With states across the country facing tighter budgets, Gov. Jim Douglas’ administration on Monday proposed merging two departments to create a singular Department of Economic and Community Development.

The administration seeks to increase efficiency and cut funds by merging the state Department of Economic Development and the Department of Housing and Community.

“This consolidation will result in a more integrated and coordinated effort to retain and expand Vermont’s employment opportunities, invest in communities, foster economic vitality and build housing that working Vermonters can afford,” Commerce and Community Development Secretary Kevin Dorn said in a statement on Monday. “In a time of shrinking revenues, state government must use innovation and technology to do more with less.”

As a result of the change, one commissioner position will be eliminated.

Dorn also announced Douglas’ chief of staff Betsy Bishop would replace former Department of Economic Development Commissioner Mike Quinn, who stepped down earlier this month..

He noted that Bishop’s experience in the public and private sectors, as well as her familiarity with polices would be crucial assets in the upcoming years. Bishop has worked for Douglas since he first became governor in 2002.

Douglas concluded: “Betsy’s ability to successfully lead and manage many complex issues while working with diverse interests will benefit the Agency of Commerce and Community Development and help to ensure that Vermont acts quickly to pass an economic plan that grows our economy, creates jobs and helps struggling families.”