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Committee hears supporters say HB 1406 will provide flexibility and boost funding equity for associate development organizations
Summary
House Bill 1406 would modify funding formulas and reporting for associate development organizations (ADOs), increasing urban caps, setting rural funding ranges, removing the 90¢ per capita mechanism, and allowing in-kind matches up to 25%. ADO leaders testified the changes would reduce administrative burden and support rural capacity.
Martha Whaling, staff to the committee, briefed members on House Bill 1406, which would change funding and reporting rules for associate development organizations. Whaling told the committee that the bill removes certain King County reporting requirements, alters funding caps and formulas for urban and rural ADOs, and allows matched local allocations to be met in cash, in-kind, or a combination with an in-kind limit of 25%.
Supporters from statewide and regional economic-development organizations urged passage. Suzanne Dale Estee, executive director of the Washington Economic Development Association (WEDA), said ADOs underpin economic-development efforts statewide and that recent duties and equity metrics have increased responsibilities without commensurate funding. Jennifer Baker, president and CEO of the Columbia River Economic Development Council (CREDC), described the council’s return on investment and business wins that generated capital investment and jobs.
Rural ADO perspectives: Jenny Dickinson (Port of Columbia, Columbia County ADO) and Jonathan Smith (Yakima County Development Association) described constrained local resources in rural areas and said the funding changes would allow programs that otherwise would not exist—examples include broadband to businesses, an artisan food-processing business park, and childcare center development. Dickinson and other witnesses told the committee ADOs played a mission-critical role during and after the COVID-19 pandemic by coordinating relief, technical assistance and business support.
Key funding changes described by staff: The bill removes the 90¢ per capita language. Urban counties would receive a matched allocation with a maximum increased to $500,000 (previously $300,000). Rural counties would receive a matched allocation within a range of $85,000 to $150,000 (previously smaller maximums described in statute). The matched allocation may include in-kind contributions up to 25% of the local match.
Why it matters: Witnesses said ADOs deliver services to companies, connect to regional and local partners, and generate private investment that produces jobs and tax revenue. Testimony emphasized ADOs’ role in rural economic development and noted that resources have not kept pace with growing responsibilities.
What the bill does not do at this hearing: No committee vote was taken on HB 1406 during this meeting; the prime sponsor’s brief remarks were mostly expressions of appreciation for ADO work and a push to reduce reporting burdens.
Ending: Multiple ADO representatives asked the committee to support HB 1406 to maintain and expand regional capacity for economic development across urban and rural Washington.
