©2007 vital economy, inc. 1 southern illinois: garden of the gods readiness assessment chapter 6:...
TRANSCRIPT
©2007 ViTAL Economy, Inc.— 1 —
Southern Illinois: Garden of the Gods
Readiness Assessment
Chapter 6: Regional Perspectives
January 27, 2008; revised February 17
CONNECT SI
ViTAL Economy AllianceFrank Knott, Project Lead; Stan Halle, Senior Editor;
Jim Haguewood, Rob Beynon, & Neil Gamroth, Principal Economic Researchers
[email protected]; http://www.vitaleconomy.com
©2007 ViTAL Economy, Inc.— 2 —
6.01 Demographic Picture
6.02 Economic Picture Across SI
6.03 Economic Picture by Sub-Region (COI)
6.04 Livable Community: Assessment
6.05 Infrastructure: Assessment
6.06 Healthcare: Assessment
6.07 Implications & Recommendations
Table of Contents EXECUTIVE OVERVIEW:EXECUTIVE OVERVIEW: the Big Picture & the Big Picture &
Importance of Change in SIImportance of Change in SI
READINESS ASSESSMENT (RA)READINESS ASSESSMENT (RA)
1. State, National & Global Trends1. State, National & Global Trends
2. Indigenous Resources & Industry Asset Mapping
3. Enabling Environment Necessities
4. Climate of Innovation, Incubation & Entrepreneurship
5. Southern Illinois Competitiveness
6. Regional Perspectives
7. Roadmap to Success
APPENDICES
©2007 ViTAL Economy, Inc.— 3 —
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
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.
©2007 ViTAL Economy, Inc.— 4 —
Chapter 6:Regional Perspective
6.01 Demographic Picture
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.
©2007 ViTAL Economy, Inc.— 5 —
SI: Sizeable Population . . .
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
Source: Census Bureau data 2002, 2006
0
50,000
100,000
150,000
200,000
250,000
300,000
S5SEGWGE
% of the Total Population by Sub-Region
12% 12%
61%
15%
6.01 Demographic Picture
Critical mass exists in Southern Illinois!Critical mass exists in Southern Illinois!
©2007 ViTAL Economy, Inc.— 6 —
-8
-7
-6
-5
-4
-3
-2
-1
0
1
SI Youth and Young-Adult Brain-Drain-Gap
Southern Illinois % Population Growth1990-2000 (census-to-census)
+0.9%
TOTALPOPULATION
-7.2%
20-29YEAROLDS
Source: BEA and U.S. Census update data
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
Without the next generation of workers, Connect SI strategies will be much more difficult to achieve
Without the next generation of workers, Connect SI strategies will be much more difficult to achieve
6.01 Demographic Picture
©2007 ViTAL Economy, Inc.— 7 —
“We Loose the Best and Brightest: SI Adults Tell Our Children That There Will Be No 21st Century Opportunity in SI”
Losing Your Future Workforce SIU and the community colleges
generate an above average 20-30 year old population
This young population leaves the region for more attractive opportunities, despite SI having the resources that should help retain them
Increasing Your Burden SI is losing its most productive
age group while increasing the resource-demanding demographic of retirees
Source: U.S. Census Bureau – Table QT-P1: Age Groups and Sex: 2000 and RA Interviews
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
8.00%
9.00%
under 515 to 1930 to 3440 to 4960 to 6475 to 79
90+
Proportion of Population (%)
SI Illinois
Age Distribution Comparison
Increasing Your Burden
Losing Your
Future Workforce
The youth are already here — they need to be proactively retained
The youth are already here — they need to be proactively retained
6.01 Demographic Picture
©2007 ViTAL Economy, Inc.— 8 —
SI Educational Attainment Gap
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
0% 20% 40% 60% 80% 100%
S5
SE
GWGE
IL
0% 10% 20% 30% 40%
S5SEGWGEILU.S.
Population with High School or Higherin SI Regions vs. IL
Population with Bachelor Degree or Higherin SI Regions vs. IL
Source: U.S. Census Bureau (2000 Census)
34% of adult workers in the U.S. have a bachelor degrees or more;
almost three times the SI rate
34% of adult workers in the U.S. have a bachelor degrees or more;
almost three times the SI rate
6.01 Demographic Picture
©2007 ViTAL Economy, Inc.— 9 —— 9 —
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
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
6.01 Demographic PictureDemographics Summary
©2007 ViTAL Economy, Inc.— 10 —
Chapter 6:Regional Perspective
6.02 Economic Picture Across SI
Southern Illinois — "Garden of the Gods"
This Section provides a condensed overview of the economic development assets, conditions and trends for all of SI.
©2007 ViTAL Economy, Inc.— 11 —
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)
6.02 Economic Picture Across SI
©2007 ViTAL Economy, Inc.— 12 —
Economic Profile: Southern Illinois
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
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%
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
Total 207,297 100% $38,952
SI # of Jobs by Region Employment by Sector
Source: BEA data; VE Economic Scenario Model
F.I.R.E = Finance, Insurance & Real Estate
6.02 Economic Picture Across SI
©2007 ViTAL Economy, Inc.— 13 —
Greater Egypt Dominates SI Economy
0
50,000
100,000
150,000
200,000
250,000
300,000
Population
S5SEGWGE
Population by Sub-Region
Source: Census Bureau
15% 12% 12%
61%
$0.0
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
GDP ($Billions)
S5
SE
GW
GE
64%
14%11% 11%
GDP by Sub-Region
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!
•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!
6.02 Economic Picture Across SI
©2007 ViTAL Economy, Inc.— 14 —
Population and Wages: SI versus Illinois & U.S.
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
Source: Bureau of Economic Analysis
-5%0%5%
10%15%20%25%30%35%
U.S.
IL
SI
Cumulative Population Trend (1980 – 2005)
30.5%
11.6% (-3.0%)
6.02 Economic Picture Across SI
Growth in Wages Over 25 Years (1980 – 2005)
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
U.S. IL SI
U.S.
