A Knowledge Based Approach to Community Planning Dr. Patricia Byrnes Patrick Curry Arwiphawee Srithongrung What does Dilbert have to say? What is Planning? Planning consists of defining the important objectives an organization needs to achieve and determining how it plans to achieve them. Purposes and Types of Planning Strategic Visioning – Identify and describe widely held values and use them as a platform setting goals. Strategic Planning – To set the direction of the organization to improve its prospects for long-term survival. Operational Planning – The tactical details of how an organization is to be run over a short period of time Project Planning – Detailed identification and sequencing of all tasks to complete a project. Problems with Planning No mechanism exists for recognizing the difference between reality and predictions Goals are set arbitrarily Failure to focus on high-leverage goals Planned activities are not designed to accomplish goals There is no “Shared Vision” of the organizations future Essential Definitions Data - recorded observations of real world phenomena Information - level of knowledge needed to solve a problem or show patterns Intelligence - essential factors selected from information and data Knowledge - total concept of data, information, and intelligence with feedback loop Process for Identifying Data Needs Define the problem Decide on the geographic scope and detail Pinpoint and define the specific variables (data) you will need Establish the time period(s) for which you need the data Decide on the presentation methods (tables, charts, maps, or a combination) Establish cost and quality parameters for the data What do Economic Developers Do Create employment opportunities Increase wealth and income Increase the tax base How do they do it Retention and expansion of existing businesses Attract new business Support entrepreneurship Other… Population losses experienced in recent decades are likely to continue. Population reached a peak in 1920 (41,403) since 1920 the county experienced losses each Census except 1970 to 1980 The current population is 28,900 excluding the prison Projections show slight declines of less than 1% over the next five years The rate of migration is very low, not many new faces in town! Population Pyramids With Prison Population Without Prison Population 80-84 80-84 70-74 70-74 60-64 60-64 50-54 50-54 40-44 40-44 30-34 30-34 20-24 20-24 10-14 10-14 0-4 0-4 5 4 3 2 1 0 1 2 3 4 5 Male Female The 65+ population is large but declining Baby Boomers –Will they stay or go? Brain Drain School age children will slowly decline 4 3 2 1 0 1 2 3 4 An increasing number of workers are crossing county boundaries to find employment. Your neighbor, Macoupin County, is now a metro county. Commuting is a two way street. The number of workers commuting into Montgomery county increased at the same time the number of persons commuting outside the county increased. Montgom ery County's 1980-2000 Resident Workers' Profile 90% 81% 80% 74% 70% % Total Reported Workers 70% 60% 50% 40% 31% 30% 20% 1980 26% 1990 2000 19% 2000 1990 10% 1980 0% % Workers Working in County of Residence % Workers Working Out of County of Residence Montgomery County Resident Worker Profile 1980 1990 2000 Number of Reported Workers 11,446 12,283 12,776 Number of People Working in County of Residence 9,262 9,109 8,843 (80.92%) (74.16%) (69.22%) 2,184 3,174 3,933 (19.08%) (25.84%) (30.78%) % Workers Working in County of Residence Number of People Working Outside County of Residence % Workers Working Out of County of Residence The labor force is growing even though the county population is shrinking. More residents work now than ever before primarily because of the age structure of the population and an increase in the proportion of females working. BUT the County still has a relatively low labor force participation rate when compared with the rest of Illinois. Population By Em ploym ent Trends (2000 Census-2008 Projection) 70% 63% 60% 57% 53% 59% 57% 63% 61% 61% 58% 53% 50% 43% 44% 40% 40% 40% 38% 38% 33% 34% 