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 New Goals for Golden LEAF
by Tom Campbell
October 25, 2007
Valeria Lee’s announcement that she will step down as President of The Golden LEAF Foundation provides an opportunity for this organization to evaluate its first five years of operation and make changes for greater effectiveness.
Golden LEAF was formed as part of North Carolina’s settlement with major tobacco companies, receiving some .3 billion to help revitalize communities previously dependent on tobacco, as well as those that are economically depressed. To date it has made over 580 grants, amounting to 0 million.
Golden LEAF has realized, at best, mixed results, but responsibility for effectiveness should not be placed at the feet of Ms. Lee. The troubles began with the composition of the board, one-third of whom are named by the Senate President Pro Tem, one-third by the House Speaker, and one-third by the Governor. Not only do those making appointments have different agendas, but each has used their influence to interfere in who received grants and how much they got.
This unwieldy board has not developed clear mission imperatives, nor has it developed strategies or leadership sufficient to achieve them. They are symptomatic of an even larger leadership void and nonexistent economic development plan for the economically depressed regions of our state. With 40 or more different versions of needs and solutions coming from the various communities and counties, there is little hope Golden LEAF will have a significant economic impact. As a result the organization has confined itself to making a large number of small grants, attempting in “fairness” in spreading around money. While there are some instances of grants having economic impact, at the end of the day reasonable people will conclude this foundation hasn’t gotten enough bang for almost a quarter of a billion dollars spent.
What won’t work is more state control, political influence, or a mentality of dribbling out money equally to everyone. God forbid the legislature took control and allowed the funds to become fungible, indistinguishable with other revenues of the state. We must get politicians out of the process of appointing the board and put our best and brightest people, with proven records of leadership, on this board; people with big visions, major experience, the best interests of the region at heart, while seeking no gain from their service. Awards should be made exclusively to communities previously dependent on tobacco or counties with demonstrated economic depression.
The organization should focus on new job creation, measurable economic impact, and perhaps critical infrastructure investments that will yield measurable results. While the current community assistance program has some merit, these projects should be allotted a minor percentage of funding so as to free major money for projects with larger potential. Some of these grants could be structured as loans or even venture capital investments, so that a return flow of funds could help ensure continued existence in perpetuity.
Golden LEAF has great potential. Our state has this one opportunity for a large sum of money to significantly improve regions of our state desperately needing help. Freed from encumbrances of political influence and burdensome state regulations, this foundation could be flexible, responsive, and creative in meaningful economic development. This task deserves our very best. We must give it nothing less.
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