Collaboration will help Utah become a STEM top ten tech center

Wednesday, February 27th, 2013

By Natalie Gochnour, executive vice president and chief economist

Collaboration breeds success in our hyper-connected, fast-paced and complex world. Many believe collaboration represents the next frontier of human productivity as technology combines with people skills to break down barriers, solve problems and improve efficiencies. For these and other reasons I am enthused about a recently signed memorandum of agreement between the Salt Lake Chamber – Utah’s largest business association – and the Utah Technology Council – Utah’s premier high tech and clean tech industry association. In the agreement, both entities commit to collaborate on common priorities such as science, technology, engineering and mathematics (STEM) learning opportunities in Utah schools.

The Utah Technology Council (UTC) does amazing things in this state. Utah is home to 5,500 tech companies and technology jobs are growing at a clip more than twice the state average. Tech companies pay wages 65 percent higher than the status quo. Better yet, tech companies bring all sorts of interesting and talented people to our state. Look no further than the extraordinary Adobe building in Lehi. A diverse group of long-time Utah residents and newcomers work in this iconic structure, which serves as a symbol of Utah’s recent tech accomplishments. The UTC played a pivotal role in supporting the funding, workforce development and innovative spirit that attracted Adobe to expand in our state.

Rich Nelson leads the UTC. I’ve known Rich since the late 1990s when we worked together to attract Boeing (then McDonnell Douglas) to the Beehive State. Rich played a leading role in supporting the Utah Fund of Funds, the Utah Science, Technology and Research (USTAR) initiative, and other high priority technology endeavors. Through the UTC, he belongs to a national network of over 90 like-minded technology organizations and works closely with seven trade associations that keep the United States on the leading edge of technology in the world. I credit Rich and the UTC for keeping Utah’s tech community vibrant.

I’m a staunch believer in collective impact – the notion that large scale community improvement requires broad cross-sector coordination. The Salt Lake Chamber’s recent agreement with UTC is one of 35 like agreements we have signed with chambers of commerce and business associations throughout the country, and even the world. That’s right, we’ve reached out to chambers of commerce in nine countries to advance Utah’s international trade. The Utah economy wins when organizations like the Salt Lake Chamber and Utah Technology Council work together to create a prosperous and promising future for our state.

 

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STEM action center bill headed to House floor

Monday, February 25th, 2013

The Utah business community has set the creation of a Science, Technology, Engineering and Mathematics Action Center as an important educational priority during the 2013 legislative session. This morning, the House Economic Development and Workforce Services Committee voted to send H.B. 139 to the floor for consideration.

HB 139 creates a STEM Action Center that will support statewide best practices network, apply innovative teaching methods to improve student STEM proficiency, and identify and close gaps in STEM student learning.

“The future of educaiton in utah is really about parnerships, it’s about the private sector being more engaged,” says Mark Bouchard (above, gray suit), chair of Prosperity 2020. “It’s not a matter of business telling education leaders how to do their job; it’s about being a partner and letting them know what the outcomes need to be for us to succeed.”

Passage of the bill will enhance Utah’s future workforce and bolster the Utah economy. It will also help us achieve our goal to become a STEM Top 10 center for technology jobs and businesses.

“It’s all about sustainability,” says Bouchard. “We need to align our workforce with the needs of all these growing companies going forward and attracting new businesses to come here.”

You can help support the business community’s agenda by contacting your legislator.

 

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Higher education discussion with the U.S. Chamber of Commerce

Wednesday, February 20th, 2013

On Tuesday, the U.S. Chamber of Commerce collaborated with the National Campus Leadership Council, Institute for a Competitive Workforce and Young Invincibles to facilitate a seminar focused on the interjection of the private sector in higher ed. This event attracted Student Body Presidents from over ten states across the country including Illinois, Massachusetts, North Carolina, Utah, Missouri and Maryland.

Aaron Starks, the president of the Utah Student Association who also serves as the student body president at Salt Lake Community College and is interning here at the Salt Lake Chamber this semester, was part of a panel discussion about creating solutions to problems within the system of higher education at the national level.

