Transcript Slide 1

Generation West Virginia
Annual Winter Work Meeting
March 20, 2010
Today’s Program:
• Introduction
• Current Realities
– National, regional, statewide economic landscape
– Key findings from previous Market Street research
• Vision Shared
– Generation West Virginia
– 2008 work plan
• Implementation Progress
– Vision Shared
– Generation West Virginia
• Best Practices in Young Professional Programming
Market Street Services
Background on Market Street
• Founded in 1997 as an alternative to traditional economic development
firms.
• Located in Atlanta, Market Street maintains a staff of professionals that
excel in economic analysis and helping communities create long-term
strategies for change.
• Our commitment is to a definition of economic development that, at its
core, is about personal wealth creation for all citizens and building
better communities.
Market Street Current Clients
Currently, Market Street is working in the following communities:
–
–
–
–
–
–
–
Birmingham, Alabama
Hopkinsville, Kentucky
Northwest Arkansas
St. Louis, Missouri
Sioux Falls, South Dakota
Southwest Louisiana (Lake Charles)
Waco, Texas
Our Work with the State of West Virginia
• In 2000 and 2001, Market Street Services partnered with state
stakeholders to create West Virginia: A Vision Shared.
• The four goal areas of A Vision Shared focused on:
– Intellectual Infrastructure in the 21st Century
– New Economy: New Challenges and New Solutions
– Results-Based Government: Planning for the Future
– Building Bridges and Empowering Citizens
• From this plan, the Vision Shared, Inc was formed.
– Statewide public-private organization focused on implementing this plan and
addressing timely issues associated with community and economic development.
Our Work with the State of West Virginia
Many stakeholders have cited the greatest achievement of
West Virginia: A Vision Shared as creating a platform for
people from different backgrounds and with divergent
points of view to unite around shared values. Vision Shared
has helped to bring various public and private stakeholders
together, initiating dialogue and forging partnerships that
have not previously existed.
Our Work with the state of West Virginia
• Market Street was engaged in 2008 to assess the State’s strategic
opportunities and challenges, and to help chart new and continuing
goal areas for Vision Shared, Inc.
• This update process included:
– Competitive Assessment
– Rankings and Ratings
– Work Plan for West Virginia
Current Realities
Current Economic Realities
Source: Atlanta Journal Constitution November 4, 2008
The Great Recession: Dec. 2007 – Jan. 2010
Total Jobs
Lost During
Current
Recession:
8.35 million
15.3 million
unemployed
9.3 million working
part time, wanting
full-time work.
Source: Bureau of Labor Statistics, seasonally adjusted
Nationwide Job Losses, 2009
Source: U.S. Bureau of Labor Statistics. Seasonally adjusted.
U.S. Economy
• Total Job Losses during 2009:
4,781,000
“The Lost Decade”
U.S. Economy: Job gains and losses
by sector, 2009
Health care
Education
Government
Information
Wholesale Trade
Leisure & Hospitality
Professional and technical services
Financial Activities
Retail Trade
Trade & Transportation
Construction
Manufacturing
Source: U.S. Bureau of Labor Statistics, Moody’s Seasonally Adjusted
U.S. Economy
Losses and Gains
The U.S. economy lost 20,000 jobs in January 2010.
Here are a few of the affected sectors:
Goods-producing
-60,000
Construction
-75,000
Manufacturing
11,000
Service-providing
40,000
Trade, transportation, and utilities
15,000
Financial activities
-16,000
Professional and technical services
-1,600
Educational services
-2,000
Health care services
17,100
Leisure and hospitality
-14,000
Government
Source: U.S. Bureau of Labor Statistics
-8,000
Household Net Worth 1981-2009
Average Net Worth of Households and Non Profits, United States
(Adjusted for Inflation, 2009 dollars)
= National Recession
$700,000
$650,000
$600,000
-24.3%
$550,000
Q1'07 - Q3'09
$500,000
$450,000
Households
regained
some
wealth
during late
2009
(+9.7%)
$400,000
$350,000
$300,000
$250,000
$200,000
Source: United States Census Bureau, Moody’s Economy.com
Food Stamps
Percentage of Households Receiving Food Stamps
Source: Food and Drug Administration; Moody's Economy.com
1 out of
every 6.2
households
(Dec. 2009)
18%
16%
14%
12%
10%
8%
6%
4%
2%
0%
Key Dates:
1990 - Mickey Leland Domestic Hunger Relief Act greatly expands benefits.
