By Mary Drier (Contact / Staff Bio)
June 28, 2008 - 12:00 a.m. EST

CARO ‹ In order to keep the Tuscola County Economic Development Corporation (EDC) in the black, its director might have to take a pay cut.

EDC Director Jim McLoskey explained to county commissioners Thursday the agency expects to finish this fiscal year with a balanced budget, but the next fiscal year’s budget that starts in July probably won’t.

The current fiscal year was solvent partly because a larger allocation from local units of government and the county.

However, there has been a reduction in donations for 2008-2009, and the contract with the Michigan Small Business Technology and Development Center was terminated last year.

According to EDC Board Chair Doug Link, $23,000 was budgeted for those donations, but so far, only $19,000 has been received.

“It is our thinking that some businesses have cut back on donations entirely or partially because of the economy and/or due to the businesses giving to other non-profit groups and organizations,” said Link’s letter to the commissioners.

McLoskey agreed that businesses are bombarded with donations requests, and the economy, in general, is having an impact.

Despite having almost a $4,000 difference between what was budgeted for the next year, and what has been received, the EDC Board is projecting about a $1,000 deficit.

“The EDC Committee will be going over the budget and tightening expenses as best we can,” said McLoskey.

To cover the shortfall, the EDC Board is discussing cutting McLoskey’s pay by about $2,000, with a review in six months to see if the director’s salary could be reestablished.

Rather than dwelling on the negatives, McLoskey pointed to the EDC’s positive accomplishments over the last year.

“We are in the process of compiling our yearly report. It’s estimated about 270 jobs were created or retained over the last year,” said McLoskey. “That number isn’t necessarily all inclusive because some businesses didn’t want their information made public.

“And then there is the good news that’s been talked about in Cass City with the prospect there.”

McLoskey was referring to the Dairy Farmers of America possibly building a multi-million dollar milk processing plant in Cass City.

For the last few years, Cass City Village officials have been talking to DFA members trying to convince them to build the $30-$47 million plant in that community that would bring about a dozen new jobs.

In other EDC matters, McLoskey asked that Colleen Langenburg be appointed to the EDC Board and the Brownfield Redevelopment Board. If she is approved, her term would end in 2014.

She is the branch manager for retail services at Northstar Bank in Caro, and has been active in the Tuscola County Enterprise Facilitation’s Board of Management.

Mary Drier is a staff writer for the Tuscola County Advertiser. She can be reached at drier@tcadvertiser.com.