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US likely to restore funding to Valley
YOUNGSTOWN
Funding for a program that helps local businesses establish relationships with the federal government is expected to again flow into the Mahoning Valley, after a lull resulting from an audit.
Eastgate Regional Council of Governments and the Mahoning Valley Economic Development Corp. usually receive approximately $160,000 annually, which they share, from the Department of Defense’s procurement funds.
The grants helps fund two jobs, one at Eastgate and one at MVEDC, that guide local businesses through the process of applying for contracts with the federal government. The agencies provide a 25 percent match to the federal funding.
Norma J. Webb, program manager at Eastgate, said the Valley has received funding since the program’s inception 26 years ago and local businesses in fields such as metal-working, waste removal and paper shredding have benefited.
The lull in funding “is a big loss of time for helping people. It’s not really specific programs, it’s individual businesses that we help,” Webb said.
MVEDC Director Michael Conway, however, characterized it as a “minor blip.”
“We have a new application that’s pending. We’re in the later stages of review, and we have every hope that it will be re-funded and it will be business as usual. In our opinion, it’s a minor blip,” Conway said.
When the program began 26 years ago, agencies had to reapply annually. Then it was switched to every five years and later to every three years, Webb said.
“Now, you apply for a base year and then there’s two or three option [or renewal] years. This time we did not get the funding for option year one. Once you don’t get the option, you have to start from scratch,” Webb said.
Webb said a different auditor was assigned to the program to examine the books at Eastgate and MVEDC.
“They had audit findings with MVEDC. ...It was too late to get it fixed before the option decision. [MVEDC] didn’t do anything wrong. It was a different auditor who was looking at it,” Webb said.
Conway said the audit’s finding were “not significant issues” and “all corrective measures have been taken.”
“There were findings. They were nothing that we haven’t taken steps to resolve. ... They were various small items related to book-keeping and general accounting practices. In short, they were all addressed,” Conway said.
The Vindicator was unable to obtain a copy of the audit last week.
The grant helps pay the salary of Steve Danyi, a full-time 26-year MVEDC employee, who is paid about $53,000 annually and Eastgate’s Webb, who is paid about $60,000 annually.
Eastgate Executive Director John Getchey said Webb is now working on administrative and environmental programs.
“She’s the primary point person on that Department of Defense project. When I do the overall budget, I have a little leeway because with our federal programs, we’ve always got to be prepared for [funding cuts] in the future,” Getchey said.
Eastgate and MVEDC submitted a new application Jan. 30 for about the same amount, about $160,000, of annual funding.