Restructuring State Economic Development Organizations in Oregon, New York

Earlier this month, the governors of Oregon and New York both outlined changes to the structure of their states’ lead economic development organizations.
 
Before Gov. Ted Kulongoski signed Executive Order 08-11 to reorganize the Oregon Economic and Community Development Department (OECDD), it consisted of three components:

• The Business and Trade Development Division, which performs business recruitment and efforts to engage small business and provides international trade and regulatory assistance;
• The Innovation and Economic Strategies Division, which primarily develops and administers programs to promote innovation, sustainability, and clusters within the state; and,
• The Community Development Division, which assists public infrastructure projects, such as building portable water and wastewater systems, in addition to administering Oregon’s Community Development Block Grants.

The restructuring effort separates the community development and business development efforts as two separate and distinct functions within the OECDD, and the department’s central focus will now be oriented toward the retention, creation and recruitment of employment opportunities. The separation, as outlined in the Executive Order, is the first step to moving the Community Development Division to another agency, such as the Oregon Housing and Community Services Department. During next year’s session, the Oregon Legislature is expected to take up legislation to make the division permanent.
 
The changes come after a five-month analysis of the structure and mission of OECDD concluded the agency was not able to effectively and equally accomplish both its economic development and community development tasks. With this structural change, Gov. Kulongoski also appointed Tim McCabe as the new director of OECDD. McCabe previously served as the Governor’s Senior Economic Policy Advisor since 2006.
 
On the other side of the country, New York Gov. David Patterson announced plans to consolidate the activities of the Empire State Development Corporation under a single administrative chairman. The previous governor, Eliot Spitzer, separated the actions and leadership of the Empire State Development Corp. into two equal offices -- one headquartered upstate in Buffalo and the other headquartered in New York City, each headed by a co-chairman.
 
Gov. Patterson contends the current system of two branches duplicates jobs within the agency, in addition to inhibiting the ability for the agency to reach agreement on critical matters. During a press conference on Tuesday, Patterson remarked his administration is still in the process of deciding who the sole chairman of the Empire State Development Corp. will be.
 
Executive Order 08-11, as signed by Oregon Gov. Kulongoski, can be found at:
http://governor.oregon.gov/Gov/docs/executive_orders/eo0811.pdf