Utah Economic Development Initiative 2010-2020 Sept, 2010

Utah Economic Development

Initiative2010-2020

Sept, 2010

Presentation Overview Opportunity to Revive Utah Economy Focus on “True” Economic Development “Market Driven” Business Model

Focus on “Human Asset” Industry Focus

Key Critical Driver Significant ROI State Investment

Government, Education, Business Coalition “Driven”

National Model & Visibility Requires Industry Support . . . and

Leadership

Economic Growth Model

Social Costs• Education• Welfare• Public Assistance• Health Care• Criminal Justice

National Forecast

Utah Model

Tax Revenues• Property• Sales • Business

Income• Personal

Income• Fuel Fees

Education

Economic Development Criteria

Skilled

Workforce

QualityEducation

Research &Developme

nt

BusinessInfrastructur

eEconomic Climate

85% of Economic Development is Existing Utah Companies

Challenge: DropoutsDropout’s are Increasing 52% in 50 largest U.S. cities U.S. graduation rate (once 1st) 20th out of 26

countriesHealth & Poverty Issues 2 of every 5 children below poverty level Die 9 years earlierPublic Safety Issues Prisons-75 % in state prisons & 59 % in federal

inmatesEconomic Impact Unemployment rate (45%) is 3X college graduates. Welfare $16,750 per or $67,000 for a family of four 25 times more likely to be on Medcaid than college

graduates, costing $8,000 per year Costs more than $800,000 over the course of his or

her lifetime

Challenge: Skilled Workforce

Skilled Worker Shortage In 2014

Of the 30 fastest-growing occupations projected through 2016, the U.S. Bureau of Labor Statistics’ Occupational Outlook Handbook concludes that 16 of them will require substantial Mathematics or Science preparation.

50 % of new jobs will require some college 80 % of 30 fastest growing jobs will require some postsecondary

education or training By 2016, 16 of the top 30 occupations will require substantial

Mathematics or Science preparation By 2020- shortage of 14 million workers with these skillsPreparation for College, Careers, and Life 42% remediation rate for math and English 45% of high school graduates not prepared Problem-solving- US is 6th lowest of 29 countriesPostsecondary Education Bachelor’s degrees- 1st (1998) . . . now 7th (2005) ― only country in

23 with no increase in its postsecondary graduation rate Bachelor's degree graduates:

12% of low-income students 73 % of higher-income peers

Utah’s 21st Century Workforce Initiative

Adult literacy in Utah: •No HS diploma:

• 211,000 adults• 34% of the WFS caseload

• 3,501 receiving unemployment assistance• 8% of all Utah birth mothers do not have a high school diploma or GED.

• Median weekly income of $479 compared to $660 with a high school diploma and $1,243 for a bachelor’s degree.

• Graduating from high school:• Increases the likelihood of avoiding welfare by 75%.• • Generates nearly $800 in state income taxes annually.

Bob Wise, President of Alliance for Excellent Education• 300,000 “new graduates” would:

• 30,000 new jobs• Earn $4.1 billion• Spend an l $2.8 billion • Invest $1.1 billion

• Utah Dropouts• 3,500 dropouts (2008 )in Salt Lake, Summit and Tooele counties• Cost :

• 300 Jobs• $36 million in earnings per year• $24 million in increased spending

10%

22%

37%

31%No High School

High School Diploma

Some Postsec-ondaryBachelor's Degree

Source: Carnevale, Anthony P., and Donna M Desrochers, Standards for What? The Economic Roots of K-16 Reform, Educational Testing Service, 2003.

Future Personal and State Job Prospects

Roles Related to Institution Mission

Job Training – Specific education for industry needs and for

individual “job ” Community Colleges & UCAT

WSU 19.0%

UCAT 8.0%

SUU 5.0%

SNOW 4.4%DSC

3.5%USU 2.4%

UVSC 21.4%

CEU 2.9%

SLCC 33.4%

Career & Technical Education

Higher Ed 2020 Plan66% Graduation Rate

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

100,000

150,000

200,000

250,000

300,000

350,000

USHE Enrollments Needed for % of Utah Population to Achieve an

Associate Degree or Higher

Increase to Meet 60% Goal 39.5% of population 25-64 with degrees

94,000 new

54,000 Growth

College attainment:

Canada: 55%Japan: 54%USA: 40%

148,000 new students

Source: National Center for Higher Education Management Systems, Governors’ Office of Planning and Budget

Potential Skilled Workforce

• High School Grad-88% (3rd)

• HS Grads to College 54% (45th) • % HS Grads Remediation (CoC) 75%

• 2009 Freshman Retention 53%

• 2001 Fresh Graduation Rate (8 yrs) 52%

• HS Grads get Bach Degree 27% (31st)

