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Carving Out The Meat

Cut, cut, cut is the order of the day. A few thousand dollars here, a few thousand there, and, voilà, we are doing our sacred duty. It is the rediscovered religion of our political body. Yet what is at stake this time is curtailing the regional and state sales teams whose mission is to attract the very business and investment needed to solve this economic mess. Especially troublesome are the pending cuts for the San Diego Regional Economic Development Corp., the South County Economic Development Council and the California Technology, Trade and Commerce Agency.

In some cases, the stage is set by finding fault with the recipient of public funds, either the organization or its executives. From there it becomes easy to reduce or eliminate otherwise earmarked funding.

What a mistake.

Any marketing director or sales manager worth his salt knows that sales departments have a tendency to bloat and lose urgency. Complacency can lead to downfall if left unchecked. So programs must undergo periodic shake-ups and recommitments on the part of managers and staff.

However, during economic downturns, one of the worst mistakes is to drastically pare the budget of those whose function is to attract whatever business and/or investment is available. And make no mistake, even when times are bad, business and investment opportunities abound. It’s just that more people and places are fighting to land them.

In San Diego, and throughout California, political leaders refuse to address the real culprit of why less and less investment is forthcoming: the loss of competitiveness.

A new company seeking to settle in San Diego faces a permitting and environmental obstacle course that will take months, perhaps years to navigate. Those hurdles are paralleled by pricey industrial property, expensive labor, sky-high energy costs, expensive housing and roadways clogged during commute hours.

When economic times are good, this competitive shortfall is not as apparent, but at times like these we pay the price.

Government, instead of addressing these problems, makes cuts to eliminate offices and staff of the sales force committed to attracting new business. Small wonder that Gary Mendoza, former commissioner of corporations, says that California is creating jobs for Nevada, Arizona and New Mexico, but not for itself.

Recently, the San Diego EDC came under attack, a prelude that cuts were forthcoming. Some justifiably have noted that EDC is concentrating excessively on “studies” and historically has served primarily the northern reaches of the city and county. But no one can deny that the EDC, when it turns its attention to an area, can deliver. For example, the agency has proven invaluable in developing the biotech and information technology industries.

That the EDC may be in need of a shake-up is one thing, but to demean its contributions as the opening salvo to cut city and county funding is quite another.

But our political body doesn’t stop there. It chops, and chops further from the regional EDC to justify small increases in funding to the North County EDC as well as to the East County EDC.

But what about the South County EDC, of which I am a proud member?

The South County is the last San Diego frontier of plentiful land for industrial, commercial and residential development. The rest of the county is nearing build-out.

In addition, Mexico remains California’s No. 1 trading partner, doing $19 billion of business with the state annually. About 90 percent of the commercial shipments travel through South County. Another $3 billion in retail and service spending takes place in San Diego after Baja residents travel into the region, through the South County.

Can successes of the South County EDC be measured? Yes and no. Recently, the group organized a conference to introduce the North American Development Bank’s financial resources to border region cities. So far, two projects that meet the criteria of being within 62 miles of the border have submitted applications for possible funding. Will the South County EDC receive credit if those two become thriving businesses? Not likely. And not important. But the South County EDC is fulfilling its mission and playing an important part in the region’s development.

Yes, times are tough. But the region needs the investment and the new jobs that smart economic development brings. Cuts will be made. But will they be too much?

Probably. And they won’t be the only ones.

Patrick Osio Jr. can be reached by e-mail at posiojr@aol.com.