Throughout the discussion each panel member vocally expressed the benefit in producing post-graduation data. The panel unanimously agreed that such data would promote college completion and help students make informed decisions in their choosing of institutions.

Starks touched on the progress of the Prosperity 2020 movement to enhance education in Utah, and expressed appreciation for business leaders’ willingness to reach out to students.

“Both business leaders and students cannot do this alone,” says Starks.

In Utah, the Prosperity 2020 movement is the largest business-led movement to enhance education in state history, with seventeen chambers of commerce and industry associations backing the cause. Goals of Prosperity 2020 include reaching 66 percent of adults with post-secondary degrees or certificates, 90 percent of elementary students proficient in math and reading, and making Utah a top 10 tech center for jobs and business–all by the year 2020.

Thanks to the Business Promise, 20,200 volunteers will also be deployed to schools statewide to help students reach their potential. It will take innovation, accountability and investment to achieve better educational outcomes and to ensure future prosperity for our economy.

“I can see more clearly a space for the private sector in higher education,” Starks says reflecting on his experience with the forum. “Without representation from the business community, students will struggle  to begin their academic careers with the end in mind. The private sector must extend their reach and reinvest efforts to train students, provide internship opportunities and hold administrators and professors accountable.”

Click HERE to watch the forum. It is rather long, but the panel discussion begins at around 14 minutes in.

 

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Investment in education vital for American competitiveness

Thursday, February 7th, 2013

The head of the General Electric Foundation spent Wednesday meeting with elected officials and business leaders to reinforce the connection between an educated workforce and the ability to thrive in the global marketplace.

Bob Corcoran, the president and chairman of the GE Foundation, shared three recommendations for the business leaders that gathered from across the state:

1. Help Prosperity 2020

2. Be a lightning rod on educational issues

3. Be a steel rod; be the extra rebar that helps decision makers withstand the pressure

Utah taking steps in the right direction
Corcoran says Utah’s adoption of the goal to have 66 percent of all Utah adults hold a college degree or skilled trade certificate by the end of the decade is impressive.

“I’m not aware of another state in the country that has taken that kind of step to take on a goal like that for itself,” he says. “The movement to set high standards for college and career readiness is very good but 46 other states are doing the same thing. That’s necessary to compete. The work the business community has done is actually distinctive.”

It’s important to adopt a strong internationally competitive standard for what children should learn, know and be able to do. Breaking down the testing of those skills by grade level can help make sure every student is on point to succeed in their education. Prosperity 2020 has a goal of having 90 percent of third and sixth graders proficient in reading and math by the year 2020.

“The jobs we have require a higher educated workforce,” Corcoran says also noting that an educated population ushers in a lifetime of opportunity for everyone. A quality education not only increases the chances of finding a job and contributing to the economy, but also to an increase in quality of life and being able to provide for a family. The ability to send our children to school and have them master skills like analytic problem solving and comprehension can make a huge difference.

“Good quality education levels the playing field for all kids,” he says. “That investment is crucial. They are going to be working for you one day, but if they are really good, you may end up working for them.”

A changing world
We live in a completely different world than we did two decades ago. The way we work, the way we communicate and the way we play have been transformed. The way we learn has to evolve as well.

Corcoran pointed out that America used to be the number one country when it came to the number of high school graduates (under the age of 30) per capita. Today we are tenth in the world.

“This is a huge problem for us,” Corcoran says, adding that one of the most significant shifts is that states no longer face competition just from other states when it comes to business recruitment and attracting top talent. He says in the 21st century, the 50 states collectively face strong competition from other countries.

“Americans have this view that the world is not as good as us,” Corcoran said. “Maybe 20 years ago that may have been partially true.”

Countries like China that used to struggle are now producing some of the top engineering talent in the world, putting the United States behind the educational curve.

“We’re losing jobs to other countries,” Corcoran said. “They are saying that our educational system isn’t good enough for them.”

