The Baker County Commissioners’ decision last week to give the county’s economic development contractor a $12,000 raise — to $108,000 per year — reminded us of why we’re skeptical about the public’s return on investment when contracting for economic development services.

The decision troubles us not only in the larger sense of whether this is the most efficient use of tax dollars, but also because the county’s contractor — Gregory Smith & Company LLC — does similar work for other counties, including Malheur, a potential conflict of interest that could reduce the value of his work on behalf of Baker County.

To be sure, the money for economic development comes not from local residents or property owners, mainly, but rather from visitors who stay in motels, bed-and-breakfasts and RV parks. They pay a lodging tax, which raised about $490,000 for the fiscal year that ended June 30. A county ordinance requires that most of that money be spent for tourism marketing (70 percent) and economic development (25 percent).

And notwithstanding our ambivalence about whether the government, either by contracting the work or hiring an employee, can actually bring jobs to the county, we agree that government employees should be ready to answer questions from companies interested in moving here. In fact we endorse the idea that Baker County and Baker City governments should make sure that we’re represented at trade shows and that business owners understand that the area will try to meet their needs.

But we think county and city officials should give serious consideration to accomplishing those goals with their own employees rather than hiring a contractor.

Certainly local employees have the expertise to assist not only prospective companies, but also existing businesses. The latter, of course, is likely to be the larger part of the job, as it’s not common that large employers consider operating in Baker County.

Moreover, making economic development a local government function — which it was here for many years, including the period when Baker City attracted Behlen Mfg. — could save money, freeing up lodging tax dollars.

Under the current situation the county, in effect, is paying not only Smith but also his company’s overhead costs. We don’t begrudge Smith asking the county for the $12,000 raise, his company’s first in six years contracting with the county. But the county has a better option.

Assigning economic development tasks to a public employee would also ensure that local residents have more information about how lodging taxes are being spent.

Much of the work a government employee does is subject to public scrutiny through Oregon’s Public Records Act. That’s not always the case when a private company contracts with the government.

From the Baker City Herald editorial board. The board consists of publisher Kari Borgen, editor Jayson Jacoby and reporter Chris Collins.