IL
SI
73% Higher
Than SI
63% Higher
Than SI
©2007 ViTAL Economy, Inc.— 15 —
Average Wages Lagging
2005 Average Wage by Sub-Region versus IL
Source: BEA, Regional Economic Accounts
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
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
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
6.02 Economic Picture Across SI
©2007 ViTAL Economy, Inc.— 16 —
SI Per-Capita Wages are Lowand Per-Capita Transfer Receipts are High
Source: Bureau of Economic Analysis Regional Bare Facts ; 2006
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
S5 SE GW GE IL KY IN
Per-Capita Wages
Per-Capita TransferReceipts
SI currently underperforms Illinois — Connect SI’s initiative would push transfer receipts down and push per capita wages up
SI currently underperforms Illinois — Connect SI’s initiative would push transfer receipts down and push per capita wages up
Southern Illinois
6.02 Economic Picture Across SI
©2007 ViTAL Economy, Inc.— 17 —
Where SI Personal Income Comes From
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%
Source: Bureau of Economic Analysis Regional Bare Facts 2006; Connect SI Economic Model
SI earnings by workplace are 25% lower than Illinois, 23% lower than USSI needs to grow the job base by at least 20% = 40,000+ new jobs
SI earnings by workplace are 25% lower than Illinois, 23% lower than USSI needs to grow the job base by at least 20% = 40,000+ new jobs
6.02 Economic Picture Across SI
©2007 ViTAL Economy, Inc.— 18 —
SI Dependency on Government Transfer Payments Exceeds State & National Benchmarks
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
2006 Government Transfer Payments as % of Total Earnings
0
5
10
15
20
25
30
35
% of Total Earnings
Southern Five Southeastern
Greater Wabash Greater Egypt
SI
ILU.S.
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
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
6.02 Economic Picture Across SI
©2007 ViTAL Economy, Inc.— 19 —
Only 46% of SI Personal Income is Generated by Private Sector Employment
54%
33%36%
46%
67%64%
Increasing private sector percentage of personal income generation is crucial to building a climate of innovation
Increasing private sector percentage of personal income generation is crucial to building a climate of innovation
Private Sector Payroll & Benefits by Sub-Region
Private Sector Payroll & Benefits by Sub-Region
GW - 48% GE - 53%
SE - 42% S5 - 38%
GW - 48% GE - 53%
SE - 42% S5 - 38%
Source: BEA & ViTAL Economy Analysis
6.02 Economic Picture Across SI
©2007 ViTAL Economy, Inc.— 20 —
Income Sources: Impact on the Region
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
6.02 Economic Picture Across SI
©2007 ViTAL Economy, Inc.— 21 —
SI Land Utilization is Less Than 3% Urban & Built
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%
0
500
1000
1500
2000
2500
Agriculture Forests Urban & Built Wetland Surface Water Barren &Exposed Land
Southern Five
Southeastern
Greater Egypt
Greater Wabash
1,581
Land Mass Utilization
239 671 216 369Sq. Mi. 5,229 8,306 Sq. Mi.
• SI developed land mass is only 57% the size of Shawnee National Forest
• Shawnee National Forest is 5% of SI land base
6.02 Economic Picture Across SI
Source: Illinois State Dept of Natural Resources
©2007 ViTAL Economy, Inc.— 22 —
The Value of SI Land is Shifting
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%
Source: NASS 2002 Census of Agriculture
• *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
6.02 Economic Picture Across SI
©2007 ViTAL Economy, Inc.— 23 —
SI KBE: Professional, Scientific, Technical and Information (PST&I) Work Force Gap
PST workers include those in establishments specializing in professional, scientific and technical activities — engineering, computers, architecture, law, and accounting
Information industry “I” workers work with telecom and information networks
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
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
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
Sources: BLS, IDES, BEA
Region KBE Workers % of SI KBE
Greater Egypt 6,227 69%
Greater Wabash 907 10%
Southeastern 1,070 12%
Southern Five 808 9%
SI Total KBE 9,012 4.3%
0%
2%
4%
6%
8%
10%
% of Employment
U.S.
IL
SI
7.7%8.5%
4.3%
6.02 Economic Picture Across SI
©2007 ViTAL Economy, Inc.— 24 —
Traditional Business Strengths• Agriculture: corn and soybeans• Energy: coal and oil• Southern illinois university • Manufacturing• Marine transportation and logistics
Traditional Business Strengths• Agriculture: corn and soybeans• Energy: coal and oil• Southern illinois university • Manufacturing• Marine transportation and logistics
People, Land & Jobs• % 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
People, Land & Jobs• % 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
Rising Business Stars• Transportation and logistics• Tourism, including ecotourism and vineyards• Clean coal technologies• Health services• Advanced manufacturing• Arts and artisans• Young entrepreneurs
Rising Business Stars• Transportation and logistics• Tourism, including ecotourism and vineyards• Clean coal technologies• Health services• Advanced manufacturing• Arts and artisans• Young entrepreneurs
Notable• 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
Notable• 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
Current State: Southern Illinois 6.02 Economic Picture Across SI
©2007 ViTAL Economy, Inc.— 25 —
Opportunities• Natural resources• Transportation & logistics• Homeland security• Recreational tourism• Geography, climate & location• Quality of life • Proximity to markets• Senior living• KBE and innovation
Opportunities• Natural resources• Transportation & logistics• Homeland security• Recreational tourism• Geography, climate & location• Quality of life • Proximity to markets• Senior living• KBE and innovation
Key Trends• 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
Key Trends• 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
Challenges• 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
Challenges• 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
Growth Enablers• 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
Growth Enablers• 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
Opportunities & Challenges:Southern Illinois6.02 Economic Picture Across SI
©2007 ViTAL Economy, Inc.— 26 —
Chapter 6:Regional Perspective
6.03 Economic Picture by Sub-Region (COI)
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.
