WelcomeWelcomeStockton Regional

Economic Vitality ConversationJune 18, 2004

Made possible through generous support from Pacific Gas and Electric Company and Bank of America

A Perspective on the Northern San Joaquin

ValleyJune 18, 2004

Presented byMichael E. Locke, President & CEO

San Joaquin Partnership

State Proximity

Regional Proximity The Inter-Regional Partnership

Commuter Map

Dynamics of ChangeUrban Expansion

– San Joaquin County: 2.3%– Stanislaus County: 2.2% – Merced County: 2.8%

SOURCE: Center for Continuing Study of the California Economy, California County Projections 2003 Edition

0.00%0.50%1.00%1.50%2.00%2.50%3.00%

California SanJoaquin

Stanislaus Merced

Average Annual Growth Rate 2003-2010

Population

0100,000200,000300,000400,000500,000600,000700,000800,000900,000

1,000,000

San Joaquin Stanislaus Merced

20042020

Source: California Department of Finance – Estimates & Projections

Dynamics of ChangeGrowth limitations in place– San Joaquin County: 5 Cities with Growth Cap– Stanislaus County: 3 Cities with Growth Cap – Merced County: None

Citizen Initiatives on November Ballot– San Joaquin County – Two (2) City of Stockton– Stanislaus County – None – Merced County – None

Global EconomyInfluences

• Exports• Imports• Offshore/Out of Region/Manufacturing

Regulatory Issues• Air Quality – Severe Non-attainment• Water Quality Issues, Bay Delta Accord• Workers’ Compensation• Medical Leave Act• Health Coverage

Education• Quality of Education: K – 12• CA State University (Turlock & Stockton) • U.C. Merced• Job Training/Vocational Training

Industry Clusters(8 County Region)

• Agriculture– 73,000 jobs– $6.5 billion in sales– 99% within the Tri-County Region

• Health Services & Biomedical – 38,500 jobs– $1.8 billion in sales– 92.6% within the Tri-County Region

Source: Industrial Base Study and Cluster Analysis Northern San Joaquin Regional Collaborative March 1, 2000

Industry Clusters(8 County Region)

• Transportation– 22,700 jobs– $903 million in wages– 96.7% within the Tri-County Region

Source: Industrial Base Study and Cluster Analysis Northern San Joaquin Regional Collaborative March 1, 2000

Industry Clusters(8 County Region)

• Resources– 12,650 jobs– $410 million in wages– 87.8% within the Tri-County Region

• Tourism– 21,800 jobs– $300 million in wages– 70% within the Tri-County Region

Source: Industrial Base Study and Cluster Analysis Northern San Joaquin Regional Collaborative March 1, 2000

Emerging Clusters• Logistics – Global– Port of Oakland– Port of Stockton– Burlington Northern Santa Fe Intermodal– Union Pacific Intermodal

• Building Materials Manufacturer– 31 manufacturers & distributors in

last 2 years

•Bay Area Integration

•Transportation

•Comparative Affordability

•Workforce Availability

•Housing Affordability

•U.C. Merced

Regional Economic Drivers

Regional Challenges• Growth Management – Smart Growth Principals• Agriculture Protection• Infrastructure – Regional – Finance

• Education – K – 12 – University & College

• Tax & Regulatory Issues

Economic Vitality Conversation

Today’s Focus1. What state actions will have the most immediate

positive impact on California’s economic recovery?

2. What state actions will result in the most significant long-term improvement to California’s economic competitiveness and comparative advantage?

3. How do we best structure an effective partnership between the regions and the state around economic strategy?