1. THE STATE OF OUR REGION Bud Colligan Co-Chair, Monterey Bay Economic Partnership

2. MBEP – 37 Strong…And Growing! #MBEP MONTEREY BAY ECONOMIC PARTNERSHIP 2

3. THE STATE OF OUR REGION

4. The State of Our Region ECONOMY

5. Source: U.S. Census Bureau (2015); Population Estimates Program (PEP). We Live in a Wonderfully Diverse Community #MBEPMONTEREY BAY ECONOMIC PARTNERSHIP5

6. The Economy Has Lifted Many Boats #MBEPMONTEREY BAY ECONOMIC PARTNERSHIP6 Source: State of California Employment Development Department (2015). 2008-2015 Labor Market Information Division. U.S. Department of Labor (2015). 2007-2015 Bureau of Labor Statistics. Data for 2015 represent the preliminary numbers for September only. Data prior to September, 2015 represent an average for the year. Unemployment Rate

7. All Cities Have Benefited #MBEPMONTEREY BAY ECONOMIC PARTNERSHIP7 Source: State of California Employment Development Department (2015). 2008-2015 Labor Market Information Division. U.S. Department of Labor (2015). 2007-2015 Bureau of Labor Statistics. Data for 2015 represent the preliminary numbers for September only. Data prior to September 2015 represent an average for the year.

8. The State of Our Region HOUSING

9. Housing is Too Expensive #MBEPMONTEREY BAY ECONOMIC PARTNERSHIP9 Source: National Association of Home Builders (2014). 2008-2014 NAHB - Wells Fargo Housing Opportunity Index (HOI), 1 st Quarter

10. Owning a Home is Unattainable for Most #MBEPMONTEREY BAY ECONOMIC PARTNERSHIP10 Source: National Association of Home Builders (2014). 2008-2014 NAHB - Wells Fargo Housing Opportunity Index (HOI), 1 st Quarter.

11. The State of Our Region INFRASTRUCTURE

12. Fast Internet Is Essential Infrastructure #MBEPMONTEREY BAY ECONOMIC PARTNERSHIP12 Internet = Information Highway

13. Sunesys project will be regional backbone Fast Internet Is Essential Infrastructure #MBEPMONTEREY BAY ECONOMIC PARTNERSHIP13 Low cost wholesale fiber services available to anyone, anywhere on route

14. Existing fiber is a freeway with no on-ramps; backbone makes the business case to connect Sunesys project will be regional backbone Ties region to main SF to LA fiber routes Fast Internet Is Essential Infrastructure #MBEPMONTEREY BAY ECONOMIC PARTNERSHIP14

15. Cities and independent ISPs building local networks, but need affordable back haul Sunesys project will be regional backbone Ties region to main SF to LA fiber routes Connects locally owned city networks to Tier 1 Internet Fast Internet Is Essential Infrastructure #MBEPMONTEREY BAY ECONOMIC PARTNERSHIP15

16. Competition makes everyone better Sunesys project will be regional backbone Ties region to main SF to LA fiber routes Connects locally owned city networks to Tier 1 Internet Vital link to tie regional networks together Fast Internet Is Essential Infrastructure #MBEPMONTEREY BAY ECONOMIC PARTNERSHIP16

17. How We Get Around The Region #MBEPMONTEREY BAY ECONOMIC PARTNERSHIP Source: U.S. Census Bureau (2014); American Community Survey, 1-Year Estimates. 17

18. Our water supply is still a challenge but we are starting to make progress #MBEPMONTEREY BAY ECONOMIC PARTNERSHIP18

19. The State of Our Region YOUTH HEALTH AND WELL BEING

20. Almost 100% Youth Health Insurance! #MBEPMONTEREY BAY ECONOMIC PARTNERSHIP20 UCLA Center for Health Policy Research (2013). California Health Interview Survey, 2003-2014. Children Insured (Birth – 17)

21. People Served by Regional Food Banks #MBEPMONTEREY BAY ECONOMIC PARTNERSHIP Source: Second Harvest Food Bank of Santa Cruz County. Food Bank for Monterey County. 21

22. Youth Obesity is Alarmingly High #MBEPMONTEREY BAY ECONOMIC PARTNERSHIP22 Source: UCLA Center for Health Policy Research. California Health Interview Survey, 2005-2013 Ages 12 - 17

