The State of Ohio will spend $1.4 billion on economic development this year. Indiana,
by contrast, will spend $37 million and Florida $11 million. Meanwhile, the State of
Ohio has 400 people working on economic development, while California has about 25.

Can government direct the economy into the future, or is that best done by a free market?

Apparently, in Elk Grove, California, city officials believe they can.  During this week’s
 California Association for Local Economic Development annual conference, professionals
were reviewing an article from the Sacramento Bee newspaper that identified an action by
the City of Elk Grove to pull their money out of a public-private partnership, the Elk
Grove Economic Development Corporation and create their own city office.  Apparently,
the organization did not fulfill their performance measures and that the city believes
they can do a better job.  Simultaneously the Oxnard Economic Development Corporation
has been under fire for a lack of fiscal stewardship related to government requirements
as a precursor for its city partnership as identified in an article in the Pacific Business
Journal. 

Unfortunately, on the surface it may look like support is waning for the profession.  However,
it may actually just be poor management and city management is pulling the trigger too soon
on a decision rather than looking at the management of the organization.  Sometimes change
is good but not at the cost of the profession.

The profession of economic development is hurting.  Public –private partnerships are
suffering unable to raise sufficient funds for their own capacity building to support
their communities.   It is also strange to see a commitment by the City of Merced
identifying that they value economic development but when it comes to support of the
Merced Economic Development Corporation, Merced County shows little if any interest
in support.  The fragmentation of support towards public-private partnerships such as
economic development corporations does not do much for creating a sustainable economy. 
All of this has been difficult on the profession as a recent Bureau of Labor Statistics
report illustrates that the least growth of any job category in 2010 was in the legal
and social science fields.  So much for economics and economic development.

Tim Johnson
California Business Minute