And that, too, is a big problem at home. We need the skilled and educated workforce to fill increasingly complex and mentally rigorous jobs, and to create businesses. In order to ensure we have  that workforce, a solid education system is necessary.

“Economic competitiveness is based on how strong our education is,” says Corcoran.

 

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Prosperity 2020 ad hits the Super Bowl

Monday, February 4th, 2013

Right after the game clock declared the Baltimore Ravens the champions of the 47th Super Bowl, Prosperity 2020 got a few seconds among the most coveted advertising spots of the year.

In case you aren’t already aware, Prosperity 2020 is the state’s largest business-led movement to help improve education. The Salt Lake Chamber along with more than 20 other chambers of commerce and business assocations are committing our best efforts to improve innovation, investment, accountability and collaboration in Utah’s education system.

For the past three years, Prosperity 2020 has worked with the Governor’s Educational Excellence Commission, our partners in the Legislature and education leadership to create a plan to build the strongest economy in the national through purposeful innovation and investment in education. The plan has been approved by the governor, Utah State Office of Education, Utah College of Applied Technology, Utah System of Higher Education and the Prosperity 2020 Founders’ Council. Legislative approval will be a major focus in the coming year.

As the advertisement above suggests, you can make a difference too. There are a couple things you can do to help further enhance our education system:

1.  Express your support for Prosperity 2020 to your legislators. Click here to find their contact information.
2.  Volunteer with the Prosperity 2020 Business Promise. Click here to volunteer. Help a child learn to read. Promote math skills and interest in STEM fields to help children see the future and obtain the skills they need to compete in a global and growing economy.

Help Utah’s economy not hit a blackout in the years to come and act today. Preserve our education and help kids succeed that way there may be a constant beacon of light towards the future.

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Utah Economic Council on Utah’s future

Thursday, January 24th, 2013

When it comes to the state economy, Utahns have every reason to be optimistic. That was the consensus of a group of the state’s top economists during a panel discussion this morning at the Annual Utah Economic Review.

Utah is currently home to the second fastest growing economy in the nation, coming in behind only North Dakota, a state riding high on the wave of an energy boom. By comparison, Utah’s success is more evenly distributed across a variety of industries. In the past 12 months, the state has created 360,000 jobs and the unemployment rate stands at 5.2 percent (eighth lowest in the country).

While Utah’s economy is growing, the continued sluggishness of the national economy is cause for concern.

“They are simply putting patches on things, and not solving problems. They are focusing on special interests,” says Alan Westenskow of Zions Public Finance. “Those in Washington are not being honest with long term expense and how things will get fixed.”

Education
Emeritus Wells Fargo Economist Kelley Matthews says another significant threat to Utah’s economy is declining rates of educational attainment. He says education is a crucial part of maintaining a prosperous economy. Having the talented labor force that a postsecondary education can provide should not only be maintained, but also expanded. The business community and governor have both set the goal of having 66 percent of adults attaining a postsecondary degree or trade certificate by the year 2020.

“We need to be thinking about long term,” says Steve Kroes of Utah Foundation.”We shouldn’t think of education as something we spend money on. We need to think about what we spend or invest in education not as a cost, but as fiscal prudence. That will be the gem that keeps Utah competitive.”

“The importance is on whether we are going to maintain the quality and productivity of that labor force going forward,” Matthews says. “Our educational attainment is dropping dramatically. We’re not going to be able to stay on this path [of growth] and retain the productivity and educational abilities that we’ve traditionally had. We simply cannot stay the way that we are or we will have a less-educated workforce, and that will immediately affect productivity.”

Energy
The economists also affirmed that Utah’s energy sector needs to be a balance to avoid what is called the “boom-bust cycle.”

“Energy development is absolutely a part of economic development,” says Juliette Tennert of the Governor’s Office of Planning and  Budget. “We are well positioned, we have a competitive advantage, and that produces high-paying jobs and business in Utah, which keeps us competitive because of low prices.”