• Only 3.9 percent 25 to 49 are attending any kind of college education

Utah Skilled WorkforceResultsUtah Higher Education

2008-09 Assoc Bach. Master/Doctor Total

Biological Sciences/Life Sciences 27 437 101 565

Computer & Info Sciences 111 355 77 543

Engineering & Related Technologies 330 650 303 1283

Health Professions 1328 1068 339 2735

Mathematics 11 109 35 155

Physical Sciences & Science Tech. 60 209 106 375

Total STEM 1867 2828 961 5656

Total Graduates 8988 12630 3161 24779

21% 22% 30% 23%

Economic

Crisis

IndustryExodus

ErodingServices

DecliningRevenues

LowerPer Capita

Income

SkilledWorkforce

Exodus

HigherDropouts

EducationDecline

HigherCrime

EconomicDecline

HigherTaxes

Economic Development“Death Spiral”

Demographics

Higher Social Costs

1. Skilled Workforce2. Quality Education3. Tech Transfer4. Infrastructure5. Economic Climate

Utah Economic Initiative

for Social and Economic Development

Solutions

It’s the Economy Stupid!

Workforce Companies Employment Payroll Ave Wage New Jobs 2016

State Total 83,276 1,189,003 $45,241,487,545 $3,171 396,700

Information 1,687 29,585 $1,416,328,969 $3,989 8,800

Scientific & Technical Svc 10,672 65,387 $3,863,213,881 $4,924 15,000 (est)

Manufacturing 3,795 112,843 $5,365,484,967 $3,962 23,600Health Care and Social Assistance 6,611 117,557 $4,376,868,835 $3,103 25,000 (est)

STEM 22,765 325,372 $15,021,896,652 1% incr=$150 M 72,400

27% 27% 33%

The LifeAppEcoSystem Components

IndividualLifePlan

LifeMap

LifeLine LifeTrackLifeSpace

LifePack

Support & Resources

Government,

Education,Industry,

Community,Charity

Individual “Asset”& Family

Skilled WorkforceValue Proposition

Pre School$5,000

PublicEducation$8-10,000

CriminalJustice$30,000

HealthServices$5,000

WelfareSocial Services$16,000 ($64,000for family of 4)

Liability

Asset Tax Revenues

$260K Additional Lifetime Earning for HS Graduate

Education & Social Costs Per Year

Digital Community Ecosystem“Individual-Centric” Model

Family

GovernmentSupport

BusinessSupport

CommunitySupport

EducationSupport

Focus on all INDIVIDUALS as ASSETS

Emerging

Asset

Community

Assets

Individual

Assets

UtahFuturesSupport Model

Public Ed

Higher Ed

Workforce Services

Health Services

Local Government

State Support

Federal Programs

Industry Support

Community Support

Support Organizations

On-Going Support

Industry Connection: Interviews, internships, support, employment

Education Support: Community support, virtual tools

“One Stop” registering, enrollment, interviews

Support Resources: Mentors, tutors, funding, scholarships, social services, counseling

Learning Process: Schools, majors, curriculum

Education Requirements: HS, Certification/degrees

Career Data: Earnings, openings, benefits, reference blogs

Career Interest: Medical Researcher

School Interest: Biology

UtahFutures Profile

Emerging “Asset”

Skilled Workforce ModelPart-time employment Interviewing Support Industry Field Trips

Testing Preparation Support Concurrent Education Higher Ed Field Trips Business Mentoring Tutoring & Mentoring Reference Options

Careers OpportunitiesBusiness Dress Support Business Dress Support

College Student Mentoring Job Opportunities Interviewing/Resume Support

HS Career Clubs Industry Internships Business & Communication SkillsTransportation Job Opportunities Financial SupportTutoring Interviewing Support Industry InternshipsClass Availability Industry Clubs Job FairsSocial Services Industry Field Trips Job Opportunities

College Student Mentoring Skills Requirements Tutoring & Mentoring Industry Field TripsIndustry Field Trips Aptitude Tests Job Prfiles Tutoring & MentoringParent Involvement Parent Involvement Financial Support EEO Counceling

Tutoring Individual Identification Employment Counseling Retraining Support

Career ResourcesJunior Achievement

STEM MESA-80 Schools/3300 Students STEP

LeonardoIndustry "Virtual" Employment Resources

Career "Touch Points" Middle/Jr High High School Higher Education Life Career Support