©2007 ViTAL Economy, Inc.— 27 —
The 20 Southern Counties of Illinoisbounded by the Mississippi, Ohio and Wabash Rivers
Connect SI includes 4
sub-regions:
Southern FiveUnion, Johnson,
Alexander, Pulaski, Massac
SoutheasternPope, Hardin, Saline,
Hamilton, Gallatin
Greater WabashWhite, Wayne,
Edwards, Wabash
Greater EgyptRandolph, Perry,
Jackson, Jefferson, Franklin, Williamson
Connect SI includes 4
sub-regions:
Southern FiveUnion, Johnson,
Alexander, Pulaski, Massac
SoutheasternPope, Hardin, Saline,
Hamilton, Gallatin
Greater WabashWhite, Wayne,
Edwards, Wabash
Greater EgyptRandolph, Perry,
Jackson, Jefferson, Franklin, Williamson
6.02 Economic Picture by Region
Connect-SI Region130 Miles East-West
100 Miles North
to South
Population = 423,670 Workforce = 207,297
GEGE
SESE
GGWW
S5S5
Source: U.S. Census Bureau 2006; VE Economic Scenario Model
©2007 ViTAL Economy, Inc.— 28 —
Economic Profile: Southern Five COI
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
F.I.R.E. 1,359 6% $59,035
Education 1,228 5% $28,285
Construction 1,145 5% $48,246
Transport & Utilities 963 4% $55,430
KBEs 809 3% $57,478
Other 2,225 9% $29,549
Total 24,317 100% $37,641
Overview:
• Labor Participation Rate – 62.8%
• GDP: $2.1 billion
o Top three GDP generators• Government – 26%
• F.I.R.E. – 17%
• Natural Resources – 12%
Employment by Sector
Source: BEA Data and RIMS II multipliers
6.03 Economic Picture by Sub-Region
S5S5
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
S5 SE GW GE
SI Number of Jobs by Region
©2007 ViTAL Economy, Inc.— 29 —
Southern Five Population Trends Prison Population Removed (None in S5 Open in 1980)
1980 2004 est. Change2004 est. No
Prison
Change
No Prison
Alexander 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%)
Union 17,857 18,195 1.9% 18,195 1.9%
Southern Five Region
63,711 62,696 (-1.6%) 58,644 (-8.0)%
Comparison during same period: USA +13.1%: Illinois +11.2%; Illinois (without Prison Population) +10.9%
Source: COI Milestone and U.S. Census Data
Alexander County has experienced the greatest population decline of any SI county, over 25% since 1980
6.03 Economic Picture by Sub-Region
S5S5
©2007 ViTAL Economy, Inc.— 30 —
Region Losing Best Resource: Young Adults (No Prison Population included)
0%
20%
40%
60%
80%
100%
64+15-64up to 15
IL S5
Fewer Children
MoreRetirees
Aging Population (2004)
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
15-19 20-24 25-29
US
IL
S5
Young Adults as %of Population (2004)
Source: U.S. Census, Prison Population Removed
6.03 Economic Picture by Sub-Region
S5S5
©2007 ViTAL Economy, Inc.— 31 —
6.03 Economic Picture by Sub-Region
S5S5Intermodal Transportation Opportunity
Strategic Position of Cairo, Alexander County: Junction of the Mississippi and Ohio Rivers Interstate 57 Proximity to Interstate 55 and 24 Major rail carriers
Trends: 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)
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
©2007 ViTAL Economy, Inc.— 32 —
S5 Traditional Business Strengths• Government• Mississippi barges• Forestry• Transportation• Recreation and tourism
S5 Traditional Business Strengths• Government• Mississippi barges• Forestry• Transportation• Recreation and tourism
S5 People, Land & Jobs• % 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
S5 People, Land & Jobs• % 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
S5 Rising Business Stars• 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 Rising Business Stars• 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 Notable• 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
S5 Notable• 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
Economic Profile: Southern Five COI6.03 Economic Picture by Sub-Region
S5S5
©2007 ViTAL Economy, Inc.— 33 —
Southern Five COI: Goals
Southern Five Region
(23 Feb 2007)Baseline
2012 Same
Trend
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%
Average Wage 2004 $27,959 $35,980 $37,591 +$9,632 +$1,611
Total Region Wages 2004 $679.9m $919.3m $1,010m +$329.7m +$90.3m
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
6.03 Economic Picture by Sub-Region
S5S5
©2007 ViTAL Economy, Inc.— 34 —
Southern Five COI: Opportunities
KBE 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 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 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
6.03 Economic Picture by Sub-Region
S5S5
©2007 ViTAL Economy, Inc.— 35 —
Southern Five: Highlights
S5 Opportunities• 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 Opportunities• 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• 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
S5 Key Trends• 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
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”
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”
S5 Climate for Growth• Travel and tourism; history, experience• Outdoor recreation activities and events• Mississippi and Ohio river transportation • Golf and wine trails• Transportation and logistics • Alternative energy
S5 Climate for Growth• Travel and tourism; history, experience• Outdoor recreation activities and events• Mississippi and Ohio river transportation • Golf and wine trails• Transportation and logistics • Alternative energy
Source: Connect SI COI, RA Interviews and VE
6.03 Economic Picture by Sub-Region
S5S5
©2007 ViTAL Economy, Inc.— 36 —
Economic Profile: Southeastern COI
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
Manufacturing 823 4% $54,310
KBEs 1069 5% $58,134
Other 2,203 10% $29,352
Total 21,903 100% $39,458
Employment by Sector
Source: BEA Data and RIMS II Multipliers
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%
6.03 Economic Picture by Sub-Region
SESE
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
S5 SE GW GE
SE Number of Jobs by Region
©2007 ViTAL Economy, Inc.— 37 —
Southeastern: Population Trends
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%)
Source: COI Milestone
6.03 Economic Picture by Sub-Region
SESE
In the past 25 years, all five SE counties have lost significant population
©2007 ViTAL Economy, Inc.— 38 —
Shawnee National Forest Visit Profile and ProjectionsRoom for Increased Daily Spend Rates
CharacteristicLocal Day
TripsNon-local Day Trip
Motel Camp TOTAL
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
Current Impacts: Shawnee National Forest Annual Visitation 500,000
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
6.03 Economic Picture by Sub-Region
SESE
©2007 ViTAL Economy, Inc.— 39 —
Shawnee National Forest: Opportunity6.03 Economic Picture by Sub-Region
SESE
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 forest-related spending alone
Increased non-forest spending would create more jobs
Infrastructure and camp improvements are needed to achieve this result
0
100
200
300
400
500
600
700
800
JobsPotentialCurrent
25 N
ew J
obs
30 N
ew
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160
New
Jobs
25 N
ew
Jobs
Non
-loca
l Day
Tr
ips
Cam
p
Mot
el
Loca
l Day
Tr
ips
TOTA
LS
Note: Analysis based on BEA RIMs II model analysis
Increased Spend Rates to National Averages Would Create 235 Jobs
©2007 ViTAL Economy, Inc.— 40 —
SE Traditional Business Strengths• Coal mining• Agriculture• Hunting• Aggregate rock• Historical sites and museums• Barge and river industry
SE Traditional Business Strengths• Coal mining• Agriculture• Hunting• Aggregate rock• Historical sites and museums• Barge and river industry
SE People, Land & Jobs• % of IL Land Mass = 3.07%• % of IL Population = 0.40%• % of IL Employment = 0.30%
SE Dependencies• Government jobs • Transfer payments
SE People, Land & Jobs• % of IL Land Mass = 3.07%• % of IL Population = 0.40%• % of IL Employment = 0.30%
SE Dependencies• Government jobs • Transfer payments
SE Rising Business Stars• Tourism, including ecotourism• Recreational manufacturing• Mining-related spin-offs• Coal mining• Guiding and Outfitting• Disaster recovery knowledge
SE Rising Business Stars• Tourism, including ecotourism• Recreational manufacturing• Mining-related spin-offs• Coal mining• Guiding and Outfitting• Disaster recovery knowledge
SE Notable• 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
SE Notable• 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
Economic Profile: Southeastern COI6.03 Economic Picture by Sub-Region
SESE
©2007 ViTAL Economy, Inc.— 41 —
Southeastern COI: Goals
Southeastern Region
(23 Feb 2007)Baseline
2012 Same
Trend
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%
Average Wage 2004 $27,494 $35,604 $40,206 +$12,782 +$4,672
Total Region Wages 2004 $602.2m $685.6m $1,027m +$424.8m +$341.4m
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
6.03 Economic Picture by Sub-Region
SESE
©2007 ViTAL Economy, Inc.— 42 —
OpportunityWhat is the market
opportunity?What unique assets are
being leveraged?
