Spokane County weighs cuts to economic development partnership as state support shrinks

Spokane County officials met with the Spokane Regional ADO on June 2 to discuss reduced state funding for ADOs and related sector partnership programs and the county’s local match and partnership investments.

State funding picture: County and ADO staff summarized changes in state commerce funding. Staff said base ADO state funding that had been $5 million statewide was reduced; preliminary allocations suggested Spokane County’s ADO could receive between $50,000 and $60,000 per year under the new formula (staff were still awaiting final guidance from the Department of Commerce). Substitute Senate Bill 5677 was referenced as establishing a floor and ceiling for ADO distributions ($40,000 floor for rural allocations and a $300,000 ceiling for urban allocations were noted as limits embedded in the new legislation).

County contribution and match: The county currently contributes a combination of a partnership payment and an economic development services payment (historically $75,000 partnership + $125,000 economic development in separate buckets). Commissioners discussed scaling back yearly contributions; one option discussed was retaining a “visionary” partnership level (noted as $53,000 in marketing materials) plus a smaller additional contribution rather than the larger historical levels. Staff also reviewed the fact that other jurisdictions (city partners, Valley, Liberty Lake, etc.) participate in the local matching contribution and that the county’s contribution leverages additional municipal and private match for specific projects.

ADO operations and cuts: ADO leadership explained that state reductions affect not just base grants but also sector partnership and workforce coordination funding; the ADO manages regional coordination, small business assistance and convening functions, and said cuts would shrink capacity for outbound recruitment, sector partnerships and federal advocacy. Staff noted an internal vacancy and that some operational roles have been already reduced or postponed.

Board discussion and direction: Commissioners discussed reducing the county’s ADO payment this year but wanted to preserve the region’s ability to convene and pursue federal grants. Commissioners were generally open to a stepped reduction and asked ADO staff to return with a narrower proposal showing what services would be maintained at specific contribution levels and how other municipal partners could make up any shortfall.

Ending: Staff and ADO leaders agreed to provide a refined proposal including the likely state allocation, a menu of county contribution levels and the services that would be covered at each level; commissioners signaled they would consider a reduced contribution this budget cycle but wanted written scenarios before making a final decision.