144 Schools 187 High Schools/157K Students

Workforce EcoSystem

Market Driven Skilled Workforce

LifePlan/Utah FuturesComponent

SupportCommunity

Asset

Outreach to

Process 1 Process 2 Process 3 Process 4

Continuous Process

Measu

rable R

esults

Individual “Lifeline” Model“From Hope to Success”

PackageRecords

Custom“Roadmap”

PackageResources

FederalState

MunicipalEducation

HealthSocial

CriminalCommunity

IndividualFamilyDesign

State/FedMunicipalEducation

HealthSocial

CriminalCharitiesBusiness

PublicCommunity

QuestionnaireNeedsGoalsSocial

EducationCareers

InformationResourcesContacts

SchedulesRules

Access

-All supportOrganizations

-All family and key contacts

The Individual “Asset”

AND the Individual

Digital EcoSystem

View each individual as an asset!

EcoSystem“LifeSpace” Portal

Part-time employment

Business Dress Support

Interviewing Support

Industry Field Trips

Testing Preparation

Concurrent Education

Higher Ed Field Trips

Business Mentoring Tutoring & Mentoring Reference Options

Careers Opportunities Business Dress Support Business Dress Support

College Student Mentoring Job Opportunities Interviewing/Resume Support Reading Support Community Support HS Career Clubs Industry Internships Communication Skills Community Support Day Care Transportation Job Opportunities Financial Support

Day Care Tutoring Tutoring Interviewing Support Industry Internships

Medical Testing Transportation Class Availability Industry Clubs Job Fairs Financial Support Financial Support Social Services Industry Field Trips Job Opportunities Pre-School Options School Options Skills Requirements Tutoring & Mentoring Industry Field Trips

Social Services Social Services Aptitude Tests Job Prfiles Tutoring & Mentoring Parent Involvement Parent Involvement Parent Involvement Financial Support EEO Counceling

Individual ID Individual ID Individual Identification Employment Counseling Retraining Support

Pre-School

Elementary Education High School Higher Education Career Support

EcoSystem LifeMap

Public Ed

Higher Ed

Workforce Services

Health Services

Local Government

State Support

Federal Programs

Industry Support

Community Support

Daily SupportCommunication

s

Portal Family Calendar

Problem: Poor Municipal Services Delivery

. . . only a fraction of the total support and resources gets to recipient

Problem: Infrastructure Roadblock

Public Education

EconomicDevelopmentOrganizations

CommunityResources

FederalResources

Business

HigherEducation

Municipalities

HealthServices

PublicSafety

Public

Incompatible data center “SILOS”

What % of support really gets to the individual?

Individual

Needs

Integration of Initiatives

K-16 Alliance Blue Ribbon on

Assessment Task Force to Study UCAT

and Public Education Job

Enhancement Program y Daniel’s Fund CTE Task Force to Study Math

and Science Curriculum Governor’s Child and

Family Governor’s literacy

Commission Governor’s Math Advisory

Board y USTAR Cabinet Council

Governor’s Early Childhood Commission World Language Summit Task Force to Study Performance Pay Utah Scholar’s Initiative g g for Public Native American

Summit Public Education Coalition Parents for Choice in Education National Board Certification

Parents Education GOED’s Integration Group GOED’s Board Working WEEDA Group State Council on

Workforce

LifePlanEcoSystem Model

Social Applications & Services

Public Ed Higher Ed PublicStateDepts

Municipalities

FedGovt

Community Public SafetyHealth ServicesIndustry

Parents Teachers Administrators Students Organizations

Access Stakeholders

CCF-ConvergedCase File

2016 IndustryNeeds

High School Higher Ed Continuing

Ed

Grads

Workforce

Industr

y

LifePlan “Needs Driven”Skilled Workforce Model

CCF-ConvergedCase File

http://www.chessboard.ie/CUuploads/Content/53/14sales_process_optimisation.jpg

Industry Business Value Assessment Approach

Understand the Business Problem/ ChallengeWork with your team to understand Current-State problems, drivers for change, goals and benefits of Future-State environment

Identify Challenges and Opportunities for ImprovementModel the Current-State and align to business strategies and goals

Provide A Business VisionBased on your strategic vision, IBM’s industry expertise, and the current environment

Define Technology RequirementsTechnical requirements are identified based on Future-State vision, business initiatives and objectives

Define the Business ValueA thorough understanding of the Future-State recommendation allows for development of a business case to calculate the business value

