Utah Economic Development Initiative

1. Utah Economic Development Initiative 2010-2020 Sept, 2010

2. 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

3. Economic Growth Model • Tax Revenues • Property • Sales • Business Income • Personal Income • Fuel Fees Utah Model Education National Forecast • Social Costs • Education • Welfare • Public Assistance • Health Care • Criminal Justice

4. Economic Development Criteria 85% of Economic Development is Existing Utah Companies

5. Challenge: Dropouts Dropout’s are Increasing • 52% in 50 largest U.S. cities • U.S. graduation rate (once 1st) 20th out of 26 countries Health & Poverty Issues • 2 of every 5 children below poverty level • Die 9 years earlier Public Safety Issues • Prisons-75 % in state prisons & 59 % in federal inmates Economic 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

6. 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 skills Preparation 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 countries Postsecondary 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

7. 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

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

9. Roles Related to Institution Mission Job Training – • Specific education for industry needs and for individual “job ” • Community Colleges & UCAT Career & Technical Education

10. Higher Ed 2020 Plan66% Graduation Rate 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

11. 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

12. Utah Skilled Workforce Results

13. Economic Development“Death Spiral” Skilled Workforce Quality Education Tech Transfer Infrastructure Economic Climate Economic Crisis Demographics Eroding Services Higher Dropouts Education Decline Higher Taxes Higher Crime Industry Exodus Higher Social Costs Declining Revenues Skilled Workforce Exodus Economic Decline Lower Per Capita Income

14. Utah Economic Initiative for Social and Economic Development Solutions

15. It’s the Economy Stupid!

16. The LifeAppEcoSystemComponents Government, Education, Industry, Community, Charity Individual LifePlan LifePack LifeMap LifeSpace LifeLine LifeTrack Individual “Asset” & Family Support & Resources

17. Skilled WorkforceValue Proposition $260K Additional Lifetime Earning for HS Graduate Tax Revenues Asset Liability Pre School $5,000 Public Education $8-10,000 Welfare Social Services $16,000 ($64,000 for family of 4) Criminal Justice $30,000 Health Services $5,000 Education & Social Costs Per Year

18. Digital Community Ecosystem“Individual-Centric” Model Focus on all INDIVIDUALS as ASSETS Community Assets Individual Assets Emerging Asset

19. UtahFuturesSupport Model Emerging “Asset” Support Organizations

20. Skilled Workforce Model Workforce EcoSystem

21. Market Driven Skilled Workforce

22. LifePlan/Utah FuturesComponent Support Community Asset

23. Process 1 Process 2 Process 3 Process 4 Outreach to Measurable Results Continuous Process Individual “Lifeline” Model“From Hope to Success” The Individual “Asset” Digital EcoSystem Individual Family Design Package Records Package Resources Custom “Roadmap” -All support Organizations -All family and key contacts State/Fed Municipal Education Health Social Criminal Charities Business Public Community Federal State Municipal Education Health Social Criminal Community Questionnaire Needs Goals Social Education Careers Information Resources Contacts Schedules Rules Access AND the Individual View each individual as an asset!

24. EcoSystem“LifeSpace” Portal Portal Family Calendar Daily Support Communications

25. Problem: Poor Municipal Services Delivery . . . only a fraction of the total support and resources gets to recipient

26. Problem: Infrastructure Roadblock Incompatible data center“SILOS” Public Education Community Resources Health Services Individual Needs Public Safety Business Economic Development Organizations Municipalities Higher Education Public Federal Resources What % of support really gets to the individual?

27. Integration of Initiatives • 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 • 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

28. LifePlanEcoSystem Model Access Stakeholders Parents Teachers Administrators Students Organizations CCF-Converged Case File • Social Applications & Services Public Ed Higher Ed Municipalities State Depts Public Fed Govt Community Industry Health Services Public Safety

29. LifePlan “Needs Driven” Skilled Workforce Model 2016 IndustryNeeds CCF-Converged Case File

30. 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’sindustry 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 1. Current-State Analysis 5. Business ImpactAnalysis and Actions 2. Business Goals and Requirements Typical Industry Business Value Assessment Approach - - 4. Current and Future-State Gap Analysis 3. Future-State Design

31. Customer-driven,Agile & Iterative Development

32. It’s Marketing Stupid Government Education Health Industry Community Charities Coalition Outreach More Effective Delivery More Support & Resources Push Strategy IndividualLifeSpace Individual & Family Acceptance Pull Strategy Public CommunicationsPlan

33. Utah LifePlan TimelinePhase 1-Skilled Workforce & Preschool

34. Revenue Growth & Budget Reduction Skilled Workforce Quality Education Social Services Community Safety Business Infrastructure Economic Development“Rising Tide Theory” ROI Economic Development Top IssuesUS Conf for Mayors (2008) • Climate Protection & Energy • Fighting Crime • Community Development • Housing • 5.Infrastructure-Transportation, Utilities, Telecommunications, Schools • 6.Competitive Workforce & Dropouts • 7.Children & At-Risk Youth • 8.Homeland Security

35. 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.

36. Utah’s 21st Century Workforce Initiative Governor Jon M. Huntsman, Jr. December 18, 2008 • 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.

37. STATE COUNCIL PLAN 2009‐10 DELIVERABLES (April 8, 2010) • Completed Deliverables • 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 • 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 Deliverables • 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 • Statewide use of WorkKeys for job skills assessment is being explored • May possibly renegotiate outcome measures due to change in economy

38. Utah’s 21st Century Workforce Initiative Organizational recommendations 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-building ii. 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

39. UtahFutures Initiative • Benefits and ROI • 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

40. 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

41. Utah’s 21st Century Workforce Initiative Governor Jon M. Huntsman, Jr. December 18, 2008 • Finding 1: System governance • Utah’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 .

42. Utah’s 21st Century Workforce Initiative Governor Jon M. Huntsman, Jr. December 18, 2008 • 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.

43. Utah’s 21st Century Workforce Initiative Governor Jon M. Huntsman, Jr. December 18, 2008 • 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.

44. Utah’s 21st Century Workforce Initiative Governor Jon M. Huntsman, Jr. December 18, 2008 • 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.

45. STEM Ecosystem PilotCritical Success Factors • Workforce • Alliance • Steering Committee

46. Utah’s Economic Success Per Capital Income is Key Criteria Utah’ “Key” Priority Projected Change in Personal Income per Capita by State, 2000-2020 Source: National Center for Higher Education Management Systems (2005)