Lodging capabilitiesExpanded tourism stays,
$175-$200/dayLocating the facilities near unique areas
Training facilities
By linking resources and upgrading skills it will increase the visitor expenditures per day in the region
The Outfitter experience, Ohio Scenic Byway, Festivals
Teaching mine training
A clear growing need to support the expanded employment need and also the near future retirement of miners
SIC (potential link to Rend Lake) — abandoned mines in the area to create a real life training center
Correctional Officer Training Center
Train our own CO, Police, etc. rather than 12 weeks of time and funds spent in Springfield
Existing knowledge base of correction and law enforcement in SI and facilities
Increase marketing accessBringing Producer closer to Consumer
for SI productsShrimp, PM building materials, wines
Drug Rehab Center
NO existing program of its kind in SI; Termination of price per day or course needs to be researched.
Connect to Tourism (trails) as part of rehab; knowledge base; lodging
Shawnee National Forest Service participation
Expanded tourism stays, $175-$200/day
Shawnee National Forest as one of the most unique locations on North America
Southeastern COI: Opportunities (1 of 2)6.03 Economic Picture by Sub-Region
SESE
Source: COI Milestone
©2007 ViTAL Economy, Inc.— 43 —
OpportunityWhat is the market
opportunity?What unique assets are
being leveraged?
Lodging, Condos, Cabins
Hundreds of visitors experiencing a variety of activities including hiking, biking, hunting, etc.
Shawnee National Forest and Glen O. Jones Lake
Food & Dining
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
Game Cuisine
Unique culinary experience. Preparation of hunters game during their stay in the area. Deer-related products
Large variety of game available in the region
Market regional festivals together
Master calendar and extended stays at $175-$200/day
Leveraging visitors to meet local products bringing Producer closer to Consumer
Team With Rend Lake Culinary Arts School
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
Garden of the GodsExpanded tourism stays,
$175-$200/dayOne of a kind natural resource
Southeastern COI: Opportunities (2 of 2)6.03 Economic Picture by Sub-Region
SESE
Source: COI Milestone
©2007 ViTAL Economy, Inc.— 44 —
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
6.03 Economic Picture by Sub-Region
SESE
©2007 ViTAL Economy, Inc.— 45 —
SE Opportunities• 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 Opportunities• 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• 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
SE Key Trends• 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
SE Challenges• 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
SE Challenges• 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
SE Climate for Growth• 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
SE Climate for Growth• 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
Southeastern Highlights
Source: Connect SI COI, RA Interviews and VE
6.03 Economic Picture by Sub-Region
SESE
©2007 ViTAL Economy, Inc.— 46 —— 46 —
Economic Profile: Greater Wabash COI
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
Source: BEA Data and RIMS II multipliers
Employment by Sector
6.03 Economic Picture by Sub-Region
GWGW
Overview: Labor Participation Rate – 71% GDP: $2.5 billion
Top three GDP generators1. Natural Resources – 25%2. F.I.R.E. – 19%3. Government – 13%
Lowest % in SI region
0
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40,000
60,000
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S5 SE GW GE
GW Number of Jobs by Region
©2007 ViTAL Economy, Inc.— 47 —
Greater Wabash: Population Trends
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%
Source: Bureau of Economic Analysis and Census Bureau
GW has the greatest population loss in SI from 1980 to 2004 — more recent estimates show trend continuing
6.03 Economic Picture by Sub-Region
GWGW
©2007 ViTAL Economy, Inc.— 48 —
Older Age Distribution Puts SI at Economic Disadvantage versus Illinois
0%1%2%3%4%5%6%7%8%9%
10%
Under 510 to 1420 to 2430 to 34 40 to 4450 to 54 60 to 64 70 to 74 80 to 84
90+
Proportion of Population (%)
Greater Wabash Illinois
Dramatic loss of 20-34 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)
Source: U.S. Census Bureau – Table QT-P1: Age Groups and Sex: 2000
Age Distribution Comparison
To grow economically, the region needs to retain
younger workers and grow job opportunities
To grow economically, the region needs to retain
younger workers and grow job opportunities
6.03 Economic Picture by Sub-Region
GWGW
©2007 ViTAL Economy, Inc.— 49 —
Out-Migration is Eroding GW’s Future
Out-migration of Healthcare Revenues
* $32.9m of $55.5m
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
Out-of-Region Jobs & Disposable Income Spending
* $14.7m-$23.6m per year* Worth 200-315 Jobs
Youth Brain Drain(Future Workforce)
* 16.3% drop in 10 years* $19.1m in lost wages
Youth Brain Drain(Future Workforce)
* 16.3% drop in 10 years* $19.1m in lost wages
Economic Value Lost to GW: $56.7m-$75.6m EVERY YEAR! Economic Value Lost to GW: $56.7m-$75.6m EVERY YEAR!
6.03 Economic Picture by Sub-Region
— 49 —
GWGW
©2007 ViTAL Economy, Inc.— 50 —— 50 —
GW Traditional Business Strengths• Agriculture• Mining• Manufacturing, eg: Airtex, Champion Labs• Oil extraction• Education system
GW Traditional Business Strengths• Agriculture• Mining• Manufacturing, eg: Airtex, Champion Labs• Oil extraction• Education system
GW People, Land & Jobs• % 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
GW People, Land & Jobs• % 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
GW Rising Business Stars• Tourism, especially hunting • Energy• Oil industry supplies and equipment• Outfitting/Hunting, eg:
• Campbell’s Outfitters• Entrepreneur businesses: Elastec, Dinger Bats
GW Rising Business Stars• Tourism, especially hunting • Energy• Oil industry supplies and equipment• Outfitting/Hunting, eg:
• Campbell’s Outfitters• Entrepreneur businesses: Elastec, Dinger Bats
GW Notable• 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
GW Notable• 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
Economic Profile: Greater Wabash COI6.03 Economic Picture by Sub-Region
GWGW
Source: Connect SI COI, RA Interviews and VE
©2007 ViTAL Economy, Inc.— 51 —
Greater Wabash COI: Goals
Greater Wabash Region
(23 Feb 2007)Baseline
2012 Same
Trend
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%
Average Wage 2004 $26,311 $33,671 $36,517 +$10,206 +$2,846
Total Region Wages 2004 $694.6m $856.8m $1,013m +$318.9m +$156.4m
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
6.03 Economic Picture by Sub-Region
GWGW
©2007 ViTAL Economy, Inc.— 52 —
Greater Wabash COI: Opportunities6.03 Economic Picture by Sub-Region
GWGW
• Energyo Become an Alternative Energy Capital of the Worldo Methane Gas, ethanol and bio-diesel, geo-thermal technologies,
green coal concept
• KBEo Recertification programso Connect with tourism to improve quality of the industryo Continuing education; lawyers, accountants, realtors, etc.o Local PC support group
• Tourismo Four wheeler activities, racetracks, competitions, training tracko Hunting facilities and guide services, turkey and deero Lone Ranger Festival, Mt. Carmelo Beall Woods, trails, improvement of facilitieso Underground coal mine park view the faulto Underground four wheel tours and adventureso Develop a spillway for the Wabash River; 4 ft.
