Southern Illinois: Garden of the Gods Readiness Assessment Chapter 3: Enabling Environment

1. Southern Illinois: Garden of the GodsReadiness AssessmentChapter 3: Enabling Environment Revised February 15, 2008 CONNECT SI ViTAL Economy Alliance Frank Knott, Project Lead; Stan Halle, Senior Editor; JimHaguewood, Rob Beynon, & Neil Gamroth, Principal Economic Researchers fknottmd@earthlink.net; http://www.vitaleconomy.com

2. Table of Contents EXECUTIVE OVERVIEW:the Big Picture & Importance of Change in Southern Illinois READINESS ASSESSMENT (RA) 1. State, National & Global Trends 2. Indigenous Resources & Industry Asset Mapping 3. Enabling Environment 4. Climate of Innovation, Incubation & Entrepreneurship 5. Southern Illinois Competitiveness 6. Regional Perspectives 7. Framework for Success APPENDICES 3.01 Climate of Collaboration 3.02 Governance 3.03 Broadband Connectivity 3.04 Livable Communities 3.05 Adaptability to Change 3.06 Implications & Recommendations

3. Southern Illinois — "Garden of the Gods" In order to take advantage of the trends (Chapter 1) and leverage what makes SI unique (Chapter 2), the key enablers listed below determine whether the SI climate is able to take advantage of these trends and unique assets. This Chapter assesses the readiness of these key enablers to support positive economic growth. Enabling environment performance is the key variable in determining if SI is able to address SI’s Big Dilemma. Chapter 3:Enabling Environment 3.01 Climate of Collaboration ………………….. 5 3.02 Governance…………………..…………….. 15 3.03 Broadband Connectivity ………………….. 34 3.04 Livable Communities ……………………… 49 3.05 Adaptability to Change ……………………. 62 3.06 Implications & Recommendations ……….. 75

4. Key Enablers to Making Our Future a Reality 3.0 Enabling Environment • Collaboration is the essential behavior of a 21st century “World is Flat” economy — independent and hierarchical behavior is out — interdependence is valued as a strength not a weakness • Governance practices must be transformed to support the reality of a 24/7 globally competitive economy — best practice economies are the most effective and efficient at making it easier for work and workers to compete, live, learn, innovate, grow & collaborate • Connectivity is the key enabling infrastructure for effective collaborative regional economies — a mindset as well as an infrastructure that changes how we transact business, govern, communicate, relate & access resources • Livable, sustainable or gateway communities are welcoming environments that support innovation, embrace creative culture and attract KBE work and workers desiring quality of life locations • Adaptability to change is necessary for persons or entities who live and operate and want to be effective, relevant and successful in fast paced ever changing 21st Century economic environments

5. Southern Illinois — "Garden of the Gods" The best performing wealth-creating communities have recognized the strategic implications of moving from a ‘culture of independence’ to one of ‘interdependence and collaboration’. They recognize that technology convergence has caused the compression and collapse of organizational hierarchy. Collaboration of all kinds across public/private sectors is the way that individuals and organizations create enough critical mass to compete in a global marketplace. Chapter 3:Enabling Environment 3.01 Climate of Collaboration

6. What is Collaboration? 3.01 Climate of Collaboration • Collaboration is the essential leadership and management model of behavior for people functioning in a global, converging, and chaotic world • It is a lifestyle change that requires us to throw away our command and control models of behavior, and our desire to control versus share resources • Collaboration is the only organizational model that makes sense in a ‘24/7 World-is-Flat Economy’ • It is a way of life different than the one we have known • Collaboration means sharing of resources and prioritizing interdependence over independence • Shared resources include financial, human, information, infrastructure, organizational, or knowledge assets • Collaboration is a more efficient and effective use of government, not-for-profit, business or personal resources “The boundaries between companies, towns and organizations will blur as they view themselves as part of an ecosystem, supply chain, or value chain” - Hasso Plattner, SAP

7. Why Collaboration is Critical“Neighbors Are No Longer The Competition” 3.01 Climate of Collaboration • Rural economies are competing against country strategies • Provides rural economic regions with the critical mass necessary to compete with country strategies and mobilize emerging clusters of opportunity • Builds connections within and between regions — making remoteness an asset • Provides a more cost effective way to allocate resources and make critical decisions • Aggregates demand to increase access to utility, transport and knowledge infrastructures expanding opportunity across the region • Creates critical mass of knowledge assets to promote and nurture the development of climates of innovation that grow Knowledge Based Enterprises (KBE), which are replacing the historic commodity-resource based industries of growth • Builds a regional Vision which enables a rationalization and alignment of sub-regional regulatory and tax policies — creates an attractive and effective economy for workers and work to compete with unified country strategies

