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CONNECT SI
Southern Illinois: Garden of the Gods
Readiness Assessment
Chapter 6: Regional Perspectives
January 27, 2008; revised February 17
ViTAL Economy Alliance
Frank Knott, Project Lead; Stan Halle, Senior Editor;
Jim Haguewood, Rob Beynon, & Neil Gamroth, Principal Economic Researchers
[email protected]; http://www.vitaleconomy.com
—1—
©2007 ViTAL Economy, Inc.
Table of Contents
EXECUTIVE OVERVIEW: the Big Picture &
Importance of Change in SI
READINESS ASSESSMENT (RA)
1. State, National & Global Trends
2. Indigenous Resources & Industry Asset Mapping
3. Enabling Environment Necessities
4. Climate of Innovation, Incubation & Entrepreneurship
6.01 Demographic Picture
6.02 Economic Picture Across SI
5. Southern Illinois Competitiveness
6.03 Economic Picture by SubRegion (COI)
6. Regional Perspectives
6.04 Livable Community:
Assessment
7. Roadmap to Success
6.05 Infrastructure: Assessment
6.06 Healthcare: Assessment
APPENDICES
6.07 Implications &
Recommendations
—2—
©2007 ViTAL Economy, Inc.
Southern Illinois — "Garden of the Gods"
This Chapter of the RA provides a regional and sub-regional perspective and analysis in preparation for an
overall SI economic strategy. Each sub-region (aka geographic COI) contains unique assets that can be
leveraged to support the achievement of the overall Connect SI community and economic development goals .
Chapter 6:
Regional Perspective
6.01 Demographic Picture ……………………………………………….. 4
6.02 Economic Picture Across SI ………………………………………. 10
6.03 Economic Picture by Sub-Region (COI) …………………………. 26
6.04 Livable Community: Assessment …………………………………. 64
6.05 Infrastructure: Assessment ………………………………………… 84
6.06 Healthcare: Assessment …………………………………………… 89
6.07 Implications & Recommendations ……………………………….. 116
—3—
©2007 ViTAL Economy, Inc.
Southern Illinois — "Garden of the Gods"
This Section provides a condensed overview of the demographic trends across SI, focusing on
youth brain drain and educational attainment.
Chapter 6:
Regional Perspective
6.01 Demographic Picture
—4—
©2007 ViTAL Economy, Inc.
SI: Sizeable Population . . .
6.01 Demographic Picture
% of the Total Population
by Sub-Region
Over 419,992 residents in SI
region, comparable to a major
metropolitan area (as of 2006)
Greater Egypt corridors of
Highway SR13 & I-55 and the
home of SIU contain most of the
region’s population
Three rural sub-regions are
approximately equal in
geographic area
SI represents 3.3% of total IL
population
300,000
250,000
61%
200,000
S5
SE
GW
GE
150,000
100,000
50,000
15%
12% 12%
0
Critical mass exists in Southern Illinois!
Source: Census Bureau data 2002, 2006
—5—
©2007 ViTAL Economy, Inc.
6.01 Demographic Picture
SI Youth and Young-Adult
Brain-Drain-Gap
Southern Illinois % Population Growth
1990-2000 (census-to-census)
1
0
-1
-2
+0.9%
TOTAL
POPULATION
-7.2%
-3
20-29
YEAR
OLDS
-4
-5
-6
-7
SI is losing tomorrow’s
workers, 20-29 year olds
Over 18 population:
65.7% have high school
education, 13.2% have
Bachelors degrees
Recent trends show that
high achievers are
leaving the area
Recapturing departing
youth is key to labor pool
and economic growth
-8
Without the next generation of workers, Connect SI strategies
will be much more difficult to achieve
Source: BEA and U.S. Census update data
—6—
©2007 ViTAL Economy, Inc.
6.01 Demographic Picture
“We Loose the Best and Brightest: SI Adults Tell Our Children
That There Will Be No 21st Century Opportunity in SI”
Age Distribution Comparison
SIU and the community colleges
generate an above average 2030 year old population
This young population leaves the
region for more attractive
opportunities, despite SI having
the resources that should help
retain them
8.00%
Increasing
Your Burden
7.00%
6.00%
5.00%
4.00%
Losing Your
3.00%
Future Workforce
Increasing Your Burden
2.00%
1.00%
SI
Illinois
90
+
0.00%
un
de
r
15 5
to
1
30 9
to
34
40
to
4
60 9
to
6
75 4
to
79
Proportion of Population (%)
9.00%
Losing Your Future Workforce
SI is losing its most productive
age group while increasing the
resource-demanding
demographic of retirees
The youth are already here — they
need to be proactively retained
Source: U.S. Census Bureau – Table QT-P1: Age Groups and Sex: 2000 and RA Interviews
—7—
©2007 ViTAL Economy, Inc.
SI Educational Attainment Gap
6.01 Demographic Picture
SI region lags Illinois in
high school completion
Bachelor and higher
degrees of education, SI is
less than half Illinois rate
Trends run counter to
modern need for increased
levels of education and
training
Population with High School or Higher
in SI Regions vs. IL
S5
SE
GW
GE
IL
0%
20%
40%
60%
80% 100%
Population with Bachelor Degree or Higher
in SI Regions vs. IL
S5
SE
GW
GE
IL
U.S.
34% of adult workers in the U.S.
have a bachelor degrees or more;
almost three times the SI rate
0%
10%
20%
30%
40%
Source: U.S. Census Bureau (2000 Census)
—8—
©2007 ViTAL Economy, Inc.
6.01 Demographic Picture
SI is the size of a major metro area — but doesn’t yet
behave like one
The entire region is suffering from significant youth brain
drain
Demographics Summary
A declining youth demographic is a major challenge to developing
successful economic development strategies
The population is aging in line with the entire U.S.
This will have a larger impact on the region if SI cannot recapture
the youth leaving and influencing this shift
SIU and the community college infrastructure provides a
key driver to shift the aging demographic trend in SI
The overall educational attainment level will need to be
increased for SI to compete in a global economy
—9—
©2007 ViTAL Economy, Inc.
Southern Illinois — "Garden of the Gods"
This Section provides a condensed overview of the economic development assets,
conditions and trends for all of SI.
Chapter 6:
Regional Perspective
6.02 Economic Picture Across SI
— 10 —
©2007 ViTAL Economy, Inc.
6.02 Economic Picture Across SI
SI Regional Introduction
• SI population and economy are similar to that of a major metropolitan area
o Even with this size Southern Illinois suffers from lack of political clout state-wide
due to the “Chicago-land” influence
• The cities bordering SI in neighboring states are attractive and draw money
and resources out of the region
o A significant proportion of medical patient dollars from the region travel to
surrounding states
o Attractive job opportunities have been created in the neighboring cities that result in
out-migration of disposable income expenditures
o Many top management personnel live in these communities and work in SI
• From 2001-2003 the SI region lost over 2,300 manufacturing jobs or 20% of
that sectors employment
• Greater Egypt dominates the SI region with respect to population and GDP,
but not in average wage levels
• Government transfer payments comprise 64% of the regions personal income
• The region possesses a strong and experienced social services infrastructure
• SI’s land base is dominated by agriculture designation, but has been
experiencing declining economic benefit (through 2005)
— 11 —
©2007 ViTAL Economy, Inc.
Economic Profile: Southern Illinois
6.02 Economic Picture Across SI
SI # of Jobs by Region
Employment by Sector
160,000
Number
%
Average
Wage
Wholesale & Retail
28,910
14%
$29,339
Government
26,597
13%
$51,139
Health
22,210
11%
$29,363
Other
20,320
10%
$29,649
Natural Resources
20,246
10%
$35,097
Manufacturing
18,009
9%
$54,310
Tourism
16,862
8%
$16,332
Education
14,984
7%
$28,285
F.I.R.E.
12,525
6%
$59,720
KBEs
9,011
4%
$57,617
Construction
8,996
4%
$48,246
Transport & Utilities
8,627
4%
$52,414
207,297
100%
$38,952
140,000
120,000
100,000
80,000
60,000
40,000
20,000
0
S5
SE GW GE
Overview:
Employment: 207,297
Labor Participation rate
66.5%
GDP: $17.6 billion
Top three GDP producers
1. Government – 20%
2. F.I.R.E. – 18%
3. Natural Resources – 13%
Total
Source: BEA data; VE Economic Scenario Model
F.I.R.E = Finance, Insurance & Real Estate
— 12 —
©2007 ViTAL Economy, Inc.
Greater Egypt Dominates SI Economy
6.02 Economic Picture Across SI
Population by Sub-Region
GDP by Sub-Region
300,000
$12.0
64%
250,000
$10.0
$8.0
S5
SE
200,000
$6.0
GW
GE
150,000
61%
S5
SE
GW
GE
100,000
$4.0
50,000
$2.0
11%
11%
14%
15%
12%
12%
0
$0.0
Population
GDP ($Billions)
Source: Census Bureau
Source: Connect SI Economic Scenario Model
• Greater Egypt's economic progress should be linked to the other sub-regions
•
• Achieving a sustainable and growing SI economy, requires that
all sub-region assets should be integrated and leveraged
• It takes critical mass to be globally competitive
• Collaboration is how SI gets there!
— 13 —
©2007 ViTAL Economy, Inc.
Population and Wages:
SI versus Illinois & U.S.
6.02 Economic Picture Across SI
Cumulative Population
Trend (1980 – 2005)
35%
30%
25%
20%
15%
10%
5%
0%
-5%
30.5%
Population in Southern Illinois
has seen a decline in the past
25 years — a dramatic
difference vs. Illinois and U.S.
trends
Total wage growth in SI has
been slow, far outpaced by that
of both U.S. and Illinois
U.S.
IL
11.6%
(-3.0%)
SI
Growth in Wages Over 25 Years
(1980 – 2005)
$30,000
$25,000
$20,000
$15,000
63%
Higher
Than SI
73%
Higher
Than SI
U.S.
IL
SI
$10,000
$5,000
$0
U.S.
IL
SI
Source: Bureau of Economic Analysis
— 14 —
©2007 ViTAL Economy, Inc.
Average Wages Lagging
6.02 Economic Picture Across SI
SI region average wages are
almost 30% lower than the
state average
While IL wages are above the
U.S. on average, SI wages
remain below
Lower wages mean lower
consumer spending power
with additional impacts on
healthcare, education and
social services
2005 Average Wage
by Sub-Region versus IL
$50,000
$40,000
$30,000
$20,000
S5
SE
GW
GE
IL
US
$10,000
$0
Greater Egypt’s economy is four times the size of the other sub-regions,
has the largest base of innovation assets, and two of its counties are rated
as Creative-Class Counties, yet its wages are no higher than rest of SI
Source: BEA, Regional Economic Accounts
— 15 —
©2007 ViTAL Economy, Inc.
SI Per-Capita Wages are Low
and Per-Capita Transfer Receipts are High
6.02 Economic Picture Across SI
$35,000
$30,000
$25,000
$20,000
Per-Capita Wages
$15,000
Per-Capita Transfer
Receipts
$10,000
$5,000
$0
S5
SE
GW
GE
IL
KY
IN
Southern Illinois
SI currently underperforms Illinois — Connect SI’s initiative would
push transfer receipts down and push per capita wages up
Source: Bureau of Economic Analysis Regional Bare Facts ; 2006 — 16 —
©2007 ViTAL Economy, Inc.
Where SI Personal Income Comes From
6.02 Economic Picture Across SI
GW
GE
SE
S5
SI
Illinois
U.S.
Total Personal Income (% of personal
income composition)
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
Earnings by Workplace
57.0%
69.0%
54.5%
52.0%
63.5%
79.5%
78.0%
Wage and Salary Disbursements
35.4%
48.8%
36.5%
35.1%
43.7%
57.3%
55.5%
Supplements to Wages and Salaries
10.7%
13.2%
9.4%
9.6%
11.9%
13.5%
13.3%
Proprietors' Income (Business
Owners)
10.9%
7.1%
8.6%
7.3%
7.8%
8.7%
9.2%
Adjustment for Residence
8.7%
-0.3%
7.0%
10.6%
3.2%
-0.3%
0.0%
Dividends, Interest, and Rent
18.5%
16.6%
15.9%
14.4%
16.5%
16.5%
15.8%
Personal Current Transfer Receipts
21.4%
21.7%
28.2%
28.2%
23.3%
12.8%
14.7%
Less: Contributions for Government
Social Insurance
5.7%
7.0%
5.7%
5.2%
6.5%
8.4%
8.5%
SI earnings by workplace are 25% lower than Illinois, 23% lower than US
SI needs to grow the job base by at least 20% = 40,000+ new jobs
Source: Bureau of Economic Analysis Regional Bare Facts 2006; Connect SI Economic Model
— 17 —
©2007 ViTAL Economy, Inc.
6.02 Economic Picture Across SI
SI Dependency on Government Transfer
Payments Exceeds State & National Benchmarks
2006 Government Transfer
Payments as % of Total Earnings
35
30
25
SI
20
15
U.S.
IL
10
5
0
% of Total Earnings
Southern Five
Southeastern
Greater Wabash
Greater Egypt
Transfer payments: income payments to persons for
which no current services are performed — payments by
government and business to individuals and nonprofit
institutions serving individuals
SI region’s income is
comprised of 23.1%
government transfer
payments, compared with
just 12.6% for IL and 14.2%
for U.S.