©2007 ViTAL Economy, Inc.— 53 —
GW Opportunities• 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
GW Opportunities• 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
GW Key Trends• 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 Key Trends• 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 Challenges• 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 Challenges• 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 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
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
Greater Wabash: Highlights
Source: Connect SI COI, RA Interviews and VE
6.03 Economic Picture by Sub-Region
GWGW
©2007 ViTAL Economy, Inc.— 54 —— 54 —
Economic Profile: Greater Egypt COI
Overview: Labor Participation Rate – 66% GDP: $11.1 billion
Top three GDP generators
1. Government – 20%
2. F.I.R.E. – 18%
3. Manufacturing – 11% Highest in SI region
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
Natural Resources 8,635 6% $35,241
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
Employment by Sector
Source: BEA Data and RIMS II multipliers
6.03 Economic Picture by Sub-Region
GEGE
0
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S5 SE GW GE
SI Number of Jobs by Region
©2007 ViTAL Economy, Inc.— 55 —
Greater Egypt: Population Trends Prison Population Adjusted
19802004 est.
Change2004 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 2004Largest prison population in SI approx. 4,000
Population figures included SIU students = 21,000+ per year
Lowest % population loss in SI region from 1980 to 2004Largest prison population in SI approx. 4,000
Population figures included SIU students = 21,000+ per year
6.03 Economic Picture by Sub-Region
GEGE
©2007 ViTAL Economy, Inc.— 56 —
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
Source: Bureau of Economic Analysis
Percentage of Non-Farm Jobs by Sector
Combined =1/2 of State
average
6.03 Economic Picture by Sub-Region
GEGE
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
©2007 ViTAL Economy, Inc.— 57 —
SIUC: an Economic Engine in SI
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
Source: SIUC Provost & web site
Total Economic Impact ≈ $653 million 5.8% of Greater Egypt’s GDP
Total Economic Impact ≈ $653 million 5.8% of Greater Egypt’s GDP
6.03 Economic Picture by Sub-Region
GEGE
©2007 ViTAL Economy, Inc.— 58 —— 58 —
GE Traditional Business Strengths• Wholesale & retail• Healthcare• Manufacturing • Education• Tourism• Coal mining
GE Traditional Business Strengths• Wholesale & retail• Healthcare• Manufacturing • Education• Tourism• Coal mining
GE People, Land & Jobs• % of IL Land Mass = 5.6%• % of IL Population = 2.0%• % of IL Employment = 1.9%
GE Dependencies• Public sector employment• Transfer payments• SIUC• Large manufacturing companies and employment
GE People, Land & Jobs• % of IL Land Mass = 5.6%• % of IL Population = 2.0%• % of IL Employment = 1.9%
GE Dependencies• Public sector employment• Transfer payments• SIUC• Large manufacturing companies and employment
GE Rising Business Stars• 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 Rising Business Stars• 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 Notable• 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 Notable• 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
Economic Profile: Greater Egypt COI6.03 Economic Picture by Sub-Region
GEGE
Source: Connect SI COI, RA Interviews and VE
©2007 ViTAL Economy, Inc.— 59 —
Greater Egypt: Goals
* Jobs are the result of action plans related to industry cluster and workforce development strategies.
Greater Egypt Region
(23 Feb 2007)Baseline
2012 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%
Labor Participation (16-64) (2000)
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
Total Region Wages 2004 $3,748m $5,019m $6,432m +$2,684m +$1,413m
Determination of specific measurable, wage & employment goals from change in regional wages vs. 2012 trend
NEW JOBS:* 10,468 WAGE: $43,500 $455.4m
NEW JOBS AT AVERAGE WAGE:* 6,979 WAGE: $40,765 $284.5m
IMPROVEMENT OF EXISTING JOBS:* 26,937 WAGE: $5,000 $134.7m
CLIMATE OF ECONOMIC OPPORTUNITY: $538.4m
6.03 Economic Picture by Sub-Region
GEGE
©2007 ViTAL Economy, Inc.— 60 —
Opportunity Global/National TrendIndigenous Resource
Leveraged
Securing Foreign Trade Zone for the region
Relationship of the Americas to the rest of the world
Location – interstate highway system, rivers
Gain more inter-modal facilities and ports
Short sea shipping & river Barge Mississippi and Ohio Rivers
Letting Central and Northern IL know that you can ship to many cities to the south from here.
Traditional ports (east & west) are too busy
Our location
Expanding logistics, transportation & storage in the Region
Increased emphasis on inland intermodal logistics
Mid-America location IL 24, 57 & 64
Increasing Freight and Passenger Air Service
New transportation systems Our area airports
Diversifying the face of the region Diversity
SIU international student body, Tech Center, Community Colleges
Health Care being tasked with caring for Spanish speaking
Increased influx of Hispanics Bilingual individuals
Net Energy Exporter High petroleum pricesBiomass Crops, Coal, Steam,
Research Centers
Greater Egypt COI: Opportunities6.03 Economic Picture by Sub-Region
GEGE
Source: COI Milestone
©2007 ViTAL Economy, Inc.— 61 —
OpportunityGlobal/National
TrendIndigenous 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
Ethanol-Bio-dieselNeed for energy
Corn-soybeans-coal water availability?
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
Growth of global incubation seeking access
Existing incubators & research parks
Greater Egypt COI: Opportunities6.03 Economic Picture by Sub-Region
GEGE
Source: COI Milestone
©2007 ViTAL Economy, Inc.— 62 —
GE Opportunities• 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
GE Opportunities• 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
GE Key Trends• 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
GE Key Trends• 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
GE Challenges• 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 Challenges• 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 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
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
Greater Egypt: Highlights
Source: Connect SI COI, RA Interviews and VE
6.03 Economic Picture by Sub-Region
GEGE
©2007 ViTAL Economy, Inc.— 63 —
Regional Economic Summary
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
6.03 Economic Picture by Sub-Region
©2007 ViTAL Economy, Inc.— 64 —
Chapter 6:Regional Perspective
6.04 Livable Community: Assessment
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.
