administered. He said there is a strong desire to make sure some of the individuals who worked in the regional offices will continue to be a contact person for those areas.

"So, Mike Seabaugh, hopefully, will still be a contact person for Southeast Missouri," Grebing said. "Now he'll just be in Jefferson City. We hope there's some continuity. We want to ensure we can still be accessible."

Local business leaders were disappointed to learn the offices would close.

"It's a shame that the budget made it necessary to do that," said Cape Girardeau Chamber of Commerce president John Mehner. "As for what now, I'll have to reserve judgment about how effective they're going to be until I see the plan."

Mehner said the offices made dealing with the department easier.

"Response time has been better and it was nice having someone here who knew the community," he said.

Mitch Robinson, executive director of the Cape Girardeau Area Industrial Recruitment Association, called it a step back.

"It's going to be not as good in terms of the efficiency that they have been able to provide," he said. "We all found out after those offices were set up that it's a whole lot simpler to have someone here than to have to try to contact someone in Jeff City."

smoyers@semissourian.com

335-6611, extension 137