Highest dependency on
government transfer
payments in Southern Five
and Southeastern —
percent of income through
such payments exceeds
25%
Dependence on government
payments restrains regional
economic development and
hinders entrepreneurial spirit
Source: Bureau of Economic Analysis Regional Bare Facts 2006
— 18 —
©2007 ViTAL Economy, Inc.
6.02 Economic Picture Across SI
Only 46% of SI Personal Income is Generated by
Private Sector Employment
70%
60%
U.S.
64%
67%
54%
50%
40%
Private Sector Payroll &
Benefits by Sub-Region
46%
IL
36%
30%
SI
33%
GW - 48%
GE - 53%
SE - 42%
S5 - 38%
20%
10%
0%
Private Sector
Transfer Paym ents
Increasing private sector percentage of personal income
generation is crucial to building a climate of innovation
Source: BEA & ViTAL Economy Analysis
— 19 —
©2007 ViTAL Economy, Inc.
Income Sources: Impact on the Region
6.02 Economic Picture Across SI
SI needs a 30% increase in private vs. public sector earnings to equal
the U.S. ratio between public and private earnings
Majority of income received from the public sector reduces the climate
of entrepreneurship in the region and creates a risk-averse
environment
Smaller amount of per-capital income generated through productive
purposes versus a much larger amount received from public sources
and other transfer payments results in a weak view of business and
economic opportunity
Income disparity creates negative opportunity image for youth in the
region for productive work
Income disparity fuels the youth brain drain in the region by
suppressing any youthful sense of hope and opportunity
With only 46% of income received from private sector earnings, SI’s
ability to afford the community and economy it wants is greatly limited
— 20 —
©2007 ViTAL Economy, Inc.
SI Land Utilization is Less Than 3% Urban & Built
6.02 Economic Picture Across SI
Sq. Mi.
5,229
2500
1,581
671
239
216
369
8,306 Sq. Mi.
2000
Southern Five
1500
Southeastern
Greater Egypt
1000
Greater Wabash
500
0
Agriculture
Forests
Urban & Built
Wetland
Surface Water
Land Mass Utilization
S5
SE
GE
GW
SI
Agriculture
47%
59%
65%
80%
63%
Forests
21%
28%
16%
13%
19%
Urban & Built
2%
3%
4%
2%
3%
Wetland
8%
8%
10%
4%
8%
Surface Water
2%
2%
4%
1%
3%
Barren & Exposed Land
20%
0%
0%
0%
4%
— 21 —
Barren &
Exposed Land
• SI developed land
mass is only 57%
the size of Shawnee
National Forest
• Shawnee National
Forest is 5% of SI
land base
Source: Illinois State Dept of
Natural Resources
©2007 ViTAL Economy, Inc.
The Value of SI Land is Shifting
6.02 Economic Picture Across SI
1997
2002*
% Change
Land in Farms (Acres)
1,185,000
1,192,000
1%
Market Value of Production ($)
$184,331,000
$151,092,500
-18%
Government Payments ($)
$12,919,000
$16,235,000
26%
• *2007 Agriculture statistics will reflect higher market value per acre due to
increased commodity prices, especially for hybrid ethanol corn
• Since 2000:
o Number of farms and acres being farmed has stayed relatively stable
o Value of farmland and buildings has increased by 27%
o Cropland rent per acre has increased by 20%
• Up to 60% lower yield in crop value per acre compared to Central Illinois or
Northern Illinois
o Soil and moisture characteristics account for much of the lower yield
Source: NASS 2002 Census of Agriculture
— 22 —
©2007 ViTAL Economy, Inc.
SI KBE: Professional, Scientific, Technical
and Information (PST&I) Work Force Gap
6.02 Economic Picture Across SI
SI has 50% fewer PST&I workers than IL and
U.S. at a time when they are the fastest
growing job sectors of the U.S. economy
% of Employment
10%
8%
8.5%
7.7%
6%
4%
2%
0%
KBE success largely related to PST
sector of the economy (90% of new jobs)
PST workers as percent of economy
indicates ability to benefit from this growth
area
IL
SI
Information industry “I” workers work with
telecom and information networks
U.S.
4.3%
PST workers include those in
establishments specializing in
professional, scientific and technical
activities — engineering, computers,
architecture, law, and accounting
Region
KBE Workers
% of SI KBE
6,227
69%
907
10%
Southeastern
1,070
12%
Southern Five
808
9%
9,012
4.3%
Greater Egypt
Greater Wabash
SI Total KBE
Sources: BLS, IDES, BEA
— 23 —
©2007 ViTAL Economy, Inc.
6.02 Economic Picture Across SI
Current State: Southern Illinois
Traditional Business Strengths
Rising Business Stars
•
•
•
•
•
•
•
•
•
•
•
•
Agriculture: corn and soybeans
Energy: coal and oil
Southern illinois university
Manufacturing
Marine transportation and logistics
Transportation and logistics
Tourism, including ecotourism and vineyards
Clean coal technologies
Health services
Advanced manufacturing
Arts and artisans
Young entrepreneurs
People, Land & Jobs
Notable
• % of IL Land Mass = 15.0%
• % of IL Population = 3.3%
• % of IL Employment = 2.8%
•
•
•
•
•
Dependencies
•
•
•
•
•
Public sector employment
Transfer payments
Social security
Pensions
Farm subsidies
Home to 2nd largest university in Illinois
Shawnee National Forest
Mississippi, Ohio, and Wabash Rivers
Interstate highway system and CN Rail
SICCM (Southern Illinois Collegiate
Common Market)
• Mid-America geographic location
• Rich historical area and assets
• Proximity to five major metro areas
— 24 —
©2007 ViTAL Economy, Inc.
6.02 Economic Picture Across SI
Opportunities & Challenges:
Southern Illinois
Opportunities
Challenges
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Natural resources
Transportation & logistics
Homeland security
Recreational tourism
Geography, climate & location
Quality of life
Proximity to markets
Senior living
KBE and innovation
Broadband coverage
Geographic isolation
Political climate
Business attractiveness
Curb appeal
Regional identity
Workforce availability
Focus on sunset industries
Self image and respect
Limit climate of collaboration
Key Trends
Growth Enablers
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Youth population decline
Hwy 13 I-57 corridor growth
SIU declining enrollment
Medical professional recruitment difficulties
Coal economy rebirth
Upscale tourism unaddressed
Expanded internet infrastructure
One Region – One Vision
Aging population
Emerging KBE businesses
Business incubation structures
Business startup capital, angel investor networks
Regional branding
Value-added manufacturing strategies
Connectivity & collaboration
Entrepreneur networks
Business and industry clustering
Technology transfer
e-Commerce development
— 25 —
©2007 ViTAL Economy, Inc.
Southern Illinois — "Garden of the Gods"
This Section provides economic factors that were identified by each of the four geographic COIs,
plus notable trends, and 2012 goals.
Chapter 6:
Regional Perspective
6.03 Economic Picture by Sub-Region (COI)
— 26 —
©2007 ViTAL Economy, Inc.
The 20 Southern Counties of Illinois
6.02 Economic Picture by Region
Connect SI
includes 4
sub-regions:
bounded by the Mississippi, Ohio and Wabash Rivers
Connect-SI Region
130 Miles East-West
Southern Five
Union, Johnson,
Alexander, Pulaski,
Massac
Southeastern
Pope, Hardin, Saline,
Hamilton, Gallatin
GE
Greater Wabash
Randolph, Perry,
Jackson, Jefferson,
Franklin, Williamson
100
Miles
North
to
South
SE
White, Wayne,
Edwards, Wabash
Greater Egypt
G
W
S5
Population = 423,670
Source: U.S. Census Bureau 2006; VE Economic Scenario Model
— 27 —
Workforce = 207,297
©2007 ViTAL Economy, Inc.
Economic Profile: Southern Five COI
6.03 Economic Picture by Sub-Region
SI Number of Jobs by Region
Employment by Sector
160,000
Number
%
Average
Wage
Government
4,076
17%
$51,139
Wholesale & Retail
3,027
12%
$31,953
Natural Resources
2,932
12%
$22,236
Health
2,541
10%
$29,363
Tourism
2,444
10%
$16,329
Manufacturing
1,568
6%
$54,310
Overview:
F.I.R.E.
1,359
6%
$59,035
• Labor Participation Rate – 62.8%
Education
1,228
5%
$28,285
• GDP: $2.1 billion
Construction
1,145
5%
$48,246
Transport & Utilities
963
4%
$55,430
• Government – 26%
KBEs
809
3%
$57,478
• F.I.R.E. – 17%
Other
2,225
9%
$29,549
• Natural Resources – 12%
Total
24,317
100%
$37,641
140,000
120,000
100,000
80,000
60,000
40,000
20,000
0
S5
SE GW GE
o Top three GDP generators
Source: BEA Data and RIMS II multipliers
— 28 —
©2007 ViTAL Economy, Inc.
S5
Southern Five Population Trends
Prison Population Removed (None in S5 Open in 1980)
6.03 Economic Picture by Sub-Region
1980
Alexander
2004 est.
Change
2004 est. No
Prison
Change
No Prison
12,280
9,228
(-24.9%)
8,774
(-28.6%)
Johnson
9,691
13,029
34.4%
9,431
2.7%
Massac
15,036
15,294
1.7%
15,294
1.7%
Pulaski
8,847
6,950
(-21.4%)
6,950
(-21.4%)
17,857
18,195
1.9%
18,195
1.9%
63,711
62,696
(-1.6%)
58,644
(-8.0)%
Union
Southern Five
Region
Comparison during same period: USA +13.1%: Illinois +11.2%; Illinois (without Prison Population) +10.9%
Alexander County has experienced the greatest population decline
of any SI county, over 25% since 1980
Source: COI Milestone and U.S. Census Data
— 29 —
©2007 ViTAL Economy, Inc.
S5
Region Losing Best Resource: Young Adults
(No Prison Population included)
6.03 Economic Picture by Sub-Region
Young Adults as %
of Population (2004)
Aging Population (2004)
100%
More
Retirees
80%
7.0%
6.0%
5.0%
60%
40%
20%
0%
IL
64+
15-64
up to 15
4.0%
US
3.0%
IL
2.0%
S5
Fewer
Children
1.0%
0.0%
15-19
20-24
25-29
S5
Source: U.S. Census, Prison Population Removed
— 30 —
©2007 ViTAL Economy, Inc.
S5
Intermodal Transportation Opportunity
6.03 Economic Picture by Sub-Region
Strategic Position of Cairo, Alexander County:
Trends:
Junction of the Mississippi and Ohio Rivers
Interstate 57
Proximity to Interstate 55 and 24
Major rail carriers
Large part of U.S. trade deficit is comprised as empty containers returning to Asia
Development of CN Rail traffic in the Midwest
Increasing container-on-barge traffic on the Mississippi
Production of export products in or in proximity to SI including cotton, soy, corn, pulp,
silica
Active regional transportation providers engaged in river and barge traffic and trucking
Opportunity: connect regional products with export markets via transportation
infrastructure and services
Projected annual economic impact of this Intermodal opportunity is
estimated at ~$100 million in GDP (est. 1,182 direct, indirect & induced jobs)
Source: ViTAL Economy Economic Scenario Model & Inter VISTAS Intermodal Study for City of Cairo, SIDEZ & USDA
— 31 —
©2007 ViTAL Economy, Inc.
S5
Economic Profile: Southern Five COI
6.03 Economic Picture by Sub-Region
S5 Traditional Business Strengths
S5 Rising Business Stars
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Government
Mississippi barges
Forestry
Transportation
Recreation and tourism
Transportation and logistics
Tourism, including ecotourism and vineyards
Energy, including ethanol, bio-diesel
Advanced manufacturing
Artisans and arts
Proposed coal gasification plant
Harrah’s Casino — Metropolis
Wineries
Golf course & residential development
Mermet Springs Diving Center
LaFarge Concrete Plant
S5 People, Land & Jobs
S5 Notable
• % of IL Land Mass = 3.3%
• % of IL Population = 0.50%
• % of IL Employment = 0.33%
•
•
•
•
S5 Dependencies
• Government employment
• Transfer payments
• Government dependence on casino revenues
•
•
•
•
•
•
Mississippi and Ohio Rivers
CN Rail North-South line
Interstate 55
Tourism, heritage sites & events, e.g.:
• Ft. Massac Civil War Encampment
• Superman Festival
Indian settlements
Unique climate & long growing season
Shawnee College
Mermet Springs
Wine, golf, B&B trails
Extensive social service expertise
— 32 —
©2007 ViTAL Economy, Inc.
S5
6.03 Economic Picture by Sub-Region
Southern Five Region
(23 Feb 2007)
Southern Five COI: Goals
2012
Same
Trend
Baseline
2012
Goal
Change
vs.
Baseline
Change vs.
2012 Same
Population (2004)
58,644
53,971
63,000
+7.4%
+16.7%
Employable Population (16-64)
(2000)
35,887
33,014
40,950
+14.1%
+24.0%
Labor Participation (16-64)
(2000)
62.8%
62.8%
71.0%
+13.1%
+13.1%
Employed 2004 All Ages
24,317
25,550
26,856
+10.4%
+5.1%
$27,959
$35,980
$37,591
+$9,632
+$1,611
$679.9m
$919.3m
$1,010m
+$329.7m
+$90.3m
Average Wage 2004
Total Region Wages 2004
Determination of specific measurable, wage & employment goals from change in regional wages vs. 2012 trend
NEW JOBS:
784
WAGE: $43,500
$34.1m
NEW JOBS AT AVERAGE WAGE:
522
WAGE: $36,517
$19.6m
IMPROVEMENT OF EXISTING JOBS:
4,863
WAGE: $5,000
$24.3m
CLIMATE OF ECONOMIC OPPORTUNITY:
$12.2m
— 33 —
©2007 ViTAL Economy, Inc.
