Strategic Economic Development Plan

Racine County Economic Development Corporation Economic Development Plan 5.0Challenge: Sample Model: Big Picture Schools • Racine County schools need to (1) raise standards for graduation and (2) ensure that Big Picture’s mission is to catalyze vital changes in students graduate with a diploma that American education by generating and sustaining represents readiness for both post- innovative, personalized schools that work in tandem with secondary education and career options. the real world of their greater community. Big Picture’s This will prepare young adults, expected to philosophy is grounded in educating \"one student at a either remain in or return to Racine, to use time\" and the belief that true learning takes place when their skills and talents in the county’s each student is an active participant in his or her current and new industries. education, when his or her course of study is personalized by teachers, parents and mentors who know him or herGoal: well, and when school-based learning is blended with outside experiences that heighten the student’s interest. • All Students with diplomas from county schools will be prepared for optimal success Big Picture has identified a number of indicators of rigorous in both post-secondary education and the student learning, including: workforce. • Working in authentic contexts and settingsStrategies: • Addressing problems that are messy and complex • Ensure that the educational content provided • Undertaking projects that go deep as well as broad • Addressing multiple disciplines and investigating their connections to the core topic or problem • Working with mentors and other “experts” who are doing similar work to their own • Selecting and using a range of tools, materials, and artifacts • Examining and challenging their and others’ beliefs and assumptions • Discovering new questions and challenges that lead to new problems and projects.in the county’s Pre/K-12 systems arepersonalized, allowing for rigorous learning by students and engagement based onpossible career aspirations. Students will use multiple processes and technologies toachieve their academic goals.• The Workforce Development Board (WDB) will, on a continuous basis, collect, update and disseminate information about existing and emerging employer-required knowledge, skills and abilities (KSAs) for key occupations and related entry-level positions and• The County’s school districts will integrate this employer-required KSA information into Pre- K-12 education curriculum, and provide professional, industry-based learning for educators.48 Economic Development Plan 5.0 5

Racine County Economic Development Corporation Economic Development Plan 5.0Preliminary Tactics:1. The Workforce Development Board (WDB) Sample Model: will create a set of Racine County’s Career Academies minimum Employment Qualifications by working with both companies representing Career academies are small learning communities that draw on career themes to bring real-world relevance to academic instruction, and are one of our country’s most successful high school redesign strategies. existing industries that still maintain a • Philadelphia’s 34 career academies enroll substantial hiring and employment approximately 10% (7,000) of Philadelphia’s high presence as well as with the emerging school students. Philadelphia’s academy students industries (next generation manufacturing regularly achieve a 90% graduation rate, with 60% and professional services) that are going on to college. targeted as medium-term drivers of employment. These qualifications will be • A study of Bay Area, California, career academies reviewed with a large sample of employers found that students enrolled in academies, across the county. compared with non-academy students in the same schools, had the following successes: Average2. The WDB will collect and widely distribute GPAs were nearly .5 higher; Test scores were 30- employer-determined skills that represent: 40% higher; Drop-out rates were 50% lower, and a. A core set of “soft skills” most 8.2% more academy students continued to two- and commonly required by employers in four-year colleges, and 15.9% more went on to Racine County. attend four-year colleges. b. Minimum requirements to get a job • MDRC, a non-profit research organization with headquarters in New York and California determined that, among other improvements, career academies substantially improve the labor market prospects of young men. Through a combination of increased wages, hours worked, and employment stability, the young men in the academy group (1,400 students, 85% of whom are black or Hispanic) earned $10,000 (18%) more than those in the non-academy control group over the four-year follow-up period.out of high school. c. Minimum qualifications workers need in order to get a job that pays family-sustaining wages.3. The WDB will work with educators to facilitate the translation of business requirements intocurriculum content.4. School Districts will raise standards for obtaining a high school diploma to incorporate and meet the KSAs identified as the minimum employment qualifications required for Racine County Employers.5. Restructure the existing Pre-K-20 (Advisory) Councils to monitor the performance of all secondary education programs and provide infrastructure support and assistance to: (1) create standards and indicators of success, (2) identify strategic partners, (3) align curriculum with career expectations, (4) develop programs that include one-on-one support (i.e. mentoring from business and community members), and (5) professional learning for educators.49 Economic Development Plan 5.0

