THIRD QUARTER 2010
c i l b u P f o s C B m r A o e f h e T R n o i t a c Edu
n” “ Plugging the Brain Drai s Q3 Progress, Project Win
Canvas Workshop 2010: ture Painting the Fu l Region for the Capita
Inside third Quarter 2010
what’s
02
Our Economy: Update & Outlook
06
Our Progress: Measuring Our Success
11
Awards
12
The ABC’s of Public Education Reform
16
Canvas Workshop 2010
18
Bridging the Gap Between “Town and Gown”
21
Economic Development Investors
The latest trends in the Capital Region economy
A report on BRAC’s activities in Q3 2010
Capital Achievements: And the award goes to…
A strategic approach to improving the East Baton Rouge Parish School System
Painting the future for the Capital Region
Plugging the brain drain
Leading organizations funding The Campaign for a Greater Baton Rouge
cat·a·lyst (kat’l ist) n. 1) Something that initiates or causes an important event to happen. 2) A person or thing that precipitates an event or change. 3) See also energy, momentum, trailblazer, Baton Rouge Area Chamber.
From the desk of
Adam Knapp We are in the midst of exciting times for the region. BRAC recently unveiled its new strategic plan for the next five years, The Creative Capital Agenda. The central idea of the Agenda is that we are uniquely poised to create significant regional economic growth. Consider this for a moment: We have enjoyed one of our best periods of economic performance over the last five years. Without embellishment, our region’s results have achieved top Southern and national rankings in 2010. The region has been recognized as having one of the strongest regional economies in the nation during the Great Recession. And Forbes.com recently noted that region’s job forecast for the first quarter of 2011 is ranked number one among 100 metros in the U.S. Can we continue this progress? The answer from our business community has been a resounding, “Yes!” The Creative Capital Agenda lays out six strategies to drive our region’s growth through 2015. Of course, we will continue to execute the programs that have brought us success focusing on job creation and our policy reforms to improve our regional competitiveness. However, we must do more. BRAC’s business development team will think and act globally. We will strive to accelerate the growth of innovative, entrepreneurial new firms. We will focus increasingly on people, by helping companies develop, retain, and attract talent. We will build a true regional brand identity for the Capital Region. As we have shared our plans in fundraising meetings during the last few months, our conversations with CEOs have frequently turned to the question of our education system. The common refrain is, “Can the Baton Rouge area economy compete nationally given our public education system?” As home to five of the top ten public school districts in the state and the highest-educated workforce in Louisiana, our region has advantages for which we rarely give ourselves credit. However, there remain deep challenges. In this Catalyst, we explore the status of public education in the East Baton Rouge Parish School System, a framework for making faster gains in student achievement, and the gains we have realized during the third quarter. Enjoy the issue,
Adam Knapp, President and CEO, Baton Rouge Area Chamber
TH e
e co n o m y
Updat
outlo On the Baton Rouge Area Economy
Snapshot: Capital Region in Quarter 3
Unemployment decreased to 7.8 percent – slightly down from 8.3 percent in June 2010 Job losses were concentrated in goods-producing industries while the service-providing sector showed gains Home sales prices have increased only 1 percent from third quarter 2009 with sales volume decreasing almost 24 percent Commercial construction permit values have increased significantly, but residential and overall nonresidential construction permit values increased only slightly
2
e
ook
In the third quarter, the Capital Region economy is holding steady with mostly stable and mixed economic indicators. Like many regions, the Baton Rouge area is experiencing mild recessionary effects while waiting for a national recovery. This stationary position is likely to continue into 2011 with the holiday season retail consumer spending and seasonal employment as the bright spots in the fourth quarter.
Employment
Home Sales
The Baton Rouge area added 2,000 jobs over the quarter.
Home sales prices have increased 1% from third quarter
Most of these jobs gains were in the service-providing
2009 while the number of units sold has decreased 24%
sector, primarily retail, real estate, transportation,
in the same time period. Foreclosure activity increased
information, healthcare, financial activities, utilities, and
in the Baton Rouge area during the third quarter as
food and accommodation. Year-over-year employment
well with a recorded 1,109 actions that affected one in
figures by month have been below 2009 levels except
295 properties. This ranked the region 146th nationally.
for the month of June, which was just slightly higher.
The latest rate was up 7.8% from the second quarter
The unemployment rate follows the same trend with
and 29.7% from the third quarter of 2009, respectively.
monthly figures higher than 2009. The September unemployment rate stood at 7.8%, up from 7.0% in September 2009.
