Slide 1 - Vision Shared

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					Generation West Virginia
Annual Winter Work Meeting

March 20, 2010
Today’s Program:

• Introduction

• Current Realities
   – National, regional, statewide economic landscape
   – Key findings from previous Market Street research

• Vision Shared
   – Generation West Virginia
   – 2008 work plan

• Implementation Progress
   – Vision Shared
   – Generation West Virginia

• Best Practices in Young Professional Programming
Market Street Services
Background on Market Street

• Founded in 1997 as an alternative to traditional economic development
  firms.

• Located in Atlanta, Market Street maintains a staff of professionals that
  excel in economic analysis and helping communities create long-term
  strategies for change.

• Our commitment is to a definition of economic development that, at its
  core, is about personal wealth creation for all citizens and building
  better communities.
Market Street Current Clients

Currently, Market Street is working in the following communities:

   –   Birmingham, Alabama
   –   Hopkinsville, Kentucky
   –   Northwest Arkansas
   –   St. Louis, Missouri
   –   Sioux Falls, South Dakota
   –   Southwest Louisiana (Lake Charles)
   –   Waco, Texas
Our Work with the State of West Virginia

• In 2000 and 2001, Market Street Services partnered with state
  stakeholders to create West Virginia: A Vision Shared.

• The four goal areas of A Vision Shared focused on:
   – Intellectual Infrastructure in the 21st Century
   – New Economy: New Challenges and New Solutions
   – Results-Based Government: Planning for the Future
   – Building Bridges and Empowering Citizens


• From this plan, the Vision Shared, Inc was formed.
   – Statewide public-private organization focused on implementing this plan and
     addressing timely issues associated with community and economic development.
Our Work with the State of West Virginia


 Many stakeholders have cited the greatest achievement of
 West Virginia: A Vision Shared as creating a platform for
 people from different backgrounds and with divergent
 points of view to unite around shared values. Vision Shared
 has helped to bring various public and private stakeholders
 together, initiating dialogue and forging partnerships that
 have not previously existed.
Our Work with the state of West Virginia

• Market Street was engaged in 2008 to assess the State’s strategic
  opportunities and challenges, and to help chart new and continuing
  goal areas for Vision Shared, Inc.

• This update process included:
   – Competitive Assessment
   – Rankings and Ratings
   – Work Plan for West Virginia
Current Realities
   Current Economic Realities




Source: Atlanta Journal Constitution November 4, 2008
The Great Recession: Dec. 2007 – Jan. 2010

                                                              Total Jobs
                                                              Lost During
                                                              Current
                                                              Recession:
                                                              8.35 million
                                                           15.3 million
                                                           unemployed

                                                           9.3 million working
                                                           part time, wanting
                                                           full-time work.


 Source: Bureau of Labor Statistics, seasonally adjusted
 Nationwide Job Losses, 2009




Source: U.S. Bureau of Labor Statistics. Seasonally adjusted.
U.S. Economy



• Total Job Losses during 2009:


                4,781,000
“The Lost Decade”
U.S. Economy: Job gains and losses
by sector, 2009
                                                                              Health care
                                                                              Education
                                                                              Government
                                                                              Information
                                                                              Wholesale Trade
                                                                              Leisure & Hospitality
                                                                              Professional and technical services
                                                                              Financial Activities
                                                                              Retail Trade
                                                                              Trade & Transportation
                                                                              Construction
                                                                              Manufacturing




       Source: U.S. Bureau of Labor Statistics, Moody’s Seasonally Adjusted
U.S. Economy
  Losses and Gains
  The U.S. economy lost 20,000 jobs in January 2010.
  Here are a few of the affected sectors:

   Goods-producing                          -60,000
   Construction                             -75,000
   Manufacturing                            11,000
   Service-providing                        40,000
   Trade, transportation, and utilities     15,000
   Financial activities                     -16,000
   Professional and technical services       -1,600
   Educational services                      -2,000
   Health care services                     17,100
   Leisure and hospitality                  -14,000
   Government                                -8,000


  Source: U.S. Bureau of Labor Statistics
Household Net Worth 1981-2009

               Average Net Worth of Households and Non Profits, United States
                                     (Adjusted for Inflation, 2009 dollars)
                                                = National Recession
    $700,000

    $650,000

    $600,000
                                                                                -24.3%
    $550,000                                                                    Q1'07 - Q3'09

    $500,000

    $450,000
                                                                                Households
    $400,000                                                                     regained
                                                                                   some
    $350,000                                                                      wealth
                                                                                during late
    $300,000                                                                       2009
                                                                                  (+9.7%)
    $250,000

    $200,000




                Source: United States Census Bureau, Moody’s Economy.com
  Food Stamps
             Percentage of Households Receiving Food Stamps
                     Source: Food and Drug Administration; Moody's Economy.com
18%                                                                                                      1 out of
                                                                                                        every 6.2
                                                                                                       households
16%                                                                                                    (Dec. 2009)