©2007 ViTAL Economy, Inc.— 65 —
Livable Community: Introduction
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
6.04 Livable Community: Assessment
©2007 ViTAL Economy, Inc.— 66 —
Resources Required for a Livable Community (1 of 2)
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
6.04 Livable Community: Assessment
Source: VE Alliance Research
©2007 ViTAL Economy, Inc.— 67 —
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
Resources Required for a Livable Community (2 of 2)6.04 Livable Community: Assessment
Source: VE Alliance Research
©2007 ViTAL Economy, Inc.— 68 —— 68 —
Key Findings of 2004 Illinois Poverty Report
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
6.04 Livable Community: Assessment
©2007 ViTAL Economy, Inc.— 69 —
Pervasive Poverty
Only one SI county (Randolph) has a lower % of poverty than Illinois
Only one SI county (Randolph) has a lower % of poverty than Illinois
Source: 2000 US Census
Poverty as a % of Population by SI
0%
5%
10%
15%
20%
25%
30%
AlexanderGallatinHamilton
HardinJacksonJeffersonJohnsonMassacPope
PulaskiRandolph
SalineUnionWhite
WilliamsonFranklin
PerryWayneEdwardsWabash
Series1
Poverty as a % of Population by SI
0%
5%
10%
15%
20%
25%
30%
AlexanderGallatinHamilton
HardinJacksonJeffersonJohnsonMassacPope
PulaskiRandolph
SalineUnionWhite
WilliamsonFranklin
PerryWayneEdwardsWabash
Series1
U.S. Average 12.7%
Illinois Average 10.7%
6.04 Livable Community: Assessment
©2007 ViTAL Economy, Inc.— 70 —
Pervasive Poverty Impacts the Sense of a Bright Future for the Children in SI
Children in poverty — twice the rate (22%) than that of Adults 65+ in SI (11%)
Children in poverty — twice the rate (22%) than that of Adults 65+ in SI (11%)
Source: 2000 US Census
Children vs. Adults 65+ in Poverty by SI County
0%5%
10%15%20%25%30%35%40%45%
AlexanderGallatinHamilton
HardinJacksonJeffersonJohnsonMassacPope
PulaskiRandolph
SalineUnionWhite
WilliamsonFranklin
PerryWayneEdwardsWabash
Children
Adults 65+
Children vs. Adults 65+ in Poverty by SI County
0%5%
10%15%20%25%30%35%40%45%
AlexanderGallatinHamilton
HardinJacksonJeffersonJohnsonMassacPope
PulaskiRandolph
SalineUnionWhite
WilliamsonFranklin
PerryWayneEdwardsWabash
Children
Adults 65+
Children U.S.
Average 17%
Adults 65+ U.S.
Average 9.6%
6.04 Livable Community: Assessment
©2007 ViTAL Economy, Inc.— 71 —
Highest % in rural region
Highest poverty rate
Highest unemployment
rate since 09/03
Lowest % college
graduates
Highest % enrolled in Medicaid
Highest % age 5+ with a disability
#1 #1 #1 #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
Highest % households
owner burdened
#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
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
High Poverty Rates Impact Many Quality of Life Elements in SI6.04 Livable Community: Assessment
©2007 ViTAL Economy, Inc.— 72 —
Low Educational Achievement Impacts Other Economic and Community Factors; Healthcare, Social Services, & Poverty
SI Population % 25+ without High School Diploma
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
AlexanderGallatinHamilton
HardinJacksonJeffersonJohnsonMassac
PopePulaski
Randolph SalineUnionWhite
WilliamsonFranklin
PerryWayneEdwardsWabash
SI PovertyIllinois Average 11.1%
Only two SI Counties (Jackson & Wabash) have a better than State of Illinois average of citizens without a high school diploma
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
6.04 Livable Community: Assessment
©2007 ViTAL Economy, Inc.— 73 —— 73 —
Youth at Risk & Youth Perceptions
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”
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”
6.04 Livable Community: Assessment
Source: RA and EF Hutton Interviews conducted by VE Team
©2007 ViTAL Economy, Inc.— 74 —
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
6.04 Livable Community: Assessment
©2007 ViTAL Economy, Inc.— 75 —— 75 —
Affordable Housing With a Hidden Story
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
Despite low housing costs, over 21% of households pay more than 30% of income for housing
Despite low housing costs, over 21% of households pay more than 30% of income for housing
6.04 Livable Community: Assessment
0%
20%
40%
60%
80%
Owners Renters
IL
SI
Source: HUD Comprehensive Housing Affordability Strategy (CHAS) Data 2000
©2007 ViTAL Economy, Inc.— 76 —
Bankruptcy Rates
Illinois Low business bankruptcies High personal bankruptcies IL and the surrounding Midwest
states among the worst in U.S. for personal bankruptcy
Southern Illinois Lowest business bankruptcies in
Illinois If the region was a state, it would
rank # 2 in the U.S. Highest personal bankruptcies in
the state If the region was a state, it would
rank # 45 in the U.S.
State Bankruptcy Rates, June 2005-06
Business 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
IL Bankruptcies by District, June 2005-06
Business Non-Business
Northern 0.29% 0.56%
Central 0.34% 0.67%
Southern 0.16% 0.73%
Note: Southern District covers the 38 southernmost counties in IL
Source: U.S. Bankruptcy Courts
6.04 Livable Community: Assessment
©2007 ViTAL Economy, Inc.— 77 —
Lower Crime Rates 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
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
Total TheftBurglary
Agrvt. Assault/ BatteryMotor Vehicle Theft
Criminal Sexual Assault
Robbery
IL
SI
2005 Crime: Number of Offenses Per 100,000
Source: Illinois State Police
Meth labs in Southern Illinois remain a crisis — labs operate across the region and users are more common in rural than urban areas
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.