Q3 2010
3
TH e
e co n o m y
Permits In East Baton Rouge Parish, the number of commercial permits has increased from the third quarter of 2009 and over the year. However, residential permits have shown a slight decrease. Residential valuation over the quarter mirrors third quarter 2009. Over the year, residential valuation is holding steady. Commercial valuation has skyrocketed in quarter three and will double the 2009 total by the year’s end. Permitting of the new Woman’s Hospital created the largest increases shown
Seventy percent
in permit valuation this quarter. The Renaissance Hotel at Bluebonnet and Baton Rouge Magnet High School are other significant projects adding to
of the businesses
the large increase in valuation.
that participated
In the third quarter, the Baton Rouge area has experienced a 16% decrease in new construction residential permits from the same period in 2009.
in the survey
The industrial trend this year has been the revitalization of infrastructure,
expect revenues
streamlining of processes, and modernization of facilities, which has led to increased expenditures and efficiencies without high additions
will increase
in employment. Industrial projects this year account for approximately
by 5% or greater
$800 million in capital investment. As of September, Bloomberg economists predicted a 2.5% growth in gross
in 2011.
domestic product for 2011, indicating a moderate strengthening of the U.S. economy. Regional forecasts are more optimistic. New job growth is expected to be between 0.9% and 2% in the upcoming year, according to analysis of a survey of local businesses conducted by BRAC in conjunction with the Greater Baton Rouge Business Report. The healthcare, professional and technical services, and information technology and digital media sectors are expected to see job gains. Seventy percent of the businesses that participated in the survey expect revenues will increase by 5% or greater in 2011.
Economic Review Contributors Renee Areng Baton Rouge Area Convention and Visitors Bureau
Huey Dugas Capital Region Planning Commission
Bob Israel Louisiana Automobile Dealers Association
Jerry Campbell The Advocate
J. Michael Eades Ascension Economic Development Corporation
Stuart Litvin Livingston Economic Development, Inc.
Carey Chauvin EBR Parish Department of Public Works Ken Damann Greater Baton Rouge Association of REALTORS®
Connie Fabre Greater Baton Rouge Industry Alliance Marianne Frazee Frazee Recruiting
Hays Owen Baton Rouge Water Company Drew Pearson Latter & Blum Rene Ragas Our Lady of the Lake RMC
Tiffany Delapasse EBR Parish Department of Finance
Patty Granier Louisiana Workforce Commission
Karen St. Cyr Port of Greater Baton Rouge
Todd Denton Mall of Louisiana
Chris Harrell Regions Bank
Dr. Loren Scott Loren C. Scott & Associates, Inc.
4
Baton Rouge Area Employment and Unemployment ($ Thousands)*
Baton Rouge Area Regional Spending ($ Millions)* 1,600
380
80 1,400
370
70 1,200
360
60
350
50
340
40
800
330
30
600
20
400
320
1,000
10
310
200
0
0
300 OCT
NOV
DEC
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP*
SEP
OCT
NOV
DEC
JAN
FEB
2009
09-10 Employment Nonfarm payrolls
08-09 Employment Nonfarm payrolls
09-10 Unemployment Nonfarm payrolls
08-09 Unemployment Nonfarm payrolls
MAY
JUN
Strong
Latest Statistic
Iberville Parish
Ascension Parish
Livingston Parish
East Baton Rouge Parish
Stable or Mixed
Decline
Trend
• Jobs down 1,900 over Sept 09
Nonfarm payrolls, Sep 10 (p): 367,900 30,351 Unemployed, Sep 10 (p):
Unemployment Insurance Claims
Initial claims per week* Weeks claimed per week*
716 10,023
Residential Building Permits
Single-family, Q3 10 Multi-family, Q3 10
644 27
Home Sales
Average home price* Units sold, Q3 10
$194,239 493
• Sales prices have increased 1% from Q3 09
Regional Spending
Sales & use taxes, Aug 10 Total sales, Aug 10
$54.3MM $1.11B
• Sales tax collections as a region have decreased 2% over Aug 09
Local HQ Stock Performance
Price change over Q3 10: ALB: 19.4% AMED: (40.2%) LAMR: 27.5%
SHAW: 2.3% HEES: 7.0% CRWS: 17.3%
• Stock prices have increased across the board except for Amedisys
WTI crude oil spot* Henry Hub natural gas*
AUG
2010
Jobs
Energy Costs
JUL
* Sales were estimated from sales and use tax collections and rates of each taxing jurisdiction within each parish Source: Local tax offices; BRAC analysis
Economic Vital Signs Outlook
ARP
East Feliciana, Pointe Coupee, St. Helena, West Feliciana, and West Baton Rouge Parishes
* September employment and unemployment figures are preliminary estimates; all employment estimates reflect current revisions. Source: Louisiana Workforce Commission; BRAC analysis
Indicator
MAR
$76.18/barrel $4.28/MMBtu
Sources: Louisiana Workforce Commission; U.S. Census Bureau (New Residential Construction); Greater Baton Rouge Association of REALTORS®; Local sales tax offices; Yahoo! Finance; LSU Center for Energy Studies; BRAC analysis
• Unemployment in Sept at 7.8%; well-below U.S. average of 9.2%
• Initial claims down 2.2% from Q3 09 • Weeks claimed up 4.8% from Q3 09
• Total permits have decreased by 16% compared to Q3 09 • Single-family permits have decreased 20% compared to Q3 09
• Units sold have decreased 24% from Q3 09
• Crude oil spots down $1.80/barrel from Q2; up $8.04 from Q3 09 levels • Gas price down $0.07 from Q2, price is up $1.10/MMBtu from Q3 09 levels
* Q3 10 average
Q3 2010
5
o u r
p r o g r e s s
Measuring Our
The Campaign for a Greater Baton Rouge is comprised of seven strategies that work together to drive economic development in the Baton Rouge area. Each issue of Catalyst features an update on our progress on each of these seven strategies as well as a preview of upcoming goals and activities.