Racine County Economic Development Corporation Economic Development Plan 5.06) Ensure that the necessary support systems-both within the school system and within the community at-large--are available to help all students earn a high school diploma under a new set of higher standards.7) Complete implementation planning for the Racine Unified School District for secondary transformation with sponsored career academies that will provide students with personalized learning by providing specialized opportunities in exploring careers related to the needs of Racine County’s existing and emerging industries (i.e. medicine, biotech, “green” business, advanced manufacturing, engineering, natural resources and education).8) Investigate incentive models and community-wide best practices to enhance student success and motivation in valuing education success (i.e. career academies, college guarantees, Jobs for Wisconsin Graduates, etc.).9) By the end of 2008, the convening leader and its partners will have developed a set of quantifiable metrics, detailed tactics, partner roles and responsibilities, and timelines.Convening Leader:Racine County Workforce Development BoardOutcome MetricsOutcome metrics will be tracked to determine the success of these strategies, while a range of other shortand medium term indicators will be used to track progress along the way. The outcome metrics are: Metric: Rationale:Improved educational attainment rates in Racine County as Racine County’s schools should provide nationally and evenmeasured by nationally normalized tests globally competitive job or post-secondary student candidates. To do so will require examining how well the school districtsIncreased number of graduates and improved graduation rates prepares students based on the results of tests that compareacross all County high schools schools nationally and internationally. Examples of such testsImproved achievement on key standardized tests. include the Northwest Education Association Measures of Academic Progress (NWEA-MAP), Dynamic Indicators ofImproved post-secondary job placement success rates Basic Early Literacy Skills (DIBELS), Advanced Placement (AP), Preliminary Scholastic Assessment Test (PSAT), the Scholastic Assessment Test (SAT), International Baccalaureate (IB). High school graduation is a necessary first step on the path to self-sufficiency and success. Standardized tests provide a way to benchmark performance to other school systems. Using multiple test results allows an opportunity to compare trends across different indicators and reduces the likelihood of “teaching to” a single test. Examples of tests that might be included are Wisconsin Knowledge Concepts Examination (WKCE) WKCE & NWEA-MAP Job placement in the community suggests that post- secondary students are finding career opportunities that are relevant to their course of study.50 Economic Development Plan 5.0 5

Racine County Economic Development Corporation Economic Development Plan 5.0Increased number of county high school students earning college Shortening the time to acquire post-secondary credentials orcredit while in high school degrees speed access to good jobs and careers.Increased number of county high school graduates enrolled at Post-secondary education is becoming a minimal requirementGateway Technical College, UW-Parkside, and Carthage College for many jobs offering family-sustaining wages. Even career- track students will often need technical and academic skillsReduced remedial requirements for students entering post- beyond the high school level.secondary institutions. Remediation in post-secondary education may suggestReduced achievement gap across key demographics weaknesses in student preparation in the secondary school system.Improved results on surveys of employers regarding hiring andemployee skills (e.g. RCEDC’s business surveys). All students, regardless of their demographic characteristics, should achieve and meet high standards.Decreased delinquency and truancy rates. Ultimately, employers will hire and retain those individuals who possess the required knowledge, skills and abilities for success on the job. Behavioral issues suggest that students are not fully engaged in their education.2. Supporting stronger, more financially stable familiesRationale:Areas within the county suffer from chronic, extremely high Sample Model:and unacceptable rates of unemployment while many area The Center for Urban Familiesemployers cannot find adequately trained, reliable and The Center for Urban Families (CFUF), a Baltimore-productive workers. The people of Racine County must based group, was formerly known as the Center fortake broad and effective action to confront the root causes Fathers, Families and Workforce Development until itof this persistent condition and narrow the gap between changed its name in 2007 to reflect an integratedavailable jobs and potential workers. Knowing that there approach to connecting men and women to careeris no “one-size-fits-all” solution to the challenges of paths and strong family models. In the late 1990s,unemployment, poverty, and family and neighborhood the group began the Men’s Services Responsibleinstability, responses will be highly customized to address Fatherhood program (now the Baltimore Responsiblethe specific needs and conditions in targeted areas. Fatherhood Project) and the STRIVE Baltimore Employment Training program offer some lessons forChallenge working with low-income men to take a more proactive role in their families. More recently, CFUF created the Baltimore Building Strong Families program to help couples with infant children to develop the communication, conflict resolution, parenting, and life management skills necessary to develop and maintain healthy relationships.• Many Racine County residents, primarily concentrated During the past two years, CFUF has been providingin the central areas of the City of Racine, need to access training and technical assistance to other communityand embrace additional education, skill-building, and family and faith-based organizations across the nation onsupport opportunities so that they are successful in taking how to best implement healthy relationships andresponsibility for strengthening their families and increasing marriage programs using CFUF’s Exploring Relationships and Marriage with Fragile Families (ERM) curriculum.their financial stability. This will enable these residents tobecome and remain reliable and productive workers for Racine County employers.51 Economic Development Plan 5.0

