San DiegoSan DiegoRegional Economic Prosperity StrategyRegional Economic Prosperity Strategy

Transportation: Helping Address the Three E’s Transportation: Helping Address the Three E’s

22

Prosperity Strategy IdentifiesProsperity Strategy IdentifiesThree Major ChallengesThree Major Challenges

Quality of job growthQuality of job growth Widening wage gapWidening wage gap High cost of livingHigh cost of living

33

Economy Has Created 8 Times More Economy Has Created 8 Times More Low than High Paying JobsLow than High Paying Jobs

Unbalanced Job Growth Affects Distribution of WagesUnbalanced Job Growth Affects Distribution of Wages

   1990-2004 Growth

  Compensation Category / Median Compensation Category / Median Wage ($2004)Wage ($2004)

Average Average Salary Salary

IncreaseIncrease($2004)($2004)

Real Salary Real Salary Growth Growth ’’90-’0490-’04 Job GrowthJob Growth

Highest Paying Jobs (Top 1/3) / $79,800 $19,977 33.4% 20,280

Mid Level Paying Jobs(Middle 1/3) / $51,000 $8,208 19.2% 57,310

Low Level Paying Jobs(Lowest 1/3) / $24,500 $2,000 8.9% 158,400

44

We Are Falling Behind the State and NationWe Are Falling Behind the State and NationGrowth inGrowth in Real Per Capita Income Not Keeping PaceReal Per Capita Income Not Keeping Pace

0%

10%

20%

30%

40%

50%

60%

70%

19

70

19

72

19

74

19

76

19

78

19

80

19

82

19

84

19

86

19

88

19

90

19

92

19

94

19

96

19

98

20

00

20

02

United StatesUnited States

CaliforniaCalifornia

San DiegoSan Diego

55

Which Jobs Influence Which Jobs Influence Economic Growth Most?Economic Growth Most?

Export OrientedExport Oriented Unconstrained Market PotentialUnconstrained Market Potential

66

16 Traded Employment Clusters 16 Traded Employment Clusters Drive Our EconomyDrive Our Economy

Biomedical ProductsBiomedical Products BiotechnologyBiotechnology CommunicationsCommunications Computer ElectronicsComputer Electronics Defense & TransportationDefense & Transportation Design ServicesDesign Services EntertainmentEntertainment Environmental Environmental

TechnologyTechnology

Financial ServicesFinancial Services Fruits &Fruits &

VegetablesVegetables HorticultureHorticulture Publishing ServicesPublishing Services Recreational GoodsRecreational Goods SoftwareSoftware Specialty FoodsSpecialty Foods Travel andTravel and

HospitalityHospitality

77

Proportion of Jobs in Each “Driving” Employment Cluster-2005

(Traded Clusters Set the Pace of Economic Growth)(Traded Clusters Set the Pace of Economic Growth)

Biotechnology & Pharmaceuticals

7%

Defense6%

Computer & Electronics5%

Other Clusters19%

Other Jobs

Communications8%Financial Services

11%

Travel & Hospitality11%

Entertainment & Amusement33%

Clusters

Traded

Employment

26%

88

Low Paying “Driving” Cluster IndustriesLow Paying “Driving” Cluster Industries(Clusters with Average Wage Less than Region’s, $2004)(Clusters with Average Wage Less than Region’s, $2004)

$39,300

$32,200

$30,200

$27,800

$22,600

$16,100

$0 $20,000 $40,000 $60,000

San Diego Region

Specialty Foods

Horticulture

Travel & Hospitality

Fruit & Vegetables

Entertainment &Amusement

99

High Paying “Driving” Cluster IndustriesHigh Paying “Driving” Cluster Industries(Clusters with Average Wage Greater than Region’s, $2004)(Clusters with Average Wage Greater than Region’s, $2004)

$39,300

$51,900$53,400

$61,800$65,100

$71,200

$71,300$73,100

$78,800$80,000

$82,000$112,800

$0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000

San Diego Region

Recreational Goods

Publishing

Design

Biomedical Products

Defense & Transportation

Environmental Technology

Financial Services

Computer & Electronics

Biotechnology

Software

Communications

Estimating Economic Impacts of

Border Wait Timesin the

San Diego-Baja California Region

January 2008

11

Binational Trade & Freight Facts

9% of U.S.-Mexico

trade value crosses at Otay Mesa and Tecate.