Strategy #1 Retain and Expand Existing Businesses
1
Recognizing that approximately 75% of the region’s future job growth will come from existing businesses, BRAC has developed a robust business retention and expansion program. The third quarter saw the retention of thirty jobs in Slaughter, La. as a result of the acquisition of WYESCO of Louisiana, LLC by Finnish technology manufacturer Metso Corporation. The new entity, Metso WYESCO, will specialize in equipment repairs for the paper and pulp industry. BRAC conducted forty-two on-site executive interviews during the quarter including nine follow-up sessions involving tangible assistance. For the year, the BRAC business retention and expansion team has completed 121 on-site visits both in-market and with out-of-state headquarters with local ties.
6
Strategy #2 Attract New Business to Our Region
2
An effective economic development program employs a regional approach when marketing assets to attract high-potential business prospects. Quarter three was highlighted by news that Scotts Miracle-Gro would establish a manufacturing and distribution operation in Ascension Parish’s Geismar area and that the Lighthouse for the Blind would relocate and expand their existing paper cup manufacturing operations from Mississippi to East Baton Rouge Parish. These BRAC-led projects will add 127 full- and parttime employees and a capital investment of between $14 and $17 million. The third quarter ended with six Class A prospects in the pipeline representing 230 potential jobs and capital investment of approximately $680 million. Our prospect total, including Classes A and B, stands at twenty-seven projects, 2,553 jobs, and over $1 billion in capital investment.
+ + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + +
Strategy #3 Develop a National Marketing Program
3
To be successful, it is essential that we market the Baton Rouge area nationally and internationally to decision-makers involved with business relocations and expansions. BRAC led two familiarization tours of the area, hosting fourteen leading industrial consultants. These are key influencers in the relocation process for companies across the U.S. Efforts to connect site selectors and company executives with BRAC’s business development team resulted in attendance at a number of trade shows and conferences. These included the CORENET conference focusing on corporate real estate executives and the Industrial Asset Management Council in Hot Springs, Virginia.
Summary of Business Development Prospect Activity
Q3 2010
Project Count
Prospective Job Count
Current Count
Change from prior quarter
Current Count
Change from prior quarter
2010 Project Wins (YTD)
4
+1
127
+54
Prospects: Class A
6
-1
230
-828
Prospects: Class B
21
+2
2323
-378
Prospects: Total
27
-1
2553
-1206
PROSPECTS: CLASS A
Prospect is actively engaged in dialogue with BRAC or the Capital Region has been specifically identified/selected to present sites through LED.
PROSPECTS: CLASS B
Company/consultant has requested information on multiple states/regions; company identity is frequently unknown.
Q3 2010
7
o u r
p r o g r e s s
Strategy #4 Create A Robust Business Intelligence Capability
4
Site selection consultants, real estate executives, and other business decision-makers depend on BRAC to provide detailed information about our region and the regional economy. Much of the business intelligence work in the third quarter focused on collecting data for a major business development project. Information related to education/ graduation rates; housing prices and availability; workforce; and much more was all needed to prepare the region’s submission to the prospect. A decision was reached late in the fourth quarter to keep the facility in its present location outside of the region.
Strategy #5 Create A Special Opportunity Fund
5
The ability to react quickly and flexibly to economic development opportunities that arise—both to help existing businesses expand and to bring new businesses to the Baton Rouge area—is critical to the success of our efforts. While the special opportunity fund remains an important asset in BRAC’s ability to meet the needs of its business development project clients, it was not accessed in the quarter.
Project Wins
+ + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + +
Metso WYESCO Service Center 30 Jobs Retained
Global manufacturer Metso Corporation acquired Slaughter-based WYESCO of Louisiana, LLC. The newly dubbed Metso WYESCO Service Center will serve as an affiliate of the company’s paper and fiber technology segment and will specialize in equipment repairs for the paper and pulp industry. The venture resulted in the retention of thirty employees. Metso, which is headquartered in Finland, supplies technology and services for mining, power generation, recycling, and construction. This is the company’s first North American facility of this kind. “Through the acquisition of WYESCO, Metso adds a diverse, quality provider of repair services to our service offerings in this part of the world. I am optimistic about the synergy of this new venture.” Lee DuBois, general manager of Metso WYESCO
+ + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + +
Anonymous Project Win 10 Jobs, $7MM Capital Investment
“Project Pet” resulted in 10 jobs and $7 million in capital investment. The company wishes to remain anonymous at this point.