14%

12%


10%


8%

6%


4%    Key Dates:
      1990 - Mickey Leland Domestic Hunger Relief Act greatly expands benefits.
      1997 - Welfare reform; introduction of TANF leads to restrictions on access and benefits .
2%    2002 - Food Security and Rural Investment Act reapproves restores eligibility limited in 1997.
      2005 - Spike in food stamp receipients due to Hurricanes Katrina and Rita.
0%
 Consumer Confidence – Going Down Again
The consumer confidence index from a survey of 5,000 U.S. households:
Seasonally adjusted: 1985=100




 Source: The Conference Board
   Metro Economies Report

                                     Projected Employment Actual Employment
                MSA                          Change               Change
                                     raw change % change raw change % change
Atlanta, GA                              -50,900     -2.1% -119,500      -5.0%
Tampa, FL                                -42,900     -3.4%    -56,500    -4.8%   Projected
Jacksonville, FL                         -22,300     -3.6%    -26,100    -4.3%
Charlotte, NC                            -15,800     -1.8%    -47,700    -5.6%   Employment Change:
Louisville, KY                           -15,100     -2.4%    -16,900    -2.8%   Q4 08 – Q4 09:
Nashville, TN                            -15,100     -2.0%    -32,000    -4.3%
                                                                                 Source: U.S. Conference of Mayors; Bureau of
Birmingham, AL                           -11,900     -2.3%    -34,000    -6.6%
                                                                                 Labor Statistics
Chattanooga, TN                           -6,300     -2.6%    -13,900    -5.8%
Jackson, MS                               -5,200     -2.0%     -5,100    -2.0%
Charleston, WV                            -1,900     -1.3%     -6,300    -4.1%
Huntington-Ashland, WV-KY-OH              -1,700     -1.4%     -2,400    -2.0%
Morgantown, WV                              -600     -0.9%        500     0.8%
Parkersburg-Marietta-Vienna, WV-OH        -1,200     -1.7%     -2,200    -3.1%
Wheeling, WV                                -900     -1.3%       -700    -1.0%
         State Unemployment Rates
         January 2009 (preliminary estimates)
                                                                                      Michigan 14.3%
                                                                                      Nevada 13.0%
                                                                                      Rhode Island 12.7%
                                                                                      South Carolina 12.6%
                                                                                      California 12.5%
                                                                                      D.C. 12.0%
                                                                                      Florida 11.9%
                                                                                      Illinois 11.3%
                                                                                      North Carolina 11.1%
                                                                                      Alabama 11.1%
                                                                                      Mississippi 10.9%
                                                                                      Ohio 10.8%
                                                                                      Oregon 10.7%
                                                                                      Tennessee 10.7%
                                                                                      Kentucky 10.7%
                                                               United States   9.7%   Georgia 10.4%
                                                               West Virginia   9.3%

Source: U.S. Bureau of Labor Statistics, seasonally adjusted
 U.S. Employment Sectors: 1984




Source: Bureau of Labor Statistics
 U.S. Employment Sectors: 2009
                                              Mining and
                                             Logging, 1%   Construction, 5%
                                                                               Manufacturing, 9%
                                     Government, 17%
           Other, 4%

                                                                              Trade, Transportation
                  Leisure and                                                   and Utilities, 19%
                 Hospitality, 10%


                        Education and Health
                           Services, 15%                Professional and
                                                       Business Services,
                                                              13%                                  Information, 2%

                                                                                           Financial Activities,
                                                                                                  6%




Source: Bureau of Labor Statistics
 West Virginia and the United States
 Employment Sectors: 2009
                          Sector Employment (as % of total employment)
                    Leisure and Hospitality                         9%
                                                                                                  West Virginia

         Professional and Business Services                     8%
                                                                                                  U.S.
                        Financial Activities             4%

                               Information          2%

                 Trade, Transportation and …                                18%

                            Manufacturing                      7%

             Education and Health Services                                16%

                              Construction                5%

                       Mining and Logging            4%

                              Government                                        20%

                                     Other                     7%


                                               0%                    5%         10%   15%   20%              25%


Source: Bureau of Labor Statistics
Per Capita Income

                                                  % of               % of               % of
         South                          1990     nation    2000     nation    2008     nation
Alabama                                $24,967    80%     $28,635    79%     $33,643    85%
Arkansas                               $22,974    74%     $26,417    73%     $31,266    79%
Florida                                $31,090   100%     $34,347    95%     $39,070    98%
Georgia                                $27,968    90%     $33,719    93%     $33,975    85%
Kentucky                               $24,513    79%     $29,412    81%     $31,826    80%
Louisiana                              $24,097    77%     $27,809    77%     $36,271    91%
Mississippi                            $20,787    67%     $25,310    70%     $29,569    74%
North Carolina                         $27,403    88%     $32,607    90%     $34,439    87%
South Carolina                         $25,243    81%     $29,426    81%     $31,884    80%
Tennessee                              $26,517    85%     $31,440    87%     $34,330    86%
Virginia                               $32,476   104%     $37,450   103%     $42,876   108%
West Virginia                          $23,007    74%     $26,391    73%     $30,831    78%
National                               $31,145   100%     $36,221   100%     $39,751   100%
 Source: Bureau of Economic Analysis
      Unemployment Rate

