A New Blueprint for Economic Development
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Transcript of A New Blueprint for Economic Development
A New Blueprint for Economic Development
Strategic Priorities for Job Growth in NCTony Almeida
Senior Advisor to the Governor forJobs & the Economy
9.4% Unemployment Rate
17% Underemployment rate (15% for the U.S.)
Ranked 37th in per capita income
Ranked in the bottom 20 states for personal income growth
The Challenge at Hand
The Challenge at HandReal Per Capita Income Growth by Decade
Strong State Leadership
Governor Pat McCrory Secretary Sharon Decker
12 Transition Advisory Teams◦ 8 Department-level Advisory Teams◦ 4 Issue-based Advisory Teams
Comprised of private sector leaders, community stakeholders, and former legislators
Deliverable: Series of recommendations and priority areas to address on Day 1
Input From Across the State
Tax reform Regulatory reform Strengthen K-16 education Strengthen workforce development Support small business Promote agribusiness and exports Increase access to venture capital Develop a strategic energy policy Grow the military and defense sector Create a comprehensive, state-wide strategic plan
for economic development
Key Priorities Identified
Top priority for the Governor and the General Assembly
Multiple proposals on the table
We need to improve our competitiveness against other states in our region (SC, VA, TN, GA, TX) while also improving the business climate for our existing industries and our citizens
Tax Reform
Tax Reform
NC SC GA VA TX
Sales tax 4.75% 6.0% 4.0% 4.0% 6.25%
Personal Income tax
6%, 7%, 7.5% 3.0%-7.0%
1-6%(6
brackets)
2-5.7%(3
brackets)None
Corporate Income Tax 6.9% 5.0% 6.0% 6.0%
0.5-1% Gross
Receipts Tax
A Comparison of Taxes Among our Top Competitor States
Source: NC Department of Commerce
Another top priority for the Governor and the General Assembly
NC tied for 12th worst regulatory burden on small business
We need to ensure that current and new regulations do not stifle growth of our small businesses
Regulatory Reform
Continuous message on the campaign trail: “We can’t find qualified workers to fill the positions we need to fill.”
We must ensure our high school, community college and university graduates are equipped with the training and skills they need to secure employment.
We must provide multiple pathways to high school graduation, including career technical education and training.
Strengthen K-16 Education
NC was a pioneer in workforce development
Our community college system is one of our greatest assets
Job-skills gap remains
We need to better align our workforce development resources
Strengthen Workforce Development
65-70% of job creation in the state comes from small businesses
The process for starting and growing a small business in the state is too complex
We need a one-stop web portal to serve as a central access point for all forms, permits, licenses, and other interactions with state agencies
Support Small Business
NC agriculture industry contributes almost $75 billion to the state’s economy
NC is 16th in the U.S. in terms of exports; our agricultural exports exceeded $3.7 billion last year
Our ports play a key role in supporting agribusiness and exports
We recognize the need to upgrade some of our ports’ infrastructure
Promote Agribusiness & Exports
NC has the potential to become the “Silicon Valley of the East”◦ How do we attract more venture capital dollars to the
state?◦ How do we best leverage the strong, existing venture
capital community?
We need to improve access to capital for early-stage companies
We need to promote more collaboration and commercialization across our research universities
Increase Access to Venture Capital
NC has immense and diverse energy resources
Energy programs are currently spread across multiple agencies
Primary energy focus at the state level has been on weatherization and energy efficiency of state buildings
We need a comprehensive, strategic plan for energy resources in NC
Develop a Strategic Energy Policy
Concentration of military forces in NC affords the state significant opportunities to attract defense-related firms
Significant research, strategic planning, and initiatives have already been undertaken by various groups across the state
We need to align the current initiatives, ramp up recruitment, and provide leadership at the state level to support the good work already underway
Grow Military & Defense Sector
NC is rich with economic development resources, including our local and regional organizations
The Economic Development Board is required to develop or update a multi-year strategic plan for economic development each year
We need a more comprehensive, state-wide economic development strategic plan to align resources and integrate strategic priorities across state agencies and institutions
Create a State-wide Strategic Plan
Workforce development consultant Venture capital working group Manufacturing working group One-stop business web portal working group Energy strategy working group Military/Defense industry growth working
group State-wide strategic planning group
Our Scope of Work
Questions?