1997 - Welfare reform; introduction of TANF leads to restrictions on access and benefits .
2002 - Food Security and Rural Investment Act reapproves restores eligibility limited in 1997.
2005 - Spike in food stamp receipients due to Hurricanes Katrina and Rita.
Consumer Confidence – Going Down Again
The consumer confidence index from a survey of 5,000 U.S. households:
Seasonally adjusted: 1985=100
Source: The Conference Board
Metro Economies Report
MSA
Atlanta, GA
Tampa, FL
Jacksonville, FL
Charlotte, NC
Louisville, KY
Nashville, TN
Birmingham, AL
Chattanooga, TN
Jackson, MS
Charleston, WV
Huntington-Ashland, WV-KY-OH
Morgantown, WV
Parkersburg-Marietta-Vienna, WV-OH
Wheeling, WV
Projected Employment Actual Employment
Change
Change
raw change % change raw change % change
-50,900
-2.1% -119,500
-5.0%
-42,900
-3.4%
-56,500
-4.8%
-22,300
-3.6%
-26,100
-4.3%
-15,800
-1.8%
-47,700
-5.6%
-15,100
-2.4%
-16,900
-2.8%
-15,100
-2.0%
-32,000
-4.3%
-11,900
-2.3%
-34,000
-6.6%
-6,300
-2.6%
-13,900
-5.8%
-5,200
-2.0%
-5,100
-2.0%
-1,900
-1.3%
-6,300
-4.1%
-1,700
-1.4%
-2,400
-2.0%
-600
-0.9%
500
0.8%
-1,200
-1.7%
-2,200
-3.1%
-900
-1.3%
-700
-1.0%
Projected
Employment Change:
Q4 08 – Q4 09:
Source: U.S. Conference of Mayors; Bureau of
Labor Statistics
State Unemployment Rates
January 2009 (preliminary estimates)
United States
West Virginia
Source: U.S. Bureau of Labor Statistics, seasonally adjusted
9.7%
9.3%
Michigan 14.3%
Nevada 13.0%
Rhode Island 12.7%
South Carolina 12.6%
California 12.5%
D.C. 12.0%
Florida 11.9%
Illinois 11.3%
North Carolina 11.1%
Alabama 11.1%
Mississippi 10.9%
Ohio 10.8%
Oregon 10.7%
Tennessee 10.7%
Kentucky 10.7%
Georgia 10.4%
U.S. Employment Sectors: 1984
Source: Bureau of Labor Statistics
U.S. Employment Sectors: 2009
Mining and
Logging, 1%
Construction, 5%
Manufacturing, 9%
Government, 17%
Other, 4%
Trade, Transportation
and Utilities, 19%
Leisure and
Hospitality, 10%
Education and Health
Services, 15%
Professional and
Business Services,
13%
Information, 2%
Financial Activities,
6%
Source: Bureau of Labor Statistics
West Virginia and the United States
Employment Sectors: 2009
Sector Employment (as % of total employment)
9%
Leisure and Hospitality
8%
Professional and Business Services
U.S.