8
Scotts Miracle-Gro Co. 50 Jobs, $8MM Capital Investment
Scotts Miracle-Gro has plans to extend its manufacturing and distribution business operations into Ascension Parish. The new center will operate out of the former Structall Building Systems facility in Geismar and will create a total of fifty new jobs, consisting of both fulltime and part-time positions. The lawn and garden product company will modify the 66,000-square-foot building on La. 30 to accommodate its mixing, packaging, and warehousing processes. The new venture is expected to usher in a capital investment of $8 million. “Several hurdles were overcome to make the project work, and help was provided by the Louisiana Economic Development department, BRAC, and Entergy’s economic development team.” Mike Eades, president and CEO, Ascension Economic Development Corp.
+ + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + +
Lighthouse for the Blind
70 Jobs, $6MM Capital Investment
Lighthouse for the Blind will be relocating its paper cup manufacturing operations to Baton Rouge. The agency, which provides jobs and services to the visually impaired, currently conducts business out of Crystal Springs, Mississippi, having moved its operations there following Hurricane Katrina. The announcement was the culmination of a collaborative effort among several city-parish and state leaders, including Louisiana Rehabilitation Services, Louisiana Economic Development, and BRAC. This much-anticipated addition to the Baton Rouge area community will result in more than seventy new jobs, totaling an annual payroll of more than $1.5 million, and an overall capital investment of approximately $6 million. “We’re incredibly excited about bringing this operation back to Louisiana. This means jobs for the sighted as well as the blind and visually impaired in Baton Rouge, and we’re just pleased be to a part of that. The support we received from the city, the state, and BRAC along with the built-in assets – including the city’s proximity to our headquarters in New Orleans – made this move an easy decision.” Bill Price, president, The Lighthouse for the Blind
Q3 2010
9
o u r
p r o g r e s s
Strategy #6
6
Create A Robust Public Policy Capability As BRAC promotes the Baton Rouge area to businesses looking to relocate or expand, we are working with business and government leaders to improve the competitiveness of our regional economy. Since the inception of the Baton Rouge Area Canvas Workshop, BRAC has focused on providing an in-depth level of research on the host region. The 2010 trip to Pittsburgh, PA included an equally robust analysis of the community, including its successes, its failures, and what has determined both. Topic areas for this year’s trip included workforce development, innovation and entrepreneurship, public education reform, private sector-university collaboration, and neighborhood redevelopment.
In the third quarter, BRAC completed a six-month project to explore the credit climate for small businesses in the Baton Rouge area. With the Small Business Issue Council taking the lead on this project, an event was held on September 28 entitled, “Show Me the Money.” The event included a panel discussion representing opinions of small business owners, bankers, and federal and state regulators focused on the issues surrounding access to capital and how the recession has affected the credit market. Nancy T. Montoya, Senior Regional Community Development Manager with the Federal Reserve Bank of Atlanta, presented findings and recommendations from the national “Small Business Access to Capital Survey” completed by the Federal Reserve Bank in 2010.
Strategy #7
7
Launch A Regional Learning Community Initiative Our economic development efforts rest on our ability to develop and sustain high-quality educational institutions and to train individuals capable of making a contribution to the community. The third quarter of 2010 saw a significant and important amount of activity in terms of BRAC’s goal to increase student achievement in the Capital Region. Accomplishments included tapping the Council for a Better Louisiana to perform an analysis of the East Baton Rouge Parish School System (EBRPSS). The analysis determined that while the system has some bright spots, it is, by and large, being outperformed by most of the state’s school systems. BRAC, through its political action committee, FuturePAC, also developed a reform agenda for EBRPSS
that focuses on student achievement and accountability. BRAC will promote the agenda in order to encourage local stakeholders to accept its tenets. FuturePAC continued to focus on school system leadership by becoming heavily involved in the recent EBRPSB elections. FuturePAC’s work resulted in the election of five of the twelve candidates it endorsed. Finally, BRAC has been working with a number of leaders in East Baton Rouge Parish to create a career academy. Administered by the Louisiana Resource Center for Educators, the academy will be focused on tailoring its curriculum to the needs of employers for current and future job needs. All of these items are described in more detail in the cover story found on on page 12.
BRAC’s Economic Development Partners Ascension Economic Development Corporation Office of the Mayor-President, City of Baton Rouge/ Parish of East Baton Rouge East Feliciana Economic Development District Iberville Chamber of Commerce Livingston Economic Development Council Greater Pointe Coupee Chamber of Commerce St. Helena Parish Economic Development Committee West Baton Rouge Chamber of Commerce West Feliciana Community Development Foundation
10
awards
AC H I E V E M E N TS And the award goes to… Third time’s a charm When BRAC launched The Campaign for a Greater Baton Rouge in 2006, it aimed to broaden public awareness of all the Capital Region has to offer by implementing a national marketing campaign. Since then, BRAC has managed to successfully promote the Baton Rouge area as an economic development hub, and its efforts did not go unnoticed. For the second consecutive year, the Baton Rouge area has clinched the title of mid-market of the year from Southern Business & Development magazine. This marks the third time that the Capital Region has captured the top spot in the past four years, having won the award in 2007 and 2009. This recognition is just one of several awards and distinctions that BRAC and the region achieved throughout 2010. The Southern Economic Development Council, the country’s largest economic development organization, recognized BRAC for the quality of its superior marketing pieces by bestowing top honors upon three of BRAC’s submissions in the council’s annual Communications Awards. The award-winning materials eclipsed over 120 entries from across the South in the following categories: General Purpose Brochure, Special Purpose Brochure, and Superior Newsletter or Newspaper. BRAC also received Honorable Mention recognition for Excellence in Economic Development from the International Economic Development Council. The award stemmed from a Baton Rouge Area Digital Industries Consortium (BRADIC) direct marketing piece submitted in the General Purpose Promotion category for communities with populations greater than 500,000. These awards collectively serve as a testament to BRAC’s commitment to the region and to the organization’s mission to propel the community to a more prosperous economic future.