8. In a Collaborative Environment: Boundaries Disappear — Non-SI Examples 3.01 Climate of Collaboration • Healthcare:161 healthcare sites across four counties and 10 toll-calling areas collaborate to create the first toll-free virtual rural healthcare service between doctors, clinics, pharmacies, therapists, labs and hospitals • Government:Tasmania creates in one year a 24/7, one stop on-line citizen access to services from 29 local and State government agencies plus healthcare, education & NGO’s across 26,383 sq. miles serving 484,000 citizens • Education:Five K-12 school districts, Peninsula College and private & public workforce development assets collaborate to build the first co-owned business incubator and skills training center • Innovation:Nova Scotia virtually connects every remote fishing village with a college without walls to Dalhousie University to increase entrepreneurship that leverages its computer science expertise to develop over 300 village based software companies • Tourism:Collaboration of tourism, agriculture, wineries, seafood distributors and restaurants to create a local festival leveraging the regions indigenous resources. On-line sales strategies enabled year round purchases. Dungeness Crab and Seafood Festival now attracts over 30,000 visitors to the region in one weekend • Natural Resource:Declining forestry industry in Pacific Northwest collaborates to map assets and link competitive resources to uncover new market opportunities based on indigenous resources and linking value chain components — expanded employment and new plants built for first time in 30 years

9. SI Has a Foundation of Collaboration 3.01 Climate of Collaboration • SICCM is an example of a long standing and successful regional collaboration • The Southern Illinois Collegiate Common Market (SICCM) is a 501(c)(3) not-for-profit corporation organized in 1973 to provide a means of sharing human and material resources in higher education. Articulation agreements,allied health programs, tourism training, allied grant programs, etc • Members include: John A. Logan, Rend Lake, & Shawnee Colleges; SIC, SIU • The Wine Trail/B&B cross-sector collaboration — marketing & packaging of assets to capture a larger market • Connect SI leaders have achieved levels of collaboration that have brought SI statewide & national recognition as well as collaborative funding success • Network Providers meeting as a Community of Interest (COI), sharing data for the first time, setting ambitious goals together — posting of queries for broadband service on a common server, collaboration to expand broadband across SI • Healthcare Providers meeting as as a COI, sharing data for the first time, setting ambitious goals together — addressing issues re improving healthcare outcomes, connectivity, access, and profitability; integrated databases • COI’s sharing information and resources beyond county, town and regional boundaries • Man-Tra-Con has been recognized within and outside the region for its leadership in building collaborative partnerships for Workforce Development

10. SI Examples of Collaboration Success 3.01 Climate of Collaboration • Healthy Community Coalitions across seven counties • REDCO, Electric Co-ops & South Water, Southern Services, etc. • GW, SE and S5 towns collaborating to create critical mass for broadband • On-Line Nursing Program Collaboration — Frontier College, Wabash Valley College, HC-Skill Shortage Team • Critical Access Hospitals working together — S5 & GW • Integrated Healthcare Critical Skills Training Resources – across all SI • Energy Cluster Team — SI-wide symposia • S5 Clean Coal Gasification Project — S5 cross-town, cross-agency • Regional Creation of the Economic & Healthcare Models — all COIs • Collaboration in development of GIS mapping resources • Preparation of WIRED Proposal — all COIs, Man-Tra-Con, SIU, SIH, etc. • Route 13 Corridor Expansion • World Shooting Complex • Continental University-Rend Lake, SIU & Continental Tire • SIU-reinvigorated outreach partnership with SI region These examples demonstrate an SI ability to collaborate, however many SI citizens view SI collaboration as only skin deep

11. Perceptions of SI Citizens 3.01 Climate of Collaboration Key findings from a wide cross-section of interviews conducted in SI: there is a significant lack of collaboration: People working in ‘silos’; don’t talk with each other, don’t know what the others are doing; too many rivalries between and within communities Perception of ‘pie stealing’ rather than ‘making the pie bigger’; banking environment: ‘We swap customers; there’s little growth’ In every sector, public, private, non-profit, being too successful is frowned upon —We have this attitude of not wanting our neighbours to be successful Region is fragmented by jealousy, distrust, and a culture of fierce independence Power resides in a few individuals which limits collaboration We don’t know how to collaborate; in Missouri, four school districts joined together to build one high school — instead, our town leaders insist on each having their own, so nothing modern ever gets built; it is all about power and who controls what These myopic practices pervade SI — the lack of collaboration has been very costly Source: RA and EF Hutton Interviews conducted by VE Team

