MCEDC Director Says Current Funding Model Is Not Sustainable, Pitches Per-Capita Contributions

Montgomery County Board Finance & Budget Committee | May 7 Meeting

Article Summary: Montgomery County Economic Development Corporation Executive Director Kaitlyn Fath on Thursday, May 7, 2026, told the Montgomery County Board Finance & Budget Committee that the corporation’s current funding model — including a $15,000 annual county contribution — is not sustainable, and walked the committee through two FY2027 revenue options based on per-capita contributions from public members.

MCEDC FY2027 Funding Key Points:

• MCEDC Executive Director Kaitlyn Fath presented a line-by-line FY2027 budget to the committee.
• The two revenue options would require contributions of $1 per capita to $2.25 per capita from public members of MCEDC.
• The current funding model includes a $15,000 annual contribution from Montgomery County.
• Fath said the current model is not sustainable; the Finance & Budget and Development & Personnel committees will continue researching the question through the county FY2027 budget cycle.

HILLSBORO — Montgomery County Economic Development Corporation Executive Director Kaitlyn Fath on Thursday, May 7, 2026, told the Montgomery County Board Finance & Budget Committee that the organization’s current funding model is not sustainable and proposed two FY2027 revenue options built on per-capita contributions from member governments.

Fath presented a line-by-line explanation of MCEDC’s proposed FY2027 budget. The two revenue options she outlined would require contributions ranging from $1 per capita to $2.25 per capita from public members — a category that includes Montgomery County and member municipalities. The current model includes a $15,000 annual contribution from Montgomery County. Fath said she believes that model is not sustainable.

The minutes do not record total operating expenses for MCEDC under the proposed FY2027 budget or per-member dollar totals at either the $1 or $2.25 per-capita level.

Both Committees to Continue Research

Both the Finance & Budget Committee and the Development & Personnel Committee will continue to research MCEDC funding heading into the county FY2027 budget cycle, the minutes record. No motion was made on a contribution level at the May 7 meeting.

The committees are the two county board bodies that have most direct interaction with MCEDC. Fath presented monthly updates at the Development & Personnel Committee meeting on May 4 as well as at the May 7 Finance & Budget Committee meeting.

MCEDC Activity Report

At the May 4 Development & Personnel Committee meeting, Fath reviewed her monthly report, which included attending 24 meetings and working on all 11 of MCEDC’s priorities. She told the committee the community calendar is now live on the MCEDC website and noted she has been working on encouraging more AT&T cell towers in the county. Fath also reviewed the MCEDC annual report, which she said included encouraging data on local entrepreneurship.

Context

Small-county economic development corporations across central and southern Illinois have faced funding pressure in recent years as municipalities navigate their own tight budgets, federal pandemic-era relief winds down, and corporate sponsorships and dues structures shift. The move to per-capita contributions ties member payments more directly to population — a model used by other Illinois regional development organizations and one that may produce larger contributions from the county’s bigger communities, including Litchfield and Hillsboro.

The minutes do not detail which specific municipalities or other public entities are currently MCEDC members or how the per-capita formula would interact with private-sector member contributions.

Next Steps

The FY2027 county budget cycle will continue through the summer and early fall, with health insurance renewal numbers expected in early September and a final county board decision on the health plan anticipated at the October meeting. The MCEDC funding question is expected to be revisited as the county budget moves toward adoption.