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

8. 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 McCain economic advisor Mark Zandi could love

9. 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

10. How Can This Region Do Better?

11. 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-to- career, internships, apprenticeships, coops)

12. 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)

13. 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

14. 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/H20 PA for regional control of your share of water/sewer funds

15. 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

16. 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

17. “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”

18. 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