Q3 2010
11
F E at u r e
12
s to r y
C
lose your eyes. Now think back to the time when you were a school kid. Remember how it was a time of
excitement, wonderment and, yes, sometimes boredom, as you were introduced to all of the new things that were included in your educational experience. Remember the pride that you had as you continually improved your reading skills, strengthened your math ability, and progressed through grade after grade. It was the time that would shape your life.
Open your eyes. Now think about how many of our children in East Baton Rouge Parish (EBR) are not having those same experiences. Many of them are multiple years behind their grade level in reading skills. The same is true of their math ability. Many are not making the necessary progress in their grade levels or – worse yet – are dropping out altogether. The seriousness and complexity of this issue are the motivation for the Baton Rouge Area Chamber’s (BRAC’s) inclusion of a regional learning community initiative in The Campaign for a Greater Baton Rouge. As stated in a recent analysis of the East Baton Rouge Parish School System (EBRPSS) by the Council for a Better Louisiana (CABL), “Educational outcomes in the public school system have had and will continue to have a significant impact on the economic well-being of the community and quality of life.” Although an issue of this size has no short-term answer, significant advancements have been made by BRAC during the third quarter of 2010 to help achieve widespread educational reform in EBR.
Assessing the Situation In order to get a better understanding of the EBRPSS situation, BRAC tapped CABL to perform the aforementioned analysis. Entitled A Snapshot of East Baton Rouge Parish Schools, CABL’s work showed that, despite having the tenth-highest teacher salaries, EBRPSS is in a dire situation with the prospect of rapid decline in the near future. Despite positive attributes, EBRPSS was found to struggle to provide high-quality public education to many of its children. It consistently ranks near the bottom statewide in most measures of student, school, and district performance. And while there are a handful of districts with much lower scores, the district is still below the state average. EBRPSS also was found to have an extremely low percentage of schools where, on average, students are performing at the modest level of “basic” on state academic tests.
Q3 2010 13
EBR Parish Public Education Systems Must Continue to Push Aggressively on Student Achievement to Meet State Minimums 2010 Metro Performance Compared to State Performance Score (SPS) Minimums
Current SPS Minimum
2012 Minimum SPS
2014 Minimum SPS
Zachary
119.8
Central
107.6
East Baton Rouge Baker
“Despite having the tenth-highest teacher salaries, EBRPSS is in a dire situation with the prospect of rapid decline in the near future.” Currently, twelve EBRPSS schools are considered academically unacceptable. This means they have been taken over by the state or are still within EBRPSS purview, but with Louisiana Department of Education supervision. Worse yet, based on the current rate of improvement, twenty-eight more EBRPSS schools are on pace to be considered academically unacceptable by 2012, when state standards will increase, and will therefore be eligible for state takeover. The analysis also showed that the parish has a dropout rate of nearly nine percent for students in grades 9 through 12, the tenth-highest in the state. EBRPSS has been significantly outperformed on most indicators by nearly all of the six metro area school districts selected for comparison in the analysis. Of further concern was the fact that while EBRPSS has a relatively high percentage of low-income students, a number of other school districts with higher percentages outperformed the parish in several categories. With such a bleak assessment, it is apparent that BRAC must maintain its focus on the state of public education in EBR and continue to work to improve student achievement.
14
82.0 62.8
Building the Agenda In 2010, FuturePAC, BRAC’s political action committee, developed an EBR reform agenda consisting of six tenets believed to be crucially important in accelerating student achievement and school accountability in the parish. Those tenets include: Support for linking teacher performance and accountability to increased student achievement Opposing efforts to introduce collective bargaining Endorsing and supporting the development of high-performing alternatives to traditional school models, including successful charter schools designed to meet the needs of students and parents Supporting efforts to protect and strengthen the state accountability plan for public schools Supporting efforts to develop a “pipeline” of exceptional school leaders in the region’s public schools Supporting the expansion of high-quality early childhood education (pre-kindergarten) programs In the coming months, BRAC will be working with EBRPSS school board members, system leadership, and other stakeholders to promote the agenda and gain its acceptance as a strategic framework for the system moving forward.