6.04 Livable Community: Assessment
©2007 ViTAL Economy, Inc.— 78 —
SI Environment Highlights
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
6.04 Livable Community: Assessment
©2007 ViTAL Economy, Inc.— 79 —
SI’s Rich Cultural Assets: Just a Short List
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
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
The Art Trail of Southern Illinois20 Distinctively Unique Galleries within a 70 mile radius
The Art Trail of Southern Illinois20 Distinctively Unique Galleries within a 70 mile radius
6.04 Livable Community: Assessment
©2007 ViTAL Economy, Inc.— 80 —
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:
• Over 80 service categories are available and searchable on the Internet site
• Semi-wiki format: The site allows or individual and organizational updates with content filtering by Man-Tra-Con
• Allows for volunteers to contact agencies and organizations for support
Unique Features:
• Over 80 service categories are available and searchable on the Internet site
• Semi-wiki format: The site allows or individual and organizational updates with content filtering by Man-Tra-Con
• Allows for volunteers to contact agencies and organizations for support
Qualities to emulate:
• Open access wiki-format that creates efficiency and constant quality improvement
• Achieves the one-spot access for individuals from anywhere in SI
• Creates a collaboration of related services that brings benefit to the citizens of the SI region
Qualities to emulate:
• Open access wiki-format that creates efficiency and constant quality improvement
• Achieves the one-spot access for individuals from anywhere in SI
• Creates a collaboration of related services that brings benefit to the citizens of the SI region
www.accesssi.org
6.04 Livable Community: Assessment
©2007 ViTAL Economy, Inc.— 81 —
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
Livable Community Assessment: (1 of 2)
= Weak to None = Improving = Average = Good = Strong
6.04 Livable Community: Assessment
©2007 ViTAL Economy, Inc.— 82 —
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
Livable Community: Assessment (2 of 2) 6.04 Livable Community: Assessment
©2007 ViTAL Economy, Inc.— 83 —
Livable Community: Summary
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
6.04 Livable Community: Assessment
©2007 ViTAL Economy, Inc.— 84 —
Chapter 6:Regional Perspective
6.05 Infrastructure: Assessment
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.
©2007 ViTAL Economy, Inc.— 85 —
U.S. Infrastructure Is Failing
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
Total U.S. infrastructure needs$1.6 trillion over 5 years
2005 Report Card for America’s Infrastructure
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-
6.05 Infrastructure: Assessment
Source: Report Card For America’s Infrastructure 2005, American Society of Civil Engineers and Infrastructure 2007: A Global Perspective, Ernst & Young
©2007 ViTAL Economy, Inc.— 86 —
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 —
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
6.05 Infrastructure: Assessment
©2007 ViTAL Economy, Inc.— 87 —
Applying the Report Card to SI
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
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
6.05 Infrastructure: Assessment
©2007 ViTAL Economy, Inc.— 88 —
SI Infrastructure: Summary
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
6.05 Infrastructure: Assessment
©2007 ViTAL Economy, Inc.— 89 —— 89 —
Chapter 6:Regional Perspective
6.06 Healthcare: Assessment
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.
©2007 ViTAL Economy, Inc.— 90 —
Healthcare Assessment: Intro 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
6.06 Healthcare: Assessment
©2007 ViTAL Economy, Inc.— 91 —
SI Healthcare is Big Business
Healthcare Jobs
% of Healthcare Jobs of Sub-
regional Economy
Total Wages
% of Healthcare Wages of Sub-
regional 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
6.06 Healthcare: Assessment
©2007 ViTAL Economy, Inc.— 92 —
Healthcare Is Very Complex: SI Is Missing Many Industry Components
PayersFiscal
IntermediariesProviders
(SI Focus)Purchasers Producers
• Government
• Employers
• Individuals
• Employer Coalitions
Public Health Districts
• Insurers
• HMOs
• Pharmacy Benefit Managers
• Medicaid
• Medicare
• NGOs
Hospitals
Physicians
Pharmacies
IDNs**
Pharmacies
Alternate Site Facilities
Community Health Sites
• Wholesalers
• Mail Order Distributors
• Group Purchasing Organizations
• Drug Mfrs
• Device Mfrs
• Medical Surgical Manufacturers
• Health Information System Firms
Source: Wharton School Study of Healthcare Value Chain - Commissioned by The Center for Healthcare Management Research
* IDN= Integrated Delivery Networks
6.06 Healthcare: Assessment
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
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
©2007 ViTAL Economy, Inc.— 93 —
Out-migration of Healthcare Services Are an Economic Opportunity for SI
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%
The total value of healthcare charges being paid outside of
SI region =$1.06 billion
• Missouri Hospitals – 19.8%
• Indiana Hospitals – 8.1%
• Kentucky Hospitals – 7.4%
• St. Johns Hospitals – 1.4%
• Memorial Springfield - .6%
Source: Connect SI Health Scenario, CSI Healthcare COI
Causes of Out-Migration• Misconceptions re type and quality of healthcare services
offered in SI
• Lack of certain healthcare specialists in SE, S5 and GW.
• Population chooses Indiana over GE healthcare facilities
• Follow-ups are also done outside SI — a “ripple effect”
• A perception that bigger hospital provides better service
• Referrals by SI physicians to hospitals outside the area to protect their business clientele
• Successful marketing strategies by hospitals outside SI
SI Regional Healthcare Services Leakage
6.06 Healthcare: Assessment
©2007 ViTAL Economy, Inc.— 94 —— 94 —— 94 —
SI Has Higher Incidents of Serious Illness Than Illinois
SI ILHigher 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%
Local Hospital Executives: “We have people with worse health and less access to care”
Local Hospital Executives: “We have people with worse health and less access to care”
Increased Deaths per 100,000 Population in SI vs. State of Illinois
Source: IPLAN
• 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
6.06 Healthcare: Assessment
Source: RA and EF Hutton Interviews conducted by VE Team
©2007 ViTAL Economy, Inc.— 95 —
Heart Disease in SI
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%IllinoisEdwards
Wabash
Wayne
White
Randolph
Perry
Franklin
Jackson
Jefferson
Willamson
Hamilton
Pope
Gallatin
Hardin
Saline
Johnson
Massac
Pulaski
Union
Alexander
Greater Wabash
Southern Five
Southeastern
Greater Egypt
Primary Cause of Death — 15 of 20 SI Counties Above State Average
Source: IPLAN
6.06 Healthcare: Assessment
©2007 ViTAL Economy, Inc.— 96 —
Coronary Heart Disease in SI
0%
5%
10%
15%
20%
25%
30%
35%IllinoisEdwards
Wabash
Wayne
White
Randolph
Perry
Franklin
Jackson
Jefferson
Willamson
Hamilton
Pope
Gallatin
Hardin
Saline
Johnson
Massac
Pulaski
Union
AlexanderSource: IPLAN