                                         SOUTH   1990   2000   2008   Jan-10
                                Alabama           6.3    4.1     5     11.1
                                Arkansas          6.8    4.2    5.1     7.6
                                Florida           6.3    3.8    6.2    11.9
                                Georgia           5.2    3.5    6.2    10.4
                                Kentucky          6.1    4.2    6.4    10.7
                                Louisiana         5.9     5     4.6     7.4
                                North Carolina    4.2    3.7    6.9    11.1
                                South Carolina    4.9    3.6    6.3    12.6
                                Virginia          4.4    2.3    6.9     6.9
                                West Virginia     8.6    5.5    6.4     9.3
                                Tennessee         5.5     4      4     10.7
                                Mississippi       7.7    5.7    4.3    10.6
                                Texas             6.4    4.4    5.7     8.2
                                National          5.6     4     5.8     9.7



Source: Bureau of Labor Statistics
Labor Force Participation Rate

                                                         Region           2008
                   United States                                          75%
                   Virginia                                               76%
                   North Carolina                                         74%
                   Georgia                                                74%
                   Texas                                                  74%
                   Florida                                                73%
                   Tennessee                                              73%
                   South Carolina                                         72%
                   Arkansas                                               71%
                   Louisiana                                              70%
                   Alabama                                                70%
                   Kentucky                                               70%
                   Mississippi                                            69%
                   West Virginia                                          66%


Source: US Census Bureau, civilian labor force participation ages 20-69
The South: Current Recession

                 Net Job Change in Southern MSAs, 2008-2009
                                                                                                                   Total,
                                                         2008                                   2009             2008-2009
     Atlanta, GA                                        -86,600                               -119,500           -206,100
     Tampa, FL                                          -63,500                                -56,500           -120,000
     Orlando, FL                                        -51,700                                -50,100           -101,800
     Birmingham, AL                                     -13,500                                -34,000            -47,500
     Charlotte, NC                                      -24,200                                -47,700            -71,900
     Nashville, TN                                      -19,500                                -32,000            -51,500
     Memphis, TN                                        -22,200                                -30,600            -52,800
     Jacksonville, FL                                   -24,400                                -26,100            -50,500
     Louisville, KY                                     -15,000                                -16,900            -31,900
     Raleigh-Durham, NC                                  -8,500                                -19,000            -27,500
     New Orleans, LA                                       800                                  -6,600             -5,800
     Columbia, SC                                        -8,500                                -14,300            -22,800
     Dallas-Ft. Worth, TX                               -34,400                                -89,600           -124,000
     Little Rock, AR                                     -3,800                                 -9,100            -12,900
     Houston, TX                                         18,800                                -98,600            -79,800
     Austin, TX                                           4,900                                -18,400            -13,500
     Charleston, WV                                       2,400                                 -6,300             -3,900
     Morgantown, WV                                       1,100                                  500               1,600




                       Source: Bureau of Labor Statistics, Current Employment Statistics, Economy.com adjusted
The South

Net Job Change in the South
December 2007 to December 2009

Florida                                                 -569,700    Kentucky         -104,300
Georgia                                                  -311,200   South Carolina   -102,600
North Carolina                                          -243,700    Mississippi       -56,900
Texas                                                   -205,500    Arkansas          -34,800
Tennessee                                               -168,700    Louisiana         -29,800
Alabama                                                 -120,200    West Virginia     -23,100
Virginia                                                 -115,000

Source: Bureau of Labor Statistics, Moody’s Seasonally Adjusted
The South

Decline of Manufacturing Jobs
December 2007 to December 2009

Texas                                                  -113,300    South Carolina   -35,800
North Carolina                                           -92,200   Virginia         -35,200
Georgia                                                  -80,100   Arkansas         -23,100
Florida                                                  -66,800   Mississippi      -20,200
Tennessee                                                -54,800   Louisiana        -17,100
Alabama                                                  -45,624   West Virginia     -8,100
Kentucky                                                 -43,600

Source: Bureau of Labor Statistics, Moody’s Seasonally Adjusted
The World in 2009 and 2010

―Anyone hoping for a period of calm after the turbulence of the
past year will be disappointed. For the economy and for
business, as well as for politics, 2009 promises to be a year of
bracing adjustment to a changed world.‖
Daniel Franklin, Editor
The World in 2009
The Economist