For Utah’s future, the panel agreed we should look further down the road, beyond 2013.

“We should challenge ourselves and our companies by thinking ahead,” says Natalie Gochnour, chief economist at the Salt Lake Chamber. ”Who’s focusing on 2020? 2030? That’s what we need.”

CLICK HERE for the Economic Outlook 2013 PDF released by the Governor’s Office.

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2013 Public Policy Guide outlines business community’s priorities

Monday, January 14th, 2013

(L to R) Wesley Smith, general counsel, Salt Lake Chamber; Lane Beattie, president and CEO, Salt Lake Chamber; Becky Lockhart, Speaker of the Utah House of Representatives; Clark Ivory, CEO, Ivory Homes

With the 2013 General Legislative Session just two weeks away, the Salt Lake Chamber presented the business community’s legislative agenda this morning to legislative leadership.

You can read the official news release here. 

The 2013 Public Policy Guide outlines the business community’s position on issues including economic development, education, transportation, health reform, energy, clean air, immigration, Downtown Rising and international business.

Though it is a Salt Lake Chamber publication, the 2013 Public Policy Guide represents the broad-based support of chambers of commerce across the state as well as the other important business associations. As Utah’s largest and longest-serving statewide business association, we stand as the voice of business in our state. Our policies are well thought out and designed to strengthen the Utah economy today and over the long term.

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Posted in Air Quality, Chamber News, Economic Development, Education, Energy, Health System Reform, Immigration, Public Policy, Small Business, Transportation, Utah Jobs Agenda | No Comments »

Prosperity 2020 unveils plan for education, 2013 legislative priorities

Wednesday, January 9th, 2013

Supporters of Prosperity 2020 today unveiled a business prospectus—a plan to increase innovation, investment and accountability in education to make Utah the strongest economy in the nation. The business-led movement has built significant momentum heading into the 2013 General Legislative Session.

“If the largest population of young people in the country is well educated, everything else falls into place,” said Mark Bouchard, senior managing partner of CBRE and chair of Prosperity 2020. “This prospectus is more than just smart business strategy, it’s about people.”

The prospectus outlines Utah’s current economic situation, education warning signs, the business community’s vision and goals, and the plan to pay for Prosperity 2020’s priorities for the 2013 General Legislative Session.

“We are committed to the goal that 66 percent of all Utah adults will have a college degree or skilled trade certificate by the year 2020,” said Bouchard. “We need to make the decisions today that will get us there because the market will demand that we do.”

Utah economy
Utah is in the midst of an unprecedented economic, demographic and cultural transformation. In a globally competitive and rapidly changing economy, complacency is a recipe for decline. Utah boasts the fifth-fastest growing economy and the sixth lowest unemployment rate in the nation. Elements including low business costs, a modern transportation infrastructure, fiscally responsible government and a high quality of life all contribute to Utah’s economic strength. But education is one area where improvement is critical.

“Our economy is at the front of the line,” said Natalie Gochnour, chief economist at the Salt Lake Chamber.

Nelson Laboratories, a locally owned microbiology testing business with nearly 500 employees, added 17 new employees this week and is looking to hire more. But the difficulty of finding workers with the right education threatens their ability to grow.

“It doesn’t take much for that to become our leading constraint to growth,” said Jeff Nelson, CEO of Nelson Laboratories. “There’s reality to that and education is the way to make that better, not just for business like us but for all businesses. I think it is key to the economic growth of our state.”

Education warning signs
By 2050 nearly one-third of Utah’s population will be comprised of racial and ethnic minorities. The state is diversifying faster than any other region in the nation. A diverse population requires early intervention to position students for success.

“In a global economy that is rapidly changing, you will fall behind. Our business leaders have seen education warning signs and those become red flags to the economy,” said Gochnour.

Utah students produce test scores lower than peer states, and our college completion rate is declining. Utah’s high school graduation rate is in the bottom half of the country with only 76 percent of students who reach ninth grade ultimately graduating from high school. The results are worse for minorities with only 57 percent of Latino students graduating, the fourth lowest rate in the nation.