S5
6.03 Economic Picture by Sub-Region
KBE
Identify best practices and trends in trucking and transportation
Identify additional training funds for programs
Closure of Cairo Airport, best practices of airports in rural areas, location, operations, security issues, trends in
air transport
Energy
Process materials and piping, CO2 in process piping
Mental health expertise, exportable mental health product
Wetland recovery, flood plains
Music production, college instruction and local artists
Local history experts
Artisans and products
Goal: Start 35 businesses with 10 employees each by 2012
Logistics/Transportation
Southern Five COI:
Opportunities
Learn from other communities that have gone through a large project development process
Improve communication between communities within 20 county area
Research switch grass cellulose potential
Nuclear power
Tourism
B&B’s golf and wineries; build off of successful activities
Dining and restaurant needs in support of tourism
Aggregate demand with wineries and B&B’s
Define the specific regional tourism goals, quantifiable and measurable
Linking the different trails together
— 34 —
©2007 ViTAL Economy, Inc.
S5
6.03 Economic Picture by Sub-Region
Southern Five: Highlights
S5 Opportunities
S5 Challenges
•
•
•
•
•
•
•
•
•
•
•
Lack of skilled workforce for current and future jobs
Lack of cooperation, collaboration, and regionalism
S5 lacks the assets to grow and retain tech-based jobs
No sense of urgency
K-12 system needs support
Limited healthcare availability to Alexander, Johnson
and Pulaski Counties
• Electrical rates
• “There are so many problems, where do you start”
Geography location; transportation & logistics
50% of U.S. market within 10 hours of S5
Community College System and SIU
Increase healthcare availability
Tourism, bed & breakfast, wineries
Shawnee National Forest and state parks
Agribusiness opportunities
(e.g. ethanol and bio-diesel)
Unique natural locations
Significant historic site
Senior services
•
•
•
•
•
•
S5 Key Trends
S5 Climate for Growth
•
•
•
•
•
•
•
•
•
•
•
•
•
Strong core of community leadership
Growth of bed and breakfast facilities
Expansion and growth of lodging facilities in Metropolis
Investment in residential developments
Region is receiving major investments attention
Most high level executives do not live in the area
Limited availability of workforce
Source: Connect SI COI, RA Interviews and VE
Travel and tourism; history, experience
Outdoor recreation activities and events
Mississippi and Ohio river transportation
Golf and wine trails
Transportation and logistics
Alternative energy
— 35 —
©2007 ViTAL Economy, Inc.
S5
6.03 Economic Picture by Sub-Region
Economic Profile: Southeastern COI
Employment by Sector
SE Number of Jobs by Region
Number
%
Average
Wage
Natural Resources
3,706
17%
$36,730
Wholesale & Retail
2,919
13%
$32,522
Government
2,763
13%
$51,139
Health
2,264
10%
$29,363
Tourism
1,590
7%
$16,329
F.I.R.E.
1,336
6%
$60,261
Transport &
Utilities
1,109
5%
$51,629
Construction
1,100
5%
$48,246
Education
1,021
5%
$28,285
823
4%
$54,310
KBEs
1069
5%
$58,134
Other
2,203
10%
$29,352
Total
21,903
100%
$39,458
160,000
140,000
120,000
100,000
80,000
60,000
40,000
20,000
0
S5
SE GW GE
Overview:
Labor Participation Rate – 69%
GDP: $2.0 billion
Top three GDP generators
1. Natural Resources – 22%
2. Government – 18%
3. F.I.R.E. – 17%
Manufacturing
Source: BEA Data and RIMS II Multipliers
— 36 —
©2007 ViTAL Economy, Inc.
SE
Southeastern: Population Trends
6.03 Economic Picture by Sub-Region
1980
2005 est.
Change
Gallatin
7,590
6,152
(-18.9%)
Hamilton
9,172
8,301
(-9.4%)
Hardin
5,383
4,718
(-12.3%)
Pope
4,404
4,211
(-4.3%)
Saline
28,448
26,072
(-8.3%)
SE Region
54,997
49,454
(-10.0%)
Comparison during same period: USA +13.1%, Illinois +11.2%; (without Prison population 10.7%)
In the past 25 years, all five SE counties have lost
significant population
Source: COI Milestone
— 37 —
©2007 ViTAL Economy, Inc.
SE
Shawnee National Forest Visit Profile and Projections
6.03 Economic Picture by Sub-Region
Room for Increased Daily Spend Rates
Current Impacts: Shawnee National Forest Annual Visitation 500,000
Characteristic
Local Day
Trips
Non-local
Day Trip
Motel
Camp
Current Visitors
46%
12%
27%
9%
Visitor Segment
230,000
60,000
135,000
45,000
500,000
Shawnee Spend
$27 /day
$27 /day
$118 /day
Est. $113 /day
$64 /day
Estimated
Expenditures
$6.2 m
$1.6 m
$15.9 m
$5.1 m
$30.2 m
National Spend
$33 /day
$ 52 /day
$181 /day
Est. $143 /day
$105 /day
Potential
Expenditures
$7.6 m
$3.1 m
$24.4 m
$6.4 m
$41.6 m
Potential Revenue
Gain
$1.3 m
$1.5 m
$8.5 m
$1.4 m
$12.7 m
TOTAL
Source: NPS Spending and Payroll Impacts, 2005, Spending Profiles for National Forest Visitors, May 2005
Note: Total potential spend for Shawnee is based on totaling national spend category columns, not total visitors x average national spend
— 38 —
©2007 ViTAL Economy, Inc.
SE
Shawnee National Forest: Opportunity
SE
6.03 Economic Picture by Sub-Region
Increased spending leads
to tourism jobs
Achieving national
averages of daily spend
rate estimated to create
235 new jobs in Southern
Illinois
This is based on forestrelated spending alone
Increased non-forest
spending would create
more jobs
Infrastructure and camp
improvements are needed
to achieve this result
Increased Spend Rates to National Averages
Would Create 235 Jobs
800
700
600
Jobs
500
Potential
Current
400
300
200
100
0
Note: Analysis based on BEA RIMs II model analysis
— 39 —
©2007 ViTAL Economy, Inc.
6.03 Economic Picture by Sub-Region
Economic Profile: Southeastern COI
SE Traditional Business Strengths
SE Rising Business Stars
•
•
•
•
•
•
•
•
•
•
•
•
Coal mining
Agriculture
Hunting
Aggregate rock
Historical sites and museums
Barge and river industry
Tourism, including ecotourism
Recreational manufacturing
Mining-related spin-offs
Coal mining
Guiding and Outfitting
Disaster recovery knowledge
SE People, Land & Jobs
SE Notable
• % of IL Land Mass = 3.07%
• % of IL Population = 0.40%
• % of IL Employment = 0.30%
•
•
•
•
•
SE Dependencies
• Government jobs
• Transfer payments
•
•
•
•
Ohio Scenic Byway
Coal reserves
Shawnee National Forest, Garden of the Gods
Southeastern Illinois College
Tourism & heritage sites & events, eg: Slave
House, Trail of Tears, Milestone Bluffs
Festivals: Fresh Water Shrimp Festival, etc.
Undeveloped tourism sites
Dixon Springs Ag Center
Unique climate & long growing season
— 40 —
©2007 ViTAL Economy, Inc.
SE
6.03 Economic Picture by Sub-Region
Southeastern Region
(23 Feb 2007)
Southeastern COI: Goals
2012
Same
Trend
Baseline
2012
Goal
Change vs.
Baseline
Change vs.
2012 Same
Population (2004)
49,465
47,833
56,000
+13.2%
+17.1%
Employable Population (16-64)
(2000)
31,115
30,373
36,400
+17.0%
+19.8%
Labor Participation (16-64) (2000)
63.4%
63.4%
70.0%
+10.4%
+10.4%
Employed 2004 All Ages
21,903
19,256
25,500
+16.4%
+32.4%
$27,494
$35,604
$40,206
+$12,782
+$4,672
$602.2m
$685.6m
$1,027m
+$424.8m
+$341.4m
Average Wage 2004
Total Region Wages 2004
Determination of specific measurable, wage & employment goals from change in regional wages vs. 2012 trend
NEW JOBS:
3,746
WAGE: $43,500
$163.0m
NEW JOBS AT AVERAGE WAGE:
2,498
WAGE: $40,276
$100.6m
IMPROVEMENT OF EXISTING JOBS:
4,381
WAGE: $5,000
$21.9m
CLIMATE OF ECONOMIC OPPORTUNITY:
$56.0m
— 41 —
©2007 ViTAL Economy, Inc.
SE
Southeastern COI: Opportunities (1 of 2)
6.03 Economic Picture by Sub-Region
What is the market
opportunity?
Opportunity
Lodging capabilities
Training facilities
Increase marketing access
A clear growing need to support the
expanded employment need and also
the near future retirement of miners
Train our own CO, Police, etc. rather
than 12 weeks of time and funds spent
in Springfield
Drug Rehab Center
Shawnee National Forest
Service participation
By linking resources and upgrading
skills it will increase the visitor
expenditures per day in the region
Teaching mine training
Correctional Officer Training
Center
Expanded tourism stays, $175$200/day
Bringing Producer closer to Consumer
for SI products
NO existing program of its kind in SI;
Termination of price per day or course
needs to be researched.
Expanded tourism stays, $175$200/day
What unique assets are
being leveraged?
Locating the facilities near unique areas
The Outfitter experience, Ohio Scenic
Byway, Festivals
SIC (potential link to Rend Lake) —
abandoned mines in the area to create a
real life training center
Existing knowledge base of correction
and law enforcement in SI and facilities
Shrimp, PM building materials, wines
Connect to Tourism (trails) as part of
rehab; knowledge base; lodging
Shawnee National Forest as one of the
most unique locations on North America
Source: COI Milestone
— 42 —
©2007 ViTAL Economy, Inc.
SE
Southeastern COI: Opportunities (2 of 2)
6.03 Economic Picture by Sub-Region
What is the market
opportunity?
Opportunity
Lodging, Condos, Cabins
Food & Dining
Game Cuisine
Market regional festivals
together
Team With Rend Lake
Culinary Arts School
Garden of the Gods
Hundreds of visitors experiencing a
variety of activities including hiking,
biking, hunting, etc.
Improvement of the overall tourism and
visitor experience and product in the
region
Unique culinary experience.
Preparation of hunters game during
their stay in the area. Deer-related
products
What unique assets are
being leveraged?
Shawnee National Forest and Glen O.
Jones Lake
Existing facilities and programs that can
be leveraged without large upfront costs
Large variety of game available in the
region
Master calendar and extended stays at
$175-$200/day
Leveraging visitors to meet local products
bringing Producer closer to Consumer
Improvement of the overall tourism and
visitor experience and product in the
region
Existing facilities and programs that can
be leveraged without large upfront costs,
Job Corps, RLC, SIC
Expanded tourism stays, $175$200/day
One of a kind natural resource
Source: COI Milestone
— 43 —
©2007 ViTAL Economy, Inc.
SE
6.03 Economic Picture by Sub-Region
Southeastern Tourism Goals
Recognizing the extensive indigenous resources in
Southeastern and under-tapped tourism industry
potential, the COI set several goals:
Increase expenditures by $10m/yr
Increase lodging taxes by $85k/yr
Increase daily spending by 19% ($60 to $76)
Increase occupied room-nights in the region by 8,000 per year
Focus on three areas (take 19 areas through the filter):
Fee-hunting
Historical tours
Eco-tourism
Source: Southeastern COI
— 44 —
©2007 ViTAL Economy, Inc.
SE
6.03 Economic Picture by Sub-Region
Southeastern Highlights
SE Opportunities
SE Challenges
• Bring resources to SE through relationships and
alliances
• Natural and small town environments are positive
places to live, work and play
• Leverage the Dixon Springs Center, unique climate
• Grow reputation for entrepreneurship
• Grow tourism industry by leveraging unique location,
heritage sites and natural features
• Unique small river towns
• Leverage coal mining knowledge base in new ways;
disaster recovery, safety systems, training
•
•
•
•
•
•
•
SE Key Trends
SE Climate for Growth
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Growth and prominence of Southeastern College
Rebirth of coal industry
Transportation of coal from Shawneetown terminal
Regional recognition including videos highlighting
the unique natural features
• Growth of the Ohio Scenic Byway
• Weak workforce availability
Overall limited resources in the area
Declining tax revenue base
Change age demographic
Limited broadband penetration
Lack of lodging facilities (187 rooms)
Limited affordable housing
Industrial water availability in Hamilton County for
mine expansion
• Entrepreneurship support structures
• Quality housing stock
Agriculture research and development
Comfortable mild Midwest climate: senior living
Tourism; unique natural environment & locations
Vast amount of coal resources
Variety of coal industry knowledge
Processing of coal closer to raw material
Mine to mouth energy production
Growing need for coal workers & disaster training
Entrepreneurship and innovations
KBE workers in unique small towns
Source: Connect SI COI, RA Interviews and VE
— 45 —
©2007 ViTAL Economy, Inc.