 ―The good news about 2010 is that the world will emerge from
 recession and the post-crisis economic landscape will become
 clearer. Less cheerful is what that landscape will look like.‖
 Daniel Franklin, Editor
 The World in 2010
 The Economist
     How Far Down?
     Recession Realities
•         Mortgage and financial crisis – continuing problems
•         Huge decline in discretionary (especially retail) spending in 2009; holiday
          season beat expectations (driven by online purchases).
•         The continuing decline in housing value, sales, and new construction
•         Widely fluctuating consumer confidence – down 50% from 2007
•         Job losses every month of 2008 and huge losses throughout 2009 – still falling
•         Federal and state deficits soaring across the country
•         Commercial Real Estate Market is falling rapidly
•         Exports have dropped rapidly and are very low
•         The continuing cost in Iraq and Afghanistan (human and fiscal) – new questions
•         Enormous stock losses and continuing market volatility
•         Fluctuating price of oil – rising now
•         Citizen anger and distrust (AIG, Madoff, TARP, etc.)
    Source: J. Mac Holladay, October 2009
         The Great Recession Has Left Us…
         1. The decade of 2000 – 2009 was JOBLESS. While we gained
                27 million new residents, we lost 985,000 jobs.
         2. Four in ten Americans have been out of work for 27 weeks or
                more, the highest since the measure’s creation in 1948.
         3. The civilian labor force has shrunk by 1.5 million people - a
                record since World War II.
         4. Total loans at FDIC banks dropped 7.4 percent in 2009 - the
                largest drop in 67 years.
         5. The Standard & Poor’s Index (including dividends) from 2000
                through 2009 was -9%: a greater loss than the 1930s.
Source: The Economist; Bureau of Labor Statistics; Atlanta Federal Reserve
         The Great Recession Has Left Us…

      6. Number of homes where the mortgage exceeds the value: 1 in 4.

      7. Over 700 banks are at risk of failing in 2010.

      8. Companies with fewer than 50 employees have accommodated for
             41 percent of the total job losses in this recession. This number is
             five times its share compared to the 2001 recession.
      9. Household debt has declined 3.8 percent from its peak in July 2008
             through October 2009. This is the largest decline since 1943.
      10. Auto plants in the Southeastern U.S. have lost 16 percent of their
             jobs since early 2008. Auto parts manufacturing have lost 20
             percent.
Source: The Economist; Bureau of Labor Statistics; Atlanta Federal Reserve
“Elvis Has Left the Mountain”


 ―First, if it is not apparent to you yet, it will be soon:
 there is no magic bullet for this economic crisis, no
 magic bailout package, no magic stimulus…We are
     going to have to learn to live with a lot more
 uncertainty for a lot longer than our generation has
                      ever experienced.‖
                                            Thomas L. Friedman
                                               New York Times
                                               February 1, 2009
      Key Issues
    from the 2008
Competitive Assessment
Assessing Competitiveness for Success
1.       People
     –     Population dynamics
     –     Socio-economic health of adults and children
     –     Workforce competitiveness

2.       Economic Performance
     –     Economic structure
     –     Labor market dynamics
     –     Business climate
     –     Innovation and entrepreneurship

3.       Place
     –     Livability (including cost of living, transportation, public safety, housing market)
     –     Environment
     –     Arts and cultural amenities
     –     Civic engagement
Competitive Assessment – Key Issue
Workforce supply
• Stagnant population growth
   – From 2000 to 2007, West Virginia had grown by less than 4,000 residents
   – From 2007 to 2009, West Virginia has grown by nearly 8,600


• Aging population
   – 43 percent of the state’s population was age 45 or older in 2007, compared to
     38 percent nationally
   – 46 percent of the state’s population was age 45 or older in 2008,
     compared to 40 percent nationally


• People are dropping out of the workforce
   – Labor Force Participation held steady from 2006 to 2008 at 66%
Annual Unemployment Rates:
West Virginia and the Nation
   20
   18
   16
   14
   12
   10
    8
    6
    4
    2
    0




                   United States            West Virginia




           Source: U.S. Bureau of Labor Statistics
Employment and Labor Force Index

   115


   110


   105


   100


    95


    90
         Oct




         Oct




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         Oct




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         Oct
         Jan




         Jan




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         Jan
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         Jan
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         Apr
          Jul




          Jul




          Jul



         Apr
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         Apr
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          Jul



         Apr
          Jul
         2001      2002          2003         2004   2005   2006       2007          2008      2009 2010


                          West Virginia employment                 West Virginia labor force
                          United States employment                 United States labor force


                Source: U.S. Bureau of Labor Statistics
Competitive Assessment – Key Issues
Workforce skills
• Solid performance in K-12 investments and programming.

• Poor overall student performance in reading, math, and writing.

