I came across this letter I had written to Michigan House Representative Darwin Booher from the 102nd district. He was requesting ideas how to spend the stimulus money. Although I never got a reply, I was glad someone was asking. I thought I'd throw it up here and ask for opinions/suggestions as I probably will be carrying this vision for a while longer.
January 29, 2009
Dear Representative Darwin Booher:
Thank you for your service and dedication to the people in your district. Encouraging and engaging the local community in developing and sharing ideas is going to pay dividends. Currently, there are many talented individuals that are not being provided outlets to unleash their technical prowess or hard work ethic. So many people are fed-up with bailouts for corporations, but nothing for those who need it most. We no longer want to wait for help to trickle down, but how can giving money directly to the people ensure a lasting economic growth? The answer lies in a movement towards growing local economies. In this letter I will outline a project that will boost employment, security and, arguably, quality of life for the district.
Many Local First initiatives are popping up all over the country. Their websites are full of creative ideas and attempts that their communities are taking to grow the local economy. A Local First-initiated study in Grand Rapids, MI documented that supporting local businesses can have financial benefits on a region. If residents in Kent County “bought local” just one of their next 10 purchases, then 60% of money spent in the county would stay in the county – versus only 40% that currently stays.
When thinking through what it takes to increase local production and purchasing, two lacking components come to mind. The first is that there are not many options to buy our needed and wanted items locally. Most products come from and/or are put together far from our state, let alone our district. The second is that there are not many people making efforts to purchase locally. This stems from a lack of education that buying locally made or sold items will benefit their community and, ultimately, themselves. The lack of local options also makes buying locally more difficult, inconvenient and sometimes impossible for those consumers who understand the value of supporting local businesses.
My proposal for utilizing funding from the stimulus package is titled, Local Inventory and Advocacy Center (LIAC). It involves the development of a center in which the mission is to strengthen and support local business, and educate and foster a growing interest in local purchasing. LIAC staff responsibilities include: inventorying their district, connecting local businesses involved in the chain of production required for the final product (i.e. peanut butter – ingredient growers, container manufactures, and sellers), increasing local businesses by empowering local talents and providing micro-loans for start-up costs, creating a campaign that brings about excitement and conviction for the new movement, and building up a centralized marketplace for local shopping.
Five Departments/Responsibilities:
Inventorying
This requires an inventory of all the businesses in the district that are locally owned and, even further, businesses that are producing locally made goods. Research into these establishments will include an assessment of their stability and current needs for durability. It will also include an assessment of ways that they can meet more of their own needs locally.
Inventorying will become more exhaustive with a district-wide survey of all people’s current employment status and their abilities. These inventoried skills and abilities would not be limited, but rather open to creativity and ingenuity. They could include technical expertise, repair, information, production, entertainment, agriculture, ect. Investigation would occur with tax records and door-to-door canvassing. All results would be compiled for a District Skills Inventory database to be used for other departments.
Connecting Local Businesses
Data would come from the inventories. All local businesses choosing to provide their information would become part of a database available to all for networking. There may also be opportunities to schedule and host meetings with all parties involved in the production of a local good. These meetings could work out agreements to keep production local in the face of more efficient and cheaper (but more costly to the community!) networks out-of-state or out of country.
New Business Creation
Using the District Skills Inventory database, individuals with abilities to fill a missing gap in the local production of a good or service can be selected to start a company, staffed or self-employed. These motivated individuals will find assistance with start-up costs from LIAC. They will also find their way into the local market by receiving network and advertising help through LIAC.
Micro-loans would function as they do in many development projects in developing countries throughout the world. Briefly, a certain percentage of their growing earnings would pay back their loans.
Advocacy and Campaign
The major focus of LIAC would be to create an environment of excitement and possibility for this local economic movement to increase quality of life. Staff members would design and implement a campaign that educates citizens on the benefits of the movement and then invite them to join by providing resources and ways to modify their spending habits. LIAC would utilize all the latest internet communication instruments as well as commercials and billboards. Door-to-door canvassing would also be a central method for getting the word out.
Shopping Center
The shopping center would provide a centralized place for newly created and previously established local businesses to come together to sell their goods and services. A centralized market center would increase accessibility to concerned consumers, boosting their efforts to support the local economy.
Local Inventory and Advocacy Center Budget Needs
3-5 Full Time Staff: Salary $90,000-$150,000/year
Benefits $21,000-$35,000/year*
4-6 Part Time/Temporary Staff: Salary $60,000-$90,000/year
Micro-loan Endowment $500,000
Local Goods Shopping Center (and Staff Office)
Purchase of and renovation of existing building $500,000*
Operating Costs (Advertisements) $50,000/year*
Total revenue needed for two years of operation $1,422,000-$1,650,000
*These costs must be researched further.
Local Inventory and Advocacy Center’s Financial Stability
I would be requesting from the government stimulus, $1.5 million. This would cover the first two years of operation. LIAC would be a non-profit and would sustain itself through grants and other philanthropy gifts. Income would also come from fees paid by businesses using the Shopping Center. The Micro-loan would be managed to last perpetually.
Thank you for your time and consideration. A more detailed and comprehensive explanation of the LIAC project could be discussed in the future upon your interest. It is my hope that this project or one with similar goals will receive funding.
Sincerely,
Derek Shiels
No comments:
Post a Comment