A recent study resulted in The Madison County Economic Development Authority (MCEDA) budget doubling.
The Madison County Board of Supervisors recently approved an additional $600,000 for the authority.
According to a study completed by VisionFirst Advisors, MCEDA is not performing up to par because of staffing issues. The organization is not in touch with current businesses, new businesses needed to economically grow the county, the county’s education system, or what training is needed to grow the county workforce.
Gray Swoope, president and CEO of VisionFirst Advisors, led the $175,000 analysis and presented the findings of the study to the board. After the presentation, the board granted interim director Ken Oilschlager’s request for an approximate $660,000 budget increase for next year.
“They didn’t have the staff to do what Swoope said they weren’t doing,” said District 3 Supervisor Gerald Steen. “That is to reach out to businesses and expand them, and secondly bring new ones into the county.”
The motion for the budget increase passed 4-1, with Steen as one of the supporting board members. District 2 Supervisor and board president Trey Baxter opposed the motion.
For the 2018 fiscal year, which begins October 1, 2017, the county’s economic development organization will have a budget of $1.267 million.
Olschalger said $484,000 of the new funds would go toward salaries for a permanent director, a senior director of outreach and a director of workforce development.
The rest would be divided between redoing the organization’s Web site ($50,000) and an outside marketing professional ($60,000).
“We need additional funding to make (the hiring of a new director) happen,” Oilschlager said. “The MCEDA board has voted to hire (Swoope’s) firm to do the search.”
The county will pay Swoope an additional $15,000 to complete the search.
According to Oilschlager, the analysis results suggested the organization hire a senior director of outreach and director of workforce development.
“The assessment recommended we hire these two new people,” he said. “We need to completely redo the Web site. It’s five to six years old and not up to snuff. (The study) also recommended that in our economic development marketing effort — normally in an area the size of Madison County, we would have an inhouse marketing person. We don’t think that’s practical right now — we contract with an outside professional.”
Following the Vision First presentation, Oilshlager also proposed that Swoope begin the search immediately for a new director.
He expects a new director to be hired within 90 days.
Although this would mean the director would be hired before the new budget is effective, Oilschlager said MCEDA is prepared to pay the new director until the $1.267 million is in effect.
“The old director’s making $120,000 (a year),” said Baxter. “We’re going to give the new director more money.”
According to Steen, once the organization has staff, resources and increased funds, the county board will hold the organization accountable, ensuring county businesses and potential businesses are being reached.
“I see it as a positive to increase the staff,” Steen said.
Steen said the organization did not come forward in the past for more funds because it wanted to present a plan to the board for what MCEDA needs and what will happen once those needs for met.
“This plan will help develop Madison County,” he said.
MCEDA does not align with other economic development organizations throughout the state, according to Baxter.
“I visited with Jackson County and Tupelo and other very successful economic development engines,” he said. “One thing they all have in common, they have business leaders on the board that not only commit time, but also financial resources. This takes the load off the taxpayers.”
Baxter referred to the Chevron refinery in Pascagoula, Jackson County, as an example.
“MCEDA has been mired in the mud for maybe 10 years. If I’m on the MCEDA board and putting resources in the board, I’d never let that go for 10 years. The problem with this particular agency, in my opinion, it all starts with the board.”
The recent Vision First study is a repeat of a study completed on MCEDA ten years ago, according to Baxter.
“We decided to take MCEDA in new direction and decided to hire Gray Swoope to do comprehensive study of the agency,” he said. “This study came back exactly what we assumed: the agency’s totally ineffective in attracting new businesses to Madison County.”
For the development agency, all funds come from county tax payers.
“Other agencies, like in Jackson County, have private members that sit on the board that pay dues… They not only bring expertise but also help fund the agency. That’s the direction I wanted to go in Madison.”