Racine County Economic Development Corporation Economic Development Plan 5.0Goal:• A broad and powerful coalition will be created to ensure more truly job-ready workers, dramaticallyreducing the number of individuals and families trapped in the cycle of poverty.Strategy:• As a foundation for ensuring more reliable, productive employees and with a focus on geographic pockets ofconcentrated poverty, assist and empower low-income residents to function well in their day-to-day lives andto take responsibility for themselves and their families.Preliminary Tactics:1) Convene leaders (from the private, public and non-profit sectors, and the faith-based community) within targeted areas (such as blocks, neighborhoods, or census tracts) throughout the county to identify: a) Key issues/barriers keeping local residents from living positive and productive lives; and, b) The most effective local, state and national initiatives that have demonstrated quantifiable results in fostering more stable, functioning families and building individuals’ employability skills so that members of these families can become reliable, productive employees.2) Create and implement a plan of action, supported by this powerful coalition of partners, which expands, enhances and/or implements programs and services with measurable outcomes related to employability, employment and family stability. The plan of action will be disciplined, adequately funded/fundable and scalable to have a bold impact. While new sources of funding will be sought, it is anticipated that significant funding for these initiatives will be found by reallocating current resources.3) Classify, quantify, and measure the progress of people and their families, and of identified areas (such as blocks, neighborhoods, or census tracts), as we work together to address the challenge and achieve the goal.4) Implement the first of multiple 2-year planning and implementation cycles (through 2020) designed to gradually build capacity and measure progress toward helping a targeted group of families break the cycle of poverty and attendant unemployment.5) By the end of 2008, the convening leader and its partners will have developed a set of quantifiable metrics, detailed tactics, partner roles and responsibilities, and timelines.Convening Leader:United Way of Racine County (Working with key community / faith-based / neighborhood organizations) 52 Economic Development Plan 5.0 5

Racine County Economic Development Corporation Economic Development Plan 5.0 Metric: Rationale:Reduced number of teen parents; reduced teen pregnancy rate Stable families typically start with parents who have completed high school (or have achieved an even higherReduced number of children in foster care education level). These parents are much better prepared to support their children.Reduced number of households in poverty (especially reducing Children in foster care, by definition, are in homethe number of female-headed households in poverty) environments that could change at any time. Often their biological families are either not available or capable of providing the stability and security that young people need to succeed emotionally and academically. Improving the economic conditions of female-headed households, in particular, is important because these households are the most likely to be in poverty.Help 100 families increase their financial and family stability Expanding the capacity of area institutions will involve effortsthrough employment and wrap-around support by 2010 to impact families at the neighborhood or block level.Increased number of people employed to ultimately achieve the More working County residents, as a relative share of the totalobjective of full employment (i.e., 96 percent of those workforce, is a more considered approach to assessing fullseeking work are successful in finding work) in every census tract employment than using the unemployment rate as a measure ofin the county success since unemployment is greatly influenced by economic conditions outside local control.Increased number of stable, two-parent families in identifiedareas (such as blocks, neighborhoods, census tracts, etc.) Stable, two-parent families are statistically the least likely households to be in poverty.3. Creating jobs in communities with concentrations of unemployedworkersRationale:There is a lack of infrastructure to support aggressive business development activities in areas of highunemployment. In the future, companies can be expected to locate and/or expand in these areas in order totake advantage of the available labor. Racine County Economic Development Corporation (RCEDC)currently has a targeted business development initiative (DRIVE!) that can be adapted to help address thischallenge.Challenge• Racine County must attract new companies and help existing companies expand and grow in communities with the greatest number of unemployed persons.Goal:• Between 2009 and 2014, Racine County companies will create an average of 200 new jobs annually in 53 Economic Development Plan 5.0