23. Students Receiving Free or Reduced Cost Meals #MBEPMONTEREY BAY ECONOMIC PARTNERSHIP Source: California Department of Education. (2014). 2007-2014 Educational Demographics Unit. 23

24. The State of Our Region ENVIRONMENT

25. Total % Protected Acres By County - 2015 #MBEPMONTEREY BAY ECONOMIC PARTNERSHIP Source: California Protected Areas Database. (2015). 2015 CPAD Project Working Paper. 25 2015

26. Farmland Acreage & Total Field Crop Value MONTEREY BAY ECONOMIC PARTNERSHIP Sources: Santa Cruz County Office of the Agricultural Commissioner. (2014). Santa Cruz County Crop Report. Monterey County Office of the Agricultural Commissioner. (2014). Monterey County Crop Report. San Benito County Office of the Agricultural Commissioner. (2014). San Benito County Crop Report. 20002014 Total Crop Value Total Farm Acreage Value Per Acre Total Crop Value Total Farm Acreage Value Per Acre Santa Cruz County $439M20,301$21,623$604M18,109$33,345 Monterey County $4,527M490,749$9,224$6,116M513,172$11,919 San Benito County $180M 51,659$3,491$293M45,061$6,499 26#MBEP

27. Organic is Growing Fast #MBEPMONTEREY BAY ECONOMIC PARTNERSHIP27 Source: County Agricultural Commissioner. (2014). 2009-2014 Santa Cruz County, Monterey County, and San Benito County Crop Reports.

28. It’s not all good news on the environment #MBEPMONTEREY BAY ECONOMIC PARTNERSHIP Source: Department of Pesticide Regulation.(2014). Annual Pesticide Use Report. Sacramento, CA. 28

29. The State of Our Region PUBLIC SAFETY

30. Crime Rate per 1,000 Residents #MBEPMONTEREY BAY ECONOMIC PARTNERSHIP Source: California Department of Justice. (2014). 2007-2013 California Criminal Justice Profile. California Department of Finance (2014). 2000-2020 E-4 Population Estimates for Cities, Counties and the State, 2000-2010, with 2000 and 2010 Census Counts. 30

31. Gang Related Cases and Arrests #MBEPMONTEREY BAY ECONOMIC PARTNERSHIP Santa Cruz County Source: Santa Cruz County Anti-Crime Team. (2014). Personal Correspondence. Note: These numbers are the first half of the year, January through June, and do not reflect the entire year. 31

32. Employed Youth (16-19) #MBEPMONTEREY BAY ECONOMIC PARTNERSHIP32 Source: United States Census Bureau. (2014). 2007-2013 American Community Survey.

33. The State of Our Region WORKFORCE

34. Employment Sectors 2014 #MBEPMONTEREY BAY ECONOMIC PARTNERSHIP34 Source: CA Employment Development Department Total Civilian Employment for Santa Cruz County equals 130,200. Total Civilian Employment for Monterey County equals 199,900. MONTEREY COUNTYSANTA CRUZ COUNTY TOTAL EMPLOYEES ALL INDUSTRIES: 103,500TOTAL EMPLOYEES ALL INDUSTRIES: 183,300

35. Workforce Challenges MONTEREY BAY ECONOMIC PARTNERSHIP Salinas Valley: 30% of residents > 25 years old ended formal education in elementary or middle school Salinas Valley: Over 85% of high school grads do not have college-ready math and English proficiency Low levels of education proficiency make it difficult to compete for better paid, higher skill jobs Ongoing unmet demand for jobs in supply chain mgmt, sales, logistics, engineering/CS, machinery operation and repair Mismatch between employer needs and local skills for higher wage jobs 35#MBEP

36. Workforce Challenges #MBEPMONTEREY BAY ECONOMIC PARTNERSHIP36 High levels of poverty, which inhibit education and movement up the value chain 30%+ of families in our region fall below the Real Cost Measure (vs. FPL) in a recent report by the United Way Exodus of skilled professionals to higher paying jobs in Silicon Valley, leaving middle management jobs open High cost of living makes it difficult to attract and retain talent

37. Participate Today #MBEPMONTEREY BAY ECONOMIC PARTNERSHIP37 #MBEP

38. THE STATE OF OUR REGION