• High school dropout rates lower than the nation.
   – Public higher education is accessible
   – Average public tuition – West Virginia $9,992 - United States $12,108

• Improvements in educational attainment…
   – Percent of adults w/o a high school diploma dropped from 25% in 2000 to 19%
     in 2006
   – Percent of adults w/ at least a bachelor’s degree increased from 15% in 2000 to
     17% in 2006
…..but West Virginia still lags behind.
  Educational Attainment of Adults (ages 25 and older), 2008

      100%         10%                   7%

       90%                              10%
                   17%                   6%
       80%

       70%          8%                  19%       Graduate or Professional School
                                                  Bachlor's Degree
       60%
                   21%
                                                  Associate's Degree
       50%
                                                  Some College, No Degree
       40%                              41%       High School Graduate
                   29%                            No Diploma
       30%

       20%

                   15%                  18%
       10%

       0%
             United States        West Virginia




                   Source: U.S. Census Bureau
Competitive Assessment – Key Issues
Community health and wellbeing
• Proliferation of chronic disease.
   – 3rd highest proportion of overweight and obese adults
   – Highest total population death rate
   – Proportion of adults diagnosed with diabetes and hypertension exceed the
     national average and continues to rise


• Elevated infant mortality rates.


• Increasing concern related to health insurance coverage and
  costs.
Competitive Assessment – Key Issues
Business climate
• Judicial system perceived as anti-competitive.
   – The lack of an intermediate appellate court, record setting punitive damage
     awards, and the method for electing judges are all circumstances unique to West
     Virginia and a small number of other states.
   – Governor Joe Manchin commissioned a study panel, which reported its key
     findings in late 2009.

• Improvements in business tax structure.
   – The Corporate Net Tax is being phased into reduction through 2014 and the
     Business Franchise Tax will be phased out completely by 2015.

• Workers compensation reform.
  – One of the most successful turnarounds in state history…and in the nation.

• Expanding Broadband coverage.
  Competitive Assessment – Key Issues
  Entrepreneurship and Innovation
• West Virginia’s entrepreneurs are prosperous.
  – From 2000 to 2007, average receipts for non-employer firms grew 17% in West
    Virginia, compared to 8% nationally

• Low patent and venture capital (VC) activity.
   – In 2007, only 116 patents were issued statewide (or 6.4 per 100,000 residents)
     compared to about 14 patents per 100,000 residents in most of the benchmark
     states
   – In 2006, the state attracted 3.7 million in VC putting West Virginia in the lowest
     quartile of states in terms of VC disbursements per $1,000 of GDP

• Potential economic opportunities in energy and green business.
   – WVU partnership with University of Pittsburgh and Carnegie Mellon
   – Center for Economic Options partnership w/ 8 state universities
       West Virginia:
       Employment by Sector – pre-recession
   West Virginia’s Employment and Wages, by Sector, Q3 2005 – Q3 2007
                                                            Employment                      Average Wage
                                                                                         3
                                                                                        Q 2007
                                                                                        Average
                                                                    Number    Percent    Annual     Percent
                                                  3Q2005   3Q2007   Change    Change      Wage      C hange
              Mining                              25,296   27,867    2,571     0%
                                                                               1        $60,361      6%
              Prof Services, Management           63,392   65,939    2,547     4%       $47,342      0%
                                                                                                     1
              Retail, Wholesale                    1
                                                  14,035   16,1
                                                            1 65       31
                                                                     2,1       2%       $25,782      4%
              Government                          35,052
                                                  1        36,946
                                                           1         1
                                                                     ,894       %
                                                                                1       $38,462      6%
               ther ervices
              O S                                 94,832   96,332    1
                                                                     ,500      2%        9,401
                                                                                        $1           7%
              Health Care                         01
                                                  1 ,640   03,1
                                                           1 36      1
                                                                     ,497       %
                                                                                1       $35,381      5%
              Construction                            8
                                                  39,01    40,201    1 84
                                                                     ,1        3%           07
                                                                                        $38,1        3%
                                                                                                     1
              Transportation, Utilities           23,066   23,495    429       2%       $44,001      3%
              Information, FIRE                   40,074   40,1
                                                              31         57    0%       $35,595      4%
              Agriculture                          2,235      66
                                                            2,1      -69       -3%      $23,789       1
                                                                                                     1%
              Manufacturing                       62,599   59,1
                                                              91    -3,408     -5%      $43,876      3%
                                          Total     ,239
                                                  701       1
                                                           71,570   1
                                                                    0,331      %
                                                                               1        $32,370      3%
Source: U.S. Bureau of Labor Statistics
       West Virginia:
       Employment by Sector – this recession
   West Virginia’s Employment and Wages, by Sector, Q2 2007 – Q2 2009
                                                                       Employment                         Wages

                                                                                                     2
                                                                                                    Q 2009
                                                                              Number    Percent     Average       Percent
                                                          2
                                                         Q 2007     2
                                                                   Q 2009     Change    Change    Annual Wage     Change
          Health care                                     1 75
                                                         1 8,1     124,446     6,271     5.3%     $   35,927       6.5%
          Government                                     46,406    48,553      2,147     4.6%     $    40,149      3.0%