Racine County Economic Development Corporation Economic Development Plan 5.0 areas of high unemployment through business attraction and existing business growth programs.Strategy:• Provide the infrastructure for new and expanding businesses in areas of high unemployment and identify appropriate business development targets with the potential to locate in and/or expand in these areas.Preliminary Tactics:1) Local governments should acquire and redevelop vacant and underutilized manufacturing and warehouse facilities in areas of high unemployment that could be utilized for professional service and retail businesses (e.g. professional services, health care and call centers, light manufacturing) in partnership with private developers. A companion analysis should be conducted to identify appropriate light manufacturing, service and retail industries that could be located at these sites. This tactic should include the adoption of a Racine County policy with regard to tax delinquent properties.2) Communities with a high percentage of unemployed persons should explore the creation of new business parks and sites, as well as the initiation and/or expansion of brownfield redevelopment programs that can accommodate new and expanding manufacturing and warehouse distribution companies.3) Expand current, and create new, business development incentive programs that enhance the attractiveness of areas in close proximity to areas of high unemployment as business locations. These incentives should include, at a minimum, aggressive pricing of available land, low-interest loan funds that are unique to brownfield properties, and tax credit programs.4) Examine the capital gaps facing businesses in these communities. Agencies, such as Wisconsin Women’s Business Initiative, Community Economic Development Corporation and the UW-Parkside Small Business Development Center, should assess the market potential for a new micro-lending program (targeted to areas of high unemployment) designed to encourage entrepreneurial activity in targeted communities with high unemployment.5) Expand business ties between the county’s minority companies and both businesses and governments in Racine by: a) Enhancing existing [or creating] local public sector contracting programs designed to ensure that more bid opportunities are available to capable minority-owned companies. b) Develop improved information [including networking events] related to private contracting and sub-contracting opportunities for minority-owned firms.6) Develop a regional Advanced Manufacturing Center (under the leadership of Gateway Technical College and its partners) to provide technical assistance concerning state-of-the-art manufacturing as well as offer full-service incubator space for start-up manufacturers.7) Ensure a comprehensive system of entrepreneurial services for both value-added and neighborhood businesses. 54 Economic Development Plan 5.0 5

Racine County Economic Development Corporation Economic Development Plan 5.08) By the end of 2008, the convening leader and its partners will have developed a set of quantifiable metrics, detailed tactics, partner roles and responsibilities, and timelines.Convening Leader:Racine County Economic Development CorporationOutcomes and Metrics: Metric: Rationale:200 new jobs created annually during the next 5 years. More new jobs and new businesses will increase the number of opportunities for workers.4. Enhancing workforce transportation alternativesRationale: Sample Model: Workforce Transportation andRacine’s public transportation system is somewhatlimited in its scope and capacity. Consequently, many Referral Centeremployers express concerns that their workers whodo not drive or own private vehicles are left without The Workforce Transportation & Referral Centerviable alternative transportation options. (WTRC) at Sojourner-Douglass College, in Baltimore, Maryland, is a transportationChallenge: brokerage designed to improve mobility for the Baltimore Metropolitan Region's workforce. TheReliable and flexible transportation options must be WTRC meets transportation requirements thatavailable to effectively link workers in Racine County can not be met by fixed-route transit services. Itwith existing jobs. coordinates reliable and affordable transportation for everyone (job seekers, job developers,Goal: staffing agencies, employers, and the general public).• By 2014, transportation systems will adapt to meet the changing demands of work and personal The WTRC serves low-income people with jobs responsibilities. throughout the Baltimore region, and particularly those with jobs that are underserved by existingStrategy: public transportation. The goal is to provide best- cost transportation services for unemployed and• Provide alternative transportation options that more underemployed workers. It operates its own vans clearly link underutilized workers in the community and also purchases transportation services in the with employment and educational opportunities region. The WTRC also serves as an incubator within Racine County and between Racine County for small transportation firms by providing entrepreneurial, managerial and administrative training and support. It is federally funded but incorporates numerous partners including: • Sojourner-Douglass College • Baltimore City Department of Social Services • Baltimore County Department of Social Services • Housing Authority of Baltimore City • Mass Transit Administration (MD)55 Economic Development Plan 5.0