SE
Economic Profile: Greater Wabash COI
GW
6.03 Economic Picture by Sub-Region
Employment by Sector
GW Number of Jobs by Region
Number
%
Average
Wage
Natural Resources
4,974
19%
$41,213
Wholesale & Retail
3,789
14%
$31,223
Manufacturing
2,702
10%
$54,310
Government
2,452
9%
$51,139
Health
2,377
9%
$29,363
F.I.R.E.
1,949
7%
$61,000
Tourism
1,334
5%
$16,345
Construction
1,283
5%
$48,246
Education
1,045
4%
$28,285
Transport &
Utilities
940
4%
$54,220
KBEs
906
3%
$57,349
Other
2,641
10%
$28,484
Total
26,392
100%
$41,009
160,000
140,000
120,000
100,000
80,000
60,000
40,000
20,000
0
S5
SE GW GE
Overview:
Labor Participation Rate – 71%
GDP: $2.5 billion
Top three GDP generators
1. Natural Resources – 25%
2. F.I.R.E. – 19%
3. Government – 13%
Lowest % in SI region
Source: BEA Data and RIMS II multipliers
— 46 —
©2007 ViTAL Economy, Inc.
Greater Wabash: Population Trends
GW
6.03 Economic Picture by Sub-Region
1980
2004 est.
Change
Edwards
7,993
6,785
(-15.1%)
Wabash
13,776
12,601
(-8.5%)
Wayne
18,157
16,814
(-7.4%)
White
17,964
15,221
(-15.3%)
Greater Wabash Region
57,890
51,421
(-11.2%)
Comparison during same period: USA +31.1%, Illinois +11.2%
GW has the greatest population loss in SI from 1980 to 2004 —
more recent estimates show trend continuing
Source: Bureau of Economic Analysis and Census Bureau
— 47 —
©2007 ViTAL Economy, Inc.
6.03 Economic Picture by Sub-Region
Older Age Distribution Puts SI
GW
at Economic Disadvantage versus Illinois
Proportion of Population (%)
Age Distribution Comparison
10%
9%
8%
7%
6%
5%
4%
3%
2%
1%
0%
5
er
to
d
n
0
U
1
14
20
to
24
30
to
34
40
to
44
50
to
54
Greater Wabash
60
to
64
70
to
74
80
to
84
+
90
Dramatic loss of 2034 yr olds in GW
region
GW has a greater
percent of people
over 55 than the rest
of Illinois
Median age higher in
GW (40) than Illinois
(34.7)
Illinois
To grow economically, the region needs to retain
younger workers and grow job opportunities
Source: U.S. Census Bureau – Table QT-P1: Age Groups and Sex: 2000
— 48 —
©2007 ViTAL Economy, Inc.
6.03 Economic Picture by Sub-Region
Out-Migration is Eroding GW’s Future
Youth Brain Drain
(Future Workforce)
* 16.3% drop in 10 years
* $19.1m in lost wages
GW
Out-migration of
Healthcare
Revenues
* $32.9m of $55.5m
Out-of-Region Jobs &
Disposable Income Spending
* $14.7m-$23.6m per year
* Worth 200-315 Jobs
Economic Value Lost to GW: $56.7m-$75.6m EVERY YEAR!
— 49 —
©2007 ViTAL Economy, Inc.
Economic Profile: Greater Wabash COI
GW
6.03 Economic Picture by Sub-Region
GW Traditional Business Strengths
GW Rising Business Stars
•
•
•
•
•
•
•
•
•
Agriculture
Mining
Manufacturing, eg: Airtex, Champion Labs
Oil extraction
Education system
Tourism, especially hunting
Energy
Oil industry supplies and equipment
Outfitting/Hunting, eg:
• Campbell’s Outfitters
• Entrepreneur businesses: Elastec, Dinger Bats
GW People, Land & Jobs
GW Notable
• % of IL Land Mass = 3.0%
• % of IL Population = 0.41%
• % of IL Employment = 0.35%
•
•
•
•
•
•
GW Dependencies
•
•
•
•
Transfer payments
High coal industry retirees
Pension income
Manufacturing employment
•
•
•
•
•
Wabash River
Business connections with Indiana
Interstate (I-64); proximity to Evansville, IN
Nearby Toyota plant (Princeton IN)
Postcard small towns
College System: Illinois Eastern Community
Colleges, Frontier, Wabash Valley
Oil reserves
Online education initiatives
Major regional business owners live in the area
Major source of water in the area
Lower unemployment rate then the rest of SI
Source: Connect SI COI, RA Interviews and VE
— 50 —
©2007 ViTAL Economy, Inc.
6.03 Economic Picture by Sub-Region
Greater Wabash COI: Goals
Greater Wabash Region
(23 Feb 2007)
2012
Same
Trend
Baseline
2012
Goal
Change vs.
Baseline
Change vs.
2012 Same
Population (2004)
51,421
49,561
53,000
+3.1%
+6.9%
Employable Population (16-64)
(2000)
31,980
30,777
32,913
+2.9%
+6.9%
Labor Participation (16-64) (2000)
71.1%
71.1%
72.5%
+1.97%
+1.97%
Employed 2004 All Ages
26,400
25,445
27,746
+5.1%
+9.0%
$26,311
$33,671
$36,517
+$10,206
+$2,846
$694.6m
$856.8m
$1,013m
+$318.9m
+$156.4m
Average Wage 2004
Total Region Wages 2004
GW
Determination of specific measurable, wage & employment goals from change in regional wages vs. 2012 trend
NEW JOBS:
1,381
WAGE: $43,500
$60.1m
NEW JOBS AT AVERAGE WAGE:
920
WAGE: $36,517
$33.6m
IMPROVEMENT OF EXISTING JOBS:
5,280
WAGE: $5,000
$26.4m
CLIMATE OF ECONOMIC OPPORTUNITY:
$36.4m
— 51 —
©2007 ViTAL Economy, Inc.
Greater Wabash COI: Opportunities
GW
6.03 Economic Picture by Sub-Region
• Energy
o Become an Alternative Energy Capital of the World
o Methane Gas, ethanol and bio-diesel, geo-thermal technologies,
green coal concept
• KBE
o
o
o
o
Recertification programs
Connect with tourism to improve quality of the industry
Continuing education; lawyers, accountants, realtors, etc.
Local PC support group
• Tourism
o
o
o
o
o
o
o
Four wheeler activities, racetracks, competitions, training track
Hunting facilities and guide services, turkey and deer
Lone Ranger Festival, Mt. Carmel
Beall Woods, trails, improvement of facilities
Underground coal mine park view the fault
Underground four wheel tours and adventures
Develop a spillway for the Wabash River; 4 ft.
— 52 —
©2007 ViTAL Economy, Inc.
6.03 Economic Picture by Sub-Region
Greater Wabash: Highlights
GW Opportunities
GW Challenges
• Leverage the community college system for high
demand online areas such as nursing
• Attractive climate and environment for KBE workers
• Utilize the college system to attract young adults to
slow the youth brain drain
• Unique small town atmosphere near Evansville
• Entrepreneurship and business incubation
• KBE opportunities from energy knowledge base
• Utilization and leveraging of the expanded
broadband infrastructure; education, services,
connections with external resources and customers
• Youth brain drain
• Uncomfortable attitude towards change
• Bedroom community (for out-of-state employment)
and spending)
• Consumer spending trend in Indiana
• Residential curb appeal – risk of lowering value
• Lack of a clear regional differentiation in SI
GW Key Trends
GW Climate for Growth
•
•
•
•
•
• Unique small town atmosphere; bedroom
community
• Low cost property values
• Export of educational programs
• Oil, gas and coal extraction knowledge
• Entrepreneurship strategy – business
incubation linked with expertise and existing
loan funds; GWRPC, SDC, City of Carmi, Wayne
City, City of Fairfield
• KBE businesses and employment
•
•
•
•
•
Significant youth brain drain
Out migration of healthcare services to Indiana
Employment opportunities in Indiana
Substantial consumer spending in Indiana
Expanded economic dependence on Champion
Labs and Airtex
Strong base of annual community events
Large farmers purchasing additional land
Limited availability of workforce
Growth and improvements in Fairfield
East of I-57 & South of Hwy 50 negative growth
GW
Source: Connect SI COI, RA Interviews and VE
— 53 —
©2007 ViTAL Economy, Inc.
Economic Profile: Greater Egypt COI
6.03 Economic Picture by Sub-Region
SI Number of Jobs by Region
Employment by Sector
160,000
Jobs
%
Average
Wage
Wholesale & Retail
19,176
14%
$28,070
Government
17,306
13%
$51,139
Health
15,028
11%
$29,363
Manufacturing
12,916
10%
$54,310
Education
11,690
9%
$28,285
Tourism
11,493
9%
$16,332
140,000
120,000
100,000
80,000
60,000
40,000
20,000
0
S5
SE GW GE
Overview:
Labor Participation Rate – 66%
Natural Resources
8,635
6%
$35,241
GDP: $11.1 billion
F.I.R.E.
7,881
6%
$59,430
Transport & Utilities
5,615
4%
$51,749
Construction
5,468
4%
$48,426
KBEs
6,227
5%
$57,658
Other
13,250
10%
$29,947
Total
134,685
100%
$38,703
Top three GDP generators
1. Government – 20%
2. F.I.R.E. – 18%
3. Manufacturing – 11%
Highest in SI region
Source: BEA Data and RIMS II multipliers
— 54 —
©2007 ViTAL Economy, Inc.
GE
Greater Egypt: Population Trends
Prison Population Adjusted
6.03 Economic Picture by Sub-Region
1980
2004
est.
Change
2004 est.
Adjusted
Change
Adjusted
Franklin
43,393
39,498
(-9.0%)
39,498
(-9.0%)
Jackson (P)
61,846
58,186
(-5.9%)
56,031
(-9.4%)
Jefferson (P)
36,837
40,323
9.5%
38,463
4.4%
Perry
21,794
22,691
4.1%
22,691
4.1%
Randolph
35,686
33,242
(-6.8%)
33,242
(-6.8%)
Williamson
56,846
63,124
11.0%
63,124
11.0%
GE Region
256,402
257,064
0.2%
253,049
(-1.3%)
Comparison during same period: USA + 31.1%, Illinois +11.2%
Lowest % population loss in SI region from 1980 to 2004
Largest prison population in SI approx. 4,000
Population figures included SIU students = 21,000+ per year
— 55 —
©2007 ViTAL Economy, Inc.
GE
6.03 Economic Picture by Sub-Region
Comparisons with IL Industry Mix:
Higher than State Average in Services, Gov’t Jobs
Greater Egypt employs more workers than Illinois average in retail
trade, lodging accommodation, food services and government jobs
GE is below average for KBE related jobs** such as finance,
professional and technical even with a major University
Percentage of Non-Farm Jobs by Sector
IL (%)
GE (%)
Difference
Wholesale Trade
5.1
1.6
-3.5
Retail Trade
12.0
16.6
4.6
Finance and Insurance**
7.0
4.9
-2.1
Professional and Technical**
7.8
2.5
-5.3
Administrative
7.6
4.9
-2.7
Accommodation & food services
7.2
9.8
2.7
Government (includes SIU staff)
14.1
27.5
13.3
% Non-farm employment
60.8
67.8
Source: Bureau of Economic Analysis
— 56 —
Combined =
1/2 of State
average
©2007 ViTAL Economy, Inc.
GE
SIUC: an Economic Engine in SI
6.03 Economic Picture by Sub-Region
21,598 enrolled in 2006
$13,520/yr per student spent locally
Every 100 students generate 18 local
jobs
Direct economic impact = $284 million
R&D Research Spending $150 million
R&D parks in the SI region $70 million
impact on local economy
SIUC is one of the largest employers
in Greater Egypt with 5,042 FTE jobs
Total Economic Impact ≈ $653 million
5.8% of Greater Egypt’s GDP
Source: SIUC Provost & web site
— 57 —
©2007 ViTAL Economy, Inc.
GE
6.03 Economic Picture by Sub-Region
Economic Profile: Greater Egypt COI
GE Traditional Business Strengths
GE Rising Business Stars
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Wholesale & retail
Healthcare
Manufacturing
Education
Tourism
Coal mining
Tourism, including ecotourism and vineyards
Minor league baseball; Southern Illinois Miners
Alternative energy, including ethanol
Health services
Advanced manufacturing
Artisans and arts
Warehousing & distribution
Marion Regional Airport
Wineries
Continental Tire
Aisin Manufacturing
Crownline Boats
GE People, Land & Jobs
GE Notable
• % of IL Land Mass = 5.6%
• % of IL Population = 2.0%
• % of IL Employment = 1.9%
• Southern Illinois University Carbondale
R&D knowledge base at SIU
• John A. Logan College
• Rend Lake College
• St. Louis residential impact on Randolph Co.
• Highway 13 – I-57 growth corridor
• World Shooting Complex
• Unique natural features; Lake of Egypt, Crab
Orchard Lake, Rend Lake
• Winery growth
• Energy knowledge base
• Pockets of extreme poverty
GE Dependencies
•
•
•
•
Public sector employment
Transfer payments
SIUC
Large manufacturing companies and employment
Source: Connect SI COI, RA Interviews and VE
— 58 —
©2007 ViTAL Economy, Inc.
