REGIONALISM

1. REGIONALISM Jerry Paytas, Ph.D. Director of Research GSP Consulting Company

3. Why do we care Political boundaries are fixed, economic boundaries are not Development is not confined to political lines Development Spillovers The choices made by one locality impacts its neighbors Causes friction that reveals the need for and role of regional action The drivers of economic development are changing

4. What matters today Narrow/Specific �Consumer� Base Big Investments for the Long Term Place Matters Cultural, Community and Human Elements / Tomato Vs. Tomawto) Most Decisions are Made Behind The Scenes Without Your Awareness or Control of the Process Value Factors Increasingly Top Cost Factors (Especially for Wealth Generating/ Knowledge Centric Industries) WITHOUT REGIONAL ACTION Markets lack predictable rules Competition feeds upon itself � makes the non-competitive less competitive over time �Winners� hoard new revenue � giving them more resources for the next round Both fragmentation and centralization reduce competitiveness Fragmentation fuels segregation and inequality Housing policy is school policy Institutions & Interest Group Politics State � Local interaction is very important Innovation slows down WITHOUT REGIONAL ACTION Markets lack predictable rules Competition feeds upon itself � makes the non-competitive less competitive over time �Winners� hoard new revenue � giving them more resources for the next round Both fragmentation and centralization reduce competitiveness Fragmentation fuels segregation and inequality Housing policy is school policy Institutions & Interest Group Politics State � Local interaction is very important Innovation slows down

5. History Source: Paytas, 2002. The Organization of Metropolitan Areas: The Development of the Hybrid Metropolis. This table is adapted primarily from Wallis (1994b), with material drawn from Stephens and Wikstrom (2000), Barlow (1991), ACIR (May 1973), and Fox (1985). Source: Paytas, 2002. The Organization of Metropolitan Areas: The Development of the Hybrid Metropolis. This table is adapted primarily from Wallis (1994b), with material drawn from Stephens and Wikstrom (2000), Barlow (1991), ACIR (May 1973), and Fox (1985).

6. How much regionalism is enough? Cooperation: short-term projects with some information-sharing and planning. Coordination: information-sharing and planning across several projects and over time. Collaboration: joint work of two or more organizations that share risks and rewards, but remain legally separate. Merger: legal or organizational integration of previously separate organizations. NEED TO SAY SOMETHING ABOUT THE DIFFICULTY OF FINDING GOOD CASES - SCRATCH THE SURFACE�DON�T HOLD WATER�.People say they never went to any meeting, or their names were put on the list, or all they did was sign a support letter�Or they have more fundamental problems that the PARTNERSHIP does not address. Cooperation: short-term projects with some information-sharing and planning. Coordination: information-sharing and planning across several projects and over time. Collaboration: joint work of two or more organizations that share risks and rewards, but remain legally separate. Merger: legal or organizational integration of previously separate organizations. NEED TO SAY SOMETHING ABOUT THE DIFFICULTY OF FINDING GOOD CASES - SCRATCH THE SURFACE�DON�T HOLD WATER�.People say they never went to any meeting, or their names were put on the list, or all they did was sign a support letter�Or they have more fundamental problems that the PARTNERSHIP does not address.

7. Coordination Berkshires Strategy Project North Carolina regional partnerships Anti-sprawl planning � Oregon Fair Share Housing � New Jersey Anti-sprawl planning � Oregon Fair Share Housing � New Jersey Anti-sprawl planning � Oregon Fair Share Housing � New Jersey

8. Coordination: NC Economic Development Regions Good: Every county belongs to 1 of 7 regional partnerships Bad: Workforce regions and Community Assistance regions are different

9. Collaboration Area-wide Service CA Regional Technology Alliances Hampton Roads Partnership Kentucky Highlands Tax Base Sharing Dayton-Montgomery ED/GE Kennebec Regional Development Authority (Maine)

10. Dayton-Montgomery ED/GE Dayton-Montgomery County OH ED/GE 14 years old 30 municipalities in a unified county-led effort Small proportion of the local property and income taxes into a fund Redistributed based on population and property assessment growth Jurisdictions are eligible to compete for funds for economic development projects Economic Development/Government Equity (ED/GE) Montgomery County government took advantage of a 1-cent county sales tax to foster cooperation within its boundaries. It has used up to � cent of the tax to create an incentive for municipalities and townships to participate in the Economic Development/Government Equity (ED/GE) program. Each of the jurisdictions contributes a small proportion of the local property and income taxes into a fund that is redistributed, based on population and property assessment growth. In return, the participating jurisdictions are eligible to compete for the funds provided by the sales tax, up to $5 million annually, for economic development projects. The participating jurisdictions set the standards for distributing the sales tax revenues, with final approval by the Montgomery County Commission.Economic Development/Government Equity (ED/GE) Montgomery County government took advantage of a 1-cent county sales tax to foster cooperation within its boundaries. It has used up to � cent of the tax to create an incentive for municipalities and townships to participate in the Economic Development/Government Equity (ED/GE) program. Each of the jurisdictions contributes a small proportion of the local property and income taxes into a fund that is redistributed, based on population and property assessment growth. In return, the participating jurisdictions are eligible to compete for the funds provided by the sales tax, up to $5 million annually, for economic development projects. The participating jurisdictions set the standards for distributing the sales tax revenues, with final approval by the Montgomery County Commission.

11. Governmental Mergers Annexation, Consolidation Difficult and increasingly rare Albuquerque, Charlotte, Nashville, Jacksonville, Indianapolis� Consolidation does not account for the complexity of organization What level to best provide which service How do you respond to diverse preferences

12. Lessons for Nonprofits Know what unites and divides the region Focus regionally, but ensure complements exist � �neighboring� does not mean complementary. Everyone needs to see benefit Organizational structure creates the conditions for leadership Leadership trumps elegant structures Blind faith in the mission does not replace competence

13. Lessons for Government Change is scary for good reason Local governments are creatures of the state BUT political will is lacking when local government officials are the foot soldiers of the political base of both parties Voters rarely support meaningful mergers So how do you get little boxes to act like Big Boxes? Don�t wait for the Holy Grail!Don�t wait for the Holy Grail!

14. Increments in the Good Fight Strengthen County Government Collectively serve residents Eliminate duplication of services Power to resolve municipal zoning conflict Little boxes should have limited powers Property tax dependence fuels intense municipal conflicts Unify economic development Need inter-municipal planning and zoning

15. Thank You!