          Mining                                         27,264    29,242      1,977     7.3%     $    72,721      5.1
                                                                                                                  1 %
          Education                                      63,485     64,471     986       1.6%     $   49,839       9.7%
          Professional services, Management              29,583    29,990      407       1.4%     $   50,078       1
                                                                                                                  1 .0%
          Other Services                                  1
                                                         1 5,923    1
                                                                   1 5,756     (166)    -0.1%     $    18,588      6.8%

          Agriculture, forestry, fishing and hunting      2,158     1,902      (256)      1
                                                                                        -1 .8%    $   24,246       4.8%
          Transportation, Utilities                         ,1
                                                          31 50    29,925     (1,225)   -3.9%     $    47,129      8.0%
           rts, ntertainment
          A E                                            12,070     9,980     (2,090)   -17.3%    $    19,274      6.1%

          Information, FIRE                              41,327    38,952     (2,375)   -5.7%     $   37,588       6.6%
          Construction                                   43,675     38,381    (5,295)   -1 %
                                                                                          2.1     $    41,998      8.8%
          Retail, Wholesale trade                         1
                                                         1 5,788   109,994    (5,794)   -5.0%     $   27,709       5.0%
          Manufacturing                                  59,332    50,957     (8,375)   -1 %
                                                                                          4.1     $   46,746       2.6%

                                                Tot al   708,901   695,372   (13,529)   -1.9%     $ 36,905        7.4%
Source: U.S. Bureau of Labor Statistics
Rankings and Ratings

• Economy
   – Best States for Business, (Forbes): 50th in 2008; moved up to 46th in 2009
   – State New Economy Index, (Kauffman Foundation): 50th in 2007; up to 49th in 2008

• Education
   – Quality Counts, (Education Week): 6th in 2008; moved to 9th (B- overall, but an F
     and rank of 49 in K-12 achievement) in 2010
   – Technology Counts, (Education Week): 1st in 2007; in 2009 given an A and a
     grade of 100 (tied with 8 other states for top spot)

• Quality of Life
   – Best States for Business, (Forbes): 50th in 2008; moved up to 46th in 2009
   – State New Economy Index, (Kauffman Foundation): 50th in 2007; up to 49th in 2008
Vision Shared
About Vision Shared, Inc

 Vision Shared brings together a diverse group of public and private
     interests in order to strengthen the economy of West Virginia.

 Programs and initiatives fall under four areas:
  – Intellectual Infrastructure – focusing on early childhood development and
    seamless education programs

  – New Economy – supporting entrepreneurship development, sustainable
    development, and creative communities

  – Results-Based Government – working with legislature and administration to
    address issues including long-term health care, energy, environment, and
    state/federal government relationships

  – Building Bridges and Empowering Citizens - developing tomorrow’s leaders
    and building non-profit capacity
About Generation West Virginia

• Generation WV is a statewide coalition of local and regional young
  professional groups.
   – Partner organization of Vision Shared
   – Founded in 2007 with the aim of cultivating young talent across the state of West
     Virginia
   – Coordinates efforts to attract and retain young professionals at the state level

• 11 member local and regional groups
• Governor's Council of Young Talent
• Annual Young Leadership Conference
About Generation West Virginia

• Generation West Virginia has 5 key focus areas:

   1.   Legislative & Policy Issues
   2.   Economic Development & Impact
   3.   Statewide Image & Marketing
   4.   Leadership Development
   5.   Best Practices & Outreach
Work Plan for West Virginia

• This report outlines five priority ―work areas‖ where change is
  necessary to advance West Virginia to the ―next level‖ of economic
  competitiveness

• Acting now on these five areas can ensure A NEW WEST VIRGINIA

• Each work area includes:
   – An explanation of the issue and its associated challenges
   – Best practice examples of what other communities and states have done to
     effectively address similar challenges
   – Priority actions West Virginia’s public and private sector leaders should pursue
     in order to initiate (or continue to make) progress in each work area
Five “Work Areas”

• Build a business environment for the New Economy


• Improve community health and wellbeing


• Create a 21st century workforce


• Leverage and support entrepreneurs and researchers


• Enhance West Virginia’s image
Implementation
   Progress
Build a business environment for the
New Economy
• Reform the Courts
   – Governor Joe Manchin commissioned a study panel to review the
     court system.