--3. Future-State Design

2. Business Goals and Requirements

5. Business ImpactAnalysis and Actions

1. Current-State Analysis

4. Current and Future-State Gap Analysis

Typical Industry Business Value Assessment Approach

Customer-driven,Agile & Iterative Development

It’s Marketing Stupid

Individual LifeSpace

GovernmentEducation

Health

More EffectiveDelivery

MoreSupport

&Resource

s

PushStrategy

Individual& Family

Acceptance

PullStrategy

CoalitionOutreach

PublicCommunicatio

nsPlan

IndustryCommunityCharities

Utah LifePlan TimelinePhase 1-Skilled Workforce & Preschool

J A S O N D J F M A M J JUtah Initiative Initiative Plan Governor Initiative 2011 Legislation Preparation

UtahFutures Migratiion &

Preschool Requirements

Legislation Passed RFP Implementation

Utah Coalition

Legislative Leadership

Higher Ed/SLCC

SL County

SL Chamber of Commerce

Workforce Services

Public Ed

Utah Colleges of Appl Tech

Manuf Assoc., UTC,

Health/Biomed Industry

Utah Bankers Assoc.

UEN

Economic Development“Rising Tide Theory” ROI

Revenue Growth & Budget

Reduction

Skilled WorkforceQuality Education

Social ServicesCommunity Safety

Business Infrastructure

Economic Development

1. Climate Protection & Energy

2. Fighting Crime3. Community

Development4. Housing

5.Infrastructure-Transportation, Utilities, Telecommunications, Schools

6.Competitive Workforce & Dropouts7.Children & At-Risk Youth8.Homeland Security

Top Issues US Conf for Mayors (2008)

UtahFutures Steering Committee Goals & Objectives•Explore opportunities to integrate UtahFutures more fully within consortium

partners’ resources.•Review test/assessment packages as well as resources to promote greater social networking and dynamic functionality into the system. The goal to facilitate greater K-16 education and agency usage will hinge upon how successfully we can invigorate the system to be more responsive to the ever-changing influences of the education/business world.•Further develop and expand consortium partnerships.•Expand training resources and opportunities to agency partners and the Utah resident community at large.•Apply for ASCII compliance•Fully integrate the SEOP process within UtahFutures and look to bridge it to post-secondary options. This would include a greater focus on the concept of career clusters and how they could be better utilized to promote economic development in Utah.•Focus marketing to include areas outside of consortium partnerships (e.g. businesses, public messaging)•Enhance usability/marketability of the system for portfolio users and outside entities. We want individuals, businesses to be able to mine data, explore job opportunities, and have UtahFutures flourish in its capacity as a connection and recruitment tool.

Finding 9: Development of Utah’s talent pool A methodology for identifying 21st century skills, attitudes, pathways and counseling, as well as greater emphasis on science, technology and math, would provide a critical connection between workers and the global marketplace.

• Studied the system in place for training workers after they have left school• Need for a strong, seamless connection among education, training and 21st

century skill sets, including soft skills and work ethic focus.

• Need to integrate education, economic development and the development of Utah’s talent pool through identified clusters and occupations and clear career pathways that lead to high skill levels necessary for the 21st century workforce.

• increase a system-wide focus on science, math and technology.

• Need a better system to facilitate retraining people already in the workforce with family and other responsibilities is needed.


Governor Jon M. Huntsman, Jr. December 18, 2008

STATE COUNCIL PLAN 2009‐10 DELIVERABLES (April 8, 2010)

Completed Deliverables1. Develop a list of targeted occupations.

Occupations were selected and approved by the State Council in the following industries: Energy efficiency/renewable energy (EE/RE), health care, broadband & telecommunications, advanced manufacturing, high‐demand industry sectors, high‐growth occupations

2. Create a web‐based portal to access pathways that connect customers to training programs that lead to employment in ARRA occupations

Web‐based pathways portal was upgraded to allow job seekers to move from the occupation list directly to an approved provider in their selected field.

Ongoing Deliverables3. Enhance re‐employment and one stop services to provide or expand services in

the following areas: skills assessment, career guidance, job training options, supportive services, employment plans, LMI and employer services. • Hired 50 staff to serve re‐employment and UI customers in One Stop Centers • Job‐seeking workshops offered at all One Stop Employment Centers • ESkills presented to all Regional Councils – may be used to complete

curriculum reviews 4. Statewide use of WorkKeys for job skills assessment is being explored 5. May possibly renegotiate outcome measures due to change in economy

Summary of proposed actions, roles and responsibilities 1. Establish a nine-member State Workforce Alliance Council Core Group with

three private sector members appointed by the Governor and other members representing leadership of public education, higher education, DWS, GOED, USTAR, and UCAT1