#1

Mexicois the

United States’ third largest

trading partner.

#3

12

Binational Trade & Freight Facts

Mexicois

California’s number one

export market.

#2

#1

#3 The Otay MesaPort of Entry (POE) is the third ranking POE in trade dollar value between theU.S. and Mexico.

Otay Mesa POE

13

Value of Trade Passing Through SD POE’s Rising Faster than GRP

Northbound Truck Crossings Otay Mesa & Tecate POEs

Num

ber

of

Tru

cks

(thousa

nds)

Tw

o-W

ay T

rade (in

$m

illions)

14

San Ysidro

San Diego-Baja California POEs: Current Conditions

15

Cross-Border Personal Travel

Impact Category Total Annual Impact (2007)

Output Output (millions of U.S. (millions of U.S. dollars)dollars)

Labor IncomeLabor Income(millions of U.S. (millions of U.S. dollars)dollars)

Employment (FTE Employment (FTE jobs)jobs)

-$2,989-$2,989

-$1,256-$1,256

-40,450-40,450

Combined Regional Economic Impacts

(San Diego County & Baja California)

16

Otay Mesa Commercial POECurrent Conditions

17

Economic Impacts due to Cross-Border Freight Delay

Impact Category

2007 Total Annual Impact (U.S. $ in millions)

California United States

San Diego County

Output

Labor Income

Employment(FTE jobs)

-$ 539

-$ 155

-2,912

-$ 847

-$ 241

-4,323

-$ 1,487

-$ 415

-9048

MexicoBaja California

-$ 1,560

-$ 178

-8,207

-$ 2,451

-$ 280

-12,897

18

Lost Economic BenefitsSan Diego-Baja California Personal Travel and Freight Movements (2007)

51,570 Lost Jobs =

8.5 Qualcomm8.5 QualcommCompaniesCompanies

3 3 1/2 San DiegoConvention

Centers

$5.1 Billion in Lost Output =$5.1 Billion in Lost Output =

19

Projected Employment Impact of Border DelayPersonal Travel and Freight Movements (2007)

San Diego County & Baja California

United States & Mexico

2007

2014

0

-40,000

-80,000

-120,000

Em

plo

ym

ent

Loss -51,570

-62,357

-104,146

-123,682

2030 Regional2030 RegionalTransportation Plan: Transportation Plan:

Pathways for the FuturePathways for the Future

2211

A million new residents by 2030A million new residents by 2030

A half million new jobsA half million new jobs

2222

Chula Vista to Sorrento ValleyChula Vista to Sorrento ValleyTravel TimeTravel Time

00

4040

8080

120120

100100

2020

6060

AutoAuto

CurrentCurrent

Without InvestmentWithout Investment

64645151

9090

7777

5656

Average Travel Time, Door-to-Door (In Minutes)Average Travel Time, Door-to-Door (In Minutes)

With InvestmentWith Investment

2233

Chula Vista to Sorrento ValleyChula Vista to Sorrento ValleyTravel TimeTravel Time

0

40

80

120

100

20

60

CurrentCurrentWithout Investment

5555

113108108110110

TransitTransit

With Investment

Average Travel Time, Door-to-Door (In Minutes)Average Travel Time, Door-to-Door (In Minutes)

4444

103103

4949

2244

Chula Vista to Sorrento ValleyChula Vista to Sorrento ValleyTravel TimeTravel Time

00

4040

8080

120120

100100

2020

6060

CarpoolCarpool

CurrentCurrent5151

With InvestmentWith Investment

Average Travel Time, Door-to-Door (In Minutes)Average Travel Time, Door-to-Door (In Minutes)