12. Education Health Care Business Government The Primary Barrier to Collaboration 3.01 Climate of Collaboration Despite the existence of ‘collaborationpoints-of-light’ in SI there is a pervasive sense that ‘Silo-Vision’ behavior is a deeply imbedded instinct in SI culture — successful transformation of SI economy will require a comprehensive strategy to breakdown barriers to collaboration SILO-VISION

13. = Improving = Average = Good = Strong = Weak to None Southern Illinois: Collaboration Assessment (1 of 2) 3.01 Climate of Collaboration

14. Southern Illinois: Collaboration Assessment (2 of 2) 3.01 Climate of Collaboration

15. Southern Illinois — "Garden of the Gods" As the world becomes flatter and the pace of change increases, it is imperative that state and local governments be more nimble and more responsive to business needs. Their role must be to facilitate success, not erect more road blocks, and to enable a 24/7 world of effectiveness and efficiency. The business climate of a region is measured in terms of how easy versus how difficult is it for new businesses to be successful and for established business to remain competitive. Chapter 3:Enabling Environment 3.02 Governance

16. Governance: Intro 3.02 Governance • In an economy where global connectivity resources enable business transactions to take place in seconds across country political boundaries, its unrealistic to continue to act as if local geographic or political boundaries still make a difference. • Citizen satisfaction with government services equals the difference between their perception of what they receive and the expectation of what they want to receive. The more negative the gap between perception and expectation, the lower the citizens’ belief in the legitimacy of our governmental institutions. This gap is widening further everyday due to the high level of expectations created in the simple use of credit cards, cell phones, PC’s and PDA’s. These devices allow us to shop globally, access our bank accounts, make investments, obtain information we need at home, work or on the go. • Education is still delivered through industrial aged silo organizations. If the skills of tomorrow’s workforce are problem identification, problem solving, and strategic brokering, then the way education and training organizes and acts, not just the curriculum, must reflect the primacy and delivery of these skills. We need collaboration of resources across the education and training spectrum to meet the demands of the 21st Century globally competitive just-in-time economy. “Many forward thinking nations have realized that they cannot make the most of the Information Age with the creaking governmental machinery of the Industrial Age. In this fast moving, fast changing global economy – when the free flow of dollars and data sustains economic and political strength, and whole new industries are born everyday — governments must be lean, nimble, and creative, or they will surely be left behind”- Former U.S. VP Al Gore, Government Technology Magazine

17. SI Perceptions of Local Governance 3.02 Governance Local governments largely ineffective; caught up in the day-to-day; not able to be proactive; too many petty battles; bureaucratic mind-set Politicians in SI and Illinois have no “merit” basis for prioritizing projects State & Federal grant policies do not encourage us to implement a new economy strategy Replicating public services every six miles! Provincialism down to the township level (“it hamstrings us”); territorial thinking Litigious environment Things work better in Chicago, Champaign-Urbana or Bloomington — tough to compete against that! Competing school systems (again: jealousy) — Saline needs a county-wide system There is a keen awareness throughout SI that something needs to change Source: RA and EF Hutton Interviews conducted by VE Team

18. Overlapping Government Jurisdictions 3.02 Governance • Multiple and overlapping jurisdictions causes confusion and burden on the business climate • Decision making is bogged down because too many parties are involved • Lack of regional collaboration and planning results in multiple, disconnected strategies with limited funding • These numerous bodies also add an administrative cost to conducting business in the region with no clear benefit • Townships vs. counties — lack of funding for county government; most funding goes to the cities • Even when progressive moves are on the ballot, these are persistently voted down in some areas, including: • 911-systems • School district levies • Zoning and building codes • A deeply rooted fierce independence too often results in myopic and growth-limiting behaviors Source: RA Interviews and Vital Economy Analysis & Synopsis