Racine County Economic Development Corporation Economic Development Plan 5.0 and other counties in the region.Preliminary Tactics:1) Engage the Southeastern Wisconsin Regional Planning Commission to conduct an in-depth evaluation of: a) The operations of the City of Racine Belle Urban System, an identification of unmet transit travel needs, and recommendation for transit service and capital improvements for the system. b) Identify and evaluate all other existing public and specialized transit services in Racine County, identify potential unmet transit travel needs within Racine County and between Racine County, and other counties,c) Recommend possible new transit services to be provided within Racine County, and between Racine County and other counties. The plan will include strategies to coordinate all public transit services provided in Racine County.2) Create a Racine County Transit Study Advisory Committee to provide policy guidance to the staff conducting the study, particularly in identifying unmet needs, evaluating transit system alternatives, and selecting a recommended plan.3) Define transit service objectives and standards for public transportation in western Racine County. Each objective would have an accompanying set of standards, or measurements, which would assist in identifying unmet needs, proposing and designing transit service alternatives, and determining to what extent existing and proposed transit services meet the transit service objectives.4) Collect and analyze the following data: population, employment, urban development and land use, travel habits and patterns, characteristics of public and private transportation services, performance evaluation of existing transit services, and identified unmet needs.5) Identify a range of potential transit service configurations to address the identified unmet transit service needs.6) Estimate operating and capital costs as well as potential ridership for each alternative.7) Evaluate transit system alternatives (including county and city buses, commuter rail, etc.)8) Select and implement a recommended plan.9) Examine issues related to the issuance of driver licenses in the County.10) By the end of 2008, the convening leader and its partners will have developed a set of quantifiable metrics, detailed tactics, partner roles and responsibilities, and timelines.Convening Leader:Racine County Executive 56 Economic Development Plan 5.0 5

Racine County Economic Development Corporation Economic Development Plan 5.0Outcomes and Metrics Metric: Rationale:Increase usage of existing public transportation methods. The more people using public transportation is an indication of its viability for workforce transportation.Monitor utilization of selected new options designed to link jobseekers with regional employment opportunities Once alternative transportation options are provided, it is vital to continuously assess the relative costs and benefits of providing these services.5. Improving jobseeker information about opportunities innew and expanding companiesRationale:Even though unemployment rates are high in the City of Sample Model:Racine, some employers are experiencing difficulty in Washington Community Jobs Initiativefilling their employment vacancies within the county. Washington State’s Community Jobs program hasThis can be attributed in part to jobseekers being assisted parents who have multiple barriers tounfamiliar with available opportunities. It can also be employment (e.g. lack of experience orattributed to jobseekers being unprepared to meet the education, mental health issues, alcohol or drug use,higher expectations of area companies from their current limited English, etc.).and potential labor force. In addition, meeting theneeds of current and future employers will require the • 16 community-based organizations administer contractsintentional and systematic attraction, recruitment and throughout the state.retention of new talent from across the region andcountry. • Contractors develop job opportunities and employ participants for 20 hours per week in non-profitChallenge: or public agencies, with the ultimate goal of moving participants to unsubsidized employment.Racine County’s economic transformation must link • The program serves roughly 2,500 parents each year, and 60 percent of participants successfully obtain unsubsidized employment. The Career Jump program is an expansion of the Community Jobs program and includes the private sector placement of parents in the program. It involves more skill development and opportunities for career growth in a work environment.available workers with employment opportunities atcompanies in existing and emerging economic sectors as well as systematically attracting new talent to thecounty for those same companies.Goal:Existing and emerging companies’ needs will be met, and the number of unemployed will decline by an 57 Economic Development Plan 5.0

