Greetings and Good Evening Martinsville / Henry County Taxpayers ! **************** We are the Taxpayer Association of Martinsville and Henry County Our Mission: As a nonprofit, the Taxpayer Association of Martinsville and Henry County shall provide oversight of local / state government as it relates to our quality of life . TaxpayerMHC@aol.com Presenters: • Rick Horton is an Iriswood resident, former educator and self employed businessman having moved here 20 years ago to join Tultex. • Randy Scott is a former Alleghany high school principal, current real estate broker and primary care giver for his 93 year old Collinsville mother Strategic Blueprint: A Pathway Back to Prosperity the Past Martinsville – Henry County Economic Development Corporation Budget - Economic Development Corporation Harvest Foundation Martinsville City Henry County 1,000,000 339,500 460,500 annual operating $ 1,800,000 Martinsville – Henry County 1995 - 2011 Report Card on Economic Development in MHC Job Announcements Lost Year 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 total 200 620 449 440 2004 2195 70 795 549 1500 540 357 186 393 219 559 701 0 534 0 1040 2240 1050 2994 0 1158 294 0 121 822 508 599 908 741 11777 13009 deficit source: http://www.virginiascan.yesvirginia.org/ResourceCenter/ ( select Martinsville MSA ) 1232 Comparison of Neighbor ( MSA ) 1995 - 2011 job announcements lost gain / loss MSA Bristol Danville Lynchburg Roanoke Martinsville source: 6911 9373 12508 14511 11777 3648 8282 9119 12366 13009 http://www.virginiascan.yesvirginia.org/ResourceCenter/ 3263 1091 3389 2145 ( 1232 ) Comparison by Neighbor ( County / City ) 1995 - 2011 job announcements lost gain / loss ( population ) Pittsylvania Franklin Henry Patrick Bedford Danville Martinsville Bristol 61,501 50,784 56,208 19,212 66,507 45,586 14,945 17,496 2478 2461 8326 1748 1536 2127 1761 8774 1324 258 351 700 ( 448 ) 424 1278 6895 3451 2593 6155 4235 1703 740 ( 784 ) 890 Martinsville – Henry County EDC Mark Heath, President ********** $ 176,140 Critical Question ? How is a salary of $ 176,140 justified when we are at a deficit of 1232 jobs after 17 years ? Are we better off ……than we were 17 years ago ? Average…..is not good enough st in the 21 Century ! Harvest Foundation History Harvest Foundation • Martinsville Hospital built with donations from employees of local companies like Dupont, Fieldcrest, Pannill, Sale, American, Bassett, Stanley, Hooker, etc • Approximately 3 of the 11 million cost to build the hospital came from individuals and other organizations • Many retirees ( founding stockholders, if you will ) can still remember the good faith, arm-twisting by their bosses to donate a day’s or week’s pay towards construction • Hospital opened in 1970 and sold in 2002. • $ 150 million proceeds from the sale created the Harvest Foundation • Approximately $ 9,000,000 from earnings is available to spend in the community each year Source: www.martinsvillebulletin.com In other words….. Everyone in the area is vested in the Harvest Foundation if they: • Donated funds to build the hospital • As a patient, you and your insurance company paid your bill and contributed to the profitability of the hospital Harvest Investments 2003 - 2011 Some Recipients Activate MHC Adult DayCare MHC Bassett Public Library Bassett Community Center Blue Ridge Regional Library Boys / Girls Club of Blue Ridge Citizens Against Family Violence Martinsville City Police Dan River Basin Association Focus on Youth For the Children Partners in Prevention Foundation for Rehab Equip Gateway Streetscape Grace Network Henry County Schools MHC Health Dept MARC Martinsville Area Community Foundation Martinsville City Schools MHC Coalition for Health & Wellness MHC Historical Society NCI Partners for Livable Communities PHCC Education Foundation 1.600 .250 .205 .135 .095 .069 .145 .034 1.445 .145 .030 .158 .300 .031 4.890 .071 .382 .080 1.585 9.695 .135 8.742 .035 1.987 ( thousands ) Phoenix Corp Piedmont Access to Health Piedmont Arts Association Piedmont Community Services Piedmont Governors School Piedmont Dental Health Rural Health Project Assess of Danville SafetyNet Smart Beginnings Southern Environmental Law Southern Va Recreational Facilities SW Va Second Harvest Food Bank Spencer Penn Preservation Stepping Stones Eastern Drug Rehabilitation TheatreWorks Triple C Dude Ranch United Way Virginia Legal Aid Society Virginia Musuem of Natural History YMCA .250 .079 .504 1.439 .030 .450 .035 .018 .420 .713 .112 22.000 .025 .282 .007 .010 .232 .377 1.650 .015 1.342 .385 Harvest Investments 2003 - 2011 Nonprofits ( health, education, community vitality ) Economic development ( community vitality ) total Source: http://www.theharvestfoundation.org 55,000,000 19,000,000 $ 74,000,000 Are we better off ……than we were 9 years ago ? the Future Average … doesn’t cut it in the 21st Century We have…. • Water and sewer infrastructure • Natural water sources • Patriot Centre and Commonwealth Crossing • Unemployed / idled labor force • Patrick Henry CC and New College Institute • Pent-up energy • Recreational and social venues and we have • Harvest Foundation 150,000,000 Values • develop self worth • encourage self responsibility and a sense of responsibility for others • foster competition The Premise: Jobs An employed citizen will be a productive and responsible one who will be a contributing member of the community. An employed citizen: • controls her own destiny and maintains his own self worth • gains access to health • brings stability to the family and empowers the individual • gives back to his community • is not dependent upon government or society / dental insurance Job Recruitment - Strategy • Job recruiters should aggressively target and incentivize the prospect of an existing company to come to MHC • 1 % monthly job opportunity fee for two ( 2 ) years by each employee in a new job created by Harvest deducted from paycheck and returned to Harvest as a Return on Investment (ROI ). Not intended to make Harvest