GE
6.03 Economic Picture by Sub-Region
Greater Egypt Region
(23 Feb 2007)
GE
Greater Egypt: Goals
2012
Baseline
Same Trend
2012
Goal
Change vs.
Baseline
Change vs.
2012 Same
Population (2004)
253,049
258,869
274,432
+8.45%
+6.0%
Employable Population (16-64)
(2000)
164,134
167,909
179,238
+9.2%
+6.8%
66.0%
66.0%
71.0%
+7.6%
+7.6%
Employed 2004 All Ages
134,685
140,340
157,787
+17.2%
+12.4%
Average Wage 2004
$27,830
$35,765
$40,765
+$12,935
+$5,000
$3,748m
$5,019m
$6,432m
+$2,684m
+$1,413m
Labor Participation (16-64)
(2000)
Total Region Wages 2004
Determination of specific measurable, wage & employment goals from change in regional wages vs. 2012 trend
NEW JOBS:*
NEW JOBS AT AVERAGE WAGE:*
IMPROVEMENT OF EXISTING JOBS:*
10,468
WAGE: $43,500
$455.4m
6,979
WAGE: $40,765
$284.5m
26,937
WAGE: $5,000
$134.7m
CLIMATE OF ECONOMIC OPPORTUNITY:
$538.4m
* Jobs are the result of action plans related to industry cluster and workforce development strategies.
— 59 —
©2007 ViTAL Economy, Inc.
Greater Egypt COI:
Opportunities
6.03 Economic Picture by Sub-Region
Opportunity
Securing Foreign Trade Zone for the
region
Gain more inter-modal facilities and
ports
Letting Central and Northern IL know
that you can ship to many cities to the
south from here.
Expanding logistics, transportation &
storage in the Region
Indigenous Resource
Leveraged
Global/National Trend
Location – interstate highway
system, rivers
Relationship of the Americas to the
rest of the world
Short sea shipping & river Barge
Mississippi and Ohio Rivers
Traditional ports (east & west) are
too busy
Our location
Increased emphasis on inland
intermodal logistics
Mid-America location
IL 24, 57 & 64
Our area airports
SIU international student body,
Tech Center, Community Colleges
Bilingual individuals
Biomass Crops, Coal, Steam,
Research Centers
Increasing Freight and Passenger Air
Service
New transportation systems
Diversifying the face of the region
Diversity
Health Care being tasked with caring for
Spanish speaking
Increased influx of Hispanics
Net Energy Exporter
High petroleum prices
Source: COI Milestone
— 60 —
©2007 ViTAL Economy, Inc.
GE
6.03 Economic Picture by Sub-Region
Greater Egypt COI:
Opportunities
Global/National
Trend
Opportunity
Indigenous Resource
Leveraged
Become a National Leader in Water Recycling
Possible water shortages
Water
Maximize our ability to offer affordable fuel
Upward trend of
transportation fuel
Biomass hydrogen
Corn-soybeans-coal water
availability?
Ethanol-Bio-diesel
Need for energy
Rend Lake - Tourism Opportunities: Randolph
County, Crab Orchard, Linking State Parks (Bike
Trails/Repair shops), Road Maintenance, Google:
SI Tourism
One stop shopping at a
central website/the
opportunity to find
prospects and pay at one
site
Tourism opportunities: natural
resource, regional package,Little
Hot Spots/World Shooting
Complex/Pyramid State Park
(needs promotion)
Call Centers
Those jobs going
overseas
People & products competitive
wages
Tourism Support
Booking an entire trip
online
Extensive tourism destination
assets
Mentorship: Business owners teaching our
young people how to start a successful business
Aging of the population
Experienced successful retirees
Commercialization of Regional Private
Research/KBEs
Growth of business
innovation
SIU
Incubation (Needs to Cross COI boundaries)
Network Action Team that works independently
Existing incubators & research
parks
Source: COI Milestone
Growth of global
incubation seeking access
— 61 —
©2007 ViTAL Economy, Inc.
GE
6.03 Economic Picture by Sub-Region
Greater Egypt: Highlights
GE Opportunities
•
•
•
•
•
•
•
•
•
•
•
GE Challenges
Highly educated population
Technology transfer from SIUC and SIUE
Quality of place and proximity to St. Louis
Energy sector: coal, alternative fuels, etc.
Foreign student population at SIUC
Workforce development resources - Man-Tra-Con
SIU & community colleges
Price of residential and commercial real estate
Transportation Education Center at SIUC
1,000’s of skilled dislocated manufacturing workers
Young entrepreneurs and companies/creative class
• Culture of Poverty
• Comfort with being the dominate economy in SI
• Population decline even with a major University
• 2,000 recent dislocated workers
• Lack of quantity and commitment of leadership
• Weak region wide communication
• Limited access to public and private capital
• Cost of transportation for goods
• Anti-business climate
• Litigious environment
• Bureaucratic mind-set
GE Key Trends
GE Climate for Growth
•
•
•
•
•
•
•
•
•
•
•
• Rebirth of coal industry
• Movement of high net-worth individuals from
St. Louis to Randolph County
• SIU research and development departments
• Knowledge Based Enterprises working closely
with SIU research departments
• Outdoor recreation activities
• Arts and culture linked with wineries
• Transportation and logistics hub; air, rail,
interstate
• Senior living
Hwy 13 & I-57 corridor growth
SIU Declining Enrollment
Medical professional recruitment difficulties
Growing population of young professionals
Growth and investment in Randolph County
Growth of Cedarhurst Center for the Arts in Mt. Vernon
Growth of wine industry and winery destinations
Turnaround of Continental Tire
Growing artisan community including Southern Five
Local leadership conducting Energy Symposiums
Leadership understanding that GE can benefit from a
regional SI economic initiative
Source: Connect SI COI, RA Interviews and VE
— 62 —
©2007 ViTAL Economy, Inc.
GE
Regional Economic Summary
6.03 Economic Picture by Sub-Region
Greater Egypt (64% GDP and 61% of SI population) dominates the SI region — bodes
well for GE, but weak neighbors impact the entire neighborhood
SI possesses the economic critical mass ($17.6B GDP) and the population (419,992)
to compete with many metro areas and especially globally
SIU has a significant direct economic impact on the region ($284 million), but could
have a much broader benefit
The region has numerous major private sector employers that need to be engaged in
Connect SI to support competitiveness; Continental Tire is a example
The predominance and burden of government on the regions GDP (20%) needs to be
reduced immediately to allow growth to occur including restructuring of tax base
SI has a robust inventory of unique natural and knowledge assets that are not being
leveraged
The region possesses a vast variety of small town amenities and qualities that are in
demand by KBE workers that can chose where to live
— 63 —
©2007 ViTAL Economy, Inc.
Southern Illinois — "Garden of the Gods"
This Section provides a condensed overview of the livable community assets, conditions and
trends of each of the economic sub-regions of SI.
Chapter 6:
Regional Perspective
6.04 Livable Community: Assessment
— 64 —
©2007 ViTAL Economy, Inc.
Livable Community: Introduction
6.04 Livable Community: Assessment
In a Knowledge Based Enterprise (KBE) economy livable
community elements are valued equally with economic
development
Development of a Livable Community is the foundation
from which successful and sustainable economic growth
becomes possible
Highly successful regional economies have realized the
value of well planned livable community programs in
attracting new businesses and workers
Highly skilled, mobile and well compensated KBE
professionals can chose where to live and work
— 65 —
©2007 ViTAL Economy, Inc.
Resources Required for a Livable Community (1 of 2)
6.04 Livable Community: Assessment
Healthcare — Meet the health and social needs (including physical, mental, spiritual and
emotional) of the community citizens
Arts/Culture/Heritage — Support for enhanced arts, culture and heritage, assure they
will stimulate and support the transition to sustainability in your community
Recreation & Leisure Activities — Provide recreation and leisure activities for both
residents and visitors. Deliver or exceed expectations while protecting the environment
Economic Opportunities — Focus efforts on how your community will create a strong
and sustainable local economy, innovative and resilient businesses supported by a strong
skilled workforce
Energy Resources — Access to low cost, reliable, sustainable energy while managing
greenhouse gas emissions and air quality
Water Resources — A dependable supply of high quality water in a way that maintains
healthy aquatic environments and uses water efficiently
Localized Food Systems — Ensure a healthy, nutritious and sustainable food supply
that maximizes opportunities to build the social, ecological, cultural and economic capital
of the community, “Grow and buy local” campaigns help any community
Source: VE Alliance Research
— 66 —
©2007 ViTAL Economy, Inc.
Resources Required for a Livable Community (2 of 2)
6.04 Livable Community: Assessment
Natural Environment — Seek ecosystem integrity and biodiversity will be protected
and where possible restored in your community/region
Built Environment — Develop and renovate buildings, neighborhoods and facilities
that will contribute to making your community unique, livable and sustainable
Transportation — Move residents, employees, visitors, and materials to, from and
within the community in a more effective & sustainable manner
Life-Long Learning — Provide residents of all ages formal and informal lifelong
learning opportunities both online and at physical locations
Healthy Community — Community culture that places superior value in health and
promotes activities that support healthy living
Affordability & Housing — Make living and playing in your community affordable for
residents, and also meets housing needs of diverse permanent residents
Source: VE Alliance Research
— 67 —
©2007 ViTAL Economy, Inc.
Key Findings of 2004 Illinois Poverty Report
6.04 Livable Community: Assessment
1. Poverty and its impacts are pervasive in Southern Illinois
2. The rural disadvantaged are typically older, less healthy
and less active in the work force
3. Gaps in transportation, economic, health, housing
infrastructure, and loss of population plague high poverty
areas
4. Lack of education attainment in rural areas impedes
improvements
5. Earnings of workers in rural areas substantially lag urban
areas
Source: Key findings of the 2004 Report on Illinois Poverty
“An Analysis of Rural Poverty,” Heartland Alliance
— 68 —
©2007 ViTAL Economy, Inc.
6.04 Livable Community: Assessment
Pervasive Poverty
Poverty as a % of Population by SI
30%
25%
U.S.
Average
12.7%
Series1
Illinois
Average
10.7%
20%
15%
10%
5%
Al
ex
an
de
r
G
al
la
Ha tin
m
ilto
n
Ha
rd
Ja in
ck
s
Je on
ffe
rs
on
Jo
hn
so
n
M
as
sa
c
Po
pe
Pu
la
Ra ski
nd
ol
ph
Sa
lin
e
Un
io
n
W
h
W
illi ite
am
so
n
Fr
an
kli
n
Pe
rry
W
ay
Ed ne
wa
rd
s
W
ab
as
h
0%
Only one SI county (Randolph) has a lower %
of poverty than Illinois
Source: 2000 US Census
— 69 —
©2007 ViTAL Economy, Inc.
6.04 Livable Community: Assessment
Pervasive Poverty Impacts the Sense of a
Bright Future for the Children in SI
Children vs. Adults 65+ in Poverty by SI County
Children
U.S.
Average
17%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Children
Adults 65+
Al
ex
an
de
r
G
al
la
Ha tin
m
ilto
n
Ha
rd
Ja in
ck
s
Je on
ffe
rs
Jo on
hn
so
n
M
as
sa
c
Po
p
Pu e
la
Ra ski
nd
ol
ph
Sa
lin
e
Un
io
n
W
h
W
illi ite
am
so
n
Fr
an
kli
n
Pe
rr
W y
ay
Ed ne
wa
r
W ds
ab
as
h
Adults 65+
U.S.
Average
9.6%
Children in poverty — twice the rate (22%) than
that of Adults 65+ in SI (11%)
Source: 2000 US Census
— 70 —
©2007 ViTAL Economy, Inc.
6.04 Livable Community: Assessment
High Poverty Rates Impact Many
Quality of Life Elements in SI
Highest % in
rural region
Highest
poverty rate
Highest
unemployment
rate since
09/03
#1
#1
#1
Highest % of
population
over age 65
Highest %
age 65+ in
poverty
Highest % age
65+ with a
disability
Lowest % of
population 0-10
Highest %
age 0-17 in
poverty
#1
#1
#1
#1
#1
#4
Highest %
households
lack complete
plumbing
Highest %
households
lacking
complete
kitchen
Highest %
commuting to
work from
other IL
counties
Lowest %
population
work and live in
same county
Highest %
households
rent
burdened
Highest % of
Adults with no
High School
Diploma
#1
#1
#1
#3
#3
#1
Lowest %
college
graduates
Highest %
enrolled in
Medicaid
Highest % age
5+ with a
disability
#1
#1
#1
Highest %
households
owner
burdened
Source: IL Poverty Summit, “2004 Report on Illinois Poverty,” Based on U.S. 2000 Census or IL Dept of Employment Security data
& Atlas of Illinois Poverty Spring 2003
— 71 —
©2007 ViTAL Economy, Inc.
