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How Wyoming Compares: The Good, The Bad and The Ugly

How Wyoming Compares: The Good, The Bad and The Ugly. WEDA Summer Conference August 18, 2010 By: Sean Stevens. How Wyoming Ranks!. Business Friendly Tax Climate – 2 nd – Tax Foundation, 2010 Best Business Tax Climate – 2 nd – Business Facilities, 2010

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How Wyoming Compares: The Good, The Bad and The Ugly

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  1. How Wyoming Compares:The Good, The Bad and The Ugly WEDA Summer Conference August 18, 2010 By: Sean Stevens

  2. How Wyoming Ranks! • Business Friendly Tax Climate – 2nd – Tax Foundation, 2010 • Best Business Tax Climate – 2nd – Business Facilities, 2010 • Pro-Business States -3rd – Pollina Foundation, 2010 • Assets & Opportunities Scorecard – A – CFED, 2010 • Business Creation Rate – 4th- CFED, 2010 • Best Business Climate – 10th – Business Facilities, 2010 • Top States for Business – 14th – CNBC, 2010 • Best States for Business – 22nd – Forbes, 2009 (2nd Business Cost)

  3. U.S. Chamber of Commerce http://ncf.uschamber.com/enterprising-states/

  4. Status of Economy • U.S. has demographic advantage over Europe and East Asia. • Germany, France, Japan, South Korea and China = declining workforce • By 2050, workforce pool of people 14 to 64 = grow 40%.

  5. Growth of Population

  6. Status of Economy • University of Kentucky – 23 Million jobs to return to prerecession level of employment • 40% are concentrated in California, Texas, Florida (26% of US pop.) • Less than 850,000 needed in ND, SD and WY. • Slow population growth

  7. Top Overall Growth Performers • Job Growth rate since 2000 and since 2007 • GSP measures: real GSP growth since 2000, GSP per job 2008, Growth in GSP per job 2000-2008 • Income: per capita personal income 2000-2009 and median four person income adjusted for cost of living, 2009.

  8. Top Overall Growth Performers • North Dakota • Virginia • South Dakota • Maryland • Wyoming • New York • Texas • Iowa • Nebraska • Montana

  9. Pillars for Economic Development • Entrepreneurship and Innovation • Export & International Trade • Infrastructure Investment • Workforce Development & Training • Taxes & Regulations

  10. Entrepreneurship & Innovation

  11. Entrepreneurship & Innovation • New Business Development – providing financial, technical and managerial assistance • Technology-based Development - creating an environment where business can innovate and maximize the use of technology • Industry-cluster Development – geographical concentrations of businesses with channels for transactions, communications and dialogue

  12. Entrepreneurship & Innovation • Measurement Values • Growth and Concentration of Science, Technology, Engineering & Math (STEM) Jobs • Total R&D activity in the state • State investments in R&D • Entrepreneurial Activity • High-Tech Start-ups • Kauffman index of entrepreneurial activity

  13. Entrepreneurship & Innovation • Top States • Montana • Maryland • Washington • Alaska • New Mexico

  14. Entrepreneurship & Innovation

  15. Entrepreneurship & Innovation • The Good • WTBC/ Casper Incubator - provides services, physical space and support to start-ups. • Challenge Loan – buys down interest rates on loan to allow for affordable finance options; create jobs. • SBIC – program to assist Wyoming small business in receiving investment funding

  16. Entrepreneurship & Innovation • The Good (Con’t) • SBIR Phase 0 – provides support grants for develop Small Business Innovation Research grant proposals • WyEn.biz – Assists Wyoming small businesses and entrepreneurs with counseling, management assistance, market research, patents. • Manufacturing-Works – provides technical assistance to manufacturers and technical oriented businesses • WWBC - Microloan

  17. Entrepreneurship & Innovation • The Bad • Financing – “I want to start a business, can I get a grant” • Access to Venture Capital • Solutions • Arizona: AERO - www.azcommerce.com/About/AERO.htm • Alabama: Launchpad – www.alabamalaunchpad.com • Arkansas: ARCMF - www.arkansasriskcapitalmatchingfund.com • Idaho: Kickstand - www.kickstandidaho.com • New Mexico: Private Equity Program - www.sic.state.nm.us/private_equity.htm