  – The panel recommended the state consider the following changes:
     › Expand the courts

     › Judicial elections

     › Judicial appointments

  – Legislators pass judicial nominations bill (3/13/2010)
Improve community health and wellbeing

• In July 2009, Governor Manchin signed senate bill 414, which requires the
  development and implementation of a 5-year plan that seeks to extend
  affordable, high quality healthcare to every West Virginia resident.
   –   Creation and funding for an oversight office
   –   Creation of four patient-centered ―medical home‖ pilots in the state
   –   Access for the uninsured
   –   Implementation of health information technology statewide

• West Virginia offers Medicaid members incentives for volunteering to
  participate in the state's medical-home initiative

• State wants flexibility in Federal reform efforts in order to expand the medical
  home model statewide
Create a 21st century workforce
• 21st Century Jobs Cabinet of West Virginia
   – Formed to enhance the state’s quality of education
   – Developing a results-based pay system for teachers, with support from both of
     WV’s teacher unions
   – Created ―innovation zones‖


• Little progress made in reforming the state’s Community and
  Technical College System
   – Need to make economic development a driving tenet
       › Business assistance (WV Advance) based on applications and grant funding
       › Economic development specialists are needed at each institution
       › Expand the WV Advance brand to include all workforce training services
   – Increase 2-year college accessibility for high school students
    Leverage and support entrepreneurs and
    researchers
• Bucks for Brains
   – WVU has raised $5.9 in private donations and has requested matching funds from the
     state; Marshall has raised just under $1 million
   – The Trust’s interest fund has made grants to other colleges and universities:
           › Concord and West Liberty Universities will both receive $100,000 grants (to be matched by
             private donations within the next 5 years) for undergraduate research in the sciences and
             mathematics
•   Note: The recession has caused state governments to cut back to meet budget shortfalls. It has also likely affected the
    ability of Marshall and WVU to raise funds for ―bucks for brains‖.

• Research and development tax credit
   – The State now offers a Strategic R&D Credit to offset up to 100 percent of corporate net
     income tax and business franchise tax based on qualified expenditures for R&D
     expenditures
• Small Business Development Centers
   – State has not yet moved forward to restructure SBDCs to include an increased focus on
     entrepreneurship development.
Enhance West Virginia’s image

• Expansion of the ―Come Home to West Virginia‖ marketing campaign
   – ―Come Home for the Reunion & Stay for a Lifetime‖ -2009
   – Department of Commerce distributed more than 20,000 reunion kits to 350
     family and school reunions held throughout the state


• Generation WV is making strides to enhance West Virginia’s image
  among its young professionals:
   – Created the Governor’s Council of Young Professionals
   – Day at the Legislature
Governor’s Council for Young Professionals

• The voice for young talent in WV to the Governor. The council has two
  members (a male and a female) from each of Generation WV’s
  regional/local groups.
   – Present 2 to 4 of the most pressing issues for young talent in West Virginia to the
     Governor

   – So far, the Council has made progress on four of their major proposals
      › A Voice for Young Talent on State boards, committees, and commissions –
           › Two appointments so far
      › The Governor’s Summit on Young Talent – the governor will host this summit in May
      › Creative Communities Bill – made further progress in the legislative cycle than before
      › Grants for Grads – WV Housing Development Fund staff is providing assistance on the
        proposal
―More and more companies and skilled labor locate
     where they want—not where they must.‖
                                                   Ross DeVol
                             The Milken Institute Review, 2002
 ―Economic development today, more than ever
before, is about talent management. Regions that
  are successful in economic development are
  creating and maintaining a community that is
          attractive for creative workers.‖

                                       Richard Florida
                                                 2007
      Best Practices
In Young Professional Programming
Quality of the workforce is #1
economic development issue
  Workforce Growth

       Annual Rates of Labor Force Growth: 1950-2025
                                                                  • Baby boomers reach
 3.0                              2.6                               working age
 2.5                                                              • More women and minorities
 2.0                   1.7                1.6                       join the workforce
 1.5        1.1                                 1.2
                                                      1.0
 1.0
                                                                  • Baby boomers begin to
 0.5                                                        0.2
                                                                    retire
 0.0
        1950-60 1960-70 1970-80 1980-90 1990-00 2000-15 2015-25
                                                                  • They are replaced by a
                                                                    numerically smaller
                                                                    generation

                                                                  Critical labor shortages
Source: U.S. Bureau of Labor Statistics
Why are Young Professionals important?

• According to the Bureau of Labor Statistics, between 2008 and 2018:
   – Replacement of older, retiring workers will account for 67 percent of the
     approximately 51 million job openings.
   – Occupations requiring at least some postsecondary education are expected to
     experience higher rates of growth (18%) than those requiring only on-the-job
     training (8%).

• Regions with a higher proportion of older workers, outmigration, and
  lower educational attainment levels have the most acute workforce
  sustainability risk.

• There is a war for talent among communities. Those that will prevail
  will be successful in attracting and retaining young professionals.
  Young Professional Organizations

  • YPOs are an ally in the war for talent.
     – Stem brain drain
     – Cultivate leaders

  • There are over 300 YPOs in the U.S. and Canada with
      over 1,000,000 members.

  • In a 2007 survey conducted by Next Generation
      Consulting:
        – 53% of YPs indicated that their YPO positively impacted their
          perception of the quality of life their community has to offer.
        – 56% of YPs indicated they plan to live in their community for 10
          years or longer.