6.04 Livable Community: Assessment
Low Educational Achievement Impacts Other Economic and
Community Factors; Healthcare, Social Services, & Poverty
SI Population % 25+ without High School Diploma
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
Illinois
SI
Poverty
Al
ex
an
d
Ga er
ll
Ha atin
mi
lt o
Ha n
r
Ja din
ck
Je so n
ffe
r
Jo son
hn
s
M on
as
sa
c
Po
Pu pe
l
Ra ask
nd i
olp
Sa h
lin
e
Un
ion
W
W
illi h ite
am
s
Fr o n
an
kli
n
Pe
r
W ry
ay
Ed ne
wa
W rds
ab
as
h
Average
11.1%
Only two SI Counties (Jackson & Wabash) have a better than
State of Illinois average of citizens without a high school diploma
Source: 2000 US Census
— 72 —
©2007 ViTAL Economy, Inc.
Youth at Risk & Youth Perceptions
6.04 Livable Community: Assessment
Southern Illinois has mixed youth risk factors:
SI counties have higher child abuse/neglect rates and
higher divorce rates than Illinois average
Lower high school drop out rates and higher standard
test scores than rest of Illinois
Other risk factors are comparable to State averages
Source: IL Criminal Justice Information Authority
Local High School Students:
“We want to stay in region, but see no good job opportunities”
“Fear of being stuck here” — the female students defined:
“getting stuck means getting pregnant”
Source: RA and EF Hutton Interviews conducted by VE Team
— 73 —
©2007 ViTAL Economy, Inc.
6.04 Livable Community: Assessment
Youth: the Key to SI’s future
Young people are being told that working with your hands is a dead end — as
a result there are very few skilled trades people available
Schools are outdated in their physical infrastructure and curriculum
The SI entrepreneur group recognized and agreed that a top priority in the
region was to implement a youth entrepreneur program
From SI’s youth themselves:
Why should we kids care, when adults don’t enforce the rules to keep
our community safe, attractive and vibrant
Most of us are leaving — no apparent job or career opportunities — most
needed to work while in school and coveted a job at McDonalds!
We want to stay but can’t; this realization saddens us because the area
is beautiful and would be a very nice area to live in
This area is viewed as “dead!”
Source: RA and EF Hutton Interviews conducted by VE Team
— 74 —
©2007 ViTAL Economy, Inc.
Affordable Housing With a Hidden Story
6.04 Livable Community: Assessment
SI Advantages
Home ownership in
Southern Illinois is higher
than in Illinois
Overall, housing costs
are low
SI Challenges
Much of housing stock is
aging and small
Financing can be difficult
since cost of construction
is higher than final
appraised value
Southern Illinois vs. Illinois:
More people own homes, fewer rent
80%
60%
IL
40%
SI
20%
0%
Owners
Renters
Despite low housing costs, over 21% of households
pay more than 30% of income for housing
Source: HUD Comprehensive Housing Affordability Strategy (CHAS) Data 2000
— 75 —
©2007 ViTAL Economy, Inc.
Bankruptcy Rates
6.04 Livable Community: Assessment
State Bankruptcy Rates, June 2005-06
Illinois
Low business bankruptcies
High personal bankruptcies
IL and the surrounding Midwest
states among the worst in U.S. for
personal bankruptcy
Southern Illinois
Non-Business
Per
Business
State
Rank
Per
Person
Sate
Rank
Illinois
0.29%
14
0.59%
36
Indiana
0.46%
35
0.95%
50
Kentucky
0.38%
23
0.71%
44
Missouri
0.25%
9
0.66%
42
Note: Rank of 1 is lowest rate, rank of 50 is highest rate
Lowest business bankruptcies in
Illinois
Business
IL Bankruptcies by District, June
2005-06
If the region was a state, it would
rank # 2 in the U.S.
Business
Non-Business
Highest personal bankruptcies in
the state
Northern
0.29%
0.56%
Central
0.34%
0.67%
If the region was a state, it would
rank # 45 in the U.S.
Southern
0.16%
0.73%
Note: Southern District covers the 38 southernmost counties in IL
Source: U.S. Bankruptcy Courts
— 76 —
©2007 ViTAL Economy, Inc.
Lower Crime Rates
6.04 Livable Community: Assessment
2005 Crime: Number of Offenses Per 100,000
4,000
3,500
3,000
IL
2,500
2,000
SI
1,500
1,000
500
rV
ri m
te
eh
ry
in
ic
al
l
e
Se
Th
xu
ef
al
t
A
ss
au
lt
R
ob
be
ry
y
ul
t/
C
M
ot
o
ss
a
A
gr
vt
.
A
Source: Illinois
State Police
Ba
t
ur
gl
ar
B
Th
ef
t
To
t
al
0
SI has 14% lower rate
than Illinois for total
crime index offenses
19% lower rate for
general thefts – the most
frequent
Motor vehicle thefts,
robberies, murders also
lower in SI than Illinois
SI has higher rate of
burglaries and assaults,
and sexual assaults
Meth labs in Southern Illinois remain a crisis — labs operate across the
region and users are more common in rural than urban areas
Source: Shane Koch et al, “Southern Illinois Methamphetamine…,” 2007.
— 77 —
©2007 ViTAL Economy, Inc.
SI Environment Highlights
6.04 Livable Community: Assessment
Southern Illinois maintains a generally healthy eco-environment
Water quality and quantity is high (state management is higher than
neighboring states)
Open pit mine areas need remediation
Numerous vacant abandoned industrial & manufacturing sites now
are brownfields requiring clean-up
Mild climate year round
Long growing season
Useable waterways and many spring fed lakes
Natural forests aplenty
Ancient history untapped archeology throughout SI
Source: EPA; VE Research & Analysis
— 78 —
©2007 ViTAL Economy, Inc.
SI’s Rich Cultural Assets: Just a Short List
6.04 Livable Community: Assessment
A Range of Museums Offerings
Cobden Museum (Cobden)
Custom House Museum (Cairo)
Elijah P. Curtis Home/ Museum (Metropolis)
General John A. Logan Museum (Murphysboro)
Edwards County Historical Society Museum (Albion)
L. Haas Store Museum, Matsel Cabin Museum,
Sen. Robinson Stewart House (Carmi)
Ratcliff Inn Museum (Carmi)
Superman Museum (Metropolis)
Flourspar Museum
Johnson County Courthouse
Jefferson County Historical Village (Mt. Vernon)
An Astounding Variety of Annual Festivals & Events
Big Muddy Film Festival
Shrimp Festival
Superman Festival
The Archery Shooters Association Pro-Am
Little Wabash River Festival
Corn Days in Carmi
Wabash Ribberfest BBQ
Fort Massac Encampment
River to River Relay
Southernmost Illinois Birding Fest
Multiple wine and food festivals
Unique Art Galleries Around the Region
Cedarhurst Center for the Arts (Mt. Vernon)
Southern Illinois Art & Artisans Center
(Whittington)
Southern Illinois Art Gallery
Associated Artists’ Gallery (Carbondale)
Renaissance House: A Working Art Gallery
(Eldorado)
Shawnee Hill Barn Antiques
Fox’s Flea Market Antiques
The Art Trail of Southern Illinois
20 Distinctively Unique Galleries within a 70 mile radius
Entertainment Abounds!
Harrah’s Casino (Metropolis)
SIU Salukis college sports teams (Carbondale)
Sesser Historic Opera House (Sesser)
Marion Cultural & Civic Center
Southern Illinois Symphony Orchestra (SIU)
World Shooting and Recreational Complex
(Sparta)
Kornbread Junction
Southern Illinois Miners
Winery Entertainment
— 79 —
©2007 ViTAL Economy, Inc.
6.04 Livable Community: Assessment
A Community Development Resource
SI can be Proud of
Led by Man-Tra-Con, Corporation, Access SI is an online community resource directory designed to
support the SI region plus ten additional Southern Illinois counties with a community resource directory
Community citizens have online access to a variety of resources including health, social services,
education, governmental, cultural, recreation, civic, and workforce employment training and transition
Unique Features:
Qualities to emulate:
• Over 80 service categories are available and
searchable on the Internet site
• Open access wiki-format that creates
efficiency and constant quality improvement
• Semi-wiki format: The site allows or individual
and organizational updates with content
filtering by Man-Tra-Con
• Achieves the one-spot access for individuals
from anywhere in SI
• Allows for volunteers to contact agencies and
organizations for support
• Creates a collaboration of related services that
brings benefit to the citizens of the SI region
www.accesssi.org
— 80 —
©2007 ViTAL Economy, Inc.
Livable Community Assessment: (1 of 2)
6.04 Livable Community: Assessment
Criteria
Rating
Assessment Rationale
Healthcare and Social
Services
• SI has a solid healthcare infrastructure and services in the GE area, but
have limited extension into the rest of the region
Arts, Culture and
Heritage
• The region has a robust heritage and history that has not been
leveraged. The arts are not well recognized currently, but growing in
Recreation & Leisure
activities
• SI has a strong variety of outdoor recreation venues; indoor leisure
activity improvements needed to attract KBE workers
Economic
Opportunities
• SI has limited economic opportunities, but with a commitment to the
Connect SI framework a transformation could occur
Energy Resources
• Access to energy is good with localized electrical generation; cost of
electricity has a negative impact on industrial business competitiveness
Water Resources
• Quantity and quality of water is good for commercial and residential
users. Multiple lakes is a recreational asset
= Weak to None
= Improving
= Average
— 81 —
= Good
= Strong
©2007 ViTAL Economy, Inc.
Livable Community: Assessment (2 of 2)
6.04 Livable Community: Assessment
Criteria
Rating
Assessment Rationale
Natural Environment
• The SI regional environment is unique and varied with natural
amenities in close proximity to cities and towns
Governance
• SI governmental structures are in a complicated situation; there is a
much larger than average number of entities, most with limited
resources and expertise — dramatic restructuring will be difficult to
accomplish
Transportation
• The region has complete package of above average transportation
access and infrastructure, including interstate highways, railways,
airports and waterways; however, outside of the GE area, public
transportation is limited
Education and Learning
• SI has a strong collection of educational assets that can be utilized to
transform the regions workforce to meet global needs
Housing
• The housing stock overall is aged; current economic climate hinders
the development of new housing stock due to cost of construction
versus market value; and lack of building standards results in
reduced predictability
Localized Food Systems
• The region has tremendous potential to build local food systems with
vast agriculture knowledge, research facilities, optimum climate —
strategies need to be employed to expand farmers markets and farm
to table initiatives
— 82 —
©2007 ViTAL Economy, Inc.
Livable Community: Summary
6.04 Livable Community: Assessment
SI sits in one of the most desirable and livable natural
environments in the mid-west, though lags in meeting 21st
Century livable community amenities, infrastructure and
expectations
Most communities do not have building or zoning standards
Many communities do not have 911 emergency communications
systems and in have recently voted them down
Access to basic healthcare services in many cities and towns
outside of the GE region are limited
SI has a low curb appeal that hinders its ability to attract KBE
businesses and workers
SI has developed a vast amount of community and social
service agency knowledge base that can be leveraged for
greater benefit for the region
— 83 —
©2007 ViTAL Economy, Inc.
Southern Illinois — "Garden of the Gods"
Infrastructure is a key element of community development, which includes both above and below ground
components. Infrastructure assets support safe and livable communities.
Chapter 6:
Regional Perspective
6.05 Infrastructure: Assessment
— 84 —
©2007 ViTAL Economy, Inc.
6.05 Infrastructure: Assessment
U.S. Infrastructure Is Failing
2005 Report Card for
America’s Infrastructure
American Society of Civil
Engineers (ASCE) created an
Infrastructure Report Card
U.S. infrastructure is failing
The ASCE gives a “D-” grade
to America’s infrastructure
Total U.S. infrastructure needs
$1.6 trillion over 5 years
Source: Report Card For America’s Infrastructure 2005, American Society of
Civil Engineers and Infrastructure 2007: A Global Perspective, Ernst & Young
— 85 —
Aviation
D+
Bridges
C
Drinking Water
D-
Energy
D
Navigable Waterways
D-
Public Parks & Recreation
C-
Roads
D
Solid Waste
C+
Transit
D+
Wastewater
D-
©2007 ViTAL Economy, Inc.
6.05 Infrastructure: Assessment
Illinois ASCE Report Card
39% of major roads are in poor or mediocre condition
Motorists spend $2.2 billion a year in extra vehicle repairs; roughly $271
per motorist
17% of bridges are structurally deficient or functionally obsolete
31 state-determined deficient dams
176 high-hazard dams
Dam rehab costs estimated at $171.3 million
Drinking water infrastructure needs $6.15 billion over next 20 years
$11.89 billion in wastewater infrastructure needs
Top three infrastructure concerns in Illinois:
— roads, bridges, wastewater —
Source: Report Card For America’s Infrastructure 2005, American Society of Civil Engineers and
Infrastructure 2007: A Global Perspective, Ernst & Young
— 86 —
©2007 ViTAL Economy, Inc.
Applying the Report Card to SI
6.05 Infrastructure: Assessment
If SI’s infrastructure is proportional to Illinois ASCE Report Card:
Roads: Poor conditions cost $40.7 million per year in lost time, additional
fuel consumption, and vehicle repairs
Bridges: Approximately 20% of bridges are deficient
Water Systems: SI drinking water infrastructure requires $130 million
over five years
Wastewater: $260 million repairs in wastewater infrastructure are
needed
Assumptions: 75% of area residents are motorists. Infrastructure requirements allocated as proportion of total population
Given the relatively small population in SI and limited political clout
historically in Springfield and Washington, SI’s infrastructure
may be in greater disrepair
Source: Report Card For America’s Infrastructure 2005, InterVISTAS Development Economics 2007
— 87 —
©2007 ViTAL Economy, Inc.
