South Central Pennsylvania After The Great Recession Stephen

South Central Pennsylvania After The Great Recession Stephen Herzenberg Ph. D. Economist Keystone Research Center

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 Mc. Cain 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-tocareer, internships, apprenticeships, coops)

21 st 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/H 20 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