whole but payback a portion • Provide incentives to any local company to hire a native who earns a college degree anywhere…..new employee pays an opportunity fee of 2 % monthly for three ( 3 ) years to the company Sample : Salary 2,000 / mo Opportunity Fees 3,000 4,000 1% $ 20 30 40 3% 60 90 120 5% 100 150 200 Use of Opportunity Fees • Nonprofits • Cost of drug screenings • Job training The War Stories • Green Mountain Coffee ( 330,000 sf, 800 jobs/5yr,180m / 4m GOF ) • Amazon ( 1350 jobs / 5 yr, 135 m / 3.5m GOF, 850k Tobacco ) • Albany Industries ( 335 uphols jobs , 300k GOF, no Tobacco ) • Jammin.com ( from Tustin, California to Rocky Mount, Va ) • Vaughan Bassett ( 115 jobs, 8 m / 331k ) In reacting to the decision by John D. Bassett, III of Vaughan Bassett Furniture to compete with the Chinese, Rob Spilman, CEO of Bassett Furniture and chairman of NCI, said…. “We’ve ( Bassett Furniture ) been a public company since 1930 with shareholders that have to get profits…..At the end of the day, we are not a social experiment” “He’s ( J. D. Bassett ) managed to keep more of his production than most anybody else…which took a lot of tenacity and guts…. “But that’s what you’re going to do if you have your employees and much of your family wealth tied up in the business. “ The Premise: Education • Education is the engine of economic and social mobility • Jobs are the fuel • An engine without fuel goes nowhere 1. Improving our schools and increasing the graduation rate are worthy goals. 2. ~The World Economic Forum ranks the U.S. educational system 26th in the world. 3. Increasing competition by opening a charter school, not increased spending on the status quo, is the pathway to regaining our educational advantage. The American Dream is about competition, not maintaining a public monopoly. 4. If graduates cannot find a job, the situation is comparable to losing a job. Not having a job is demoralizing but walking out of school with a degree and no prospect of a job is even worse. 5. * Continuing to produce college graduates with growing tuition debt knowing that there are no jobs for them is creating false hope. Sources: * “Education / Student Debt”, Time Magazine, October 31, 2011 ~ ”Yes Wall Street Helps the Poor”, Newsweek Magazine, October 31, 2011 Tough Love Education - Strategy • Each local school board adds a 160 hr. unpaid opportunity internship to all of its diploma offerings for graduation. High school student must satisfy this requirement during nonschool hours ( weekends, nights or summers ) during their junior and senior years. Internship is a pass / fail experience focused on customer service skills and molding self worth. Employer gets 160 hrs of free labor: local annual economic impact: 700 x 160 x $ 9 = $ 900,000 per graduating class • Both school boards and governing bodies embrace a legislative proposal which requires a high school diploma as a prequalification to obtain a driver’s license • Post the weight levels of each k-12 student on the report card twice a year • Develop a charter school which is free of local and state regulations funded by Harvest • Develop a technology school offering high tech and trade level programs funded by Harvest • A merged city / county public school system • Provide access to job search and educational enrichment through full time hours at existing public libraries. Open a northern and southern elementary school library on Saturday and Sunday afternoons. Innovation • Competition • Innovation just does not happen in a laboratory….it happens on a factory floor…experimenting plus failure plus experimenting produces innovation • Fab labs • Steve Jobs Summary of the Plan • Provide an additional layer of incentives to recruit new industry funded by the Harvest Foundation. three funding partners of the EDC will expect a more aggressive strategy and performance in job recruitment • Opportunity fees paid back to Harvest by the employee in any job created by Harvest. Opportunity short term loans, not grants, to new / existing company funded by Harvest. • Unpaid internships for high school seniors, as a diploma requirement, to mold work ethic and self worth • Post student weight levels on report cards to alert parents of their responsibility for diet and exercise. • Expect candidates for job training / placement services and safety net recipients to pass a drug screening • Create a technical school to train skills needed by new industry and a charter school to provide competition with public schools both funded by Harvest • Resume the study to determine why a joint city / county school system will not work. • Add two new Board of Director positions to the Harvest Foundation to be filled by individuals who contributed a day’s or week’s pay to build the hospital • City Council and Board of Supervisors will explain its economic development plan at the start of each year. Taxpayer Association and MHC Chamber of Commerce will convene a Jobs Forum twice a year to receive a detail accounting of the progress from our elected and appointed leaders The How Do We Harvest Those Values ? • We need to invest in jobs. • Gainfully employed citizens lift themselves and their fellow men up. • Jobs will support the nonprofits. • Our priority should be about getting people back to work “I find the great thing in this world is not so much where we stand, as in what direction we are moving” “To reach the port of heaven, we must sail sometimes with the wind and sometimes against it, but we must sail, and not drift nor lie at anchor “ Oliver Wendell Holmes After 17 years of decline, are we drifting or sailing ? What Can You Do ? • Lobby Harvest Foundation to turn the emphasis to economic development • Send a message to your city councilperson or supervisor to expect a higher level of performance from the 1.8 million annual investment • Send a message to your school board representative that we need to hold parents more accountable for the moral, physical and cognitive development of their child during the k12 years