SI Infrastructure: Summary
6.05 Infrastructure: Assessment
Nine primary water producing Water Districts serve SI
SI water supply is in good shape with excess capacity in most systems
Most sewer systems were built during the “coal age”; well built then, but many
don’t meet current design criteria — 30-40 year old systems need repair
USDA & IL-EPA have funded rebuilding a number of systems serving 200-300
person communities
Most systems can absorb additional population of 20-30% and small business
growth of 20-30 persons per location — out-migration left excess capacity
Any major industrial expansion will require additional capacity and existing
sewer system upgrades
Road systems are maintained by either township road districts, county, state
or federal governments — annual maintenance of township roads take a
backseat to capital improvements
USDA has invested heavily in repaving & upgrading road systems in SI —
while many roads have been improved, a lot more needs to be done
Energy supply is reliable with a choice of providers throughout SI
Source: USDA Rural Development Regional Water Systems & Community and Business Program Analysis, GE, SE, S5 & GW CEDS
— 88 —
©2007 ViTAL Economy, Inc.
Southern Illinois — "Garden of the Gods"
Chapter 6.06 provides a review and assessment of the health of SI citizens, access and conditions within the
healthcare industry, and the work of the Connect SI Healthcare COI.
This Section recognizes the enormous amount of investment and effort already done by the healthcare industry
in addressing major fundamental challenges.
Chapter 6:
Regional Perspective
6.06 Healthcare: Assessment
— 89 —
©2007 ViTAL Economy, Inc.
Healthcare Assessment: Intro
6.06 Healthcare: Assessment
Good physical and emotional health of the region’s workforce is required to build and
sustain a vibrant economy
Healthcare is often viewed as a social service, however, it is an important industry that
often supports the economic well being of a region through high paying, high skill level
jobs
Access to high quality healthcare services is a predominate decision factor for KBE
companies and also for workers when deciding were to live.
Healthcare will continue to be a growth industry as the healthcare needs of 77 million
aging boomers increases
Many rural regions are challenged more than urban centers with rising age of
residents, diminished resources for care, and declining infrastructure.
Rural regions with high levels of poverty result in elevated demand for mental health
providers and services
The CSI Healthcare COI has focused on five measurable improvement targets;
Improved health outcomes
Provider profitability
Regional skills shortage
Connectivity
— 90 —
©2007 ViTAL Economy, Inc.
SI Healthcare is Big Business
6.06 Healthcare: Assessment
Healthcare
Jobs
% of Healthcare
Jobs of Subregional
Economy
Total
Wages
% of Healthcare
Wages of Subregional
Economy
% of Total SI
Healthcare
Economy GDP
Southern
Illinois
22,210
11%
$652M
8%
100%
GE
15,028
11%
$441M
8%
67.6%
SE
2,264
10%
$66.4M
8%
10.2%
S5
2,541
10%
$74.6M
8%
11.4%
GW
2,377
9%
$69.0M
6%
10.7%
• National employment in healthcare and social services averages 10.9%
• In SI, $93,000 of healthcare spending creates one local healthcare job
• Healthcare industry is the third highest employer in the SI region
• SI Healthcare has a 1.5 economic multiplier on wages
• 49% of healthcare employment is Registered Nurses, Licensed Practical Nurses and
Nursing Aides and Attendants
• Over 50% of these jobs have a higher wage than the SI average wage
Source: Connect SI Health Scenario
— 91 —
©2007 ViTAL Economy, Inc.
Healthcare Is Very Complex: SI Is Missing
Many Industry Components
6.06 Healthcare: Assessment
Payers
Fiscal
Intermediaries
Providers
(SI Focus)
Purchasers
Producers
• Government
• Insurers
Hospitals
• Wholesalers
• Drug Mfrs
• Employers
• HMOs
Physicians
• Device Mfrs
• Individuals
• Pharmacy
Benefit
Managers
Pharmacies
• Mail Order
Distributors
• Employer
Coalitions
Public
Health
Districts
• Medicaid
• Medicare
• NGOs
IDNs**
Pharmacies
Alternate
Site
Facilities
• Group
Purchasing
Organizations
• Medical
Surgical
Manufacturers
• Health
Information
System Firms
Community
Health Sites
In order for SI to achieve the goals set by the Healthcare COI,
many more organizations along the Healthcare Value Chain
need to be brought to the table
Source: Wharton School Study of Healthcare Value Chain - Commissioned by The Center for Healthcare Management Research
* IDN= Integrated Delivery Networks
— 92 —
©2007 ViTAL Economy, Inc.
Out-migration of Healthcare Services Are
an Economic Opportunity for SI
6.06 Healthcare: Assessment
SI Regional Healthcare Services Leakage
Regional Hospitals
Admissions
Patient Days
Charges
GE
16.5%
23.2%
26.2%
SE
23.3%
31.9%
42.8%
S5
49.0%
58.9%
62.7%
GW
45.2%
50.8%
62.1%
Total SI Leakage
25.5%
33.1%
37.2%
Causes of Out-Migration
The total value of healthcare
charges being paid outside of
SI region =$1.06 billion
• Misconceptions re type and quality of healthcare services
offered in SI
• Missouri Hospitals – 19.8%
• Population chooses Indiana over GE healthcare facilities
• Indiana Hospitals – 8.1%
• Follow-ups are also done outside SI — a “ripple effect”
• Kentucky Hospitals – 7.4%
• A perception that bigger hospital provides better service
• St. Johns Hospitals – 1.4%
• Referrals by SI physicians to hospitals outside the area to
protect their business clientele
• Memorial Springfield - .6%
Source: Connect SI Health Scenario, CSI Healthcare COI
• Lack of certain healthcare specialists in SE, S5 and GW.
• Successful marketing strategies by hospitals outside SI
— 93 —
©2007 ViTAL Economy, Inc.
6.06 Healthcare: Assessment
• Incidence of many
serious illnesses
resulting in death
are much higher in
Southern Illinois
than in Illinois
• Lifestyle &
preventative
improvements are
required to address
public health
SI Has Higher Incidents of
Serious Illness Than Illinois
Increased Deaths per 100,000 Population
in SI vs. State of Illinois
SI
IL
Higher Rate of
Deaths
Coronary Heart
Disease
215
161
+34%
Cerebrovascular
Disease (Cancer)
66
51
+29%
Lung Cancer
84
53
+58%
Colorectal Cancer
29
20
+45%
Source: IPLAN
Local Hospital Executives:
“We have people with worse health and less access to care”
Source: RA and EF Hutton Interviews conducted by VE Team
— 94 —
©2007 ViTAL Economy, Inc.
6.06 Healthcare: Assessment
Heart Disease in SI
Primary Cause of Death — 15 of 20 SI Counties Above State Average
Illinois
50%
Edwards
Wabash
45%
Wayne
White
40%
Randolph
Perry
Franklin
35%
25%
Jackson
Jefferson
Willamson
20%
Hamilton
Pope
30%
Gallatin
Hardin
Saline
15%
10%
Johnson
Massac
Pulaski
5%
Greater Egypt
Southeastern
Southern Five
Union
Alexander
0%
Source: IPLAN
Greater Wabash
— 95 —
©2007 ViTAL Economy, Inc.
Coronary Heart Disease in SI
6.06 Healthcare: Assessment
Primary Cause of Death — 9 of 20 SI Counties Above State Average
Illinois
35%
Edwards
Wabash
Wayne
30%
Greater Wabash
White
Randolph
25%
Perry
Franklin
Jackson
20%
Greater Egypt
Je ffe rson
Willamson
Hamilton
15%
Pope
Gallatin
Hardin
10%
Southeastern
Saline
Johnson
5%
Massac
Pulaski
Union
0%
Source: IPLAN
Southern Five
Ale xander
— 96 —
©2007 ViTAL Economy, Inc.
Malignant Neoplasms in SI
6.06 Healthcare: Assessment
Primary Cause of Death — 5 of 20 SI Counties Above State Average
Illinois
30%
Edwards
Wabash
Wayne
25%
White
Randolph
Perry
20%
Franklin
Jackson
Je ffe rson
15%
Willamson
Hamilton
Pope
10%
Gallatin
Hardin
Saline
Johnson
Massac
Pulaski
5%
Greater Egypt
Southeastern
Southern Five
Union
Ale xander
0%
Source: IPLAN
Greater Wabash
— 97 —
©2007 ViTAL Economy, Inc.
Cerebrovascular Disease in SI
6.06 Healthcare: Assessment
Primary Cause of Death — 9 of 12* SI Counties Above State Average
Illinois
10%
9%
8%
7%
6%
5%
4%
3%
2%
1%
0%
Source: IPLAN;
*Note: 8 counties showed “not reported”
— 98 —
Edwards
Wabash
Wayne
White
Randolph
Perry
Franklin
Jackson
Je ffe rson
Willamson
Hamilton
Pope
Gallatin
Hardin
Saline
Johnson
Massac
Pulaski
Union
Ale xander
Greater Wabash
Greater Egypt
Southeastern
Southern Five
©2007 ViTAL Economy, Inc.
Lung Cancer in SI
6.06 Healthcare: Assessment
Primary Cause of Death — 7 of 16* SI Counties Above State Average
Illinois
25%
20%
15%
10%
5%
0%
Source: IPLAN;
*Note: 4 counties showed “not reported”
— 99 —
Edwards
Wabash
Wayne
White
Randolph
Perry
Franklin
Jackson
Jefferson
Willamson
Hamilton
Pope
Gallatin
Hardin
Saline
Johnson
Massac
Pulaski
Union
Alexander
Greater Wabash
Greater Egypt
Southeastern
Southern Five
©2007 ViTAL Economy, Inc.
6.06 Healthcare: Assessment
Poverty Places Pressure on the
Healthcare System
“People in poverty are less able to access preventative care, have limited
opportunity to engage in health promotion activities, and are less likely
to be offered health insurance through their jobs. These issues,
compounded by rising healthcare costs, leave low-income SI residents
struggling to meet their health needs.” **
Individuals Below Poverty
Percentage
# in SI
Southern Illinois
16.4%
71,584
Greater Egypt
15.2%
45,117
Southeastern
16.9%
7,938
Southern Five
18.4%
10,838
Greater Wabash
16.2%
7,691
United States (overall)
12.7%
—
Illinois
10.7%
—
Implication: High poverty = High Medicaid Services
**Source: “2004 Report on Illinois Poverty,” IL Dept of Employment Security data & Atlas of Illinois Poverty Spring 2003
— 100 —
©2007 ViTAL Economy, Inc.
6.06 Healthcare: Assessment
Payor Breakdown
Percent
SI Has a Higher Amount of Medicare and
Medicaid Payments for DRG’s
Connect SI
Hospitals
Missouri
Hospitals
Indiana
Hospitals
Kentucky
Hospitals
St. Johns
Hospital
Memorial
Springfield
THIRD PARTY PAYOR
17.2%
2.7%
28.1%
14.9%
10.1%
18.2%
MEDICAID
13.7%
11.4%
7.2%
4.1%
9.5%
19.6%
MEDICARE
60.2%
44.6%
56.9%
50.3%
62.6%
34.1%
OTHER
6.1%
38.3%
2.8%
27.6%
16.5%
13.8%
SELF PAY
2.9%
3.0%
5.0%
3.1%
1.2%
14.3%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
TOTAL
Connect SI hospitals have a 23% higher rate of Medicare and Medicaid patients than neighboring hospitals
Average Per Day
Charges
Connect SI
Hospitals
Missouri
Hospitals
Indiana
Hospitals
Kentucky
Hospitals
St. Johns
Hospital
Memorial
Springfield
THIRD PARTY PAYOR
$4,514
$8,937
$4,507
$4,761
$6,973
$5,628
MEDICAID
$3,122
$2,424
$2,741
$2,940
$4,903
$2,863
MEDICARE
$3,454
$4,326
$4,328
$4,275
$7,864
$6,561
OTHER
$3,721
$4,566
$2,257
$5,233
$7,366
$6,794
SELF PAY
$3,458
$4,801
$5,723
$3,179
$4,922
$5,805
TOTAL
$3,562
$4,112
$4,143
$4,436
$7,222
$5,059
• Medicare and Medicaid payments in SI are 25% less than commercial private payor
• Medicare and Medicaid payments in SI are 25% less than neighboring hospitals
• Connect SI hospitals only receive 71% reimbursement levels of what other neighboring hospitals receive for
medical services
Note: slide data has been averaged and may not be precisely accurate; DRG – Diagnosis Related Group Source: Connect SI Healthcare COI
— 101 —
©2007 ViTAL Economy, Inc.
Changing the Private Insurance
Proportion in Payer Mix
6.06 Healthcare: Assessment
2004
HOSPITAL
VISITS
% of VISITS
GOAL
Third Party Payer
10,674
16.2%
+ 5% to 21.2%
Medicaid
11,856
18.0%
- 5% to 13.0%
Medicare
32,639
49.6%
49.6%
Other
8,232
12.5%
12.5%
Self Pay
2,409
3.7%
3.7%
TOTALS
65,810
100.0%
100.0%
Proposed
5% Swap:
Increase
commercial
clients
+5%,
Reduce
Medicaid
clients
-5%,
• 72% of SI healthcare payments are Medicare and Medicaid in SI
• Medicare and Medicaid reimburse medical providers 7% less than third party payers
• Co-pay insurance has increased 11-to-14% in the last five years in Illinois
• Nationally, 24.4% of medical services are not paid for by the patient
Achievement of CSI economic growth goals will expand 3rd party revenues, increase access to
healthcare, and reduce the n umber of patients/families using Medicare, and dramatically reduce the
percent of uncompensated & under-compensated medical services
Source: CompData, Connect SI Healthcare COI, Illinois Medical Insurance Underwriters, 2005
— 102 —
©2007 ViTAL Economy, Inc.