Racine County Economic Development Corporation Economic Development Plan 5.0average of 100 workers annually between 2009 and 2014.Strategy:Develop diversified approaches to meet the workforce needs of employers within Racine County.Preliminary Tactics:1) Develop the knowledge, skills and abilities of Racine County residents to meet employment demand.a) Develop and/or support programs that provide both academic remediation and skill development forunemployed and underemployed residents.b) Target Gateway Technical College and Workforce Development retraining resources to occupationsprojected to be most in demand in the County.c) In partnership with local secondary and post secondary educational institutions develop educationaltraining programs that prepare individuals with the specific skills required for current and future work available at local employers. Sample Model:2) Attract/recruit individuals with the necessary Jobs for Life knowledge and skills to meet employment demands from outside the community. “Jobs for Life” headquartered in Raleigh, NC is a) Coordinate and, if necessary, support financially, rooted in the guiding principle that to lift people out of joblessness, hopelessness, despair, and poverty, the creation of internships for post-secondary they need far more than just a job. They need to students with local employers. Assist in filling those have a life filled with understanding, confidence, internships from regional “and beyond” higher self-control, coaching, learning, guidance, and faith. education institutions. Jobs for Life (JfL) believes people in poverty must b) Develop expertise and provide resources within first be willing to build a life around and within the Workforce Development Center to themselves. JfL mobilizes community and faith- identify potential talent from around the country and based organizations, churches, business leaders, implement an attraction strategy. local government, and individuals who choose to c) Develop marketing materials aimed at specific engage in this work through their resources, their job occupations and generations to incorporate opportunities, their time, their counsel, and by into the talent attraction efforts (in conjunction with serving as mentors to those who are building new tactics to meet Challenge 6). lives. Studies show that Jobs for Life graduates d) Work with local employers and supporting keep and grow in their jobs with a higher rate of job organizations that have existing attraction efforts to retention than those of virtually every other jobs program. JfL has developed a highly successful training course consisting of 16 2-hour sessions, covering topics such as: • Understanding my life journey • Overcoming roadblocks to success • Taking responsibility for my actions • Succeeding through adversity • Conflict resolution • Effective communication skillsdevelop a regional strategy.e) Implement a calendar of national college recruitments to find talent on behalf of and as a service to58 Economic Development Plan 5.0 5

Racine County Economic Development Corporation Economic Development Plan 5.0 local employers. Specific colleges will be selected based upon the skill demands of local employers.3) By the end of 2008, the convening leader and its partners will have developed a set of quantifiable metrics, detailed tactics, partner roles and responsibilities, and timelines.Convening Leader:Racine County Workforce Development Center Metric: Rationale:5% increase or 50 employers participating in county wide More new jobs and new businesses will increase the number ofattraction activities opportunities for workers5% of employers or 15 employers hiring from recruitmentactivities Greater placement reflects the number of workers taking50 employers create internships advantage of the opportunities available to them.2% increase in County employment rate Internships provide an invaluable linkage between academic and work experience. Furthermore, if they have a good experience, employers are likely to hire interns, creating a critical link between area employers and area colleges in support of potential future job placements. More working County residents as a relative share of the total workforce means that more opportunities are available. As the number of jobs increases, discouraged workers will enter the workforce so sustaining the employment rate as the economy grows will reflect a viable and informative approach to assessing full employment.59 Economic Development Plan 5.0

