The Kentucky Capital Development Corp. will not have to temporarily shut its doors July 1 after all.
KCDC’S Board of Directors passed the organization’s 2020-21 fiscal year budget during a special called meeting on Monday.
In May, the Franklin County Fiscal Court cut $15,000 from KCDC’s budget. KCDC President/CEO Terri Bradshaw told The State Journal in May that one employee had to be laid off and the organization would have to reduce its marketing spending. Now, the organization is down to two employees.
Bradshaw was also worried that due to the fiscal court’s decision, KCDC’s board may not have enough time to pass the 2020-21 fiscal year budget by July 1. By law, the organization would have to close come July 1 until a budget was passed if the organization failed to pass a budget by June 30.
On March 26, Bradshaw presented KCDC’s proposed 2020-21 fiscal year budget as required by county ordinance. According to Bradshaw, the city and county typically split the cost of funding KCDC by contributing $115,000 each.
The original total proposed budget for the 2020-21 fiscal year was $232,000, Bradshaw said. The extra $2,000 not covered by the city and county comes from interest.
The Frankfort City Commission is expected to pass its 2020-21 fiscal year budget on Monday. The current proposed budget for the next fiscal year sets aside the full $115,000 for KCDC.
On Monday, KCDC announced its new budget for the 2020-21 fiscal year is $216,000, or $16,000 less than the original proposed budget.
“The KCDC Board of Directors and staff are pleased to have approved an updated budget prior to the end of the fiscal year,” Bradshaw said. “Assuming the city has their second reading on June 29, that will allow us to remain diligent in our efforts to assist existing businesses as well as continue to work a number of new projects, which is critical in the midst of an economic crisis with extensive job loss and business closures.”
Also during Monday’s meeting, Bradshaw informed the board that KCDC along with Downtown Frankfort Inc. are looking at applying for a federal Economic Development Administration grant.
KCDC plans to request $150,000 while DFI plans to request $50,000. Bradshaw said both organizations are working together on applying for the grant, which will focus on job creation and retention, and the organizations would like to use a portion of the funds to reexamine the strategic plan.
“EDA grants are not new, but they did triple the budget for those grants because of the pandemic and it’s negative effect on the economy,” Bradshaw said. “Our strategic plan and a large part of our activity prior to COVID-19 was focused on workforce development. We had a large number of jobs we could not fill. Now, while we do have some jobs that we are having trouble filling, we are also losing some jobs that we will have to replace. That will require us to focus more on job recruitment and retention at every level.”