6.06 Healthcare: Assessment
Mental Health Issues and Challenges Are
Greater in a Region With High Poverty
Child & adolescent psychiatric services are generally limited in SI
Lack of transportation has been determined as the #1 issue facing
patient access, resulting in missed appointments
Services for the underserved and low income are lacking and
typically individuals are placed on waiting lists — while waiting many
decided not to engage services
SI has a strong perceived stigma of seeking mental health services
that creates a barrier to entry
‘Depth-of-enterprise’ limits the ability for patients continued
counseling in SI
“Getting children out of poverty can improve their mental health, but does not fix
everything — improvements were seen in behavioral problems, but depression
and anxiety remained largely unchanged”
- Journal of the American Medical Association; Duke University 7-yr Study Rural North Carolina, 2006
Source: RA Interviews, Rural Health Association, Illinois Delta Network Summary
— 103 —
©2007 ViTAL Economy, Inc.
6.06 Healthcare: Assessment
Complications Within the Healthcare Industry
Impact Cost, Profitability and Quality of Care
• Bad debt and uninsured patients – bills for service that cannot be
collected
• High level of publicly insured patients: Medicare and Medicaid
• Level of publicly-insured patients likely to rise due to ‘Illinois Covered’
• Rising costs from the delayed and declining reimbursements
• Limited physician control and professional assessments when
referring
• Account receivables over 90 days are approximately 25% of billings
causing excessive burden on operational cash flows
• Abuse and fraud within the entire system for Medicaid and Medicare
• Diminishing physician access for Medicaid patients is compounded by
limited transportation to other counties or states
• Lack of skilled workforce especially in nurses with college degrees
Source: Blue Cross-Blue Shield of Illinois 2004 Study
— 104 —
©2007 ViTAL Economy, Inc.
6.06 Healthcare: Assessment
Projected Health Skills Shortages Will
Challenge Connect SI Goals
The U.S. is facing a health skills shortage and so is SI
The Connect SI Healthcare Community of Interest (COI)
identified projected needs in many job types
Potential opportunity
The table below reflects projected job needs in the region – a 47%
increase in key health personnel
Potential Opportunity
Projected Health Skills Needs of Select Occupations for SI
2004
Employee
Levels
8-Year
Change
Based on COI
2012 Goal
% Change
Registered Nurses
3,249
1,776
5,025
55%
Nursing Aides, Orderlies …
2,210
672
2,882
30%
Licensed Practical Nurses
794
272
1,066
34%
Medical Assistants
336
240
576
71%
Pharmacists
274
192
466
70%
Total Jobs
9,976
4,676
14,676
47%
Areas of Critical Skill
Shortages
— 105 —
©2007 ViTAL Economy, Inc.
6.06 Healthcare: Assessment
Potential Critical Skills Goal Impact:
New Health Positions
Total Potential Impact of Critical Skills Goals
Jobs
Earnings
GDP
Output
Direct SI impacts
4,676
$214,688,000
$260,284,000
$469,836,000
Indirect and induced
2,408
$75,371,000
$156,289,700
$253,371,000
TOTAL
7,084
$282,265,000
$424,506,000
$688,194,000
Indirect Employment: Employment in down-stream industries that result from the presence of a particular
business, activity or industry. Indirect employment is generally generated in industries that supply or provide
services the direct business, activity or industry.
Induced Employment: Employment generated because of expenditures made by individuals employed directly or
indirectly by the particular business, activity or industry.
SI Healthcare industry has the potential to supply 30% of the Connect SI
job goals, but will require tapping existing under-employed and leveraging
the regions vast workforce training and education resources
Source: Calculated using BEA RIMS II multipliers
— 106 —
©2007 ViTAL Economy, Inc.
Local Physicians’ Priorities
6.06 Healthcare: Assessment
• Expand broadband connectivity for providers & health facilities
• Connections needed in short-term between hospitals, outpatient surgical centers,
ambulatory care centers and clinics
• Connections needed for practitioners at home and at office in near-term
• Route 13 physician practices meet with NP COI to advance connectivity across all
health centers
• Network Provider meetings in COI regions need to include healthcare providers
who can identify connectivity gaps & solutions linked to COI broadband rollout
• Implement regional secure exchange of healthcare information
• Critical and urgent care sites, radiology groups, FQHC’s, labs, hospitals, nursing
homes, pharmacies, rehab centers, health departments, free clinics, physicians in
the office, at home and on the go throughout SI
• Critical need to simplify and improve healthcare system inter-operability for
physicians whose patients are served by multiple independent healthcare sites
• Improve patient outcomes, safety and convenience, reduce liability and
malpractice premiums, increase reimbursement, help physicians be more
efficient
Source: RA interviews and Healthcare COI
— 107 —
©2007 ViTAL Economy, Inc.
Healthcare Practitioners’ Suggestions for Change
6.06 Healthcare: Assessment
Get doctors to think as a group & establish an identity — we are
Southern Illinois, not a suburb of any other region
Share our expertise within the region
Market within our region and to each other (cross referrals), changing
referral patterns
Make paperwork easier, more common sense & logical — create a
solution that is beyond “individual hospital” mentality
Change competition perception to collaboration model. Receiving
hospital compliments the referring physician. This relationship builds
confidence in patient opinion and within the healthcare system.
Compliment rather than tear down
Ensure immediate and accurate access to health information
Enable new physicians in setting up their practices — e.g., a business
incubator or “welcome wagon”. An outside entity is necessary to work
within the Stark laws
Source: RA interviews and Healthcare COI
— 108 —
©2007 ViTAL Economy, Inc.
6.06 Healthcare: Assessment
Impact of Addressing
Physician Priorities
Improving access to medical records
Spending more time with the patient by reducing paperwork
Providing real-time, continuous loop of patient health information
Integrating best practice for the patient, including preventative health
for the general population
Helping practitioner to do his/her job by providing them information
about the cases so better care decisions can be made
Reducing medical errors
Reducing missed preventative opportunities
Reducing unnecessary costs, thereby expediting diagnosis and
treatment
Working within pay-for-performance initiative
Source: Healthcare COI
— 109 —
©2007 ViTAL Economy, Inc.
6.06 Healthcare: Assessment
Healthcare COI Believes Connectivity
Enables Reaching Goals
50 individuals representing 30 different healthcare
organizations within the Connect SI region reviewed 14
different connectivity applications
Five priority eHealth applications were identified:
Electronic master patient index
Linking hospitals and physicians with electronic health records
Mental health primary consulting
Workforce education and training
Tracking system for drug seekers
Connectivity positively impacts health outcomes and industry profitability
— 110 —
©2007 ViTAL Economy, Inc.
Healthy Living Strategies: the Key Goal
6.06 Healthcare: Assessment
A shift in thinking is required because medical services alone cannot
make people healthy
Healthy living behaviors are the key to healthy lives, and a healthy
economy
Healthy People 2010 has identified two key goals
Increase the quality and years of healthy life
Eliminate health discrepancies
Healthier U.S. identified four pillars
Be physically active
Eat a nutritious diet
Get preventive screenings
Make healthy choices
Medical services alone do not create a healthy community — SI citizens have the
personal responsibility for healthy living habits and, therefore, improved health outcomes
Source: Health People 2010
— 111 —
©2007 ViTAL Economy, Inc.
VE Assessment: Healthcare
6.06 Healthcare: Assessment
Criteria
Rating
Assessment Rationale
Retention of medical service
revenues
• SI has a very high out migration of services to neighboring
states, over $1 billion, 37.2% — focus of the Healthcare COI
Profitability
• Healthcare service provider profitability is under extreme
pressure with 72% of patients covered by Medicare and
Medicaid
Skilled Workforce Availability
• The SI healthcare industry is currently challenged with
workforce availability and it will become greater in the future
Specialist Availability
• SI has limited specialty healthcare services outside of the
GE region which drives out-migration
Access to Patient History
• Physicians and medical service providers cannot access
patient records easily
Mental Health Services
• SI has a shortage of mental health services and
professionals
Healthcare Education &
Training
• SI has an immediate need for increased healthcare training
Cost of healthcare services
• The cost-to-value ratio must be competitive with neighbors
Improved health incentives
• Providers, insurers, employers and regulators need to
collaborate to expand preventive programs
— 112 —
©2007 ViTAL Economy, Inc.
Healthcare COI Outcomes: 2012 Goals
6.06 Healthcare: Assessment
The Healthcare Outcomes group identified one key, overarching
measure to identify better outcomes through healthy living:
Reduce cardiovascular disease mortality from 215 to 166 deaths per
100,000 population by 2012, a 23% reduction
— based on the Healthy People 2010 goal —
The group identified four strategies to reach this goal and increase
healthier living in Southern Illinois; these are:
• Increase physical activity levels (exercise)
• Improve eating habits
• Decrease tobacco use
• Increase diabetes management
Source: Connect SI Healthcare COI
— 113 —
©2007 ViTAL Economy, Inc.
6.06 Healthcare: Assessment
Potential Impacts of Connect SI Job Goals:
Improved Healthcare Revenue Mix
Current State 2004
27,298 New
Hi-Wage Jobs
41,461
Existing Jobs
>$5,000/Yr
Estimated Percentage
60
50
40
30
20
10
0
Note: 60% of the US population had
employment-based insurance in 2004
$642 Million
New KBE Activity
1,600+ Firms
>$2 Billion
New Annual
Wages
+4500 Families
with Healthcare
Coverage
Lift 10,000
Citizens Out
Of Poverty
$200 Million
Information
Technology
Investment
— 114 —
Desired Future State 2012
Insured population 10%
Medicaid
26%
Medicare
18%
Uninsured
32%
A Far Better
Payor-Mix
than
Today
Source: Estimates based on IPLAN,
and Census Bureau data
©2007 ViTAL Economy, Inc.
Healthcare Summary
6.06 Healthcare: Assessment
The SI healthcare industry is big business with even bigger opportunities
11% of SI jobs are in healthcare with an average wage of $36,617
Over 37% of each healthcare expenditure is spent outside the 20 county SI region
(over $1 billion)
74% of patient services inside-SI are only being reimbursed at 71% of the outside
patient services rates
Opportunities:
5% shift in Medicaid to Third Party Payer insurance means +$4.5 million in
increased reimbursements, adding 50 healthcare jobs
$21.9 million in healthcare services recapture, adding 239 healthcare jobs
The overall SI citizens health is lower than Illinois with higher levels of chronic
disease
Opportunity:
Education and healthy living strategies are a key component of a robust economic
development strategy
— 115 —
©2007 ViTAL Economy, Inc.
Southern Illinois — "Garden of the Gods"
Chapter 6:
Regional Perspective
6.07 Implications & Recommendations
— 116 —
©2007 ViTAL Economy, Inc.
6.06 Implications & Recommendations
Regional Perspective: Implications
SI is below the Illinois average in key community sustaining areas; educational attainment,
population health, poverty, and income
The below average elements are balanced by:
Many positive natural resources of the area
Strong education facilities
Geographic location
Economic size
Skilled workforce that have great untapped potential
Continued predominance of public sector income dependency stifles entrepreneurship and
lowers the chances for growth and economic improvement to occur
Unless private sector business development and incomes increase, the tax base to fund
infrastructure improvements is hampered
If the 20-35 age group continues not to see future opportunity in SI and decide to stay, then
economic stagnation will very likely continue
Without improved curb appeal, quality housing and sound community infrastructure, attraction
and retention of skilled workers is challenged
Continued loss of healthcare revenues to surrounding providers, when equal services are
available locally, severely limits healthcare expansion
Limited entrepreneurial structure and incubation facilities restrains SI’s adaptability to global
market opportunities
— 117 —
©2007 ViTAL Economy, Inc.
Regional Perspective: Recommendations
6.06 Implications & Recommendations
Use Connect SI as the vehicle to bring the 20-county region together under a common strategy with
critical mass equal to a major metro area
Expand healthy living initiatives and preventative programs — Healthy People = Healthy Economy
Implement a more robust communication strategy designed to recognize the uniqueness and many
positive aspects of SI, share short-term wins — helps reorient thinking & build momentum
Focus on private sector business development and income supported by linking entrepreneurship,
incubation and finance resources — strengthens the tax base
Implement a Youth Engagement Strategy designed to train and retain this key population sector
Implement a region-wide Crossing Boundaries Institute to bring together individuals from across the
region to focus on a common vision for SI — collaboration needs to be a guiding principle for all
aspects of SI life!
Develop and form a Livable Community Forum to address key challenges of curb appeal and address
other elements contained in the livability index
Develop new and innovative financing mechanisms to deal with aging infrastructure
Refocus education and training to ensure alignment with new KBE and healthcare workforce
demands as well as address skilled labor shortages
Expand and continue the great work of the Network Providers and Healthcare COI’s to collectively
achieve the goals that will enable overall economic improvement
— 118 —
©2007 ViTAL Economy, Inc.