Consolidating a couple of state economic development agencies under the Department of Commerce could be a valid budget-cutting strategy for Kansas.

In fact, Gov. Sam Brownback was not the first to propose folding the duties of the Kansas Technology Enterprise Corp. and Kansas Inc. into Commerce. Gov. Kathleen Sebelius made the same suggestion two years ago as a way to trim the state’s struggling budget.

In an effort to promote economic development in the state, a number of state agencies have been created over the last 25 years. Although their creation made sense at the time, there is reason now to think that the state may benefit from a more unified effort to attract businesses in high-tech and bioscience fields. If the state can reduce administrative costs by folding KTEC and Kansas Inc. into the Commerce Department without losing the key benefits those agencies have brought to the state, everyone wins.

Brownback has indicated that eliminating the two agencies will save the state about $2 million in the coming fiscal year. In the current fiscal year, KTEC and Kansas Inc. are receiving about $7.7 million from the Economic Development Initiatives Fund, which receives proceeds from the Kansas Lottery. While a $2 million cut certainly is significant for those agencies, it doesn’t totally eliminate funding for programs they operated.

When Gov. Sebelius made her consolidation proposal, she and others were particularly frustrated with the lack of accountability at KTEC, as well as the arrogance of KTEC leaders and some board members. The agency was working with state money but wasn’t willing to fully account for how that money was being spent. In fact, at one point, Sebelius became so frustrated that she proposed simply eliminating KTEC funding from the budget.

Placing the agency under the Department of Commerce should address any transparency concerns. It also should give the state an opportunity to better coordinate the various economic development efforts being pursued on its behalf. The state has done an admirable job of pursuing high-tech and bioscience ventures, but consolidating agencies may allow it to maintain its record of success while cutting duplication and administrative costs.

Faced with the current budget situation, the consolidation of these agencies may be one of the easier choices the governor and the Legislature have to make.