2. The State Workforce Alliance Council would integrate research and development, economic development, workforce development and secondary and post-secondary education to build a globally competitive workforce and ensure a strong Utah economy, with the following responsibilities: a. Assess statewide workforce needs using input from Regional Councils

and other data b. Develop a statewide 21st century workforce strategic plan that:

i. Emphasizes workforce capacity-buildingii. Balances the need to foster student creativity and innovation with the

increasing demand for science, technology, engineering and math expertise

iii. Engages private sector leadership and includes an executive level, adequately resourced implementation process

c. Lead the plan’s implementation and monitor progress and allocation of resources

d. Facilitate integration of workforce preparation across industry e. Assist in the alignment of education and training curriculum to industry

needs f. Develop and disseminate collaborative regional competency models g. Approve regional workforce development plans and ensure statewide

coordination


Organizational recommendations

Education Lower dropout rates Higher test scores Improved attendance, truancy, and suspensions Higher post high school education and graduation rates

Justice Lower crime rates Lower number of juvenile offenses and arrest

Financial Industry growth and company in-migration Job growth and lower unemployment rate Higher per capita income Higher total wages GPD accelerated growth Tax revenue growth

UtahFutures Initiative Benefits and ROI

Globally Competitive Workforce Steering Committee

Lane Beattie, president and chief executive officer of the Salt Lake Chamber

Pamela Atkinson, community advocate Scott Anderson, president and chief executive officer of Zions Bank Michael Young, president of the University of Utah Kim Campbell, president of the Utah Education Association Patti Harrington, superintendent in the Utah State Office of Education Rich Sadler, chairman of the State Board of Education Dinesh Patel, managing director of vSpring Capital Christine Kearl, education director in the Governor's Office Kristin Cox, director of the Utah Department of Workforce Services Gayle McKeachnie, rural and legislative affairs coordinator in the

Governor's Office Dave Buhler, commissioner of higher education Jim Judd, president of the AFL-CIO Sen. Lyle Hillyard, R-Logan Sen. Pat Jones, D-Holladay Rep. Phil Riesen, D-Salt Lake Rep. Greg Hughes, R-Draper

Finding 1: System governanceUtah’s workforce system needs to build the capacity of talent in our citizens. We need a workforce development governance structure to establish overall strategy and align statewide efforts toward this end.

• Multiple workforce development-related streams of effort without coordinated objectives, plans, priorities or accountabilities.

• The Department of Workforce Services, the Chambers of Commerce, local and state economic development entities, business and industry in general, Public Education, Higher Education, Career Technical Education, the Utah College of Applied Technology, community groups, professional associations and others represent various entities within these streams.

• Without a common organizing principle to achieve 21st century workforce development objectives, misalignment will continue. It became clear during the session that there are systemic challenges such as competition for funding, time and resource-consuming regulations and varying direction from disconnected governing bodies, and time and energy wasted in activities that duplicate or are inconsistent .



Finding 2: System funding Budget and finance processes need to be changed and aligned across all workforce development activities. cross the system.

• As a result of not being aligned and without coordinated measures or processes, workforce funding can inadvertently hinder efforts it intends to finance. Many of our current funding processes for workforce development are complicated, constrained by a disconnected network of regulations, wasteful through duplication or inefficiency and make it difficult to require accountability.

• Existing funding requirements and regulations remove most local control or discretion over budget decisions and give power to those who do not have responsibilities and leaves those responsible without authority or power to accomplish expected results.





Finding 4: Educational leadership- There is a need for establishing a process for leadership training and continuous improvement, as well as research-based evaluation tools for monitoring leadership performance.

• Affirmed the decisive influence of principals, superintendents and other educational leaders on both teaching and student achievement.

• Utah currently has no coordinated process for training or measuring of educational leaders, and that uneven school leadership results in low teacher morale, uneven teacher performance and teacher attrition, underperforming students and poor public relations.



Finding 7. Dropouts -The root causes of dropouts need to be identified and systematically addressed, from their inception through higher education.

• Examined data about students who start but do not finish school both in public education and post-high school state institutions. They also looked at what they came to describe as the Grand Canyon between high school and post high school enrollment.

• In that chasm we lose too many students who become underemployed, underpaid, and over-represented in the ranks of the unemployed, those on public assistance, in the judicial system, and whose children tend to perpetuate this cycle.

• With the demographic changes forecast for Utah and corresponding increases in disadvantaged students, this challenge will only intensify.

Public OutreachEcosyste

mPilotCoalition

& Strategic

PlanVisionar

yLeaders

hip

Workforce

AllianceSteering Committ

ee

STEM Ecosystem PilotCritical Success Factors

Utah’s Economic Success Per Capital Income is Key Criteria

Projected Change in Personal Income per Capita by State, 2000-2020Source: National Center for Higher Education Management Systems (2005)

Utah’ “Key” Priority

Documents

Utah Economic Development Initiative 2010-2020 Sept, 2010