Cultivating Strong Leadership As is the case in many situations, difficult times call for strong leadership. Sensing that this was an area where it could make a difference, FuturePAC decided to focus on the 2010 East Baton Rouge Parish School Board elections and actively engaged in supporting reform-minded candidates. In late September, it endorsed a slate of twelve candidates. Each candidate demonstrated an appreciation for BRAC’s commitment to improving the quality of education in the parish The State of Baton Rouge Area Schools’ Performance and pledged their support to FuturePAC’s • The East Baton Rouge District Performance Score (DPS) reform agenda. improved to 82.0 last year in 2009-2010, an increase of 2.2 points over the 2008-2009 school year
A total of five candidates from FuturePAC’s slate were elected. David Tatman in District 1 and Jill C. Dyason in District 10 were both unopposed at the end of the qualifying period in July. Three newcomers – Evelyn Ware-Jackson in District 5; District 6’s Craig Freeman; and Barbara Reich Freiberg in District 7 – from FuturePAC’s slate were also elected.
• According to the Louisiana Department of Education, a performance score of 82 indicates that roughly 40 percent of students are performing below grade level • The statewide performance score for 2010 was 91.0, an increase of 7.1 points over the 2008-2009 school year • The average DPS for the Baton Rouge metro region* was 90.6 in 2009-2010 and for identified peer districts** was 90.7
Developing the Structure Besides simply educating students, a school system is responsible for preparing them to meet the workforce needs of the future. The Capital Region took a major step forward on that front recently with the creation of the Career Academy. The academy will design all of its classes and curricula around current and future job needs, thereby tying together diploma and certification preparation with industry demands. Students will take state-of-the-art technical and occupational courses that will not only be eligible for college credit, but will also translate easily into postgraduate studies.
• Most districts in the Baton Rouge region need to improve at an increased rate in order to meet increased state standards in 2014 (SPS 120). • East Baton Rouge graduation rate improved to 60.0 percent last year, compared to the statewide graduation rate of 66.0 percent.
* BR metro region includes: Ascension, East Baton Rouge, East Feliciana, Iberville, Livingston, Pointe Coupee, St. Helena, West Baton Rouge, and West Feliciana parishes; City of Baker; Central Community; and Zachary Community ** Peer districts include: Caddo, Jefferson, Lafayette, Lafourche, Rapides, St. Landry, Tangipahoa, and Terrebonne
Source: LA Department of Education; BRAC analysis
The Career Academy is a charter school that will be administered by the Louisiana Resource Center for Educators and funded with public, private, and nonprofit funds. The academy just reached two significant milestones with its unanimous charter application approval from EBRPSS in May and the hiring of its director in September. BRAC has been an active partner throughout the development and implementation of the Career Academy, from the application approval process through the interviewing and hiring of its director. BRAC will continue to be involved as this exciting project continues to progress. Denying many of our children the ability to receive a proper education is reprehensible and irresponsible. As our workforce of tomorrow, we must ensure that the next generation is given every opportunity to succeed. By taking steps to ensure improved academic achievement by our region’s public education students, BRAC will continue to employ a strategic approach to educational reform aimed at further securing the Baton Rouge area’s place as a top location for businesses. That is something that we should all close our eyes and imagine.
Q3 2010 15
Canvas
20 10 Painting the Future for the Capital Region
T
he image that probably comes to mind when you think of regional government and business leaders taking a fact-finding junket to
tour a peer region is one that includes lots of entertaining and very little focus on finding facts. Not so with the annual Baton Rouge Area Chamber (BRAC) Canvas workshop tour. Each year, more than 100 participants from the Baton Rouge area invest in excursions to places like Nashville, Austin, and Raleigh to pick the brains of their counterparts in search of fresh, new ideas on how to keep the Capital Region moving in the right direction. By many accounts, this year’s trip to Pittsburgh was one of the most rewarding and yielded tangible outcomes.
At first, many of the participants frankly asked the
their curiosity lead them. What they would learn is that
question, “Why Pittsburgh?” The city’s image has always
Pittsburgh has found a way to reinvent itself, turning
been one of a burly, dingy steel haven and, prior to its
its economy around to become one of the most talked-
renaissance, one of the more depressed metropolitan
about areas in the country – the perfect case study for
areas of the U.S. But the Canvas entourage decided to let
the Baton Rouge area.
16
Among the topics on this year’s agenda were discussions on educational excellence and reform; entrepreneurship and innovation; private/public partnerships between academia and the business community; and neighborhood redevelopment strategies. A stellar lineup of government, nonprofit, education, and business leaders provided valuable insight on how Pittsburgh was able to shake off its negative image by introducing bold, new ideas and working together as a community in these areas. One of the more enlightening conversations – and one which addressed a kindred concern for the Capital Region – focused on finding solutions to workforce challenges. In recent years, Pittsburgh and the entire state of Pennsylvania have found innovative ways to address their specific workforce concerns, allowing companies and employees to become more efficient and successful and enabling both state and regional economies to compete in the new, global market. Dr. Alex Johnson, President of the Community College of Allegheny County, and Daniel Kuba, Special Assistant to Secretary, Pennsylvania Department of
Pittsburgh has found a way
Labor & Secretary, Bureau of Workforce Development
to reinvent itself, turning its
Partnership, spoke with the group about Industry
economy around to become one
Partnerships, a unique solution to the changing demands of the new economy. The brainchild of Governor Ed
of the most talked-about areas
Rendell, Industry Partnerships is centered upon
in the country – the perfect case
the notion that collaboration among groups of companies to address training needs benefits industries,
study for the Baton Rouge area.
