Gilbert Jimenez, director of the Arizona Commerce Department, sums up the agency’s goal in one word — “jobs.”

“Our work benefits the citizens of Arizona,” Mr. Jimenez says. “It helps expand the tax base, increases per capita income and improves industry diversity. My main task is to make sure this agency maximizes the public benefit of the Legislature’s investment.”

He says state and local leaders must have an understanding of what the state’s economy is today, a clear vision of where it should be in 10 years, and “a commitment to getting us there.”

“As technology closes geographic gaps and shortens the time from idea to market we must position Arizona on a worldwide scale,” Mr. Jimenez says. “One way we do that is by improving the export-readiness of small and medium size Arizona businesses. Another is to strategically open new markets for Arizona-based goods and services. Finally we must address the issues at the border that offer great challenges as well as opportunities for the state’s economy.”

Joe Yuhas, deputy director of the Commerce Department, acknowledges that the state could have saved money by disbanding the agency, which was suggested by some in early budget negotiations during the last session of the Legislature, or even by combining Commerce with the Arizona Office of Tourism, as was also suggested.

But he adds quickly, “It would have been a modest savings.”

Sacrificing the $400 million in tax revenue brought in by Commerce for the less than $4 million in General Fund appropriations his agency actually receives doesn’t make sense, Mr. Yuhas says.

Still, Commerce may face a battle for its budget next session.

Sen. Bob Burns, R-Dist. 9, chairman of the Senate Appropriations Committee told Arizona Capitol Times that Commerce will face “a more difficult time” with its budget next year. In addition, Rep. Russell Pearce, R-Dist 18, head of the House Appropriations Committee, said he “would like to reduce the size and scope of the work at Commerce.”

“I recognize the significance of the budget crisis, but I have to look at Arizona’s future, which is what this department is all about,” Mr. Yuhas says.

He cites a lack of economic diversity as the reason for the budget crunch in the first place. Not only does this lack of economic diversity affect the state budget, it also affects the budget at home because of a weak job market, particularly sensitive during economic slumps.

Since 95 per cent of Arizona’s workforce is employed by small business — businesses with 100 or fewer employees — attracting new business to the state is critical, he says.

Key Commerce officials weighed in on how various divisions at the agency assist small and large businesses and rural communities.

Lydia Aranda

Director, Small Business Services and the Governor’s Small Business Advocate

Ms. Aranda believes the state needs to continue to attract new businesses, help local businesses expand and entrepreneurs get started. Since Commerce pursues all three of these goals, she wants policy makers to know that the services and information Commerce provides are not duplicated, but are a key step in the overall process.

“When I meet with business owners and business organizations, they consistently request three things from state government,” she says. They are:

1. Support, which includes help with start-up assistance; connections with state, federal and local resources; and state permits and regulations.

2. Opportunities, such as providing access to state procurement.

3. Advocacy, the belief that state government understands small business needs.

Tom Belshe

Executive Director, Greater Arizona Development Authority

Mr. Belshe says there is no “silver bullet” for economic development. His division was created by the Legislature to help communities and tribal governments develop and finance public infrastructure projects.

“No area of the state or single community is exactly like any other, and so we must recognize where a community’s or region’s needs lie and provide resources accordingly,” Mr. Belshe says.

“The way that the department has been structured — placing an emphasis on the collection of good data, community development, workforce development and global business development — is a logical and intelligent structure.”

Kevin Bishop

Assistant Deputy Director for Global Business Development

Mr. Bishop says Arizona finally has a vision for business and economic development coming directly from the governor.

“We are the first point of contact for all businesses here and to those considering coming to Arizona,” he says. Mr. Bishop suggests that legislators should know that the Department of Commerce is “an investment, not an expense.”

Lisa Danka

Director, Commerce and Economic Development Commission

Ms. Danka believes a physical infrastructure, including roads, electrical capacity, water treatment and recycling, is key to economic expansion outside Phoenix and Tucson. She also says the business infrastructure — a trained workforce, venture capital and a stable tax policy — is critical to keeping Arizona competitive with other states and countries.

“The economy of the next couple of decades will be characterized by rapid change and intense competition. Commerce is the only agency that is looking ahead and trying to understand the impact on the economy, tax base and employment. Without this capacity, Arizona leaders are operating and making decisions in a vacuum.”

Debra Raeder

Director, Workforce Policy

“We know that economic development stimulates employment opportunities and that the number one priority of business is an available skilled/trainable workforce,” she says. That type of workforce system provides business with access to meaningful labor market data; assistance in finding or creating a qualified workforce, and access to customized training programs and funding.

“When fully developed,” Ms. Raeder says, “Arizona’s Workforce Connection system will have the ability, through its partners, to provide streamlined workforce training programs that will empower businesses and individuals, and will provide for state and local flexibility in meeting workforce needs.”

Sally Spray

Director, International Trade & Investment

Ms. Spray says small businesses tend not to have the resources to fully exploit overseas markets. Yet, export companies generally offer as much as 18 per cent higher wages.

“Our work counts toward making Arizona a better, more sustainable and vibrant place to live and work,” she says. “We need [from policy makers] a long-term commitment to economic development.”

Michele Pino

Director, Business Development and Attraction

Ms. Pino says Arizona needs a governor committed to economic development, the workforce and an operating environment that is responsive and competitive. Governor Napolitano is all of those things, she says.

Ms. Pino, who has a job to market the state as a place to do business, also says what policy makers should know about Commerce is that there are “some very talented, hardworking people here with vision and the ability to make it happen.”

“Our division understands industry trends, can coordinate and lead a statewide marketing strategy in partnership with the economic development community and strategically publicize Arizona’s economic advantages in order to attract the right companies and help existi
ng business grow.” —