Oregon economy boost revision aim
From our weekly issue dated May 14, 2008
Taking the first step toward restructuring the way the state of Oregon approaches two equally important economic development priorities -- community development and business development -- were announced Monday, May 12 by Gov. Kulongoski.
The step is being taken to better prepare Oregon for success in an increasingly competitive global economy, the governor said.
Through Executive Order 08-11, Kulongoski directed the Oregon Economic and Community Development Dept. (OECDD) to separate community development and business development as two distinct functions. The separation within OECDD is designed to allow each function to develop more appropriate missions and goals.
“We face new challenges in this global economy that require us to change the way we do business if we want every corner of Oregon to have economic opportunity and success,” Kulongoski said. “To accomplish this goal, we must support community development and business development equally. However, the current structure of Oregon’s Economic and Community Development agency does not allow us to achieve that outcome, which is why it’s time to change.”
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The governor’s announcement follows recommendations he received during March after a five-month analysis of the structure and mission of OECDD. It found that the overly broad mission of economic development, and the single measure of success -- job creation -- has hindered the agency’s ability to champion community development and business development equally and effectively.
“A one-size-fits-all approach for very different kinds of work is not the right approach to deliver results for all of our communities -- urban and rural alike,” the governor continued.
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The primary focus of OECDD’s community development work is predominantly to help Oregon communities meet their infrastructure goals and build capacity for business growth, such as water and wastewater systems, brown field cleanup, Main Street revitalization and port infrastructure.
The governor suggested Monday that community development be moved to the Oregon Housing & Community Services Dept., an agency with which the core functions of community development are better aligned.
The business development work promotes Oregon's competitive advantages in the global economy. It focuses on the retention and expansion of Oregon companies, recruitment of new businesses to the state, creation of jobs through innovation, and raising wages.
The governor’s executive order directs OECDD to separate the work of community development from business development. The separation sets the stage for a more permanent division of these two functions through statute by the 2009 Legislature.
“Separating these functions and better defining how each measures success will bring greater accountability, greater clarity and a greater understanding of what each should be achieving,” the governor said. “This strengthened clarity and accountability is particularly important to our legislators.”
Also on Monday the governor announced that he has appointed Tim McCabe to serve as the new director of OECDD. McCabe has served as the governor’s senior economic policy adviser since 2006 and began his new role immediately.
The governor thanked current director Bob Repine for his service at OECDD, and announced that Repine has agreed to serve as the governor’s special assistant to mental health hospital construction. Repine is a former state legislator and resident of Grants Pass with a background in the building industry.
As part of his charge as director of OECDD, the governor asked McCabe to appoint a team to travel the state to learn about the needs of rural Oregon so that the new structure reflects the needs of all of Oregon’s communities.
“I have asked Tim to make sure that we are traveling around the state to learn about the needs of our communities, particularly our rural communities,” said Kulongoski. “Listen to their needs; listen to their ideas and learn how we as a state can best partner with them to bring economic vitality and success to their communities,” the governor said in closing.
McCabe will report to the governor in August. The recommendations will lay the groundwork for the permanent separation of community and business development that will need to be taken up by the Legislature next session, said the governor.