Without InvestmentWithout Investment

2929 3030

88557070

2255

Chula Vista to Sorrento ValleyChula Vista to Sorrento ValleyTravel TimeTravel Time

00

4040

8080

120120

100100

2020

6060CurrentCurrent

Without InvestmentWithout Investment 9595

5252 55554949

5454

79796969

With InvestmentWith Investment

Average Travel Time, Door-to-Door (In Minutes)Average Travel Time, Door-to-Door (In Minutes)

All ModesAll Modes(weighted average)(weighted average)

Environmental Environmental

Mitigation Mitigation

Program Program

27

May 2005May 2005

2828

RegionalRegionalHabitat PreserveHabitat PreservePlanning Area Planning Area with Mobility with Mobility NetworkNetwork

Environmental Mitigation ProgramEnvironmental Mitigation Program

2828

2929

40 Year Expenditure Plan40 Year Expenditure Plan

29

ExtensionExtension

EEnnvviirroonnmmenenttalalMMiittiiggaattioionn$$00..66

SSmmaarrtt GGrroowwtthh$$00..2288

EEnnvviirroonnmmenenttalalMMiittiiggaattioionn LLooccalal$$00..2255

FFiinnaanncciinngg CCoosstt$$00..55

OOvveerrssiigghhtt CComommmiitttteee e ((NNoott sshhoowwnn))

$$00..0011

Major Highway&

Transit Projects (47)$4.65

Local Streets&

Roads$3.95

TransitServices

$2.24

((IInn BBillillioionnss,, 22000022 DDoollllaarrss))

NNeeww BBRRTT//RRaaiillOOppeerraattioionnss

$$11..11

AAddmmiinniissttrraattioionn$$00..1144 BBiikke &e &

PPeeddeessttrriiaann$$00..2288 Total Program $14 BillionTotal Program $14 Billion

3030

Environmental Mitigation Environmental Mitigation Program CostsProgram Costs

30

ExtensionExtension

Total ProgramTotal Program$850 Million$850 Million

Plus up to $30m in financing costsPlus up to $30m in financing costsFor advanced habitat acquisitionFor advanced habitat acquisition

((InIn MMillilliioonnss,, 22000022DDoollllaarrss))

TTrraannssppoorrttaattiioonnPPrroojjeecctt

MMiittiiggaattiioonnFFuunndd$$66550m0m Major

Highway &TransitProject

Mitigation$450

$150

$50

LocalTransportation

ProjectMitigation

$200

RReeggiioonnaall HHaabbiittaattCCoonnsseerrvvaattiioonnFFuunndd$$22000m0m

3131

““Economic Benefit” based on:Economic Benefit” based on:

Purchasing mitigation land in advance Purchasing mitigation land in advance of need in larger blocks at a lower costof need in larger blocks at a lower cost

Preventing Mitigation Ratio “Creep”Preventing Mitigation Ratio “Creep”

Environmental Mitigation ProgramEnvironmental Mitigation Program

31

3232

Conservation Benefits:Conservation Benefits:

Large-scale acquisition, restoration and Large-scale acquisition, restoration and management of critical habitat areas management of critical habitat areas

Make good on conservation programs Make good on conservation programs promisespromises

Develop biological database make available Develop biological database make available to publicto public

Environmental Mitigation ProgramEnvironmental Mitigation Program

3232

3333

Transportation Benefits:Transportation Benefits:

Approach provides mitigation assurances Approach provides mitigation assurances for future transportation improvementsfor future transportation improvements

Reduces future mitigation costs andReduces future mitigation costs andallows for accelerated project deliveryallows for accelerated project delivery

Transportation project mitigation consistent Transportation project mitigation consistent with habitat conservation planswith habitat conservation plans

Environmental Mitigation ProgramEnvironmental Mitigation Program

3333

San DiegoSan DiegoRegional Economic Prosperity StrategyRegional Economic Prosperity Strategy

Transportation: Helping Address the Three E’sTransportation: Helping Address the Three E’s