By Lane Beattie, President & CEO
Last week the Chamber hosted David Wyss, Standard & Poor’s chief economist, at the Utah Economic Forum. The economy is a hot topic and business leaders, economists, journalists and engaged citizens all took time to listen to one of the world’s most renowned economists.
His message: the recession is over but that doesn’t mean things are back to where they were two years ago.
You may have heard some commentary that while the recession may be over on Wall Street, it surely isn’t over on Main Street. According to Wyss, that’s because the two have different definitions of what “over” means.
Wyss says the recession is over because we’ve hit the bottom. We are turning around and headed in the right direction. This is why Wall Street says the recession is over.
Main Street—meaning businesses of all sizes—disagrees because things aren’t what they were pre-recession. That’s true and may continue to be the case for awhile. Growth will come but, as Wyss puts it, it’s much easier to fall than to climb.
In the past, the Utah Economic Forum attracted some 100 attendees but we had nearly four times that number last week. When talented Utahns take on tough issues, you can bet the outcome will be positive.
I’m confident in the economic future of our state. We have the best managed state in the nation and our governor and State Legislature promote a very business-friendly local economy. Utah still has the nation’s youngest workforce and that has proven very attractive to businesses looking to relocate and/or expand their presence in Utah.
By Mark Bouchard
Senior Managing Director, CB Richard Ellis & Chair, Salt Lake Chamber Education Task Force
Education is the key element to our long-term prosperity. The Salt Lake Chamber has challenged the legislature to hold both public and higher education harmless as it works to balance the FY 2011 state budget. Further cuts will hurt our students now and the larger state economy in both the immediate and long-term.
Recently a group of business leaders had the privilege of hearing from Dr. Pam Perlich, a world renowned researcher with the University of Utah who provided us a view into Utah’s workforce future based on compelling research analyzing our existing demographics.
The implications are far reaching and compelling. The “New Age” workforce will dramatically change the landscape from what the “Current Leadership Generation” is confronted with today. As Dr. Perlich suggested, visit any 3rd grade classes in any part of the state and you’ll have a better understanding of what the workforce will look like within the next two decades. These 3rd grade classes are more diversified and require a re-engineered approach to education. From 2000-2007, the number of minority students enrolled in Utah public schools increased by 65 percent, nearly double the rate of white, non-Hispanic students. For every 100 Latino students enrolled in elementary school, only 4 will earn a bachelor’s degree compared to 26 white, non-Hispanic students. As our population becomes more diverse, we must either work to improve both rates or we will be inadequately prepared for the future economic challenges. This “New Age” workforce requires added attention both in funding and in other resources. We can only depend on the volunteer community for so much and our educators require real world solutions.
Utah’s demographics are changing. We face new challenges and new burdens, on an already taxed education system, both Higher and Public.
There are consequences for being last in the nation in our spending per student, having the lowest paid educators (K-12) in the country, potentially capping enrollment in higher education and eliminating programs and eliminating opportunity for so many. We simply cannot afford to ignore the statistics and research provided us by some of the finest minds in the country.
Experienced business professionals appreciate what increased demand for services coupled with the elimination or reduction of available capital to run a business produces. The result is a reduction in quality and a taxing of your workforce impacting culture and effectiveness.
We should never confuse efficiency with quality. Statistics suggest no one in the country is more efficient than Utah educators at providing quality education. Our test scores, although declining, are still some of the best in the country (we score particularly well on Advanced Placement and SAT). We are efficient; what we risk is quality. Increased demand by way of 12,000 students per year in grades K-12 and 12,500 in higher education, in conjunction with the increase results in a dramatic reduction of our spending in education, creating the perfect storm. The logical result is the erosion of the very foundation of our workforce future.
Over the next few months, through the end of the legislative session, there will be many ideas tossed around as the legislature meets its constitutional obligation of balancing the state budget. As options, plans and variations of plans are debated we emphasize our firm belief that education—both public and higher education—are too critical to the long-term prosperity of our state to face further cuts.
A highly educated workforce is the most critical long-term strategy for a vibrant economy and healthy society. Like other state funded departments, education absorbed cuts last year. These cuts in education coincided with an increase in demand as enrollment increased to the point that many Utahns who wanted to return to school found there was simply no room for them.
Balancing the budget is the immediate concern but the long-term requires an investment in our human capital. A well-trained workforce is the single most important element to maintaining and enhancing Utah’s reputation as a great place to do business. Further reductions in public and higher education put our workforce at risk.
Education funding must be protected as we balance the state budget.
