The Buda Economic Development Corporation voted at its March meeting to discontinue its $5,000 annual contribution to the Greater San Marcos Partnership, the organization responsible for economic development in Hays and Caldwell counties.

The partnership still receives support from several public entities, including the city of San Marcos, Hays County, Caldwell County, the city of Dripping Springs, the city of Kyle, the city of Lockhart and the city of Luling.

According to the Buda EDC’s resolution regarding the discontinued funding for the partnership, the EDC has grown concerned over competition with the partnership, declining resources being provided to cities other than the city of San Marcos during the past 18 months and the organization’s focus on the city of San Marcos.

“To facilitate the most efficient and effective economic development strategy for the citizens of Buda, it is critical that the Buda Economic Development Corporation invests in organizations that provide tangible benefits to the businesses and citizens of Buda and not in organizations that directly compete with or negatively impact economic development in the city of Buda,” the Buda EDC board stated in the resolution.

Cruz, Miller and another partnership representative will meet on March 20 to discuss how to move forward.

“Ultimately [ceasing funding to the organization is] the decision of my board, and I don’t think they’re going to change their mind,” Miller said.

The partnership also recently added the city of Dripping Springs to its list of public sector investors. The city will contribute $5,000 annually to the effort.

“Dripping Springs is excited about our recent investment in the Greater San Marcos Partnership because they understand that economic development is a regional effort, and the assets of Hays and Caldwell counties are diverse and significant,” Dripping Springs Mayor Todd Purcell said in a statement. “We are particularly interested in the partnership’s increased focus on destination tourism, as that intersects directly with our growing number of wedding and event venues and wine, beer and spirit producers.”

San Marcos City Council is in discussions about whether to continue funding the organization at $360,000 annually, the amount it has provided the partnership since 2010. A subcommittee consisting of Mayor Daniel Guerrero and council members Lisa Prewitt and John Thomaides has been tasked with creating a new contract with the organization that will enhance transparency and clearly define the roles the city and partnership each play in economic development.

One proposal council has discussed would reduce the city’s contribution to $120,000 annually. The remaining $240,000 would go toward the creation of an in-house economic development team. The city may also continue funding the partnership at its current level.

Discussions about the city of San Marcos’ involvement with the GSMP has stoked support for the organization, as the San Marcos Chamber of Commerce and the Four Rivers Association of Realtors have each circulated open letters to City Council urging continued support for the organization.