Acting Commerce director tells Senate committee the agency has ballooned; pledges customer-focused overhaul

Joe Wynne, acting director of the Washington State Department of Commerce, told the Senate Business, Financial Services and Trade Committee on Feb. 5 that the department has experienced rapid growth in recent years and outlined immediate priorities to strengthen internal systems and improve service to communities.

Wynne said Commerce’s operating budget in the 2015–17 biennium was about $500 million and that the department’s operating budget in the current biennium is about $3.2 billion; he also said Commerce’s broader budget is now about $7.9 billion. He told the committee that roughly 60% of current Commerce staff were hired within the last two to three years and that the agency now has more than 800 employees distributed across Washington state.

“Most of those folks are all over Washington state,” Wynne said, adding that rapid growth creates organizational and cultural challenges. He emphasized the need for a stronger administrative foundation so program staff can deliver services more reliably: “you can’t pour from an empty cup.”

Why it matters: Commerce administers hundreds of programs spanning housing, homelessness, economic development, energy and local government. Changes to Commerce operations affect grant administration, permitting assistance and other services counties, cities, tribes and nonprofit partners rely on.

Wynne outlined several near-term priorities he has directed staff to address: centralizing budgeting and contract management, upgrading IT infrastructure, aligning implementation with legislative intent and stakeholders, and producing a 100-day strategy for organizational improvements. He described the aim as making Commerce “the front door of government,” with a focus on customer service and modernized permitting and grant-support tools.

Committee members asked specific questions about customer navigation and program awareness. Senator Fortunato asked whether Commerce maintains an ombudsman or a clearinghouse for residents who call with housing, foreclosure or utility problems. Wynne said Commerce does operate a help desk for internal and external stakeholders and that the system “could be better.”

Senator Hassepela pressed Wynne about strategic planning and past problems in some program implementations; Wynne said aligning legislative intent with on-the-ground implementation is a priority and pointed to the scale of Commerce’s reporting obligations. He told the committee Commerce is responsible for 186 reports, 55 of them recurring, and said recurring reports cost roughly $7 million in consulting fees.

Wynne also discussed trade and economic development. He said Canada is Washington’s largest trading partner, with about $29 billion in goods moving between the jurisdictions, and noted outreach to partners in Asia, including meetings with consular officials from Japan and Vietnam. He said diversification of trading partners and efforts to improve local energy availability are part of a strategy to attract technology and other businesses.

On housing, Wynne cited recent program delivery examples, including the Covenant Homeownership Program, saying he had met families who benefited from that work. He framed Commerce’s role as steward of public funds and programs: “These are not our programs. These are the people’s programs.”

The exchange with senators made clear the committee expects the department to improve awareness and accessibility of programs, tighten contract and budget processes, and reduce friction for communities applying for grants or permits. Wynne said his intention under the Ferguson administration is to support staff, modernize tools and prioritize inclusive economic outcomes across urban, rural and tribal communities.

The committee moved on to a public hearing and confirmation items after Wynne’s presentation.