california association for local economic development los angeles, ca august 11, 2011
DESCRIPTION
Goals for Presentation How bad is it out there? SCAG’s Economic Recovery & Job Creation Strategy Discuss the partners involved and process Present basic findings Describe recommended actions Acknowledge challenges/lessons Provide resources for other regions/sub regionsTRANSCRIPT
California Association for Local Economic Development
Los Angeles, CA August 11, 2011
Herding Cats or Disinterested Cows?
Goals for PresentationHow bad is it out there?
SCAG’s Economic Recovery & Job Creation Strategy
Discuss the partners involved and process
Present basic findings
Describe recommended actions
Acknowledge challenges/lessons
Provide resources for other regions/sub regions
What Now?SCAG Members stated that economic development and job
creation was the #1 issue facing their communities (190 cities and 6 counties)
SCAG Executives agreed that without economic recovery, there would not be funding for transportation and other planning projects
Therefore, SCAG (gingerly) entered the economic development planning “business”
SCAG Economic TeamEconomic AdvisorsChristine Cooper, PhD, LAEDCMarney Cox, San Diego Association of GovernmentsBrad Kemp, Beacon EconomicsJohn Husing, PhD, Economics & Politics, Inc.Wallace Waldron, PhD, OC Business CouncilMichael Bracken, Development Management Group, Inc.Peer Review ExpertsLynn Reaser, PhD, EconomicsJohn Goodman, PhD, EconomicsInitial Project/Strategy DevelopmentJack Kyser, SCAG & Lee Harrington, SoCal Leadership Council
Findings 1. Employment predicted to return to “pre-
crash” levels in 2014-2015.2. Region at risk of losing additional
entertainment and logistic jobs3. New/emerging industries
Green tech/renewable energyinnovation/design/creativity ManufacturingMineral & oil extraction
Economic Recovery Prediction
Hurdles to GrowthRegulatory uncertainty
California’s business tax structure
Availability of skilled workforce
Nonresponsive government agencies
California’s “political instability” & credit rating
Aggressive recruitment by “other states” with incentives and favorable tax policies
Expansion of Panama Canal
Recommendations Oppose legislation that negatively impacts economySupport legislation that allows for early delivery of
projects by local agencies (local control)Require new legislation to include independent
economic impact analysisRenew/expand tax credits to retain entertainment jobsCreate additional communication with labor groups to
support growthTake steps to prevent frivolous CEQA lawsuits
Challenges in ProcessUntimely passing of both project lead and famed
economist Jack Kyser and long-time economic development professional Lee Harrington
Questions from cities, “What is SCAG doing in economic development”
Business leaders questioning potential effectiveness of effort
Ever changing economic conditions
Lessons LearnedDiversification of economists
Pure academic economistsEconomic policy (political economists)Economic development (implementation
economists)
Complete both quantitative and primary researchOften quantitative research (numbers) lag real
worldUse existing relationships to get real information
from business leaders
More Lessons LearnedKeep economic work and politics uncoupled
Continuous communication with elected officials, environmental groups, community associations and labor unions about goal. People need jobs and economic certainty.
During process have MPO staff and local elected leaders begin to establish economic development relationships with both state and federal representatives
If using team, make sure you give them time to discuss, debate (its ugly to put 6 economists in a room, but effective!)
ResourcesPresentation to SCAG General Assembly, Economic Recovery Plan & Appendices
(Economist Work):
www.scag.ca.gov
(Click on Event Highlights from 2011 General Assembly, then presentations, shows as a box
graphic near bottom of home page)
Contact InformationMichael Bracken, Managing PartnerDMG EconomicsPalm Desert, CA * Encinitas, [email protected](760) 272-9136