Racine County Economic Development Corporation Economic Development Plan 5.06. Communicating a more positive community imageRationale:Attitudes about Racine County influence the willingness of the best and brightest talent to consider this areawhen employment opportunities arise. A significant number of existing residents have negative attitudestoward the area while many potential residents may not have strong pre-formed ideas about what the areahas to offer. Racine County’s existing residents appear Sample Model: Cleveland+to be negatively impacting the attitudes of manypotential new residents before they make the choice to Cleveland+” is a brand identity created based on two keymove to the County. elements - geographic collaboration and a change in attitude. The leaders of Cleveland, collaborating withChallenge: Akron, Canton, Youngstown and 16 counties in the region, decided that they needed to take a more proactive role in• Racine County needs to communicate a positive influencing what current residents and future visitors think of community image in order to attract and retain a the area. The effort focuses on tapping a wide array of skilled talent base. assets to help change the attitudes in the region.Goal: From 2006 - early 2007, the Cleveland Plus Marketing Alliance has worked with hundreds of volunteers around the• Between 2009 and 2014, residents with a positive region to develop Northeast Ohio’s first-ever regional brand. community image of Racine County will increase 3 Participants served on one of four advisory committees: percent. • Council of Regional Marketers - More than 120Strategy: individuals with marketing responsibilities for Northeast Ohio-based organizations and institutions (arts, culture,Develop a program that transforms the perceptions about sports, business, civic, foundations, etc.);Racine County among certain key “persuadable”populations. • Media Relations Advisory Committee - Guides the national media relations program;Preliminary Tactics: • In-Region Advisory Committee - Helped to plan the in-1) Develop and deploy a simple, measurable and region communications and marketing programs; • Young Professional Advisory Committee - Provides input on the development of messaging and creative (ads, brochures, direct mail pieces, etc.) to assure it resonates with this important audience. In addition, Cleveland Plus enjoyed the support of a group called the Executive Marketing Forum. This group, which is made up of the top marketing professionals from many of the area’s largest corporations and institutions, served as the marketing best practice sounding board for the past year.focused Year 1 plan that is based on the most important targets and most relevant messages for RacineCounty (e.g. community building events, Spirit of Racine, First Fridays, etc.)a) Hire a public relations professional to identify key target audiences and relevant messages to beincluded in an integrated public relations plan reaching current Racine County residents. Targetaudiences can be chosen due to either high potential for improving outlook or key influencers of thebroader community.b) Complete an analysis of previous efforts to improve Racine County’s image. This analysis shouldidentify components of past plans that have effectively influenced key audiences. Use the analysis to60 Economic Development Plan 5.0 5

Racine County Economic Development Corporation Economic Development Plan 5.0 help structure a communication plan. c) Collect and prioritize the positive attributes of Racine County and the City of Racine on which to structure a communication plan. d) Identify and align key media partners required for successful roll-out of the plan (including web-based media, print media throughout the region from Northern Illinois to Madison, public television, and radio) and create capabilities, working with media partners to communicate positive news stories affecting Racine County and providing perspectives on other news events.2) By the end of 2008, the convening leader and its partners will have developed a set of quantifiable metrics, detailed tactics, partner roles and responsibilities, and timelines.Convening Leader:Racine County Executive Metric: Rationale:3% increase in positive attitudes about Racine - as Through survey tools, the impressions of targeted populations (youngmeasured by the community and business survey professionals, families, students, etc.) will show the effectiveness of the(especially among the targeted groups.). marketing campaign as well as identify potential areas of difficulty in the future. Of particular concern are the perceptions among area students3% Racine County population growth rate. about opportunities in the County on an annual basis.1/3 of the population increase will come from netmigration. The County’s capacity to attract and retain people will be reflected in its population growth rate. In-migrants are a critical source of new employees, especially for knowledge-intensive occupations.61 Economic Development Plan 5.0

Racine County Economic Development Corporation Economic Development Plan 5.0Appendix 1: Racine’s Workforce in Context Like many places throughout the country, Racine County and its communities are undergoingmajor economic transformation. Technological change and global forces are shifting available jobsfrom manufacturing to services. Economic wealth is increasingly being generated through moreknowledge-intensive activities, requiring greater creativity and innovation from our workforce. Thistransformation is also changing the way we work and what our companies require. At the same time, demographic shifts are occurring in our workforce. Racine County is growing,but the City of Racine continues to lose population. Many of our most experienced workers are (orwill soon be) retiring while our new-to-career population does not appear to be fully prepared for theworkplace they will be entering. Furthermore, a shift in the ethnic mix of our population means thatthe workforce will have increasingly diverse perspectives to offer, but this shift may also require oureducation and training systems to adapt in response. Racine is well positioned in the Chicago-Milwaukee corridor to take advantage of anticipatedgrowth. However, that growth will likely present a new mix of emerging companies when comparedwith our existing employment base. Currently, Racine County continues to be dominated by itsmanufacturing economy - which still represents 20 percent of employment and 40 percent of oureconomic output (twice the national average). Those companies retain their overall economic valueto the county because they create wealth and add to the local tax base. These very same companiesare also finding it challenging to find workers who will come to work on time, can pass employmentpre-screenings, are able to solve problems independently, adapt to rapid changes in customerdemand, and respond to the constant change that characterizes the current workplace.Emerging new companies coming to Racine County are likely to offer professional services,manufacture more high-value and customized products using state-of-the-art technologies, representhigh-value start-ups, and have global linkages. This new generation of companies will have verydifferent demands for a more highly skilled and technically proficient workforce. That labor force willdemand more from its community, in terms of public services and quality of life amenities, since thosetalented workers can often choose to live anywhere they wish. Racine County has a well-known andarticulated challenge in the under-attainment of a significant proportion of its population. Too many ofRacine’s residents neither complete high school nor obtain a post-secondary career and technicaleducation. Too many workers are underemployed or unemployed. Too many remain trapped in acycle of poverty and are not being optimally utilized in the county’s workplace. Not enough workersare prepared to fill the technical and professional jobs that existing employers—includingmanufacturing firms—have to offer. Not enough attention is being focused on ensuring that emerging 62 Economic Development Plan 5.0 5