Source: Next Generation Consulting
  Young Professional Organizations




Source: Market Street Services
Generation Iowa

Generation Iowa Commission
   Established in 2007 by the Governor to advise the Department of Economic
   Development on young professional retention and recruitment activities, and to develop
   best practice guidelines for businesses in recruiting and retaining young workers
   15 appointed voting members (ages 18-35)
   4 appointed non-voting members (two state senators and two representatives)

Initial Recommendations
     Include the following:
     › Implement a Higher Education Tax Credit
     › Provide student loan repayment assistance for high need occupations – Iowa offers loan
       forgiveness to nurses, teachers, and chiropractors
     › Develop a Merit Scholars Program
     › Improve Iowa’s image through strategic marketing
      due to state budget shortfalls during the recession, many of
     these recommendations have not yet been realized
 Generation Iowa


2010 and 2011 Initiatives
      Voting seats on state boards and commissions for YPs
      Statewide, lifetime hunting/fishing/furbearers licenses at a discounted rate to 18-35s
      Leadership and civic engagement opportunities for Iowa high school and college
       students
      Statewide student loan reduction initiatives
              - Best Practices they look to: New Hampshire’s ―Stay Work Play‖, Maine’s
                 ―Opportunity Maine‖
      Cross-generational youth initiative to engage high school and college students in
      discussions about how to attract and retain young people
Lehigh Valley Network of Young Professionals
Mission
• Connect young professionals to the people places and experiences unique
  to the Lehigh Valley.
• Enhance regional economic development through retention and
  attraction of exceptional young talent pool.

What they have found
• By rapidly integrating young professionals into the community, the
  community becomes:
      › ―Sticky‖
      › ―Exciting‖
      › ―The place to build your career‖
      › ― The place to raise your family‖
                                                   Source: Lehigh Valley Network of Young Professionals
 Lehigh Valley Network of Young Professionals
• Organization
     › Budget of $17,000; financial support comes from private donations, member dues,
       corporate sponsorships, grants, and event sponsorships
     › Staff is all volunteers
     › Partnerships with the Chamber, EDC, Arts Council
     › Formed a YP advisory council for the Mayor of Allentown
• Corporate Benefactors
     › Benefactors include the Ben Franklin Technology Partners and Pacific Power
     › Benefactors provide financial support to NET, and in turn provide themselves with a vital
       human resources tool to retain and attract young professionals
• Events
     › Monthly: film night, game night, lecture series breakfasts, dine-out club, networking
       meetings
     › FYI events: cultural events (e.g. classical music outings), personal statement and
       GRE/MCAT/LSAT workshops with Kaplan, etc.
Quad Cities Young Professionals Network

• Organization
   – Founded in 2008, from the merger of two young professional groups, this
     network serves more than 2300 members in the Iowa and Illinois Quad Cities.
   – Staff are mostly volunteers, with a paid director.
   – A leadership council made up of local professionals contributes to program
     development and direction
   – Action committees are staffed by volunteers who oversee organization and
     planning for events


• Mission
   – Advocate for the interests of young professionals; provide opportunities for
     service learning and leadership; connect young professionals with hiring needs
     of Quad Cities’ employers; facilitate social and professional development
Quad Cities Young Professionals Network


• Emerging Professionals Network
   – Targeted at the local college population and through partnerships with local
     colleges, this is a retention program designed to help move local college
     students into local jobs

   – In addition to networking sessions, mentoring, and events at career fairs, EPN
     offers career-resource and career-awareness information for students to
     access on their own including information on career opportunities and
     internships in the Quad Cities, and tours of local employers.
Emerge Montgomery

• “Rally in the Alley”
  – United Way campaign kick-off
  – Volunteer expo for area non-profits


• Support for the Chamber’s Annual
 Diversity Summit
  – Started in August 2008
What are you going to do?
Moving Forward

• Potential to use Generation WV as a platform to launch Financial Aid
  Saturday workshops
   – Best Practice: Austin, Texas
   – Focus on districts with lower college matriculation rates


• Be at the table if PROMISE Scholarships are restructured to require
  recipients to stay in-state for a period of time

• Consider creating Emerging Young Professional programs in chapters
  with large universities nearby
Moving Forward

• Stronger corporate connections
   – Corporate sponsorships
   – Potential to assist the state’s major employers and the Department of Commerce
     with staffing needs by providing testimonials, reaching out to recent ―transplants,‖
     etc.

• Develop metrics and a tracking score card for your organization’s strategy
  implementation
   – Best Practice: National Urban League Young Professionals



• Keep pushing, keep working together, and don’t give up.
Two Things To NEVER Say:



    ―We have always done it that way.‖


     ―We tried that once before.‖
―Change is debilitating when done to us, but
      exhilarating when done by us.‖

                                  Rosabeth Moss Kanter
                                           World Class
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