19. Illinois: #1 in Units of Government 3.02 Governance Negative Impact • A significant amount of local expenditures are being spread across a small population resulting in a high per-capita cost • Competition between local taxing agencies for limited funding • Confusion amongst citizens regarding tax payments, decisions and priorities • Multiple taxing jurisdictions in sparsely-populated rural areas do not have enough critical mass to adequately finance public services Units of local government include Counties, Municipalities, townships; School, Fire, Utility, Parks and Recreation Districts; not all units of government are taxing jurisdictions Source: U.S. Census of Governments, Individual State Descriptions, 2002, Issued July 2005

20. 616 Home-County Taxing Jurisdictions in SI 3.02 Governance • Taxing Jurisdictions: • Illinois has about 4,862 taxing jurisdictions in 102 counties; ≈48 per county • Indiana has 1,950 taxing jurisdictions across 91 counties; ≈20 per county • SI is doing a bit better than Illinois in that it is averaging about 32 taxing jurisdictions per county, though still 50% higher than Indiana However, SI has one taxing jurisdiction for every 690 people vs. 2,529 for Illinois — a very heavy burden on too few people Source:http://www.revenue.state.il.us/Publications/LocalGovernment/PtaxStat

21. The Heavy Burden of Government in SI 3.02 Governance SI is in transition and its’ governments have not changed or adjusted to it • IMPLICATIONS: • Way above average % of public-based wage earnings reduces the climate of risk taking and entrepreneur business growth • Business retention and attraction is negatively influenced by the # of government entities, resulting in a perception of over-regulation • Local governments are directed and resourced by Springfield and Washington, DC which reduce the ability for local direction and control “Areas with population declines may retain a governmental structure designed for larger populations — as the number of residents declines, there may be no automatic trigger to evaluate the need for the same number of governments or whether other delivery systems might be more appropriate” * *Source: BEA, Rural Research Report; Illinois Institute for Rural Affairs, Spring 1995

22. Robust Local Economic DevelopmentResources Are Available Numerous federal, state, regional and local organizations actively support and promote SI, including (but not limited to) Coal Belt Champion Community USDA ILDCEO Delta Regional Authority (which includes the states along the Mississippi as far north as IL and MO) Workforce Investment Areas, Economic Development Regions, and Community College Districts, and Regional Planning and Development Commissions SIDEZ (the Southernmost Illinois Delta Empowerment Zone) County and Municipal Commissions and Organizations These (and other) organizations provide primarily grants for projects, data and strategic studies Many grants are for infrastructure improvements The focus of development has largely been manufacturing investment, even though it is projected to decline in the region 3.02 Governance These agencies recognized that a new organization, Connect SI, was needed to transcend the silo-funding and provide a region-wide comprehensive approach

23. Illinois Has a Higher Cost of Doing Business 3.02 Governance • Illinois burden of business cost is 20%-60% higher than neighboring states Number of Cities in ‘Top Business Centers**’ by State Despite being the 5th largest state, Illinois trails it neighboring states in number of Top 100 Business Centers** • **Forbes relied on economic research firm Economy.com business cost-index-factors in labor, tax, energy and office space costs. For living costs Economy.com weighs housing, transportation, food, and other household expenditures. It also supplied five-year historical figures on job and income growth as well as migration trends. Other data was supplied by Bertrand Sperling, including metro workforce education, presence of four year colleges, quality of life issues, e.g.: crime rates and cultural and recreational opportunities. Source: Forbes Magazine, 2007; and Indiana Economic Development Corporation

24. Illinois Business Tax Climate Ranking: 25th… in the Middle of the Pack 3.02 Governance Source: Tax Foundation, October 2006; Index has 113 variables

25. Illinois Structural Deficit 3.02 Governance • Public services in Illinois, from education to public safety, are in trouble: • The problem is not spending — Illinois is a low spending state ranking 42nd nationally • The trouble is Illinois’ revenue system was developed decades ago and cannot deal with the costs of funding public services in the 21st century  • Illinois has a tax system so antiquated it does not grow with the economy • One of the most unfair systems in the nation, placing a larger tax burden on low and middle-income residents • This means state funding for public services like education and public safety is unable to grow with inflation and is often cut from year-to-year Source: Center for Tax and Budget Accountability, 2007

26. Illinois Deficit Picture 2008 3.02 Governance Illinois’ structural deficit makes it imperative that SI develop a culture of collaborative funding to lessen dependence on State resources

