On Tuesday’s edition of the Chad Hasty Show, Lubbock Economic Development Alliance (LEDA) CEO John Osborne shared some insight into the budgets, methods and purposes of Leda, Market Lubbock, and Visit Lubbock.

LEDA was created in 1989 to use a sales tax to help smaller and rural cities compete with urban areas. Market Lubbock was created in 1995 through a 3 cents property tax. A sales tax for economic development was voted into action in 2003.

Osborne explained that although the two are separate entities, Market Lubbock can grant money to LEDA for typical purposes. Funds at Market Lubbock are held for research and other projects. Market Lubbock also “houses” Visit Lubbock, “which is the convention and tourism bureau.” This side of the organization applies effort to economic development by bringing money from those outside of the city here to benefit the local economy.

Osborne explained the application of taxes: “There are two pots of money that come to the two organizations. The sales tax dollars come to LEDA and the property tax dollars that go to Market Lubbock. All of those dollars are meant for economic development efforts.” He noted that many of the sales tax dollars are provided by those visiting Lubbock.

Osborne spoke of the role of these organizations in economic development by leading more businesses to the area, as well as by persuading them to maintain and expand business here. He stated that “the ultimate goal is for our citizens of Lubbock… to have an opportunity to better their own lives, as well as provide for a family and allow for more economic opportunities and generation as a result of more money coming to our city.”

Market Lubbock depends on the whim of the council for its budget. However, LEDA depends upon the vote of the public. This year, Market Lubbock’ total revenue is about $3.7 million. Osborne stated that most of those dollars are transferred to LEDA, through which most projects are completed. Last year, LEDA received $4.8 million in sales tax funding and the budgeting number was $5.3 million. These two amounts make up about 65% of the budget, the rest coming from the Market Lubbock grant, totaling the budget for last year at about $7.5 million. Osborne noted that the Mayor’s half cent cut suggestion would hinder new development and make it more difficult to bring in new business in the future and to create the opportunity for more jobs to be available.

Listen to the full interview here:

Mobile & Audio Download Link: John Osborne on Chad Hasty Show August 20 2013

More detailed information about these economic development organizations can be found online: http://www.lubbockeda.org/About-LEDA.aspx