Further cuts would damage GYEDC, Engel says

BY CHRIS McDANIEL - SUN STAFF WRITER

Already facing a budget reduction of $38,000, a further cut in funding from the city of Yuma would be damaging to the Greater Yuma Economic Development Corporation, said GYEDC President and CEO Julie Engel.

“It will mean we have to reduce our marketing and we will have to reduce our staff by one person, and this is an awful time to reduce our marketing efforts.”

GYEDC helps local businesses network abroad, and offers national and international companies data and information about local economic conditions and opportunities.

The city of Yuma has proposed providing GYEDC with $200,000 for fiscal year 2011-2012 — short of the $247,500 GYEDC projected receiving.

The city council is considering the possibility of providing the amount requested by GYEDC, but would have to approve that with a majority vote. The Council is scheduled to discuss the matter July 6.

Yuma County has already adopted a budget which reduces funding to GYEDC by $3,000, while the city of San Luis has adopted a budget which reduces funding by $35,000, Engel said.

If the Yuma City Council does not approve the funding increase, the GYEDC would have to make due with a budget which is $85,500 smaller than last year.

City of Yuma Administrator Greg Wilkinson said the reduction isn't a slight against GYEDC, but rather matches what other municipalities have done with their budgets.

“I think the biggest thing is trying to share the cost,” he explained. “GYEDC is a regional entity, and we wanted to make sure there was a good cost share between all the different agencies that supported it.”

The reduction was an important step to keep the budget balanced, Wilkinson said.

“GYEDC does a good job, but obviously there is a tight budget for everybody and we are trying to look at a better balance for what all the different entities were contributing.”

Over the last three years, GYEDC has gone from a $900,000 yearly budget to a $500,000 yearly budget, Engel said.

“We are barely hanging on now, and every time they chip a little bit more, it affects us immediately.”

Several prominent business professionals have voiced their support for GYEDC, and have called on the city council to restore funding.

“You've really got to have somebody out there churning the market, making sure Yuma is being exposed, and that you are not missing any leads and that the leads that are there are being handled,” said Thomas J. Pancrazi, owner of A.T. Pancrazi Real Estate. “GYEDC is doing a very good job of handling that.”

Craig Williams, Yuma International Airport manager, said a reduction in funding could undermine the success of business at the airport in the future.

“From our perspective, that would place in jeopardy the economic development efforts that we have been working on for quite a long time.”

GYEDC has played a major part in bringing millions of dollars in business to the airport through new projects, including the defense contractor complex which will house engineers and scientists who will work on the F-35 Joint Strike Fighter when it arrives at Marine Corps Air Station Yuma in a few years, he added.

“The defense contractor complex — you look at the tenants we are talking about and these are large global corporations that are going to bring lots of jobs into the city.”

Investing in GYEDC is investing in the future, Williams said.

“We are not working on short-term problems, we are working on economic development that is going to bring jobs into the city for our kids over the long haul.”

The defense contractor complex will bring invaluable jobs to the hard-hit construction industry in Yuma, said Nate Schug, president of Westmoor Electrical.

“GYEDC put this thing together and we've been successful and a lot of money has been awarded in contracts here. Believe me, to people in my business that means a lot. This is a successful thing for the city of Yuma, and again GYEDC has been instrumental in it. It is going to bring hope, it is going to bring jobs, it's going to bring money to a lot of people in Yuma.”

With the recent cuts in funding made to the Arizona Health Care Cost Containment System (AHCCCS), Pat Walz, president and CEO of YRMC, said GYEDC is essential to the hospital.

“The hospital itself... has seen a reduction for the next fiscal year of about $17 million in revenue.”

The goal of GYEDC is to bring new jobs to Yuma, which indirectly helps YRMC, Walz added.

“It brings business people who are getting paid wages and have health care benefits to help obviate some of the cuts we get from the government.”

Chris McDaniel can be reached at cmcdaniel@yumasun.com or 539-6849.