South Central Pennsylvania After The Great Recession

Stephen Herzenberg Ph.D.EconomistKeystone Research Center

1%

-2%

-6%

-2%

-6%

-4%

-2%

0%

2%

Total Private Federal State Local

The Public Sector In Pennsylvania Shed 22,400 Jobs Last Year, The Majority of Those Jobs Were In Education

Percent change in employment December 2010 to December 2011

Source. Keystone Research Center based on BLS data

Macroeconomics 101 for PA in 2012

• Use a balanced approach to the state budget, with revenue increases as well as spending cuts

• Don’t cut unemployment benefits--which help maintain spending of jobless & their families

• Enact a “Buy Low” infrastructure school retrofitting and construction initiative

• A recipe that John McCain economic advisor Mark Zandi could love

Why Does this Region Do Well?• Strong and diverse manufacturing base• Other strong industries: health care & long-term

care, logistics, agriculture, higher educ.• High-quality workforce systems with strong

connections to employers• Smart Growth land-use—e.g., in Lancaster• Good educational systems (for the most part)• Strong work ethic• Strategic economic development

How Can This Region Do Better?

Industry Partnerships 2.0• You pioneered this strategy…now push the

envelope to increase impact of partnerships on outcomes for business & workers– Deepen engagement of business organizations– Pilot industry-specific tools that measure impact– Deepen engagement of HACC/higher education &

make IPs the regional voice on industry needs– Scale up integrated classroom & work-based

learning: ed reform & boost skills (school-to-career, internships, apprenticeships, coops)

21st Century Economic Development• Rep. Boyd: “Doesn’t the Industry Partnership model

make sense beyond workforce”—scale up “industry centers of excellence,” have explicit industry strategies

• How do you finance regional & cluster initiatives (on innovation, marketing beyond region, spreading best practice, etc.)?– Lobby Harrisburg for control over your share (“block grant”)

of economic development $– Economic development bond—e.g., Montgomery County 7-

year $105 million plan– Self-imposed business contributions to joint efforts (like

downtown business associations)

South Central Regional Workforce Funders’ Collaborative?

• Build on effort of United Way of the Capital Region, TFEC, and United Way of PA

• Align philanthropic investments with employer-driven Industry Partnerships

• Boost strategic & staff capacity of partnerships

• Ensure low-income workers and youth benefit

Regional Green Infrastructure Collaborative

• Lancaster is a national leader in application of green infrastructure which– Is cost-effective– Creates good local jobs– Benefits the environment

• Take learning from Lancaster region-wide• Ask PENNVEST/H20 PA for regional control of

your share of water/sewer funds

First Source Carlisle-Harrisburg-Lancaster-Lebanon-York

• Reading “First Source” will give city residents who meet employer standards first shot at jobs in city, authorities, subsidized businesses

• Implement this concept in South Central, including on public construction projects and other construction by businesses with stake in cities

Education Reform• Regional teacher effectiveness initiative: capitalize on

good labor-management relations in most of region– More classroom experience in teacher education– Strengthen mentoring for new teachers– Negotiated peer review and pay systems that support

teacher effectiveness• Quality early childhood education for all• No school with > 20% of children in poverty• Scale up integrated classroom & work-based learning

“Govern for South Central Pennsylvania”

• Stepping back: past success of this region owes a lot to good folks in quasi-government — pragmatic not ideological conservatism

• Future success depends on effective private sector, public-private sector, & public sector

• Recruit and train the “best and brightest” for jobs staffing Industry Partnerships, economic development intermediaries, authorities, etc.

• Similar to “Teach for America”

Stepping Back 2• Economically polarized countries/states invest

inadequately in infrastructure, education for all, research, and other public goods that are the foundation for long-run growth

• Lean government is good• Anorexic government and gated elites are not• Govern for SC PA aims at confidence in

government needed for political will to invest adequately in lean government