BUTLER COUNTY INTEGRATED DEVELOPMENT BUDGET PROJECT PRESENTATION NOVEMBER 18, 2013 PUBLIC SECTOR INNOVATION COUNCIL: A SOURCING OFFICE INITIATIVE

AGENDA 1.Overview and IntroductionsMike Campbell 2.Presentation OverviewDon Iannone 3.Public Finance ReviewKevin O’Brien 4.Questions and DiscussionWorking Group 5.Next StepsDon and Mike PUBLIC SECTOR INNOVATION COUNCIL: A SOURCING OFFICE INITIATIVE

VISION OF WHAT THE I-D-B APPROACH WILL HELP BUTLER COUNTY ACCOMPLISH The Integrated Development Budget (I-D-B) approach will improve the efficiency, effectiveness, and beneficial impact of public and private sector investments in economic and community development projects in Butler County by: 1.Providing useful new financial and economic analysis tools and data to support improved investment decisions by countywide and community development-related organizations. 2.Providing new mechanisms for collaboration, information sharing, analysis, and coordinated investment by countywide and community development organizations. 3.Providing new innovative financing strategies for economic and community development projects in Butler County. PUBLIC SECTOR INNOVATION COUNCIL: A SOURCING OFFICE INITIATIVE

INTEGRATED DEVELOPMENT BUDGET: AS A TOOL  The Integrated Development Budget, or the IDB, is a practical research and planning Web-based tool that local practitioners and policymakers can use to create an environment in which high quality and sustainable growth and development occur in Butler County.  The IDB can be used by an individual community or a group of communities to analyze whether development proposals, projects, strategies and policies will contribute to quality and sustainable growth in the community or group of communities.  The IDB is designed to increase collaboration within a single community and between and among communities to innovate with new approaches to economic and community development projects. PUBLIC SECTOR INNOVATION COUNCIL: A SOURCING OFFICE INITIATIVE

PROPOSED BUTLER COUNTY ECONOMIC VISION STATEMENT Create a future environment in which high quality growth and development occurs in Butler County communities, resulting in increased high- wage job creation, broad- based prosperity, business and industry competitiveness, and sustainable community- building with the greatest possible return on public and private funds invested. Supporting Definitions for the Economic Vision “Growth introduces both challenges and opportunities for communities.” ~Utah Quality Growth Commission “There is no ‘one-size-fits-all’ definition of quality growth. It should be defined in the context of a particular community, but in recognition of that community’s connections to other communities.” ~Atlanta Regional Commission “High-wage jobs are jobs that pay at least 50% more than the overall average wage.” ~Carey Business School, Arizona State University “High-demand jobs are jobs that are expected to grow at least 25% above the average employment growth rate for all jobs.” ~Massachusetts Department of Employment and Training “Gross national product growth is not the ultimate measure of an economy’s success. Instead the ultimate measure of an economy’s success is how well it produces prosperity for all citizens.” ~Philip Auerswald & Zoltan J. Acs “Competitiveness is defined by the productivity with which a nation utilizes its human, capital and natural resources. To understand competitiveness, the starting point must be a nation’s underlying sources of prosperity.” ~Michael Porter “A sustainable community is one that is economically, environmentally, and socially healthy and resilient. It meets challenges through integrated solutions rather than through fragmented approaches that meet one of those goals at the expense of the others. And it takes a long-term perspective—one that's focused on both the present and future, well beyond the next budget or election cycle.” ~Institute for Sustainable Communities Would you consider this as a future economic vision statement for Butler County and its communities? PUBLIC SECTOR INNOVATION COUNCIL: A SOURCING OFFICE INITIATIVE

PROPOSED ANALYTICS FOR THE BUTLER COUNTY IDB PROJECT The successful construction of a beta version of the Integrated Development Budget (IDB) requires some analysis to establish a baseline for Butler County’s performance in building a high quality and sustainable economic base: 1.High-Demand, High-Skilled, High- Wage (HD-HS-HW) Job Creation. 2.Broad-Based Prosperity. 3.Business and Industry Competitiveness. 4.Sustainable Community-Building. 5.Reduced Public Sector Costs and Increased Return on Investment (ROI). Create Environment for High Quality Growth and Development HD-HS-HW Job Creation Broad-Based Prosperity Competitive Business and Industry Sustainable Community Building Reduced Public Sector Costs and Greater ROI PUBLIC SECTOR INNOVATION COUNCIL: A SOURCING OFFICE INITIATIVE

