Funding agenda stalls
By Larry Meyer - Argus Observer
Wednesday, June 27, 2007 11:11 AM PDT
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| A small jet taxis behind a row of parked planes toward the runway at the Ontario Airport Tuesday afternoon. Part of the money to be used to pay for extending the runway appears to be in jeopardy as the Legislature moves to adjournment with no funding for additional loans or grants provided by Regional Economic Development boards. |
ONTARIO - New state funding for regional programs to help local communities pay for economic development projects is apparently off the table for the next biennium, a move that could possibly affect the extension of the runway at the Ontario airport and other efforts to attract businesses and jobs to Malheur County.
The money stream for the economic enhancement programs remains in jeopardy after the Oregon Legislature’s Ways and Means Transportation & Economic Development Subcommittee deleted the base funding level for the economic development agenda.
The base funding level is key because the Southwest Regional Alliance — the entity that traditionally distributes economic development funding throughout Eastern Oregon — utilizes it to make grants and loans to small businesses. In many cases the grants and loans to small businesses represent the final “boost” a merchant needs to get started or to kick off ambitious expansion projects that in turn create more jobs.
The information on the base funding-level slash evolved from budget notes from the Ways and Means Transportation & Economic Development subcommittee. They were circulated by Jim Zelenka, regional/rural development coordinator for the Oregon Economic and Community Development Department.
During the ConnectOregon funding program the City of Ontario received state funds to extend the main runway at the Ontario airport to 5,000 feet to better accommodate small jets.
As part of the funding package, the Southeast Regional Alliance awarded the city up to $60,000 for its match, based on the number of jobs created that could be tied to the runway extension. Those funds were scheduled to come from the 2007 to 2009 base fund allocation.
“I’m not sure what the implications will be,” Ontario City Manager Scott Trainor said, regarding the base fund decision. “The state has given as much as it will. The FAA (Federal Aviation Administration) is helping us out. If the regional alliance is not able to (provide its funding) I don’t know where the funds are coming from.”
Malheur County Economic Development Director Jim Jensen said the base fund decision sends a troubling signal.
“Small business is getting hurt,” Jensen said. “The runway is just one example.”
Jensen said he is now working with five businesses that could benefit from those regional development dollars, and that money isn’t on the table any more, Jensen said.
“Those five businesses would (provide) for about 100 plus jobs for the area,” Jensen said. In the wake of the base fund judgment, the Ways and Means Transportation & Economic Development subcommittee did, however, propose to provide $2 million to maintain the 13 regional economic development boards, with revised instructions on oversight methods. The boards would manage existing grant and loan portfolios, but cease approving further grants and loans out of the funds appropriated for the 2007 to 2009 biennium. Under this new funding plan, the Economic and Community Development Commission is tasked with making sure each development board is carrying out the proper requirements, Zelenka said, in his report to the regional development boards.
The Economic and Community Development Commission would also be asked to approve a statistically valid and auditable methodology for prioritizing, funding, tracking and reporting for board grant and loan activities.
“We’ve been under tight standards, very tight standards,” Steve Grasty, Harney County judge and Southeast Regional Alliance chairman, said.
Grasty said the regional alliance already instituted tracking and reporting requirements regarding grants and loans.
“There is a lack of understanding of how regional monies are handled around the state,” he said.
Noting the Southeast Regional Alliance has helped create a lot of jobs with its money, Grasty said, “I’m very frustrated by a Legislature that doesn’t know what is happening on the ground.”
Malheur County Judge Dan Joyce said, in his mind, the question is whether the state is providing for the basic needs of its residents. The funding package for the regional development boards includes language that stipulates the Economic and Community Development Commission will report to the Legislature, when it meets in February, on the commission’s plan for the future role of the development boards, including potential funding.
State Rep. Tom Butler, R-Ontario, said after talking with Republicans from the Ways and Means Committee, there was no money being provided to regional development boards, except to keep them functioning in managing existing grants and loans.
“The sucking sound you hear is money going from rural areas to urban areas,” Butler said.
Money that could have gone to rural Oregon instead went to a parking garage, he said.
Butler said he was doubtful about getting any more funding in February for the development board.
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