EDC cuts staff, ends marketing contract

The R.I. Economic Development Corporation is retooling now that the agency’s state appropriation for fiscal 2012 has been cut by 15 percent – a decrease that follows several years of similar budget reductions. More

To continue reading this article, please do one of the following.



GOVERNMENT

EDC cuts staff, ends marketing contract

SOURCE: R.I. ECONOMIC DEVELOPMENT CORPORATION SHRINKING INVESTMENT: The state's funding for the R.I. Economic Development Corporation has dropped $2 million since fiscal 2008.
Posted 8/1/11

The R.I. Economic Development Corporation is retooling now that the agency’s state appropriation for fiscal 2012 has been cut by 15 percent – a decrease that follows several years of similar budget reductions.

EDC Executive Director Keith W. Stokes said the agency has cut three staff positions, is attempting to renegotiate the lease for the EDC offices at the American Locomotive Works and did not renew its $12,000-a-month contract with Providence-based marketing and communications firm Duffy & Shanley.

In outlining a cost-efficient restructuring to the EDC board recently, Stokes insisted the staff would continue to focus on the development of key sectors such as tourism, defense, manufacturing and information technology.

But Stokes acknowledged that the shrinking state funding has been a challenge, pointing out that the EDC has cut its staff by 30 percent since 2008.

Still, he said the agency’s challenge is no different than what private-sector companies the EDC assists face.

“We’re only reflecting the challenges that our own small-business customers have had to adjust to over the last several years,” Stokes told the EDC board in June. “I think we stand ready to be efficient and effective.”

The $7.7 billion fiscal 2012 state budget approved by the General Assembly and signed into law by Gov. Lincoln D. Chafee in June cut the state’s direct appropriation for the EDC to $3.95 million, down from $4.65 million the previous year.

It was the same budget cut that was first proposed by Chafee, who serves as the EDC chairman, in his tax-and-spending plan unveiled in March.

“The governor wants this organization to be focused,” Stokes explained recently. “He doesn’t want it to be all things to all businesses.”

The state’s direct contribution isn’t the EDC’s only source of income. Its $14.7 million fiscal 2012 budget includes $3.58 million in federal grants and another $5.73 million that is largely made up of legislative grants and allocations for specific programs.

Next Page
Calendar
PBN Hosted
Events

Please join PBN on September 10th for the 3rd Annual Fastest Growing & Innovative Companies program at Rosecliff Mansion in Newport. Seating is limited so be sure to register early.
Advertisement
Purchase Data
Book of Lists
Lists
Book of Lists cover
PBN's annual Book of Lists has been an essential resource for the local business community for almost 30 years. The Book of Lists features a wealth of company rankings from a variety of fields and industries, including banking, health care, real estate, law, hospitality, education, not-for-profits, technology and many more.
Data icons
Data can be purchased as single lists, in either Excel or PDF format; the entire database of the published book, in Excel format; or a printed copy of the Book of Lists.
  • Purchase an e-File of a single list
  •  
  • Purchase an e-File of the entire Book of Lists database
  •  
  • Purchase a printed copy of the Book of Lists
  •  
    National
    Local
    Latest News
    Advertisement