27. Legal and Courts System Climate Illinois ranks 46 of 50; lawyers regard business cases as relatively unreasonable in IL Indiana, Wisconsin, Iowa all scored in the top 10 Illinois court system is not regarded as friendly to business Medical malpractice issues have reduced access to medical specialists throughout SI and have discouraged others from providing medical services in SI 3.02 Governance • Workers Compensation rates can be prohibitive • At least 6% of the workforce are repeat abusers versus 2-3% in other parts of the country • SI has doctors who encourage/assist workers in filing false claims taking advantage of the system • Even when we get our rate of incidents down by 50% our claims payouts go up 35% • We have never experienced anything like this anywhere in the U.S.; everyone seems to have a lawyer • - RA Business Leader Interview Source: Institute for Legal Reform, RA Interviews

28. Leadership and Governance 3.02 Governance • Connect SI participants and over 940 RA interviewees have identified a major barrier to transformation — the lack of broad and deep pools of leadership talent throughout SI communities and organizations • There is a broad based need for leaders with the skills to collaboratively organize, motivate and lead SI to connect the regions assets and achieve sufficient critical mass to compete in the global economy • Systems of governance within/between public, private, not-for-profit, institutional and community development entities cannot be transformed to lead 21st century regional economies without understanding & assessing existing leadership styles, and determining which skill gaps need to be filled to meet new leadership requirements • Following are descriptions of eleven leadership styles needed for a successful transformation of SI and an assessment of the current base of leaders

29. Strong Leaders Ensure Success 3.02 Governance • Vision Leadersgrasp and communicate the value of a shared economic vision to a broad base of community and cluster forces • Innovation Leadersadvocate a climate of continuous innovation for each cluster and the overall initiative, as well as the development of entrepreneurial opportunities • Influence Leaderscommand the respect of diverse interest groups and whose very presence brings others to the table to insure cluster and initiative success • Resource Providersvalue the vision and provide access to resources that enable the vision to succeed at the initiative and/or cluster level • Research Leadersunderstand the value of knowledge gathering and knowledge development for the purpose of crafting the basis for out of the box solutions • Cornerstone Leadersare regulatory, government, business, political and community coalition champions critical to broad adoption of the cluster and initiative strategies • Collaborative Leadersunderstand the economic leverage value of shared resources and shared ideas, and communicate the positive value of such behavior to others • Education Leaderscontrol access to education and training resources and understand the importance of a life long learning resource in support of the initiative • Economic Leadersunderstand the importance of changed spending behavior in unleashing traditional spending to transforming an economy • Connectivity Leaderscontrol access to public and private connectivity resources and champion their linkage to enable the collaborative development of the local economy • Project Management Leadersare focused on establishing goals and objectives and assuring that cluster-based project initiatives are managed to a successful conclusion and evaluated in terms of intended outcomes

30. Southern Illinois: Leadership Assessment 3.02 Governance

31. Non-SI Collaborative Governance Examples 3.02 Governance • On-Line Community Services:Columbia County, Georgia was recognized in 2007 as one of five best practice counties by the Center for Digital Government — has enabled all citizens and businesses to conduct business on-line 24/7 in over 20 service areas (www.columbiacountyga.gov) • Multi-government to Citizen Services:Tasmania creates in one year a 24/7, one stop on-line citizen access to services from 29 local and State government agencies plus healthcare, education & NGO’s across 26,383 sq. miles serving 484,000 citizens (www.service.tas.gov.au) • Performance Benchmarking:BC Progress Board tracks changes in the economic performance and social well-being of British Columbia —benchmarks BC’s performance against other jurisdictions to determine if BC’s competitiveness and quality of life are improving (www.bcprogressboard.com) • K-Infinity Education:North Carolina Information Highway enables universities, colleges, high schools, and workforce development related sites to actively exchange courses across all levels of the educational system without regard to district, institutional or education level boundaries • Data Portals:State of Oregon provides an on-line integrated data portal for every incorporated municipality inclusive of infrastructure status, demographic, social and economic data, climate, community development assets, tax rates, and more — provides comprehensive community profiles • SVETN:Southwest Virginia links 13 rural mountainous counties to create first virtual Governor’s High School, create on line multi-county and municipal government services network, and just-in-time customized job training for industry directly to plant floor anywhere, anytime • Rural Health Service:161+ hospital, clinic, lab, therapist, pharmacist, physician, public health district sites collaborate across four counties and multiple municipalities in Western New York to create the first rural health service network — this initiative transformed the economics of healthcare as well as patient outcomes throughout this region • Tourism BC:Rated as one of the world leading destination marketing sites — includes sites for each tourism region; each regional site is programmed for multiple international visitor interests, includes an integrated booking engine used by their website, call center and highway and airport tourism information centers (www.hellocbc.com)