Greater Wabash
Southern Five
Southeastern
Greater Egypt
Primary Cause of Death — 9 of 20 SI Counties Above State Average
6.06 Healthcare: Assessment
©2007 ViTAL Economy, Inc.— 97 —
Malignant Neoplasms in SI
0%
5%
10%
15%
20%
25%
30%IllinoisEdwards
Wabash
Wayne
White
Randolph
Perry
Franklin
Jackson
Jefferson
Willamson
Hamilton
Pope
Gallatin
Hardin
Saline
Johnson
Massac
Pulaski
Union
AlexanderSource: IPLAN
Primary Cause of Death — 5 of 20 SI Counties Above State Average
Greater Wabash
Southern Five
Southeastern
Greater Egypt
6.06 Healthcare: Assessment
©2007 ViTAL Economy, Inc.— 98 —
Cerebrovascular Disease in SI
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%IllinoisEdwards
Wabash
Wayne
White
Randolph
Perry
Franklin
Jackson
Jefferson
Willamson
Hamilton
Pope
Gallatin
Hardin
Saline
Johnson
Massac
Pulaski
Union
AlexanderSource: IPLAN; *Note: 8 counties showed “not reported”
Primary Cause of Death — 9 of 12* SI Counties Above State Average
Greater Wabash
Southern Five
Southeastern
Greater Egypt
6.06 Healthcare: Assessment
©2007 ViTAL Economy, Inc.— 99 —
Lung Cancer in SI
0%
5%
10%
15%
20%
25%IllinoisEdwards
Wabash
Wayne
White
Randolph
Perry
Franklin
Jackson
Jefferson
Willamson
Hamilton
Pope
Gallatin
Hardin
Saline
Johnson
Massac
Pulaski
Union
AlexanderSource: IPLAN; *Note: 4 counties showed “not reported”
Primary Cause of Death — 7 of 16* SI Counties Above State Average
Greater Wabash
Southern Five
Southeastern
Greater Egypt
6.06 Healthcare: Assessment
©2007 ViTAL Economy, Inc.— 100 —
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.” **
“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
6.06 Healthcare: Assessment
**Source: “2004 Report on Illinois Poverty,” IL Dept of Employment Security data & Atlas of Illinois Poverty Spring 2003
©2007 ViTAL Economy, Inc.— 101 —
SI Has a Higher Amount of Medicare and Medicaid Payments for DRG’s
Payor BreakdownPercent
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%
TOTAL 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
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
Connect SI hospitals have a 23% higher rate of Medicare and Medicaid patients than neighboring hospitals
Note: slide data has been averaged and may not be precisely accurate; DRG – Diagnosis Related Group Source: Connect SI Healthcare COI
• 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
6.06 Healthcare: Assessment
©2007 ViTAL Economy, Inc.— 102 —
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%
Changing the Private Insurance Proportion in Payer Mix
Source: CompData, Connect SI Healthcare COI, Illinois Medical Insurance Underwriters, 2005
Proposed5% Swap:
Increasecommercial
clients +5%,
ReduceMedicaidclients
-5%,
Proposed5% Swap:
Increasecommercial
clients +5%,
ReduceMedicaidclients
-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
6.06 Healthcare: Assessment
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
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
©2007 ViTAL Economy, Inc.— 103 —
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
Source: RA Interviews, Rural Health Association, Illinois Delta Network Summary
“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
“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
6.06 Healthcare: Assessment
©2007 ViTAL Economy, Inc.— 104 —
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
6.06 Healthcare: Assessment
Source: Blue Cross-Blue Shield of Illinois 2004 Study
©2007 ViTAL Economy, Inc.— 105 —— 105 —— 105 —
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 The table below reflects projected job needs in the region – a 47%
increase in key health personnel
Areas of Critical Skill Shortages
2004 Employee
Levels
8-Year Change
Based on COI2012 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%
Projected Health Skills Needs of Select Occupations for SI
Potential Opportunity
Potential opportunity
6.06 Healthcare: Assessment
©2007 ViTAL Economy, Inc.— 106 —
Potential Critical Skills Goal Impact:New Health Positions
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
Total Potential Impact of Critical Skills Goals
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.
Source: Calculated using BEA RIMS II multipliers
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
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
6.06 Healthcare: Assessment
©2007 ViTAL Economy, Inc.— 107 —
Local Physicians’ Priorities• 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
6.06 Healthcare: Assessment
©2007 ViTAL Economy, Inc.— 108 —
Healthcare Practitioners’ Suggestions for Change
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
6.06 Healthcare: Assessment
Source: RA interviews and Healthcare COI
©2007 ViTAL Economy, Inc.— 109 —
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
6.06 Healthcare: Assessment
©2007 ViTAL Economy, Inc.— 110 —
Healthcare COI Believes Connectivity Enables Reaching Goals
Connectivity positively impacts health outcomes and industry profitabilityConnectivity positively impacts health outcomes and industry profitability
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
6.06 Healthcare: Assessment
©2007 ViTAL Economy, Inc.— 111 —
Healthy Living Strategies: the Key Goal
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
Medical services alone do not create a healthy community — SI citizens have the personal responsibility for healthy living habits and, therefore, improved health outcomes
6.06 Healthcare: Assessment
Source: Health People 2010
©2007 ViTAL Economy, Inc.— 112 —
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
VE Assessment: Healthcare6.06 Healthcare: Assessment
©2007 ViTAL Economy, Inc.— 113 —
Healthcare COI Outcomes: 2012 Goals
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
6.06 Healthcare: Assessment
©2007 ViTAL Economy, Inc.— 114 —
Potential Impacts of Connect SI Job Goals:Improved Healthcare Revenue Mix
Insured population 10%
Medicaid 26%
Medicare 18%
UninsuredUninsured 32% 32%
>$2 BillionNew Annual
Wages
41,461 Existing Jobs
>$5,000/Yr
27,298 NewHi-Wage Jobs
$642 MillionNew KBE Activity
1,600+ Firms
+4500 Families with Healthcare
Coverage
Lift 10,000 Citizens Out Of Poverty
$200 Million Information Technology Investment
0
10
20
30
40
50
60
Estimated Percentage
Note: 60% of the US population hademployment-based insurance in 2004
Current State 2004Current State 2004 Desired Future State 2012Desired Future State 2012
A Far BetterPayor-Mix
than Today
A Far BetterPayor-Mix
than Today
Insu
red
Med
icai
dM
edic
are
Uni
nsur
ed
Source: Estimates based on IPLAN, and Census Bureau data
6.06 Healthcare: Assessment
©2007 ViTAL Economy, Inc.— 115 —
Healthcare Summary
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
6.06 Healthcare: Assessment
©2007 ViTAL Economy, Inc.— 116 —
Chapter 6:Regional Perspective
6.07 Implications & Recommendations
Southern Illinois — "Garden of the Gods"
©2007 ViTAL Economy, Inc.— 117 —— 117 —
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
6.06 Implications & Recommendations
©2007 ViTAL Economy, Inc.— 118 —— 118 —
Regional Perspective: 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
6.06 Implications & Recommendations