California Association for Local Economic Development

Los Angeles, CA August 11, 2011

Herding Cats or Disinterested Cows?

Goals for PresentationHow bad is it out there?

SCAG’s Economic Recovery & Job Creation Strategy

Discuss the partners involved and process

Present basic findings

Describe recommended actions

Acknowledge challenges/lessons

Provide resources for other regions/sub regions

What Now?SCAG Members stated that economic development and job

creation was the #1 issue facing their communities (190 cities and 6 counties)

SCAG Executives agreed that without economic recovery, there would not be funding for transportation and other planning projects

Therefore, SCAG (gingerly) entered the economic development planning “business”

SCAG Economic TeamEconomic AdvisorsChristine Cooper, PhD, LAEDCMarney Cox, San Diego Association of GovernmentsBrad Kemp, Beacon EconomicsJohn Husing, PhD, Economics & Politics, Inc.Wallace Waldron, PhD, OC Business CouncilMichael Bracken, Development Management Group, Inc.Peer Review ExpertsLynn Reaser, PhD, EconomicsJohn Goodman, PhD, EconomicsInitial Project/Strategy DevelopmentJack Kyser, SCAG & Lee Harrington, SoCal Leadership Council

Findings 1. Employment predicted to return to “pre-

crash” levels in 2014-2015.2. Region at risk of losing additional

entertainment and logistic jobs3. New/emerging industries

Green tech/renewable energyinnovation/design/creativity ManufacturingMineral & oil extraction

Economic Recovery Prediction

Hurdles to GrowthRegulatory uncertainty

California’s business tax structure

Availability of skilled workforce

Nonresponsive government agencies

California’s “political instability” & credit rating

Aggressive recruitment by “other states” with incentives and favorable tax policies

Expansion of Panama Canal

Recommendations Oppose legislation that negatively impacts economySupport legislation that allows for early delivery of

projects by local agencies (local control)Require new legislation to include independent

economic impact analysisRenew/expand tax credits to retain entertainment jobsCreate additional communication with labor groups to

support growthTake steps to prevent frivolous CEQA lawsuits

Challenges in ProcessUntimely passing of both project lead and famed

economist Jack Kyser and long-time economic development professional Lee Harrington

Questions from cities, “What is SCAG doing in economic development”

Business leaders questioning potential effectiveness of effort

Ever changing economic conditions

Lessons LearnedDiversification of economists

Pure academic economistsEconomic policy (political economists)Economic development (implementation

economists)

Complete both quantitative and primary researchOften quantitative research (numbers) lag real

worldUse existing relationships to get real information

from business leaders

More Lessons LearnedKeep economic work and politics uncoupled

Continuous communication with elected officials, environmental groups, community associations and labor unions about goal. People need jobs and economic certainty.

During process have MPO staff and local elected leaders begin to establish economic development relationships with both state and federal representatives

If using team, make sure you give them time to discuss, debate (its ugly to put 6 economists in a room, but effective!)

ResourcesPresentation to SCAG General Assembly, Economic Recovery Plan & Appendices

(Economist Work):

www.scag.ca.gov

(Click on Event Highlights from 2011 General Assembly, then presentations, shows as a box

graphic near bottom of home page)

Contact InformationMichael Bracken, Managing PartnerDMG EconomicsPalm Desert, CA * Encinitas, CAmichael@dmgeconomics.com(760) 272-9136