4%
Financial Activities
2%
Information
18%
Trade, Transportation and …
7%
Manufacturing
16%
Education and Health Services
5%
Construction
4%
Mining and Logging
20%
Government
7%
Other
0%
Source: Bureau of Labor Statistics
West Virginia
5%
10%
15%
20%
25%
Per Capita Income
South
Alabama
Arkansas
Florida
Georgia
Kentucky
Louisiana
Mississippi
North Carolina
South Carolina
Tennessee
Virginia
West Virginia
National
Source: Bureau of Economic Analysis
1990
$24,967
$22,974
$31,090
$27,968
$24,513
$24,097
$20,787
$27,403
$25,243
$26,517
$32,476
$23,007
$31,145
% of
nation
80%
74%
100%
90%
79%
77%
67%
88%
81%
85%
104%
74%
100%
2000
$28,635
$26,417
$34,347
$33,719
$29,412
$27,809
$25,310
$32,607
$29,426
$31,440
$37,450
$26,391
$36,221
% of
nation
79%
73%
95%
93%
81%
77%
70%
90%
81%
87%
103%
73%
100%
2008
$33,643
$31,266
$39,070
$33,975
$31,826
$36,271
$29,569
$34,439
$31,884
$34,330
$42,876
$30,831
$39,751
% of
nation
85%
79%
98%
85%
80%
91%
74%
87%
80%
86%
108%
78%
100%
Unemployment Rate
SOUTH
Alabama
Arkansas
Florida
Georgia
Kentucky
Louisiana
North Carolina
South Carolina
Virginia
West Virginia
Tennessee
Mississippi
Texas
National
Source: Bureau of Labor Statistics
1990
6.3
6.8
6.3
5.2
6.1
5.9
4.2
4.9
4.4
8.6
5.5
7.7
6.4
5.6
2000
4.1
4.2
3.8
3.5
4.2
5
3.7
3.6
2.3
5.5
4
5.7
4.4
4
2008
5
5.1
6.2
6.2
6.4
4.6
6.9
6.3
6.9
6.4
4
4.3
5.7
5.8
Jan-10
11.1
7.6
11.9
10.4
10.7
7.4
11.1
12.6
6.9
9.3
10.7
10.6
8.2
9.7
Labor Force Participation Rate
Region
2008
United States
75%
Virginia
North Carolina
Georgia
Texas
Florida
Tennessee
South Carolina
Arkansas
Louisiana
Alabama
Kentucky
Mississippi
West Virginia
76%
74%
74%
74%
73%
73%
72%
71%
70%
70%
70%
69%
66%
Source: US Census Bureau, civilian labor force participation ages 20-69
The South: Current Recession
Net Job Change in Southern MSAs, 2008-2009
Atlanta, GA
Tampa, FL
Orlando, FL
Birmingham, AL
Charlotte, NC
Nashville, TN
Memphis, TN
Jacksonville, FL
Louisville, KY
Raleigh-Durham, NC
New Orleans, LA
Columbia, SC
Dallas-Ft. Worth, TX
Little Rock, AR
Houston, TX
Austin, TX
Charleston, WV
Morgantown, WV
2008
2009
Total,
2008-2009
-86,600
-63,500
-51,700
-13,500
-24,200
-19,500
-22,200
-24,400
-15,000
-8,500
800
-8,500
-34,400
-3,800
18,800
4,900
2,400
1,100
-119,500
-56,500
-50,100
-34,000
-47,700
-32,000
-30,600
-26,100
-16,900
-19,000
-6,600
-14,300
-89,600
-9,100
-98,600
-18,400
-6,300
500
-206,100
-120,000
-101,800
-47,500
-71,900
-51,500
-52,800
-50,500
-31,900
-27,500
-5,800
-22,800
-124,000
-12,900
-79,800
-13,500
-3,900
1,600
Source: Bureau of Labor Statistics, Current Employment Statistics, Economy.com adjusted
The South
Net Job Change in the South
December 2007 to December 2009
Florida
-569,700
Kentucky
-104,300
Georgia
-311,200
South Carolina
-102,600
North Carolina
-243,700
Mississippi
-56,900
Texas
-205,500
Arkansas
-34,800
Tennessee
-168,700
Louisiana
-29,800
Alabama
-120,200
West Virginia
-23,100
Virginia
-115,000
Source: Bureau of Labor Statistics, Moody’s Seasonally Adjusted
The South
Decline of Manufacturing Jobs
December 2007 to December 2009
Texas
-113,300
South Carolina
-35,800
North Carolina
-92,200
Virginia
-35,200
Georgia
-80,100
Arkansas
-23,100
Florida
-66,800
Mississippi
-20,200
Tennessee
-54,800
Louisiana
-17,100
Alabama
-45,624
West Virginia
Kentucky
-43,600
Source: Bureau of Labor Statistics, Moody’s Seasonally Adjusted
-8,100
The World in 2009 and 2010
“Anyone hoping for a period of calm after the turbulence of the
past year will be disappointed. For the economy and for
business, as well as for politics, 2009 promises to be a year of
bracing adjustment to a changed world.”
Daniel Franklin, Editor
The World in 2009
The Economist
“The good news about 2010 is that the world will emerge from
recession and the post-crisis economic landscape will become
clearer. Less cheerful is what that landscape will look like.”
Daniel Franklin, Editor
The World in 2010
The Economist
How Far Down?
Recession Realities
•
•
•
•
•
•
•
•
•
•
•
•
Mortgage and financial crisis – continuing problems
Huge decline in discretionary (especially retail) spending in 2009; holiday
season beat expectations (driven by online purchases).