32. Southern Illinois: Governance Assessment 3.02 Governance

33. Governance: Summary 3.02 Governance • Disparity between policies that support traditional versus emerging new KBE, innovation economy business, which are the growth engines of 21st Century economies • Most current policies support existing, larger businesses tend not to support emerging innovation businesses • Illinois structural deficit makes it imperative that SI develop a culture of collaborative funding to lessen dependence on Illinois resources while expanding SI resources • Long term solutions to the structural deficit are not in the control of SI • Lack of state agency consistency regarding how economic regions are defined • This leads to inconsistent and unreliable data analysis • Discourages and complicates a regional sense of identity • Makes integrated solution analysis and comprehensive problem solving difficult at best • The leadership gaps are barriers to success unless they are addressed • Youth engagement needs to be part of the leadership development effort • Implementation of collaborative initiatives require a variety of leadership skills • Lack of consistent data analysis across agencies • Very little data was available to SI or its constituent 20 counties • Makes it very difficult to manage or implement a proactive economic strategy • There is a real need for a reliable regional data portal accessible to all levels of government • There is no governmental strategy in place to support a 24/7 service reality

34. Southern Illinois — "Garden of the Gods" Taking full advantage of the Globalization and eCommerce trends requires access, adoption and connectivity literacy in the use of broadband throughout SI. The Internet levels the playing field. Without this basic infrastructure and improved literacy, SI will remain sitting on the sidelines of economic growth and prosperity. Chapter 3:Enabling Environment 3.03 Broadband Connectivity

35. Broadband Connectivity: Overview 3.03 Broadband Connectivity • The Globalization & eCommerce trends cited in Chapter 1 led to development of Milestone 5 industrysector growth opportunities • COI goals added additional requirements for linking assets across SI for : • Tourism • Bio-Agriculture • Transportation, Logistics & Distribution • Global Workforce Opportunities • KBE (Advanced Mfg, Creative Arts, Health Products & Services, etc.) • Life Sciences — Plant and Animal • Energy • Mining Technology • Senior Living • Healthcare Services • K-Infinity Education Services • In virtually every sector, broadband infrastructure access and adoption are critical to enabling each of these sectors to be globally competitive Connect SI and the Network Providers COI have made significant progress capturing demand, and fostering the installation of new broadband systems in several communities

36. SI Comments re: Connectivity 3.03 Broadband Connectivity Connectivity with students for on-line instruction is poor — it limits students ability to take advantage of educational resources in the region Our business partners don’t even have sufficient digital communication lines to receive distance education to pick up courses for improvement of their workforce Students are always complaining about off campus access Most farmers in our county cannot get access to broadband services because we are too remote, but we are still competing in a global economy We’ve made more progress in 3 hours than we have in ten years of meetings trying to get broadband to our communities This is one of the best efforts of its kind in the U.S. — Connect SI has formed a collaborative partnership between the network providers and the marketplace We need Connect SI to help physicians combine our communication needs so that the network providers can see as as a market opportunity

37. SI Examples of Understanding the Value of a Connected Region 3.03 Broadband Connectivity • SIU community data portal collaboration between Center for Rural Health and Social Services Development, Paul Simon Public Policy Institute & SIU School of Medicine <www.siumed.edu/medhum/joint%20%20Data%20Project.html> • Carbondale Now-Illinois Area Data Portal <www.carbondalenow.com> • Transitions SI — website for dislocated workers hosted by Man-Tra-Con <www.transitionssi.com> • Access SI — Community Resource Directory for SI — 1,000+ agencies <www.accesssi.org> • Shawnee Hills Wine Trail — links nine award winning wineries in Jackson & Union counties <www.shawneewinetrail.com> There are connectivity “points-of-light” in SI, but insufficient critical mass of users who understand the value of connectivity in changing the way SI lives, works, governs and competes

38. Connectivity Readiness: a Matter of Literacy, Not Just Infrastructure 3.03 Broadband Connectivity The critical question is: What is the understanding of SI business, government, NGOs & institutions in the use of connectivity applications to become 24/7 globally competitive resources for SI citizens?