35% 35% 30% 20% 10% 3% 3% 3% 3% 3% 3% 3% 3% 4% 4% 2000 2008 2000 2008 2000 2008 2000 2008 2000 2008 0% Montgom ery County Surrounding Area Rural Illinois Sangam onMadison S o u r c e : U S C e n su s B u r e a u , P o p u l a t i o n b y Em p l o y m e n t T r e n d s Civilian Employed Civilian Unemployed Not In Labor Force Illinois The number of full and part-time jobs has increased in recent years but long term has tracked national cycles. Montgomery County's 1980-2000 Full-Time and Part-Time Employment Changes 18.00% 16.00% 15.40% Illinois 14.00% 13.50% 12.50% 13.30% % Changes 12.00% 10.00% 8.00% 6.00% 4.00% Rural Illinois 4.30% 2.00% Montgomery 0.00% -0.70% 1980-1990 1990-2000 -2.00% Decade Montgomery Rural IL IL The labor force has many characteristics indicating the area may not be attractive to the employers of the future Educational attainment level are improving but are still below averages for rural Illinois and the State. In particular the proportion of college educated persons is low, less than one half the Illinois average. The prison population is included! Occupation????? Educational Attainment Montgomery Surrounding Rural Counties Sangamon Rural Illinois Illinois % HS or Higher 76.9% 79.2% 88.0% 80.5% 81.4% Some college, no degree 20.1% 20.8% 21.8% 21.9% 21.6% Associate degree 4.7% 5.6% 6.7% 6.9% 6.1% Bachelor's degree 7.5% 7.7% 18.2% 9.5% 16.5% 3.5% 3.7% 10.3% 4.9% 9.5% Graduate or professional degree Annually Median Wages and Total Employment for Employing Occupations in Montgomery County SOC CODE 43-0000 OCCUPATIONAL TITLE Office and administrative support occupations Construction, extraction, and maintenance 47-0000 occupations: 51-0000 Production occupations 41-0000 Sales and related occupations Transportation and material moving occupations: 53-0000 Management occupations, except farmers and 11-0000 farm managers Food preparation and serving related 35-0000 occupations Education, training, and library occupations 25-0000 EMPLOYMENTS (TOTAL = 12,951) NUMBER % TOTAL ANNUALLY MEDIAN WAGE MONTGOMERY MACOUPIN SANGAMON ILLINOIS 1,908 14.7% 18,977 28,572 26,626 26,478 1,520 11.7% 39,764 38,723 43,389 46,593 1,312 1,299 10.1% 10.0% 23,853 24,242 24,409 24,631 14,551 18,830 19,016 20,818 1,033 8.0% 26,435 26,564 23,260 25,224 814 6.3% 52,270 44,830 59,678 64,524 733 5.7% 14,022 14,355 15,316 14,527 665 5.1% 24,159 34,633 31,062 36,946 M ont gom e r y C ount y ' s A nnua l M e di a n Wa ge by M a j or Oc c upa t i ons L i f e , P h y s i c a l , a n d So c i a l Sc i e n c e O c c u p a t i o n s $ 52, 718 M a n a g e me n t O c c u p a t i o n s $ 52, 270 C o mp u t e r a n d M a t h e ma t i c a l O c c u p a t i o n s $ 46, 066 Legal Occupat i ons $ 45, 512 B usi ness and Fi nanci al Oper at i ons Occupat i ons $ 41, 755 C onst r uct i on and E xt r act i on Occupat i ons $ 39, 764 I nst al l at i on, M ai nt enance, and R epai r Occupat i ons $ 34, 062 H eal t hcar e P r act i t i oner s and T echni cal Occupat i ons $ 29, 800 C o mmu n i t y a n d So c i a l Se r v i c e s O c c u p a t i o n s $ 27, 847 T r anspor t at i on and M at er i al M ovi ng Occupat i ons $ 26, 435 E ducat i on, T r ai ni ng, and Li br ar y Occupat i ons $ 24, 159 P r oduct i on Occupat i ons $ 23, 853 P e r s o n a l C a r e a n d Se r v i c e O c c u p a t i o n s $ 19, 581 O f f i c e a n d A d mi n i s t r a t i v e Su p p o r t O c c u p a t i o n s $ 18, 977 H e a l t h c a r e Su p p o r t O c c u p a t i o n s $ 17, 063 A r t s , D e s i g n , E n t e r t a i n me n t , Sp o r t s , a n d M e d i a $ 15, 169 Occupat i ons B ui l di ng and Gr ounds C l eani ng and M ai nt enance $ 14, 788 Occupat i ons Sa l e s a n d R e l a t e d O c c u p a t i o n s $ 14, 551 F o o d P r e p a r a t i o n a n d Se r v i n g - R e l a t e d O c c u p a t i o n s $ 14, 022 $0 $ 10, 000 $ 20, 000 $ 30, 000 So u r c e : I l l i n o i s D e p a r t me n t o f E mp l o y me n t Se c u r i t y , E c o n o mi c I n f o r ma t i o n a n d A n a l y s i s $ 40, 000 $ 50, 000 $ 60, 000 The structure of the economy has changed