The continuing decline in housing value, sales, and new construction
Widely fluctuating consumer confidence – down 50% from 2007
Job losses every month of 2008 and huge losses throughout 2009 – still falling
Federal and state deficits soaring across the country
Commercial Real Estate Market is falling rapidly
Exports have dropped rapidly and are very low
The continuing cost in Iraq and Afghanistan (human and fiscal) – new questions
Enormous stock losses and continuing market volatility
Fluctuating price of oil – rising now
Citizen anger and distrust (AIG, Madoff, TARP, etc.)
Source: J. Mac Holladay, October 2009
The Great Recession Has Left Us…
1. The decade of 2000 – 2009 was JOBLESS. While we gained
27 million new residents, we lost 985,000 jobs.
2. Four in ten Americans have been out of work for 27 weeks or
more, the highest since the measure’s creation in 1948.
3. The civilian labor force has shrunk by 1.5 million people - a
record since World War II.
4. Total loans at FDIC banks dropped 7.4 percent in 2009 - the
largest drop in 67 years.
5. The Standard & Poor’s Index (including dividends) from 2000
through 2009 was -9%: a greater loss than the 1930s.
Source: The Economist; Bureau of Labor Statistics; Atlanta Federal Reserve
The Great Recession Has Left Us…
6. Number of homes where the mortgage exceeds the value: 1 in 4.
7. Over 700 banks are at risk of failing in 2010.
8. Companies with fewer than 50 employees have accommodated for
41 percent of the total job losses in this recession. This number is
five times its share compared to the 2001 recession.
9. Household debt has declined 3.8 percent from its peak in July 2008
through October 2009. This is the largest decline since 1943.
10. Auto plants in the Southeastern U.S. have lost 16 percent of their
jobs since early 2008. Auto parts manufacturing have lost 20
percent.
Source: The Economist; Bureau of Labor Statistics; Atlanta Federal Reserve
“Elvis Has Left the Mountain”
“First, if it is not apparent to you yet, it will be soon:
there is no magic bullet for this economic crisis, no
magic bailout package, no magic stimulus…We are
going to have to learn to live with a lot more
uncertainty for a lot longer than our generation has
ever experienced.”
Thomas L. Friedman
New York Times
February 1, 2009
Key Issues
from the 2008
Competitive Assessment
Assessing Competitiveness for Success
People
1.
–
–
–
Population dynamics
Socio-economic health of adults and children
Workforce competitiveness
Economic Performance
2.
–
–
–
–
Economic structure
Labor market dynamics
Business climate
Innovation and entrepreneurship
Place
3.
–
–
–
–
Livability (including cost of living, transportation, public safety, housing market)
Environment
Arts and cultural amenities
Civic engagement
Competitive Assessment – Key Issue
Workforce supply
• Stagnant population growth
– From 2000 to 2007, West Virginia had grown by less than 4,000 residents
– From 2007 to 2009, West Virginia has grown by nearly 8,600
• Aging population
– 43 percent of the state’s population was age 45 or older in 2007, compared to
38 percent nationally
– 46 percent of the state’s population was age 45 or older in 2008,
compared to 40 percent nationally
• People are dropping out of the workforce
– Labor Force Participation held steady from 2006 to 2008 at 66%
Annual Unemployment Rates:
West Virginia and the Nation
20
18
16
14
12
10
8
6
4
2
0
United States
West Virginia
Source: U.S. Bureau of Labor Statistics
Employment and Labor Force Index
115
110
105
100
95
Jan
Apr
Jul
Oct
Jan
Apr
Jul
Oct
Jan
Apr
Jul
Oct
Jan
Apr
Jul
Oct
Jan
Apr
Jul
Oct
Jan
Apr
Jul
Oct
Jan
Apr
Jul
Oct
Jan
Apr
Jul
Oct
Jan
Apr
Jul
Oct
Jan
90
2001
2002
2003
2004
2005
West Virginia employment
United States employment
Source: U.S. Bureau of Labor Statistics
2006
2007
2008
West Virginia labor force
United States labor force
2009 2010
Competitive Assessment – Key Issues
Workforce skills
• Solid performance in K-12 investments and programming.
• Poor overall student performance in reading, math, and writing.
• High school dropout rates lower than the nation.
– Public higher education is accessible
– Average public tuition – West Virginia $9,992 - United States $12,108
• Improvements in educational attainment…
– Percent of adults w/o a high school diploma dropped from 25% in 2000 to 19%
in 2006
– Percent of adults w/ at least a bachelor’s degree increased from 15% in 2000 to
17% in 2006
…..but West Virginia still lags behind.
