The Politics of Public Funding

As most EDO managers and board members know, public funding for ED operations can pose challenges...not the least of which are political attacks. Take a look at this article about the hot water the Lehigh Valley ED Corporation (LVEDC) is in over using county tourism taxes to support its general ED activities.

The story here seems to be a backroom deal for LVEDC to receive the tourism tax funding, which is seen as less than on the up and up. Reading the story reminds me of many "witch hunts" by the news media to find where EDOs are vulnerable. In this case, the media was able to play the public funding angle. This is not the first attack LVEDC has received from the media.

One point that I would add regarding tourism and how it relates to other ED activities...tourism is an economic development strategy that should be designed to articulate with other ED strategies, including existing and new business growth. These strategies can and should be mutually supportive of one another. Many tourism agencies attract visitors as a way to lure new businesses to the area. This is not unusual at all. The question is how you accomplish this synergy and whether your stakeholders, including the general public, understand the relationship and how you go about creating this synergy.

These are real challenges for any EDO using public money. A word to the wise: be careful whose money you take and how you use it.