Howard County boosts umbrella group funding to $90,000 for economic development

ken.delabastide@kokomotribune.com

The Howard County Council voted to double the amount of money spent on economic development for next year.

The council voted Wednesday to increase the amount the county will provide through its share of Economic Development Income Tax revenues to $90,000.

Voting for the increase in funding were councilmen Paul Wyman, Les Ellison, Joe Pencek and Jeff Stout. Voting against the increase were Stan Ortman and James Papacek.

The county commissioners will have to vote to amend the EDIT funding plan for 2009.

Originally, commissioners included in the 2009 budget proposal for EDIT funds an increase of $32,000 to the newly formed Greater Kokomo Economic Development Authority (GKEDA) from $40,000 to $72,000.

Wyman, a member of the board of directors for GKEDA, said he wanted to see the funding to the group increased to $90,000 for 2009.

Wyman's request to raise the funding came after council members debated for an hour about how to fund operations at the jail and the Robert J. Kinsey Youth Center for next year.

Wyman noted that the county has not yet appropriated all of the $1.2 million in EDIT funding it's expected to collect this year.

"Delphi just announced the elimination of 600 jobs," Wyman said. "We can put $18,000 more into economic development. There is no better time to put money into economic development."

Council President Dick Miller said the loss of 600 jobs will reduce the amount of money collected through EDIT next year. Wyman agreed there will be an impact.

Upon questioning, Wyman told the council that the GKEDA CEO would be paid a six-figure salary.

Ortman said the figure would be between $125,000 and $150,000 per year.

"They shouldn't spend anymore until they have proven themselves," Miller said.

The $18,000 is not a large amount of money in the county's overall budget, Ortman said.

GKEDA consists of seven local groups that voted earlier this year to oversee economic development efforts in Kokomo and Howard County. The seven groups include Inventrek, Kokomo-Howard County Chamber of Commerce, Kokomo Howard County Development Corp., Urban Enterprise Association, Kokomo Downtown Association, Howard County and Kokomo.

The county provides funding to Inventrek, the Chamber of Commerce, Downtown Association and the Development Corp.