Educational Attainment of Adults (ages 25 and older), 2008
100%
10%
10%
90%
17%
6%
8%
19%
80%
70%
60%
7%
Bachlor's Degree
21%
Associate's Degree
50%
Some College, No Degree
41%
40%
30%
29%
15%
18%
0%
United States
High School Graduate
No Diploma
20%
10%
Graduate or Professional School
West Virginia
Source: U.S. Census Bureau
Competitive Assessment – Key Issues
Community health and wellbeing
• Proliferation of chronic disease.
– 3rd highest proportion of overweight and obese adults
– Highest total population death rate
– Proportion of adults diagnosed with diabetes and hypertension exceed the
national average and continues to rise
• Elevated infant mortality rates.
• Increasing concern related to health insurance coverage and
costs.
Competitive Assessment – Key Issues
Business climate
• Judicial system perceived as anti-competitive.
– The lack of an intermediate appellate court, record setting punitive damage
awards, and the method for electing judges are all circumstances unique to West
Virginia and a small number of other states.
– Governor Joe Manchin commissioned a study panel, which reported its key
findings in late 2009.
• Improvements in business tax structure.
– The Corporate Net Tax is being phased into reduction through 2014 and the
Business Franchise Tax will be phased out completely by 2015.
• Workers compensation reform.
– One of the most successful turnarounds in state history…and in the nation.
• Expanding Broadband coverage.
Competitive Assessment – Key Issues
Entrepreneurship and Innovation
• West Virginia’s entrepreneurs are prosperous.
– From 2000 to 2007, average receipts for non-employer firms grew 17% in West
Virginia, compared to 8% nationally
• Low patent and venture capital (VC) activity.
– In 2007, only 116 patents were issued statewide (or 6.4 per 100,000 residents)
compared to about 14 patents per 100,000 residents in most of the benchmark
states
– In 2006, the state attracted 3.7 million in VC putting West Virginia in the lowest
quartile of states in terms of VC disbursements per $1,000 of GDP
• Potential economic opportunities in energy and green business.
– WVU partnership with University of Pittsburgh and Carnegie Mellon
– Center for Economic Options partnership w/ 8 state universities
West Virginia:
Employment by Sector – pre-recession
West Virginia’s Employment and Wages, by Sector, Q3 2005 – Q3 2007
Employment
3Q2005
3Q2007
Number
Change
Mining
25,296
27,867
2,571
10%
$60,361
6%
Prof Services, Management
63,392
65,939
2,547
4%
$47,342
10%
Retail, Wholesale
114,035
116,165
2,131
2%
$25,782
4%
Government
135,052
136,946
1,894
1%
$38,462
6%
Other Services
94,832
96,332
1,500
2%
$19,401
7%
Health Care
101,640
103,136
1,497
1%
$35,381
5%
Construction
39,018
40,201
1,184
3%
$38,107
13%
Transportation, Utilities
23,066
23,495
429
2%
$44,001
3%
Information, FIRE
40,074
40,131
57
0%
$35,595
4%
Agriculture
2,235
2,166
-69
-3%
$23,789
11%
Manufacturing
62,599
59,191
-3,408
-5%
$43,876
3%
701,239
711,570
10,331
1%
$32,370
3%
Total
Source: U.S. Bureau of Labor Statistics
Percent
Change
Average Wage
Q3 2007
Average
Annual
Percent
Wage
Change
West Virginia:
Employment by Sector – this recession
West Virginia’s Employment and Wages, by Sector, Q2 2007 – Q2 2009
Employment
Wages
Q2 2007
Q2 2009
Number
Change
Health care
118,175
124,446
6,271
5.3%
$
35,927
6.5%
Government
46,406
48,553
2,147
4.6%
$
40,149
3.0%
Mining
27,264
29,242
1,977
7.3%
$
72,721
15.1%
Education
63,485
64,471
986
1.6%
$
49,839
9.7%
Professional services, Management
29,583
29,990
407
1.4%
$
50,078
11.0%
Other Services
115,923
115,756
(166)
-0.1%
$
18,588
6.8%
Agriculture, forestry, fishing and hunting
2,158
1,902
(256)
-11.8%
$
24,246
4.8%
Transportation, Utilities
31,150
29,925
(1,225)
-3.9%
$
47,129
8.0%
Arts, Entertainment
12,070
9,980
(2,090)
-17.3%
$
19,274
6.1%
Information, FIRE
41,327