Vision and goals
Prosperity 2020 has set three goals to help Utah fulfill its economic potential.

Goal 1 — By 2020, 66 percent of Utah adults need to have a college degree or post-secondary certificate. Currently, 43 percent of Utahns have post-secondary certificates or degrees.

Goal 2 —By 2020, 90 percent of elementary students must be proficient in reading and mathematics. Currently, approximately 75-80 percent of Utah students meet this goal.

Goal 3 — By 2020, the Salt Lake metro area must rank among the STEM Top Ten for technology and business. Utah currently ranks 11th in the nation for technology jobs as a share of total employment, but 36th among states for technology jobs and businesses.

“We don’t do anything in this state that doesn’t touch education,” said Sen. Jerry Stevenson, Republican from Dist. 21. “We need a culture change in this state and I think we’re moving in that direction. Part of that is the business community has come on so well.”

The plan
Business leaders want the Legislature to pass a joint resolution calling for 66 percent of Utah adults to have postsecondary certificates by 2020. The list of legislative priorities also includes $43.6 million in strategic investment in public education including computer adaptive testing, early intervention and programs for children at risk, as well as ACT testing for every high school student, STEM priorities, and integrated arts and academics.

A strategic investment of $20 million for higher education priorities including STEM and health profession investment, increased use of instructional technologies, more online courses and more concurrent enrollment.

The plan also includes $9.75 million for technical education to triple the number of Utahns with postsecondary certificates by the end of the decade.

“We spent three years developing this plan,” said Mark Bouchard, chair of Prosperity 2020 and senior managing partner at CBRE. “It’s well thought out and it will continue to mature and change. It’s very reasonable for us to consider what we’re doing in education today and going forward an investment, because we can measure it and we are investing in something very specific.”

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Chamber issues statement on governor’s budget

Wednesday, December 12th, 2012

Earlier today, Gov. Gary Herbert unveiled his budget proposal for FY2014. As he promised during the campaign, education is the top budget priority with $297.6 million of new money going to public, higher and technical education. But there were other highlights as well, including support for infrastructure investment and small business outreach. The Chamber issued the following statement:

Governor’s budget fiscally sound, future oriented

SALT LAKE CITY- (Dec. 12, 2012) The Salt Lake Chamber congratulates Gov. Gary R. Herbert for proposing a fiscally sound and future oriented budget focused on bolstering the economy and serving critical state needs.

The governor says he makes every public policy decision through the lens of the economy, and this budget shows he is a man of his word. With the nation’s fifth strongest economy, Utah now has the revenue needed to address vital economic needs like maintaining our transportation infrastructure and investing in the state’s goal to ensure 66 percent of Utah’s adult population acquires a post-secondary degree or certification by 2020.

The business community applauds the governor’s commitment to education, infrastructure, a competitive tax environment, fiscal responsibility and other pivotal priorities to the state’s current and long-term economic success. Of particular importance to Utah’s business community are these priorities that the governor supported in his fiscal year 2014 recommendations:

Prosperity 2020/education – The governor delivers big for public, higher and technical education by recommending $297.6 million in new state funds. In doing so, the governor demonstrates by his actions support for the Governor’s Educational Excellence Commission and the desires of Prosperity 2020, the largest business-led movement to support education in state history.

Infrastructure investment – The governor supports Utah’s Unified Transportation Plan 2011-40. This budget reflects the commitment to the state’s stellar transportation system. The business community believes we must continue to stay in front of the growth curve by investing in new facilities and protecting current assets.

Science and technology investment – The governor proposes increased focus on science, technology, engineering and math by funding $39.3 million in public education and applied technology training in these fields. The business community has set a goal for the Salt Lake metro area to be a top ten center for science and technology. Utah must train a tech-savvy workforce to meet this goal. We also support the governor’s call for $8 million to fund the Utah Science Technology and Research Initiative.

