Expand ‘buy local’ strategy

The Cedar Rapids Area Chamber of Commerce wants the City Council to change its definition of “buy local” to include all of Linn County. We agree, and think “buy local” could include Johnson County as well.

Last month, the council approved a policy to give local businesses preference for some city purchases of goods and services. One of the measure's goals is to help Cedar Rapids businesses that are struggling to survive after the 2008 flood disaster.

The policy allows a Cedar Rapids business to bid up to 10 percent more than companies outside of the city for contracts of $25,000 or under; up to 5 percent more on contracts between $25,000 and $200,000; and 1 percent more on contracts larger than $200,000.

This action does not apply to construction contracts requiring sealed bids, as state law stipulates, nor to contracts using state and federal money.

We support the intent of this policy. Buy-local can make a difference.

Iowa State University economics researcher Dave Swenson recently told Marion economic development officials that every dollar that stays in a community helps create local jobs. There's an economic multiplier effect - as long as communities don't pay substantially more for goods and services purchased from local businesses than they would from outside companies.

Yet the parameters and impact of “local” can vary quite a bit.

The Cedar Rapids Chamber recognizes this. At tonight's City Council meeting, Chamber officials plan to ask that the buy-local resolution be expanded to include all of Linn County. They say that some longtime city businesses temporarily or permanently displaced to metro area communities such as Marion, Hiawatha and Fairfax are excluded from the buy-local policy.

They also point out that many businesses in nearby communities support Cedar Rapids stores by buying their products and services. They have owners and employees who live in Cedar Rapids. And their property taxes help support Linn County and Cedar Rapids-based Kirkwood Community College and, in some cases, the Cedar Rapids school district. “There's a lot of interdependence,” Chamber President Shannon Meyer told us.

We think the Chamber's proposal makes sense.

And when it comes to this or other economic initiatives, it also makes sense to consider the Corridor of Linn and Johnson counties. The Corridor's economic engine parts are intertwined. More than 10,000 employees and owners commute between the two counties each work day, a nearly equal number each way. Regionalization is an increasing priority. More and more, economic leaders from both counties are acting as one entity.

Local government should take a cue and expand its buy-local strategy.