Bill highlight: Massie’s HB1522 eliminates Dept

Del. Jimmie Massie (R-72) has submitted HB1522 that will eliminate the Department of Business Assistance. The bill would transfer the department’s duties to the Economic Development Partnership.

It seems to me that the only thing to be gained by such a move is that there will be one director instead of two. After all, the mission of the two agencies is not the same. The DBA’s mission is “to promote economic growth by helping Virginia businesses prosper.” The EDP’s mission is to “enhance the quality of life and raise the standard of living for all Virginians, in collaboration with Virginia communities, through aggressive business recruitment, expansion assistance, and trade development, thereby expanding the tax base and creating higher-income employment opportunities.” Reading the two, it seems that the DBA is more focused on existing Virginia businesses while the EDP is about attracting new ones.

I would suspect that in addition to focus, the culture of the two agencies would be drastically different. Looking at the DBA website, it is obvious that the focus is on helping small businesses to grow. The director’s message says:

Since almost 99% of Virginia businesses are defined as small and they create the majority of new jobs, there is a special emphasis on building the capacity of these bold entrepreneurs.

By contrast, a glance at the press releases for the EDP gives me the sense that they are going after the large companies. For example, the January 11 release announces a $62 million investment and 220 new job, hardly a small business by most standards. Having worked with both large and small companies, I can say that their needs and operating environments are just not the same.

Which leads me back to where I started. Combining the two agencies won’t result in any efficiencies – other than the aforementioned single salary – because the staffs will have to stay in place. To me, it’s kinda like combining the FBI and the CIA. Maybe somebody is just upset with the director.

Of course, it is very possible that the elimination of this department will result in the elimination of some or all of the jobs. And the loss of that expertise will be especially hard on the small businesses in Virginia. That would be a real shame.