employees, and the entire state’s economy. The partnerships formed also can develop solutions that will strengthen whole industries. Through Industry Partnerships, Pennsylvania
lab technology, medical technology, culinary arts,
was one of the first states to expand its workforce
medical transcription and coding, and horticulture to
training efforts to networks of companies within
approximately 220 adults annually. The center works
certain targeted industries. Industry Partnerships are
with an advisory board of regional employers to ensure
employer/worker consortiums that bring together
each program meets the needs of local partners and
companies that have similar products and markets,
industry. As a result of synergies formed during Canvas
and allow these groups of individuals to collaborate
Workshop: Pittsburgh, discussions are now underway
to develop workforce solutions that meet their needs.
to bring the BTC model to the Baton Rouge region.
The partnerships are formed in specific industries where Pennsylvania, or certain regions of Pennsylvania, has a competitive advantage.
As BRAC works to continue the momentum realized through its efforts to think globally and act regionally, it sees great benefit in initiatives such
Another example of collaboration working to solve
as the Canvas Workshop program. It allows the
workforce challenges is the work of the Manchester
community stakeholders to come together and work
Bidwell Corporation’s Bidwell Training Center (BTC).
to paint the masterpiece that is a brighter future for
BTC provides training in office technology, chemical
the Capital Region.
Q3 2010 17
[ IN PERSPECTIVE ] Each issue of Catalyst includes a national expert contributing new ideas about economic development issues.
By Molly Foley, Next Generation Consulting
FUTURE ENGINEER S TAY I N G I N
F U T U R E L AW Y E R M OV I N G TO
F U T U R E D O C TO R M OV I N G TO
ATLANTA, GA
18
HOUSTON, TX
FUTURE GRAPHIC DESIGNER M OV I N G TO
AUSTIN, TX
BATON ROUGE, LA
There’s a saying in business development. It’s easier to keep your current customers than it is to attract new ones. The same is true for talent development. It is more cost-effective to focus on retaining the young talent already living, studying, and working in the Baton Rouge area than to convince new migrants to relocate here.
“
As a result, we are seeing a huge shift in the “brain drain” conversation from one that has been focused on young professionals currently in the workforce to a discussion centered on “emerging” professionals — soon to be college grads — yet to reach the workforce. The Capital Region is an area that produces thousands of college graduates each year. Yet this talent is one of the Baton Rouge area’s biggest exports. This is a critical issue because college graduates provide a great opportunity to increase the region’s Talent Dividend.1 CEOs for Cities recently conducted research to shine the light on how shifting the entire educational distribution curve just one percent to the right offers a varying degree of economic impact. For an area like Baton Rouge, a one-percent increase in the number of people age 25 and older with four-year degrees would create an economic impact of nearly $600 million for the area. So how can the Baton Rouge area battle the brain drain? Here are three simple ways to bridge the gap between “town and gown" and increase the Baton Rouge area’s ranking on the “life after college hotspot” list for soon-to-be graduates:
Get intentional about building connections between students and the community.
”
Research shows that a college graduate's decision to enter the local workforce depends in part on that student's connection to the area built over the course of a college career.2 The Baton Rouge area needs to increase opportunities for students to connect to local resources that will enhance their college experience and increase their interest in remaining in the area when they graduate. This can include working with higher-education institutions to help locate a selection of programs off-campus. The region may also consider encouraging student involvement in the community at large through volunteerism and experiential learning programs. It also should be easy for students to access the region through mass transit. The campus community should be connected to downtown and major population centers through enhanced bicycle lanes. 1 www.ceosforcities.org
2 Source: Collegia
Q3 2010 19
Increase the number of internship opportunities for students in the area. Students who have internships and co-op experiences while studying in the Baton Rouge area are more likely to stay here after graduation and have higher employee retention rates. Almost fifty percent of students accept permanent positions with their internship employers. The retention of college graduates after five years of employment is thirty percent greater for former interns.
increase in the number of people age 25 and older with four-year degrees would
Enhance the type and depth of connections interns establish in the Baton Rouge area. An intern’s experience while studying in the Capital Region needs to go beyond discovering great restaurants, festivals, and cool places to live. It is important to provide opportunities for interaction not only amongst other interns, but with other like-minded people in the community. Working with a local young professionals’ group is a great way to develop connections to help expose soon-to-be graduates to the social and professional possibilities that life
create an
in the Baton Rouge area offers. Groups in
economic
initiatives developed to connect emerging
Tulsa and the Quad Cities region of Iowa and Illinois offer great examples of professionals to regional business leaders.
impact of nearly $600 million for the area.
20
Bridging the gap between “town and gown” in the Baton Rouge area is essential to retaining vitally important creative capital in the region. The business community needs to invest in the emerging workforce now to realize gains in the future.