  18. Entrepreneurship & Innovation • The Ugly • Foster High-Tech • Commercializing Innovation • Solutions • Montana: TechRanch - www.techranch.org/ • Colorado: Renewable Energy Collaboratory - www.coloradocollaboratory.org/ • West Virginia : Coal Conversion Initiative

  19. Export & International Trade

  20. Export & International Trade • One in Four Manufacturing jobs in the U.S. depend on exports • One in Three acres of American farms is planted for exports • 42% of US exports are purchase by Canada, Latin America and the Caribbean

  21. Export & International Trade • Measurement Values: • Value of exports as a share of total economic output • Change in export value as a share of economic output • Change in the state’s share of the nation’s total exports • Overall export growth 2002-2009

  22. Export & International Trade • Top States • Louisiana • South Carolina • Utah • Texas • Mississippi

  23. Export & International Trade • The Good • Ag International Trade Development – Links Wyoming firms with new global markets. • Brazil Forum – Forum hosted by WBC to link Wyoming manufacturers to opportunities in Brazil.

  24. Export & International Trade • The Bad • Trade Missions • Solutions • Texas: Texas One – www.texasone.us • Maryland: International Incubator - www.mii.umd.edu • Nebraska: “Reverse Trade Mission” - www.neded.org/rtm/ • Ohio: Export Assistance Network

  25. Export & International Trade • The Ugly • Establishing an Office of Trade • Solutions • Utah: World Trade Center of Utah/Utah International Trade Hub - www.wtcut.com • Iowa: International Trade Office/Export Trade Assistance Program - www.iowalifechanging.com/business/intltrade/technical_assistance.aspx • Arkansas: World Trade Center/$70M multi-modal facility - www.arwtc.org

  26. Infrastructure Investment

  27. Infrastructure Investment • Critical Role in Economic Development • Basic Infrastructure Package: Highways, Airports, Harbors, Utility Distribution systems, Railways, water and sewer systems, and Communications networks • Development of High Speed Broadband = Job Creation

  28. Infrastructure Investment • Measurement Values • Share of lines that are high-speed • Share of zip codes with at least five high-speed providers • Residential high-speed penetration rate • Funding investments in air and seaports • Bridge and Road Condition

  29. Infrastructure Investment • Top States • Florida • Nevada • Colorado • Utah • Arizona

  30. Infrastructure Investment • The Good • BRC – Wyoming’s “biggest success story”

  31. Infrastructure Investment • The Bad • Broadband • Local Funding – Economic Development Sales Tax • Solutions • Idaho: Broadband Investment Tax Credit -http://commerce.idaho.gov/assets/content/docs/Final%2009-2009.pdf • Kansas: Connect Kansas – funded with ARRA - www.connectkansas.org • Massachusetts: Broadband Institute/ Innovation Corridor in Pioneer Valley - www.massbroadband.org • Nebraska: Power Parks - http://www.neded.org/files/rdc/library/2009/PowerParksandBroadbandMapping-O'Brien.ppt

  32. Infrastructure Investment • Local ED Sales Tax • .25% to 1% additional Sales Tax for Economic Development (W.S. 39-15-204 vi) • Goshen County is the only county to pass • Uses: • Operating Funds • Marketing/Travel • Revolving Loan Fund • Supplement BRC

  33. Infrastructure Investment • Texas Local Economic Development Sales Tax • Created in 1989 (1/8% to ½%), Known as 4A and 4B • 4A – To acquire or pay for land, buildings, equipment, facilities, expenditures, targeted infrastructure and improvements for purposes related to manufacturing and industrial development • 4B – To undertake projects for quality-of-life improvements that will attract and retain primary employers. Money may be spend on land, buildings, equipment and facilities expenditure and improvements for tourism, entertainment, recreation, athletic facilities and parks, affordable housing and municipal infrastructure

  34. Infrastructure Investment • Texas 4A Sales Tax (as of 2005) • 208 cities • Uses • Direct incentives – 24.4% • Marketing – 2.5% • Debt service – 15.8% • Capital Costs - 40.1% • Personnel – 5.2% • Administration – 5.7% • Affordable Housing - <1% • Payments to taxing units – 1.9% • Job Training – 0.2% • Other – 4.3%

