Washington State is composed of 39 counties, each one represented by an associate development organization (ADO) that furthers the county’s or region’s economic development goals. The Department of Commerce (Commerce) contracts with the ADOs in order to increase the support for and coordination of community and economic development services in communities or regional areas. The ADOs coordinate business recruitment, retention, and expansion activities and support research, planning, and implementation of regional and local economic development strategies. The contracting ADOs must:
Contracting ADOs must provide Commerce with an annual report including measures of their performance and a summary of best practices shared and implemented. The reports must include certain employment data and financial information. Commerce must submit a report to the Legislature in each even-numbered year on the performance results of the contracts with the ADOs.
Commerce must establish an annual competitive grant program to support and catalyze initiatives to foster innovation, sustainability, partnerships, and equity at the ADOs. Commerce must develop grant award criteria with relevant stakeholders and award funding based on initiatives that are aligned with its work and priorities. Awards must be given equitably across the state.
Grant recipients must provide information on the use of the funds in their annual reports. Beginning December 31, 2026, Commerce must include information on grant award funding and use in its report to the Legislature on the ADO contracts.
The Associate Development Organization Innovation, Sustainability, Partnerships, and Equity Grant Account is created in the custody of the State Treasurer. Revenues to the account consist of appropriations by the Legislature, private contributions, and all other sources deposited in the account. Expenditures from the account may be used only for an annual grant to the ADOs to support and catalyze initiatives to foster innovation, sustainability, partnerships, and equity. An appropriation is not required for expenditures.
(In support) This bill is about helping neighbors and friends and our economy through supporting the ADOs. The ADOs are an economic development tool to support families. They make it practical to bring the skills and creativity of businesses to the economy. That looks different across the state and the ADOs can help those in different communities with diverse ideas. Innovation should be supported in the state. Supporting the ADOs helps every Washingtonian to thrive. A robust economic development ecosystem is needed at the state, regional and local level. This is crucial for sustained economic recovery and job growth. This bill would increase funding for regional capacity and foster innovation in the delivery of economic development services. Each region can work with their own regional initiatives that are aligned with Commerce. These additional resources would provide much needed support to these ADOs. The ADOs are a proven, accountable, intergovernmental network that covers the entire state. In the last 5 years, the ADOs have helped over 600 businesses create jobs.
The ADO funding from Commerce is a cornerstone of an ADO budget and its efforts to building the economy. The return on investment is real. During COVID-19, the ADOs became agents of recovery. The demand on the ADOs has not dissipated. Reporting requirements to Commerce have become more intense but funding has not met up with the increased requirements and expectations. Expanded funding would allow an ADO to expand personnel, provide culturally informed services, and greater outreach. The ADOs can hire workforce coordinators and assist companies to hire from a broader pool of workers. This is about equity and inclusivity and giving people the tools to compete and earn a living wage. This bill will provide resources that help change the economic outlook of distressed areas. The ADO funding levels have remained stagnant for decades despite increased responsibilities and staffing challenges. The ADOs do not receive cost of living increases or inflation adjustments. Now is the time to support additional funding for the ADOs to grow jobs and firms and support inclusive economic development. The ADOs could use these additional funds to teach digital literacy to businesses owners. Programs could be created to assist Spanish-speaking business owners. This funding will help create growing, resilient businesses and a strong economy.