39. = Correlation is high = Correlation is low Assessment of SI Addressing Internet Trends in Tourism 3.03 Broadband Connectivity Tourism Industry is an example of SI need for increased understanding and application of connectivity resources

40. CSI Network Providers COI Accomplishments 3.03 Broadband Connectivity

41. Coverage & Penetration Success of CSI 3.03 Broadband Connectivity • In less than 18 months, Connect SI and the Network Provider COI have • Increased household penetration by 33% (from 12% to 16%) • Increased household coverage by 64% (from 25% to 41%) • During the same period 40 additional central offices have turned-on DSL capability Over $24M of Network Provider investment was made without any public funding

42. Illinois Century Network Connect SI Network Provider Collaboration 3.03 Broadband Connectivity

43. Substantial Broadband Backbone Already In Place Across SI 3.03 Broadband Connectivity GIS mapping has enabled CSI to identify infrastructure assets to leverage to expand connectivity applications to fuel SI economic expansion

44. GIS Mapping of SI Broadband Resources 3.03 Broadband Connectivity

45. Backbone Assets Available,But Underutilized 3.03 Broadband Connectivity The Illinois Century Network (ICN) has been an outstanding resource for deploying broadband to nonprofit and public entities • ICN is a telecommunications backbone providing high speed access to data, video, and audio connections in: • Schools and libraries • Colleges and universities • Public libraries and museums • Local government and state agencies • More than 5,500 sites are connected regardless of location using standard local exchange carrier service (aka local phone companies), cable modem, wireless and dark fiber optic cable and five different connectivity providers • ICN point-of-presences are connected at a bandwidth OC-3 (135 Mb) with plans to upgrade to OC-12 and beyond Source: Illinois Institute for Rural Affairs, Sharon Shumacher, Spring 2003

46. ICN Enables Network Providers To Extend High-Speed Broadband Backbone into SI 3.03 Broadband Connectivity 96% of over 625 ICN Clients in SI are connected at a T-1 speed or greater

47. WEAK GOOD STRONG AVERAGE IMPROVING Broadband Connectivity: VE Assessment 3.03 Broadband Connectivity

48. Household Broadband Network Coverage & Penetration Rate Coverage and penetration rates need to continue to expand to meet world class goals Goal achievement will be critical to enabling a 24/7 globally competitive workforce Enterprise Broadband Network Coverage & Penetration Broadband access and use is largely in the Route 13 and I-57 corridors Healthcare coverage is in the process of being expanded on a number of fronts Network Provider Responsiveness & Collaboration Over 30 network providers are collaborating across SI — a record achievement in Illinois Providers are sharing leads and have committed to meet market demand requirements Household Digital Literacy This must dramatically improve especially among adult leaders or SI growth strategy will fail Enterprise Digital Literacy Level of literacy is limited — there is a need for expansion of understanding of the role of connectivity in linking remote assets, achieving improved productivity & accessing larger markets Local Government Digital Literacy Most local governments have not adapted their services to a 24/7 flat world reality Too many elected officials pride themselves on not being digitally connected KBE work and workers as well as young adults will be put off by digitally illiterate governments Broadband Connectivity: Implications 3.03 Broadband Connectivity

49. Southern Illinois — "Garden of the Gods" One of the most important enablers in a prosperous & growing community is livability — from infrastructure, to community & natural amenities, to visual appeal & attractiveness, to accessing good schools, recreation, healthcare, arts & culture. Chapter 3:Enabling Environment 3.04 Livable Communities

50. Livable Communities Intro 3.04 Livable Communities • Livable communities all across America are increasingly popular places in which to live, work, vacation and retire • In the 1990s, 2 million more Americans moved from metropolitan centers to rural areas than migrated the other way — communities with natural beauty and a high quality of life are magnets for businesses, working families and retirees • The vast majority of residents, new and old, feel a strong attachment to the landscape and the character of their town — want a healthy economy, but not at the expense of their natural surroundings or community character • Elected officials and residents want to find ways to preserve what they love about their communities without saying no to jobs and economic development • Across America, there are communities that have found that economic prosperity does not demand degraded surroundings, loss of community character or becoming a congested tourist trap • Successful communities are finding that the opposite is true — beauty pays, sustainable tourism provides more benefits than mass-market tourism, retaining community character is a key to economic success, and thoughtful management of public resources and well-planned development can help prosperity occur Source: National Geographic Center for Sustainable Destinations, Urban Land Institute and The Conservation Fund Survey