dramatically over the last 20 years. Montgomery County’s economy reflects national trends with fewer workers producing more output Basic industries, those exporting products and importing income, are agriculture, mining, and communication and public utilities. Natural resource industries, including mining and agriculture, experienced dramatic declines in employment in the 1990’s The service sector of the economy emerged as the dominant sector in the 1990’s Montgomery Employment Trends by Sectors 30% % Total Employment 25% 20% 15% 10% 5% 0% 1980 1990 2000 Mining 5% 1% 2% Manufacturing 16% 19% 14% Transportation and public utilities 6% 7% 7% 16% 17% 17% 6% 5% 7% 18% 24% 28% 13% Year 13% Retail trade Finance, insurance, and real estate Services Source: Bureau of economic Analysis, CA 05 2000 Personal Income 10%and SIC Government and government enterprises Montgom ery County's Net Im port/Export Businesses 13.4 Government -72.3 These charts illustrate the extraordinary differences in the economic base of Montgomery County and Illinois. EXPORT SECTOR Services -38.5 -57.5 FIRE Trade 66.5 TCPU -40.6 Manufacture -24.7 Construction 27.6 Mining 61.1 Agriculure IMPORT SECTORS -80.0 Note the dominance of natural resource industries in Montgomery compared to finance and services in Illinois. Montgomery County -60.0 -40.0 -20.0 0.0 20.0 Illinois Im port/Export Business Sectors Millinois of Dollars 40.0 60.0 80.0 Source: IMPLAN Pro 2000 Database Government -888.8 Government -888.8 Services 8325.5 13691.8 FIRE Trade 7416.6 TCPU 4677.6 2129.0 Manufacturing -6596.8 Construction -9461.2 Illinois Mining -3477.9 Agriculture -15000.0 -10000.0 -5000.0 0.0 Millions of Dollars 5000.0 10000.0 15000.0 Montgom ery Em ploym ent Trends by Sectors 30% 25% % Total Employment 20% 15% 10% 5% 0% 1980 1990 2000 Mining 5% 1% 2% Manufacturing 16% 19% 14% 6% 7% 7% 16% 17% 17% 6% 5% 7% 18% 24% 28% Transportation and public utilities Retail trade Finance, insurance, and real estate Services 10% 13% Government and government enterprises Source: Bureau of economic Analysis, CA 05 2000 Personal Income Yearand SIC 13% The housing stock is old and housing values are low. 47% of housing units were constructed prior to 1950 compared to 40% for Rural Illinois and 32% for the State Lowest median value for owner occupied housing ($54,767) when compared with neighboring counties ($64,366), Rural Illinois ($70,504), and the State ($130,829) The low income profile will influence many facets of the county economy and institutional infrastructure. All measures of personal income are below those for neighboring counties, rural Illinois, and Illinois. Poverty rates are above the State average. Diminished buying power and disposable income will restrict growth in retail sales. The willingness to invest in local institutions like schools, parks, health care, and infrastructure may also be limited. Local financial resources for investment in entrepreneurial endeavors may also be limited. Per Capita Income 1990 and 2000 $25,000 $ 22,937 $20,000 Illinois $15,000 $14,810 Rural Ilinois $17,530 $15,262 $11,315 $10,000 Montgomery $10,474 $5,000 $0 1990 PER CAPITA 2000 PER CAPITA 1990-2000 MEDIAN HOUSEHOLD INCOME 1990 MEDIAN HH. INCOME 2000MEDIAN HH. INCOME GROWTH RATE Montgomery County $23,909 $33,433 39.83% Macoupin County $24,031 $36,412 51.52% Surrounding Region $24,208 $36,116 49.19% Rural IL $24,710 $36,621 48.20% Sangamon-Madison $30,172 $42,427 40.62% Illinois $30,431 $43,190 41.93% What does it all mean? Montgomery County’s future is as dependent on what happens in the surrounding counties as it is on what happens at home. In the next five years the county is likely to continue to experience population decline and erosion of buying power because of low incomes. Strategy development should focus on population growth and increasing per capita incomes. Although many jobs have been created in the County they are primarily in the service sector where wages are low and benefits limited. Reversing long term structural changes in the local economy and work force will take time.