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Governments Giving Away Millions While Adding Fees, Cutting Jobs

Friday, May 16, 2008 – updated: 4:47 pm EDT May 16, 2008

As governments are discussing adding fees and cutting jobs to make end meet, Channel 9 has learned they’re also giving more than $60 million to dozens of groups that claim they bring both business and jobs to the region. But not all are convinced the investment is worth it.

“It’s a critical component of any community,” said Maureen Brockman. ”What we are charged with on behalf of the community, is marketing our region."

Brockman is Vice-president of Marketing for the Metro Orlando Economic Development Commission. The nonprofit received $780,000 from Orange County this year and $450,000 from the City of Orlando. Brockman calls it an investment and says her organization brings the region between 5,000 and 6,000 new jobs every year.

“You don't know if they came because this is a great place or if they were induced to come," said Orange County Commissioner Bill Segal.

Segal says its time for governments to look more closely at funding organizations such as the EDC.

The EDC's tax return shows it actually lost $209,000 hosting special events in 2005. The group hosts social events such as a barbeque attended by Orlando Mayor Buddy Dyer, who supports not only the EDC but also the Chamber of Commerce.

“They’re both great community organizations that allow us to leverage on a regional scale,” said Dyer.

According to tax returns the Chamber of Commerce received $3 million from government organizations in 2006 and then spent nearly a million dollars on food, hotels and transportation.

That didn’t include a Captiva Island trip where business owners mingled with the political elite, including Orange County Mayor Rich Crotty.

“I do think it was excessive," said Crotty of the trip.

Crotty and the Orange County Commission did cut funding to the Chamber this year.

“So I think the better question is, 'Have we exercised some fiscal restraint?' and the answer is, 'Yes,'" said Crotty.

But the state and other government agencies are still giving millions to agencies such as Workforce Central Florida. That group claims to help 54,000 locals find work every year and receives $25 million. Enterprise Florida, which claims to diversify the state’s economy and also operates offices in South Africa, Tokyo, and Toronto, gets $19 million.

“I also want to take a look at the salary structure of some of these organizations,” said Commissioner Segal.

Nine Investigates found Jacob Stuart, the president of the Chamber of Commerce, earned $300,000 in 2006. The president of the Metro Orlando Economic Development Commission made $273,000.

“I think the boards of these organizations need to decide if those people are getting the proper salary,“ said Segal.

Segal adds that it may be time to pull away from these organizations no matter how difficult it may be politically

The Jacksonville Regional Chamber of Commerce, which has revenues equal to the EDC and the Orlando Chamber combined, also pays its CEO $300,000 a year.

Both the Chamber and the EDC get large amounts of money from the private sector. The EDC says 68-percent of its funding already comes from the private sector.

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