The City Council heard from Councilor Lipman (Ward 3) about the county's decision to cut funding from the Belknap County Economic Development Council (BCEDC). The funding amount is $75k, which is a fraction of a percentage of the total appropriation.

I have seen first hand the work that the BCEDC has done in our city and the surrounding communities. They are able to help businesses start-up and/or grow, which in turn creates jobs. They are able to leverage the funds they have available to create loans and funding for entrepreneurs, which then allows more economic activity in the region. Even though they do not work exclusively in Laconia, we do feel the benefits that are created in other nearby communities.

I have received an e-mail from a friend showing his disappointment that we voted unanimously to send a letter to Laconia's delegation and the commissioners supporting this appropriation. He states that we need to shrink government and questions the appropriations to other "Non-Government Organizations" that should be receiving moneys from individual donations and not from taxpayer contributions.

I agree wholeheartedly with what the County Commissioners are trying to do. As I stated publicly at the hearing they  had these are tough decisions and tough questions to ask but government will not move forward without representatives willing to ask the hard questions. I also said that, to use the business term "we need to ensure that we don't cut with a broadax and remove funding that provides a good return on investment to the taxpayers." 

Where we differ is that I believe the BCEDC provides a valuable return on investment to the local communities. They have added jobs and over $20 Million in value to the tax rolls throughout the county, which also helps each community in their county property tax bills. I feel that creating job opportunities and $20 Million property value is worth a $75k investment. This county investment will mean $15,750.00 included in Laconia's tax bill.

We currently have a couple of projects going on in Laconia that BCEDC is working on that will add to our property value and create more jobs in our city. With the economic problems going on right now we don't need to lose focus on economic development. These problems only mean that the work of this organization will get harder but it doesn't mean that economic growth won't happen.

As far as other organizations I have been contacted by the groups being affected at the county that they will be increasing their request to the towns and city in the county. I have also heard that they don't like the idea that Laconia is planning on partnering with the United Way for distribution and accountability of these donations. One that stands out is from Genesis stating "United Way Funding has to stay in the community, which will affect them paying for the administration costs at their national headquarters in Virginia." This helps to reinforce the reason we are looking at using United Way to oversee and manage our contributions to ensure the money stays in the community.

I remember last year's budget meeting where I questioned Genesis' request for $10k and the documentation showing they provide $6k in services to Laconia's residents for that money. My question then was "where does the other $4k go?" So now I think it is clear why they want us to pay more than what is provided. It will be interesting this budget season.