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Audit: Montana Office of Economic Opportunity in need of overhaul

Montana’s economic development office should either be abolished or rebuilt to be more effective in improving the state’s economy, a new study of the agency concludes.

Created nearly four years ago, the Office of Economic Opportunity has been plagued by staff turnover and budget cuts that have hamstrung its ability to develop a long-term focus on economic issues, the report by the legislative auditor’s office stated.

As a result, according to the report, Montana remains trapped in ‘‘perpetual planning mode” and change is needed.

‘‘Continuing with the current structure risks, at the very least, wasting time and resources in the development of plans and policy initiatives with minimal long-term impacts,” the auditors said.

While stopping short of declaring the office worthless, the report made it clear that an overhaul and an increase in funding are needed if it is to be more effective.

Framework for Economic Development http://state.mt.us/gov2/css/econdev/default.asp

Roadmap to a New Economy http://bizmt.com/mtadvantage/Strategy.asp

By BOB ANEZ – Associated Press Writer

Full Story: http://www.helenair.com/articles/2004/12/14/montana/a01121404_04.txt

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OUR OPINION: Don’t scrap the state economic office; fix it

By Chronicle Editor

http://bozemandailychronicle.com/articles/2004/12/15/opinions/01econoffice.txt

A recent study of the state Office of Economic Opportunity conducted by the legislative auditor concluded the office should be abolished or fixed.

Gov.-elect Brian Schweitzer is urged to opt for the latter. If any state needs someone thinking about economic development on a full-time basis, it’s this one.

The auditor’s report found the economic office has been ineffective due to staff turnover and lack of resources. That’s been the case from the get-go when outgoing Gov. Judy Martz created it. Almost before the head of the office could get his shingle hung on the door, his budget was cut by the administration in one of those cost-cutting waves state government has been so famous for over the last four years.

Since then, the office has barely had enough money for paper clips and phone bills, much less for the kind of information gathering, travel and national publicity that’s necessary to get anything meaningful accomplished on the economic development front.

Montana has ranked at or near the bottom in virtually every economic ranking for many years now. That’s been blamed on everything from tax structure to geographic isolation. But one need look no farther than Bozeman to see that well-paying, clean, high-tech industries can be attracted to this state.

The message about Montana’s assets — a fabulous natural environment, good schools and universities, safe streets, a motivated work force — just needs to be spread in the right places and to the right people. That done, entrepreneurs like those who have found a home in Bozeman will be attracted to other regions of the state.

Schweitzer and state lawmakers need to give this effort a priority it hasn’t seen up to now. With sufficient resources to hire and retain qualified staff, research the state’s many attractions, and disseminate that information in circles where it will do some good, the Office of Economic Opportunity can make a real difference.

If Schweitzer wants to make a lasting mark on this state, he would be smart to make economic development a priority. We’ve been on the bottom of those rankings long enough.

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Give economic growth a chance

By The Helena IR – 12/16/04

http://helenair.com/articles/2004/12/16/opinions_top/a04121604_01.txt

A study arguing that Montana’s economic development office should be either abolished or redesigned to more effectively promote economic growth in the state hardly comes as a surprise. It’s a lot easier to talk the economic-development game than it is to actually succeed at doing it.

But the report released this week by the legislative auditor’s office wasn’t all bleak, and it contained solid suggestions for getting the office out of what the auditors called "permanent planning mode."

The study said the office has created a reasonable and appropriate economic development plan and has determined the proper yardsticks to measure success, but it has been starved of money since it was created in 2001, with the Legislature taking away about a third of its funding. That in turn has crippled its marketing and business recruitment efforts.

click here

In addition, the study advised moving the office from the governor’s office, where it appears to be politicized and its employees are subject to being replaced whenever a new governor is elected. That makes it tough to attract and keep staff.

Most Montanans would agree that an office devoted to economic development is a good idea, but it certainly is a false economy to undercut its funding until it is doomed to failure. It also makes sense to move it out of the governor’s office.

A model here is the Montana Consensus Council, which was created by executive order and placed in the governor’s office in 1994. In 2003 the Legislature gave the council statutory authority and moved it to the Department of Administration under a board of directors chosen by the governor and legislative leaders. The council may not be as high profile as it goes about its business of helping people find common ground on controversial issues, but it no longer suffers from being seen by some as a particular governor’s tool.

Evan Barrett, Gov.-elect Brian Schweitzer’s choice to head the economic development office, has been handed an extremely tough job. He should be given every chance to succeed.

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