38,952
(2,375)
-5.7%
$
37,588
6.6%
Construction
43,675
38,381
(5,295)
-12.1%
$
41,998
8.8%
Retail, Wholesale trade
115,788
109,994
(5,794)
-5.0%
$
27,709
5.0%
Manufacturing
59,332
50,957
(8,375)
-14.1%
$
46,746
2.6%
708,901
695,372
(13,529)
-1.9%
$ 36,905
7.4%
Tot al
Source: U.S. Bureau of Labor Statistics
Percent
Change
Q2 2009
Average
Annual Wage
Percent
Change
Rankings and Ratings
• Economy
– Best States for Business, (Forbes): 50th in 2008; moved up to 46th in 2009
– State New Economy Index, (Kauffman Foundation): 50th in 2007; up to 49th in 2008
• Education
– Quality Counts, (Education Week): 6th in 2008; moved to 9th (B- overall, but an F
and rank of 49 in K-12 achievement) in 2010
– Technology Counts, (Education Week): 1st in 2007; in 2009 given an A and a
grade of 100 (tied with 8 other states for top spot)
• Quality of Life
– Best States for Business, (Forbes): 50th in 2008; moved up to 46th in 2009
– State New Economy Index, (Kauffman Foundation): 50th in 2007; up to 49th in 2008
Vision Shared
About Vision Shared, Inc
Vision Shared brings together a diverse group of public and private
interests in order to strengthen the economy of West Virginia.
Programs and initiatives fall under four areas:
– Intellectual Infrastructure – focusing on early childhood development and
seamless education programs
– New Economy – supporting entrepreneurship development, sustainable
development, and creative communities
– Results-Based Government – working with legislature and administration to
address issues including long-term health care, energy, environment, and
state/federal government relationships
– Building Bridges and Empowering Citizens - developing tomorrow’s leaders
and building non-profit capacity
About Generation West Virginia
• Generation WV is a statewide coalition of local and regional young
professional groups.
– Partner organization of Vision Shared
– Founded in 2007 with the aim of cultivating young talent across the state of West
Virginia
– Coordinates efforts to attract and retain young professionals at the state level
• 11 member local and regional groups
• Governor's Council of Young Talent
• Annual Young Leadership Conference
About Generation West Virginia
• Generation West Virginia has 5 key focus areas:
1.
2.
3.
4.
5.
Legislative & Policy Issues
Economic Development & Impact
Statewide Image & Marketing
Leadership Development
Best Practices & Outreach
Work Plan for West Virginia
• This report outlines five priority “work areas” where change is
necessary to advance West Virginia to the “next level” of economic
competitiveness
• Acting now on these five areas can ensure A NEW WEST VIRGINIA
• Each work area includes:
– An explanation of the issue and its associated challenges
– Best practice examples of what other communities and states have done to
effectively address similar challenges
– Priority actions West Virginia’s public and private sector leaders should pursue
in order to initiate (or continue to make) progress in each work area
Five “Work Areas”
• Build a business environment for the New Economy
• Improve community health and wellbeing
• Create a 21st century workforce
• Leverage and support entrepreneurs and researchers
• Enhance West Virginia’s image
Implementation
Progress
Build a business environment for the
New Economy
• Reform the Courts
– Governor Joe Manchin commissioned a study panel to review the
court system.
– The panel recommended the state consider the following changes:
› Expand the courts
› Judicial elections
› Judicial appointments
– Legislators pass judicial nominations bill (3/13/2010)
Improve community health and wellbeing
• In July 2009, Governor Manchin signed senate bill 414, which requires the
development and implementation of a 5-year plan that seeks to extend
affordable, high quality healthcare to every West Virginia resident.