SUSTAINABLE ECONOMIC DEVELOPMENT Manageable Growth Quality Development Sustainable Economic Development Local economies continuously experience both growth and development. Growth is a process of a local economy becoming larger in size and output. Growth is described in quantitative terms, such as the growth in local economic output. Development is a process in which a local economy evolves or transforms, changing in qualitative terms often in phases. Development is concerned with job generation, standard of living, broad-based prosperity and quality of life. Sustainable local economic development requires a combination of growth and development that gives special attention to: 1) the efficient (productive) use of resources that have favorable impacts on the environment, natural resources, human lives, businesses, and community quality of life; and 2) produces necessary goods and services that place reasonable demands on these same impact factors. PUBLIC SECTOR INNOVATION COUNCIL: A SOURCING OFFICE INITIATIVE

ECONOMIC DEVELOPMENT VERSUS ECONOMIC GROWTH DimensionEconomic DevelopmentEconomic Growth ScopeDevelopment is concerned with structural changes in the economy (e.g. changes in industry mix through growth and decline), and the availability of development resources (e.g. workforce, infrastructure, real estate, land use and zoning, financing) to support business expansion and attraction. Growth is concerned with increases in the economy's output (local economic output), increases in business productivity, and export growth (outside the local economy). Innovation plays a major role in increasing productivity and export competitiveness. EmphasisConcerned about job creation and upgrading, resident and worker prosperity, living standard as an aspect of quality of life, and equity concerns about where, how, and who benefits from growth. Growth relates to changes in local economic output, consumption, investment, exports outside the local economy MeasurementDevelopment implies increases in employment, prosperity, and improvement in socioeconomic conditions. Metric examples: employment growth, unemployment rate, per capita income, tax base increases, and poverty rate. Growth refers to an increase in the output of goods and services by industry or business sector. Metric examples: growth in local economic output, exports outside the local economy EffectBrings qualitative and quantitative changes in the economyBrings quantitative changes in the economy Type ConceptNormative concept, which provides a basis for policy.Narrower analytic concept than economic development RelevanceEconomic development is more relevant to measuring standard of living, socioeconomic progress and quality of life of communities and citizens supported by a local economy Economic growth is relevant to the size and rate of growth of a local economy. PUBLIC SECTOR INNOVATION COUNCIL: A SOURCING OFFICE INITIATIVE

I-D-B INVESTMENT MODEL Butler County Integrated Development Budget Strategic Investments in Increasing the Competiveness of Local Development Resources Strategic Investments in Assisting with Business Investment and Job Creation PUBLIC SECTOR INNOVATION COUNCIL: A SOURCING OFFICE INITIATIVE Top Three Priorities: Workforce Competitiveness Broadband Technology Transportation Infrastructure The key is defining the key investments in each area

TYPES OF I-D-B INVESTMENTS Type 1: Countywide Competitiveness Investments Type 3: Individual Community Competitiveness Investments Type 2: Two or More Community Competitiveness Investments PUBLIC SECTOR INNOVATION COUNCIL: A SOURCING OFFICE INITIATIVE

BUTLER COUNTY JOBS-SKILLS MISMATCH AND ITS IMPLICATIONS FOR EMPLOYERS AND WORKERS Jobs Available in Butler County Required Skills in Undersupply Required Skills in Balance Required Skills in Oversupply PUBLIC SECTOR INNOVATION COUNCIL: A SOURCING OFFICE INITIATIVE Sellers Market for Workers Buyers Market for Employers Equally Advantageous to Workers and Employers Higher Wages Mean Increased Prosperity for Communities if Productivity Exists Higher Wages Mean Reduced Profitability for Employers if Productivity Lags Productivity Must Exist for Employers and Workers To Both Win! Dilemma!

INFRASTRUCTURE IMPROVEMENTS: INTENDED AND UNINTENDED IMPACTS Infrastructure Improvement (Transportation or Technology) Intended Benefits and Costs? Unintended Benefits and Costs? PUBLIC SECTOR INNOVATION COUNCIL: A SOURCING OFFICE INITIATIVE Is Butler County a Net Winner in the Short, Intermediate and Longer Terms? How do we know?