Otter eyes splitting Idaho Dept. of Commerce and Labor

Three years after former Idaho Gov. Dirk Kempthorne combined the state's Department of Commerce and Labor to reduce overlap, Gov.-elect Butch Otter's transition team is considering splitting the two agencies.

The labor department is responsible for work force development and unemployment, while the commerce department works to sell Idaho as a good location for companies and to enhance business possibilities.

"I'm sure (Otter's) decision will be in the best interest of the people of Idaho," said Idaho Commerce and Labor Director Roger Madsen, who ran the labor department before the two were combined. He said he would support whatever decision Otter makes.

Gov. Jim Risch, who becomes Lt. Gov. in January, told a City Club forum on Monday that he favors splitting the agency.

"At the time it was put together there were reasons my predecessor put them together," Risch said. "If it were up to me, I would split them."

Jon Hanian, Otter's spokesman, confirmed that splitting the agency is being considered but declined to reveal details.

Brad Hoaglun, Risch's spokesman, said combining the agencies has not resulted in much improvement.

"It wasn't as efficient as they thought," Hoaglun told the Idaho Statesman.

The Legislature would have to approve splitting the agency.

"I haven't noticed there being any great problems," said Bob Schaefer, R-Nampa. "If the governor perceives some difficulty, it would be nice if he would at least share that information."

The two agencies have remained in separate buildings. The federal government supplies labor's money while federal development grants and state tax revenues are used to run the commerce department.

Information from: Idaho Statesman, http://www.idahostatesman.com