The Alabama Department of Economic and Community Affairs (ADECA) was created in 1983 to consolidate many federally funded development programs administered by the state under one agency. The main goal was to increase efficiency and improve control over these programs. The department supports Alabama’s communities by providing funds, surplus state property, information, training, and oversight to local governments, community organizations, businesses, and individuals throughout the state. However, ADECA’s largest role is in the distribution of federal funds.
History
Prior to the establishment of ADECA, federal funds and programs were administered by the Office of State Planning and Federal Programs, the Alabama Department of Energy, the Alabama Law Enforcement Planning Agency, the Office of Highway Safety, and the Office of Employment and Training. Starting in 1969, the Alabama Development Office (ADO), now the Alabama Department of Commerce, administered some of the federal programs that are now under ADECA. By 1980, the Alabama legislature transferred ADO’s planning and federal program responsibilities to the new Office of State Planning and Federal Programs. Shortly thereafter, the legislature took additional steps to consolidate and streamline the administration of federal programs in the state.
In February 1983, the law establishing ADECA was passed and signed by Governor George Wallace on March 1. Originally known as the Department of Economic and Community Affairs, with the acronym DECA, State of Alabama was added to the name shortly after its creation. ADECA was transferred to the Governor’s Office under the direct supervision of the Governor. Wallace appointed Bill Rushton, who previously headed the Office of State Planning and Federal Programs, as the first director. A ten-member legislative oversight commission was created to provide additional oversight and evaluation of the agency.
Often referred to as the lead agency, ADECA has since been given more responsibility. In 1984, the Division of Surplus Property was added, and in 1991, the Office of Water Resources was created by executive order issued by Governor Guy Hunt. That same year, ADECA moved from its original facilities located off Norman Bridge Road in Montgomery, Montgomery County, to its current location in the Alabama Trade Center at 401 Adams Avenue in downtown Montgomery. In 1993, the Alabama Water Resources Act was passed, making the Office of Water Resources a permanent division of ADECA. Two outdoor recreation programs were also added to ADECA during the 1990s.
Organizational structure and operations
ADECA is overseen by a director who is appointed by the governor and is a member of the governor’s cabinet. The director is responsible for appointing the heads of each of the five divisions, who are also approved by the governor. The agency’s divisions consist of: Community and Economic Development; Energy; Law Enforcement and Traffic Safety; and Water Resources and Surplus Property. Each division manages programs. In addition, the agency has six offices that provide administrative support and oversight to the divisions. These offices perform necessary behind-the-scenes roles such as legal advice, auditing, human resources, and information services.
The department’s divisions are organized by purpose and by federal funding agency. The Division of Community and Economic Development, for example, administers federal programs related to community development, public services, and recreation. They are primarily funded by the U.S. Departments of Housing and Urban Development, Health and Human Services, Interior, and Transportation. One of the most well-known programs in this division is the Community Development Block Grant (CDBG) Program, which provides funds to local communities for infrastructure improvements, job creation, disaster relief, and other community development activities. ADECA has funded more than 4,000 community development projects, allocating more than one billion dollars in CDBG funds.
The Energy Division works with the U.S. Department of Energy and other federal agencies to improve energy efficiency and reduce energy consumption in Alabama. The Division of Law Enforcement and Traffic Safety distributes federal grant funds, primarily from the National Highway Traffic Safety Administration and the U.S. Department of Justice, for law enforcement and traffic safety, victim services, and juvenile justice programs. The Office of Water Resources provides planning and oversight for Alabama’s water resources and serves as the state’s liaison to the Federal Emergency Management Agency (FEMA) and other relevant federal agencies. Some of its primary tasks include floodplain and drought planning and management in Alabama. The Division of Surplus Property distributes surplus state, federal, and estate assets. Part of its functions is to manage the Law Enforcement Support Office (LESO), through which surplus military equipment is distributed to Alabama law enforcement agencies. The agency also implements relevant state programs and provides resource planning for local governments, non-governmental organizations, private companies, and individuals in Alabama.
Overall, ADECA receives more than 90 percent of its funding from multiple federal agencies. The agency’s divisions then distribute hundreds of millions of federal dollars each year to local governments, organizations, businesses, and individuals throughout Alabama. Additional contributions come from the state’s general fund. This is one of the state’s primary operating funds from which the legislature appropriates ADECA money each year to meet federal grant matching requirements and to cover the administrative and operating costs of ADECA programs. ADECA programs are not focused on one specific policy implementation area; they are extremely diverse and potentially impact every community in Alabama and Alabama.
Challenges and accomplishments
The agency has improved its efficiency and oversight to ensure that funds are distributed and used legally and ethically. But there have been instances where the agency has not been successful. In 2003, Nicholas Bailey, the former acting director of ADECA, and two others (Montgomery businessman and consultant Clayton “Lenny” Young Jr. and Montgomery architect William “Curtis” Kirsch) pleaded guilty to conspiracy to commit bribery in connection with federal programs related to his leadership of the department. Bailey, a close associate of then-Gov. Don Siegelman, was also involved in the bribery case against Siegelman. In 2009, former Alabama legislator Edward McClain and former pastor Samuel Pettagrew were convicted on various charges related to McClain’s improperly directing ADECA funds to a nonprofit organization run by Pettagrew. Another challenge was adequate funding. The agency has faced decreased funding from the federal government and also has problems with inconsistent funding from the state. Due to federal efforts to reduce the public debt, this problem may continue to worsen.
Despite these challenges, ADECA has had significant accomplishments. Since the agency’s inception, the state has reported reductions in administrative costs and improvements in the compliance monitoring system associated with federal programs. ADECA programs have contributed to the creation of a significant number of jobs in Alabama and helped low-income residents become more self-sufficient. ADECA funds projects that expand tourism opportunities in Alabama communities. In addition, the agency applied for and received federal funding to help with storm recovery efforts.
Going forward, ADECA is likely to continue to face challenges related to funding cuts. Many cities and counties in Alabama are facing tight budgets, and communities across the state have unmet needs that local governments cannot afford to address. The need for federal and state dollars distributed by ADECA is likely to remain. Grant awards are, and will likely remain, rare, reinforcing the need to ensure that funding decisions are fair and transparent.
