Butler County integrated development budget project update report

1. Butler County integrated development budget project update report April 23, 2013 Sourcing Office Council of Governments

2. Proposed butler county economic vision statement • 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 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. Would you consider this as a future economic vision statement for Butler County and its communities? Sourcing Office Council of Governments

3. Issues to be discussed today Sourcing Office Council of Governments

4. 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. Sourcing Office Council of Governments

5. Economic development versus economic growth Sourcing Office Council of Governments

6. Real economic Output growth Butler County Estimated Economic Output Growth $13,823 $12,933 $13,443 The Cincinnati-Dayton regional economy declined by 6.8% during the 2007-2009 recession and grew by 3.3% in the 2009-2011-period. Butler County declined by 6.4% during the recession and grew by 7.9% in the 2009-2011 period. Methodology Note: No economic output data is available for Butler County, but it can be estimated using total personal income (TPI) data. Butler County’s TPI was 11.25% of Cincinnati-Dayton combined TPI in 2003, 11.3% in 2007, and 11.37% in 2011. These percentages can be used to estimate Butler County’s economic output. Sourcing Office Council of Governments

7. 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. Sourcing Office Council of Governments

8. State and Local government economic output estimates Sourcing Office Council of Governments

9. 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: • Providing useful new financial and economic analysis tools and data to support improved investment decisions by countywide and community development-related organizations. • Providing new mechanisms for collaboration, information sharing, analysis, and coordinated investment by countywide and community development organizations. • Providing new innovative financing strategies for economic and community development projects in Butler County. Sourcing Office Council of Governments

10. 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: • High-Demand, High-Skilled, High-Wage (HD-HS-HW) Job Creation. • Broad-Based Prosperity. • Business and Industry Competitiveness. • Sustainable Community-Building. • Reduced Public Sector Costs and Increased Return on Investment (ROI). Sourcing Office Council of Governments

11. Sum of All Theories: Economic Development in a region is dependent on: natural resources, • labor, capital investment, entrepreneurship, transport and communication, industrial • composition, technology, export market, international economic situation, local government • capacity, national and state government spending, and development supports. While all these • factors are important, which factor carries more weight is difficult to ascertain. Sourcing Office Council of Governments