1. Welcome Welcome Stockton Regional Economic Vitality Conversation June 18, 2004 Made possible through generous support from Pacific Gas and Electric Company and Bank of America

2. A Perspective on the Northern San Joaquin Valley June 18, 2004 Presented by Michael E. Locke, President & CEO San Joaquin Partnership

3. State Proximity

4. Regional Proximity The Inter-Regional Partnership

5. Commuter Map

6. Dynamics of Change Urban Expansion –San Joaquin County: 2.3% –Stanislaus County: 2.2% –Merced County: 2.8% SOURCE: Center for Continuing Study of the California Economy, California County Projections 2003 Edition

7. Population Source: California Department of Finance – Estimates & Projections

8. Dynamics of Change Growth limitations in place –San Joaquin County: 5 Cities with Growth Cap –Stanislaus County: 3 Cities with Growth Cap –Merced County: None Citizen Initiatives on November Ballot –San Joaquin County – Two (2) City of Stockton –Stanislaus County – None –Merced County – None

9. Global Economy Influences Exports Imports Offshore/Out of Region/Manufacturing

10. Regulatory Issues Air Quality – Severe Non-attainment Water Quality Issues, Bay Delta Accord Workers’ Compensation Medical Leave Act Health Coverage

11. Education Quality of Education: K – 12 CA State University (Turlock & Stockton) U.C. Merced Job Training/Vocational Training

12. Industry Clusters (8 County Region) Agriculture –73,000 jobs –$6.5 billion in sales –99% within the Tri-County Region Health Services & Biomedical –38,500 jobs –$1.8 billion in sales –92.6% within the Tri-County Region Source: Industrial Base Study and Cluster Analysis Northern San Joaquin Regional Collaborative March 1, 2000

13. Industry Clusters (8 County Region) Transportation –22,700 jobs –$903 million in wages –96.7% within the Tri-County Region Source: Industrial Base Study and Cluster Analysis Northern San Joaquin Regional Collaborative March 1, 2000

14. Industry Clusters (8 County Region) Resources –12,650 jobs –$410 million in wages –87.8% within the Tri-County Region Tourism –21,800 jobs –$300 million in wages –70% within the Tri-County Region Source: Industrial Base Study and Cluster Analysis Northern San Joaquin Regional Collaborative March 1, 2000

15. Emerging Clusters Logistics – Global –Port of Oakland –Port of Stockton –Burlington Northern Santa Fe Intermodal –Union Pacific Intermodal Building Materials Manufacturer –31 manufacturers & distributors in last 2 years

16. Bay Area Integration Transportation Comparative Affordability Workforce Availability Housing Affordability U.C. Merced Regional Economic Drivers

17. Regional Challenges Growth Management – Smart Growth Principals Agriculture Protection Infrastructure – Regional –Finance Education –K – 12 –University & College Tax & Regulatory Issues

18. Economic Vitality Conversation Today’s Focus 1.What state actions will have the most immediate positive impact on California’s economic recovery? 2.What state actions will result in the most significant long-term improvement to California’s economic competitiveness and comparative advantage? 3.How do we best structure an effective partnership between the regions and the state around economic strategy?