The Dane County Board unveiled a plan last week that would give local businesses an edge over their competition when the county is looking to purchase products.

County supervisor Kyle Richmond said he proposed the ordinance because he wanted to strengthen the local economy. The county currently gives preference to locally-owned vendors and service providers for county initiatives, he said, and this ordinance would take this idea one step further by prioritizing local goods and materials for county projects as well.

“I think we need to strengthen our local economy and make sure we are maintaining as many businesses and jobs that feed the local economy as possible,” Richmond said.

Colin Murray, executive director of Dane Buy Local, said when the county needs materials for a service or a project, it would ask businesses to offer their goods at a price. If a local business puts up a bid for the county to consider, they are given preference over a business outside the county, he said.

For example, a county facility could need 50 cases of tomatoes, Murray said. Tomato suppliers will vie for the county’s business by offering their goods for price. If a local supplier bids within a certain percent of another supplier, the county will offer the local supplier the chance to match the lower bid and receive the profits from the sale, he said.

Murray said the ordinance is an incentive for local businesses to sell to the county and keep their profits in the community. If the county gives local suppliers their business, the profits from those sales will be used elsewhere in Dane County.

For every $100 the county spends on local goods, $73 will stay in community, Murray said. For every $100 the county spends with national businesses, $43 will stay in the community, he said.

“[The ordinance] is recirculating money into the local economy,” Murray said. “It makes sense [Dane County] would want to keep their dollars local because it benefits the people that live in the county and increases tax revenue.”

Richmond added the ordinance is important because the county wants money, jobs and businesses to stay in the area. Many jobs have gone out of the state and the county, he said, and the ordinance is one way to encourage local business.

While the ordinance could benefit local tax revenue, it could also have costs for taxpayers, Richmond said. The county is agreeing to pay a slightly higher cost to purchase goods made in Dane County than they would if the goods came from out of the area, he said.

Richmond said he is not sure how great the effect would be for purchasing decisions in the county. By state law, the county is not allowed to give preference to local businesses for public works projects, only for goods and supplies, which are a much smaller portion of their budget.

The proposal will face final approval from the county board later this month.