  35. Infrastructure Investment • Texas 4A Sales Tax (as of 2005) • 238 cities with tax (20% of eligible cities) • 243 large business investments announcements from 1989 to 2003 (40% of all eligible cities) • Texas State Comptroller - http://www.window.state.tx.us/taxinfo/taxpubs/tx96_302.html • TEDC - https://www.texasedc.org/files/File/4a%204b/ED%20sales%20tax%20update%202008.pdf

  36. Infrastructure Investment • The Ugly • Access to Market • Trucking Permitting • Solutions • Alaska: Invested in infrastructure projects that increase access to market for its existing extraction industries. • New York: Erie Canal

  37. Workforce Development &Training

  38. Workforce Development & Training • Key element for job creation • Nation is not preparing enough students for careers in Science, Technology, Engineering and Math (STEM) • U.S. awards 33% bachelor's degree in science and engineering • China – 50% • South Korea – 40% • Link H.S. and College to business needs • Additional training opportunities for employees already in the labor force

  39. Workforce Development & Training • Measurement Values • Share of public high school student taking advanced placement exams • Educational attainment: Bachelor degree attainment of 25-44 year olds • Higher education output: rate of bachelor's degrees conferred per 18-24 year old population • Affordability: undergraduate charge as a share of disposable personal income • Total charge (state and tuition funds) per degree or certificate conferred Workforce development system performance: Job retention rate of adult workforce system customers compared to agree placement goals.

  40. Workforce Development & Training • Top State • Colorado • Florida • New York • Massachusetts • Connecticut

  41. Workforce Development & Training • The Good • Workforce Development Training Fund – up to $4,000 per worker • Hathaway Scholarship • School of Energy Resources – developed to support advanced energy solutions, providing tech transfer and educated workforce • LCCC Wind Tech Program – example of academia creating a program to assist industry • EWC Mobile Welding Unit – adapt to industry needs; ability to train in the field

  42. Workforce Development & Training • The Bad • % of HS Diploma (91.9% tied for 2nd) • % of College Degrees (22.5%, 44th) • Brain Drain • STEM Education • Solutions • Delaware: STEM Coordinating Council • Maryland: STEM and Competitiveness Initiative • Nebraska: Dream It-Do It campaign - www.dreamit-doit.com/Nebraska/ • Oklahoma: Project Boomerang - www.okboomerang.com • South Dakota: Dakota Roots - http://dakotaroots.com

  43. Workforce Development & Training • The Ugly • Slow Population Growth • U.S. Census predicts Wyoming to grow 5.9% from 2000-2030 (U.S. – 29.2%) • Wyoming Economic Analysis – 25.8%

  44. Taxes & Regulations

  45. Taxes & Regulations • Impact decision and competitive position of all business • Business Climate • Cost of Doing Business • Taxes • Environmental Regulations • Labor Laws • Out of Your Control • Natural Resources • Amenities • Location advantages

  46. Taxes & Regulations • Measurement Values • Taxes: Overall state and local tax burden and a state corporate tax index • A small business survival index • Size of state budget gap – Pew Center on the States • State Liability Systems Climate • Overall Cost of Living Index

  47. Taxes & Regulations • Top States • South Dakota • Wyoming • Tennessee • Indiana • North Dakota

  48. We are NOT California!

  49. Taxes & Regulations • The Good • Tax Climate (#2 Tax Foundation, 2010) • Business Friendly (#14 CNBC, 2010) • Pro-Business (#3 Pollina, 2010) • Manufacturing Sales Tax Exemption • Government Transparency • Data Center Sales Tax Exemption

  50. Taxes & Regulations • The Bad • Tax Increment Financing • Manufacturing Sales Tax Exemption • Solutions • Colorado: Removed Exemption on energy used in Industrial process. http://www.denverpost.com/search/ci_15707419 • Texas: Looking to remove Sales Tax Exemptions • Utah: Economic Development Tax Increment Financing http://business.utah.gov/relocate/incentives/edtif/

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