–
–
–
–
Creation and funding for an oversight office
Creation of four patient-centered “medical home” pilots in the state
Access for the uninsured
Implementation of health information technology statewide
• West Virginia offers Medicaid members incentives for volunteering to
participate in the state's medical-home initiative
• State wants flexibility in Federal reform efforts in order to expand the medical
home model statewide
Create a 21st century workforce
• 21st Century Jobs Cabinet of West Virginia
– Formed to enhance the state’s quality of education
– Developing a results-based pay system for teachers, with support from both of
WV’s teacher unions
– Created “innovation zones”
• Little progress made in reforming the state’s Community and
Technical College System
– Need to make economic development a driving tenet
› Business assistance (WV Advance) based on applications and grant funding
› Economic development specialists are needed at each institution
› Expand the WV Advance brand to include all workforce training services
– Increase 2-year college accessibility for high school students
Leverage and support entrepreneurs and
researchers
• Bucks for Brains
– WVU has raised $5.9 in private donations and has requested matching funds from the
state; Marshall has raised just under $1 million
– The Trust’s interest fund has made grants to other colleges and universities:
› Concord and West Liberty Universities will both receive $100,000 grants (to be matched by
private donations within the next 5 years) for undergraduate research in the sciences and
mathematics
•
Note: The recession has caused state governments to cut back to meet budget shortfalls. It has also likely affected the
ability of Marshall and WVU to raise funds for “bucks for brains”.
• Research and development tax credit
– The State now offers a Strategic R&D Credit to offset up to 100 percent of corporate net
income tax and business franchise tax based on qualified expenditures for R&D
expenditures
• Small Business Development Centers
– State has not yet moved forward to restructure SBDCs to include an increased focus on
entrepreneurship development.
Enhance West Virginia’s image
• Expansion of the “Come Home to West Virginia” marketing campaign
– “Come Home for the Reunion & Stay for a Lifetime” -2009
– Department of Commerce distributed more than 20,000 reunion kits to 350
family and school reunions held throughout the state
• Generation WV is making strides to enhance West Virginia’s image
among its young professionals:
– Created the Governor’s Council of Young Professionals
– Day at the Legislature
Governor’s Council for Young Professionals
• The voice for young talent in WV to the Governor. The council has two
members (a male and a female) from each of Generation WV’s
regional/local groups.
– Present 2 to 4 of the most pressing issues for young talent in West Virginia to the
Governor
– So far, the Council has made progress on four of their major proposals
› A Voice for Young Talent on State boards, committees, and commissions –
› Two appointments so far
› The Governor’s Summit on Young Talent – the governor will host this summit in May
› Creative Communities Bill – made further progress in the legislative cycle than before
› Grants for Grads – WV Housing Development Fund staff is providing assistance on the
proposal
“More and more companies and skilled labor locate
where they want—not where they must.”
Ross DeVol
The Milken Institute Review, 2002
“Economic development today, more than ever
before, is about talent management. Regions that
are successful in economic development are
creating and maintaining a community that is
attractive for creative workers.”
Richard Florida
2007
Best Practices
In Young Professional Programming
Quality of the workforce is #1
economic development issue
Workforce Growth
Annual Rates of Labor Force Growth: 1950-2025
• Baby boomers reach
3.0
working age
• More women and minorities
join the workforce
2.6
2.5
1.7
2.0
1.5
1.1
1.6
1.2
1.0
1.0
0.2
0.5
0.0
1950-60 1960-70 1970-80 1980-90 1990-00 2000-15 2015-25
• Baby boomers begin to
retire
• They are replaced by a
numerically smaller
generation
Critical labor shortages
Source: U.S. Bureau of Labor Statistics
Why are Young Professionals important?
• According to the Bureau of Labor Statistics, between 2008 and 2018:
– Replacement of older, retiring workers will account for 67 percent of the
approximately 51 million job openings.
– Occupations requiring at least some postsecondary education are expected to
experience higher rates of growth (18%) than those requiring only on-the-job
training (8%).
• Regions with a higher proportion of older workers, outmigration, and
lower educational attainment levels have the most acute workforce
sustainability risk.
• There is a war for talent among communities. Those that will prevail
will be successful in attracting and retaining young professionals.
Young Professional Organizations
• YPOs are an ally in the war for talent.
– Stem brain drain
– Cultivate leaders
• There are over 300 YPOs in the U.S. and Canada with
over 1,000,000 members.
• In a 2007 survey conducted by Next Generation
Consulting:
– 53% of YPs indicated that their YPO positively impacted their
perception of the quality of life their community has to offer.
– 56% of YPs indicated they plan to live in their community for 10
years or longer.