New buildings – The governor recommends $52.4 million for new buildings at Utah State, Utah Valley University and Dixie State University. These investments pay dividends by expanding educational opportunities and supporting construction jobs in the economy.

Medical school – The governor supports expanding the University of Utah Medical School by 20 openings. In an effort to forestall a physician shortage and provide opportunities for talented Utahns, the business community not only supports this funding, but also encourages the Legislature to look for additional funding for 20 additional students as new funds become available.

Economic development – The governor continues to support tourism marketing, sporting event promotion, business marketing incentives, small business outreach and the Industrial Assistance Fund. The state has a track record for using these economic development tools wisely and the business community supports this thoughtful economic development.

Fiscal prudence – The governor has not proposed any new tax increases. He has also stayed within the appropriations limitation and kept the state’s budget reserve accounts (rainy day funds) whole. These actions, combined with the governor and Legislature’s work in the last general legislative session to eliminate the structure deficit, continue to position Utah as the gold standard for fiscally responsible budget practices.

Sorenson Arts – The governor proposed $4 million to fund the Beverley Taylor Sorenson Elementary Arts program. The arts play an important role in facilitating learning and we recognize the important interplay of the arts, math, science and technology in the development of new ideas, products and services that improve our economy and advance our life quality.

You can download the entire budget here.

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UESP earns gold rating from Morningstar

Monday, October 22nd, 2012

Have you started saving for your or your child’s education? You may want to consider the top-ranked Utah Educational Savings Plan (UESP)!

UESP recently received a Gold Analyst Rating from Morningstar Inc, a leading provider of independent investment research. This is the highest rating given by Morningstar, and only four 529 plans out of the 64 analyzed achieved this honor.

According to Morningstar’s report, 529 plans receiving a Gold rating incorporate the industry’s best practices and contain investment choices that are highly regarded by Morningstar analysts. “These plans are our highest-conviction recommendations and stand out as best of breed for their ability to help college savers meet their goals,” the report states.

Morningstar analysts evaluated five factors to determine a plan’s rating: strategy and investment process, risk-adjusted performance, investment option manager, stewardship practices of the administration and parent firm, and investment option value proposition compared to its peers. Analysts then assigned forward-looking ratings of Gold, Silver, Bronze, Neutral and Negative to each plan.

“Simplicity, combined with ingenuity, makes the Utah Educational Savings Plan among the best choices for college savers,” says Morningstar analyst David Falkof in his report on UESP. “The Utah plan, to its credit, has been among the leaders at bringing down costs for college savers.” UESP’s groundbreaking customizable age-based and static investment options were also cited by Morningstar as factors in UESP’s Gold rating.

“The accolades from Morningstar reinforce that UESP is an excellent choice for individuals saving for future higher education expenses,” says Lynne Ward, Executive Director of the Utah Educational Savings Plan. “We are committed to being a responsible partner to our account owners and their beneficiaries. We will continue our efforts to provide a Gold-rated 529 plan for college savers.”

This is the seventh year UESP has received top 529 plan honors by Morningstar.

UESP, which manages nearly $5 billion in assets, requires no minimum deposits or balances to open an account, so families can save a little or a lot, according to their own schedules. Earnings on UESP accounts grow tax deferred and are federal and Utah state income tax free when used for qualified higher education expenses such as tuition, fees, certain room and board costs, and required books and supplies. Funds can be used at any eligible educational institution that participates in federal financial aid programs for students, not just at institutions in Utah.

Utah taxpayers can claim a 5 percent annual Utah state income tax credit on contributions to each beneficiary’s account, if the beneficiary is under age 19 when designated on the account. For the 2012 tax year, account owners can claim a Utah state income tax credit for their UESP contributions up to $1,780 per qualified beneficiary if filing singly or $3,560 per qualified beneficiary if married filing jointly. Utah-based corporations that own UESP accounts can benefit from a $1,780 tax deduction per qualified beneficiary.

For more information about the Utah Educational Savings Plan, visit uesp.org.

 

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