Investors economic development
The Campaign for a Greater Baton Rouge (2006–2010)* Chairman’s Council
Annual Investment of $100,000+ (Five-year total pledge of at least $500,000) All Star Automotive Group • Baton Rouge Area Foundation / Commercial Properties Realty Trust • Credit Bureau of Baton Rouge Foundation • East Baton Rouge Mortgage Finance Authority • ExxonMobil • Georgia-Pacific • Guaranty Group • Louisiana State University System • Manship Media • Our Lady of the Lake Regional Medical Center • Research Park Corporation
Executive Council
Annual Investment of $50,000+ (Five-year total pledge of at least $250,000) Baton Rouge Coca-Cola Bottling Company • Baton Rouge General Medical Center • Blue Cross Blue Shield of Louisiana • Breazeale, Sachse & Wilson, L.L.P. • Capital One Bank • Citadel Broadcasting Company • Clear Channel Radio • CSRS, Inc. • Entergy • Greater Baton Rouge Business Report • Jones, Walker, Waechter, Poitevent, CarrEre & DenEgre, L.L.P. • JPMorgan Chase • Kean, Miller, Hawthorne, D’Armond, McCowan & Jarman L.L.P. • Lamar Advertising Company • LUBA Workers’ Comp • Ochsner Health Center Baton Rouge / Ochsner Medical Center Baton Rouge • Phelps Dunbar, L.L.P. • Regions Bank • Taylor, Porter, Brooks & Phillips, L.L.P. • The Shaw Group Inc. • Turner Industries Group • WAFB • Whitney National Bank
Ambassador Council
Annual Investment of $25,000+ (Five-year total pledge of at least $125,000) Baton Rouge Water Company • Brookwood Properties, L.L.C. • D’ HonorE Construction, Inc. • Dow Chemical Company • EATEL / SunShine Pages • Greater Baton Rouge Association of REALTORS© • Hancock Bank • Hollywood Casino • Latter & Blum, Inc. / C.J. Brown Realtors • MAPP Construction, L.L.C. • Mockler Beverage Company • Pinnacle Entertainment • Wampold Companies • Woman’s Hospital
Corporate Council
Annual Investment of $15,000+ (Five-year total pledge of at least $75,000)
Policy Council
Annual Investment of $7,500+ (Five-year total pledge of at least $37,500) Advanced Office Systems, Inc. • American Gateway Bank • Cajun Constructors • Embassy Suites Baton Rouge • Faulk & Winkler, L.L.C. • Gulf South Business Systems & Consultants, Inc. • Hannis T. Bourgeois, LLP • H&E Equipment Services, L.L.C. • I.T. by DESIGN • La Capitol Federal Credit Union • Louisiana Radio Network / Tiger Rag • Mary Bird Perkins Cancer Center • McDonald’s of Baton Rouge • McGlinchey Stafford PLLC • Postlethwaite & Netterville • Starmount Life Insurance Company
Supporting Investor
Annual Investment of $2,500+ (Five-year total pledge of at least $12,500) Acme Refrigeration of Baton Rouge, Inc. • Advantage Capital Partners • Apex Constructors, LLC. • Armstrong Relocation • Ascension Economic Development Corporation • Associated Grocers • Babcock Partners, LLC • BancorpSouth • Baton Rouge Duplicating Products • Benny’s Car Wash • Chenevert Architects • Cintas • Community Coffee Company • EMCO Technologies • Executone of Central Louisiana, Inc. • Felder’s Collision Parts, Inc. • First Bank and Trust • Forte and Tablada, Inc. • GoodPeople • GOTECH, Inc. • Grace and Hebert • Gulf Coast BIDCO • Harmony Center • Harris Manor Realty • Hollingsworth Richards Automotive Group • Iberia Bank • Jacobs Engineering • Johnson Controls • KPMG LLP • Kurz & Hebert Commercial Real Estate, Inc. • Launch Media • Lee Griffin • Lee Michaels • Lipsey’s • Lofton Staffing Services • Lyons Specialty Company • MidSouth Bank • Neighbors Federal Credit Union • OMNI BANK • Piccadilly Restaurants • Raising Cane’s Chicken Fingers • SJB Group, LLC • Southpoint Volkswagen • SSA Consultants • Star Service • State Bank & Trust Company • Stonehenge Capital Company • Stone Pigman Walther Wittmann, LLC • The Celtic Group • The Livingston Parish News • Union Pacific Railroad • West Feliciana Community Development Foundation • Wright & Percy Insurance BRAC also engages in professional services contracts with Louisiana Economic Development (LED) and the City of Baton Rouge/Parish of East Baton Rouge. * Investors in The Creative Capital Agenda will be
recognized in the first quarter 2011 issue of Catalyst.
Adams & Reese Law Firm • Amedisys, Inc. • Antares Technology Solutions • Area Wholesale Tire Company • Atmos Energy • Cox Communications • Irene W. and C.B. Pennington Foundation • Merrill Lynch • Milton J. Womack, Inc. • Object 9 • WHLC Architecture
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