Source: Next Generation Consulting
Young Professional Organizations
Social/Networking
Professional
Development
Community
Connections
Policymaking
and
Economic
Development
Source: Market Street Services
Generation Iowa
Generation Iowa Commission
 Established in 2007 by the Governor to advise the Department of Economic
Development on young professional retention and recruitment activities, and to develop
best practice guidelines for businesses in recruiting and retaining young workers
 15 appointed voting members (ages 18-35)
 4 appointed non-voting members (two state senators and two representatives)
Initial Recommendations
Include the following:
› Implement a Higher Education Tax Credit
› Provide student loan repayment assistance for high need occupations – Iowa offers loan
forgiveness to nurses, teachers, and chiropractors
› Develop a Merit Scholars Program
› Improve Iowa’s image through strategic marketing
due to state budget shortfalls during the recession, many of
these recommendations have not yet been realized
Generation Iowa
2010 and 2011 Initiatives
 Voting seats on state boards and commissions for YPs
 Statewide, lifetime hunting/fishing/furbearers licenses at a discounted rate to 18-35s
 Leadership and civic engagement opportunities for Iowa high school and college
students
 Statewide student loan reduction initiatives
- Best Practices they look to: New Hampshire’s “Stay Work Play”, Maine’s
“Opportunity Maine”
 Cross-generational youth initiative to engage high school and college students in
discussions about how to attract and retain young people
Lehigh Valley Network of Young Professionals
Mission
• Connect young professionals to the people places and experiences unique
to the Lehigh Valley.
• Enhance regional economic development through retention and
attraction of exceptional young talent pool.
What they have found
• By rapidly integrating young professionals into the community, the
community becomes:
› “Sticky”
› “Exciting”
› “The place to build your career”
› “ The place to raise your family”
Source: Lehigh Valley Network of Young Professionals
Lehigh Valley Network of Young Professionals
• Organization
› Budget of $17,000; financial support comes from private donations, member dues,
corporate sponsorships, grants, and event sponsorships
› Staff is all volunteers
› Partnerships with the Chamber, EDC, Arts Council
› Formed a YP advisory council for the Mayor of Allentown
• Corporate Benefactors
› Benefactors include the Ben Franklin Technology Partners and Pacific Power
› Benefactors provide financial support to NET, and in turn provide themselves with a vital
human resources tool to retain and attract young professionals
• Events
› Monthly: film night, game night, lecture series breakfasts, dine-out club, networking
meetings
› FYI events: cultural events (e.g. classical music outings), personal statement and
GRE/MCAT/LSAT workshops with Kaplan, etc.
Quad Cities Young Professionals Network
• Organization
– Founded in 2008, from the merger of two young professional groups, this
network serves more than 2300 members in the Iowa and Illinois Quad Cities.
– Staff are mostly volunteers, with a paid director.
– A leadership council made up of local professionals contributes to program
development and direction
– Action committees are staffed by volunteers who oversee organization and
planning for events
• Mission
– Advocate for the interests of young professionals; provide opportunities for
service learning and leadership; connect young professionals with hiring needs
of Quad Cities’ employers; facilitate social and professional development
Quad Cities Young Professionals Network
• Emerging Professionals Network
– Targeted at the local college population and through partnerships with local
colleges, this is a retention program designed to help move local college
students into local jobs
– In addition to networking sessions, mentoring, and events at career fairs, EPN
offers career-resource and career-awareness information for students to
access on their own including information on career opportunities and
internships in the Quad Cities, and tours of local employers.
Emerge Montgomery
• “Rally in the Alley”
– United Way campaign kick-off
– Volunteer expo for area non-profits
• Support for the Chamber’s Annual
Diversity Summit
– Started in August 2008
What are you going to do?
Moving Forward
• Potential to use Generation WV as a platform to launch Financial Aid
Saturday workshops
– Best Practice: Austin, Texas
– Focus on districts with lower college matriculation rates
• Be at the table if PROMISE Scholarships are restructured to require
recipients to stay in-state for a period of time
• Consider creating Emerging Young Professional programs in chapters
with large universities nearby
Moving Forward
• Stronger corporate connections
– Corporate sponsorships
– Potential to assist the state’s major employers and the Department of Commerce
with staffing needs by providing testimonials, reaching out to recent “transplants,”
etc.
• Develop metrics and a tracking score card for your organization’s strategy
implementation
– Best Practice: National Urban League Young Professionals
• Keep pushing, keep working together, and don’t give up.
Two Things To NEVER Say:
“We have always done it that way.”
“We tried that once before.”
“Change is debilitating when done to us, but
exhilarating when done by us.”
Rosabeth Moss Kanter
World Class
Discussion & Questions