Racine County Economic Development Corporation Economic Development Plan 5.0new companies will have the workforce they need. In the following section, the current workforce context is described in much greater detail.These paragraphs provide critical facts and interpretations about the County’s current and futureeconomy and the labor market opportunities available for jobseekers. These data represent importantinfluencers in creating the workforce development strategies and tactics that will address the keychallenges to Racine County’s future economic prosperity. 63 Economic Development Plan 5.0

Racine County Economic Development Corporation Economic Development Plan 5.0Racine County Population Growth Patterns Like many other Midwestern places, Racine County overall is growing at a relatively modestpace in terms of both its people and economy. The county's population increased nearly 7,200between 2000 and 2006 (see Figure 1), added to a base of approximately 189,000. Thisrepresents a 3 percent increase over that time, growth that is less than half the US rate and muchslower than the rest of Wisconsin. During that time period, the city lost 2,182 residents while the restof the County added 9,362. Population growth results directly from natural population increase (resulting from births minusdeaths) combined with net in-migration. For many growing areas, in-migration tends to be a majorcontributor of population growth. This is illustrated by examining 2005-06 data when Racine Countyexperienced an increase of only 877 net new residents. Figure 2 illustrates that the County had a net loss of 510 out-migrants in 2005-06. These out-migrants tended to relocate to retirement destinations in the South and West (where nearly 1,500Racine County residents moved in 2006). Further, out-migrating residents tended to be wealthierthan their average replacement in-migrants. According to the IRS, out-migrants reported an annualincome of $53,510, more than 20 percent higher than the average income reported by in-migrants($44,372). 64 Economic Development Plan 5.0 5

Racine County Economic Development Corporation Economic Development Plan 5.0 The county has successfully attracted new residents from neighboring jurisdictions. In 2006alone, the county gained a net of nearly 1,500 more in-migrating residents from Milwaukee andKenosha counties. 1 Figure 3 illustrates the source and destination of migrating countyresidents moving within the region.1 These data, from the US Internal Revenue Service, identify the county where someone filed their tax returnsone year, and then where they filed their returns the next. These data provided information on number offilers, number of exemptions (dependents), and the gross annual income reported. 65 Economic Development Plan 5.0

Racine County Economic Development Corporation Economic Development Plan 5.0 However, inter-county and inter-regional migration does not explain all of the key population trendsaffecting the county. Another very important consideration for the County is that its population growthpatterns differ markedly between the City of Racine and the rest of the county. The pattern of the Cityof Racine’s population declines and the rapid growth in the rest of the County is a trend that begansome years ago and is expected to continue into the future. Outside the City of Racine, the Countyactually added people at a faster rate than the rest of Wisconsin or the U.S. as a whole (see Figure 4).This trend is expected to continue into the future as Racine County attracts new residents from othercommunities seeking more affordable housing, lower taxes as well as quality schools for their growingfamilies. There are several reasons why skilled talent might choose to locate in Racine. In several keyareas, the County compare well with other regions in positioning itself to attract people concerned aboutthe relative cost of living. For instance, housing is relatively affordable; average housing prices tend tobe slightly lower (about 1 to 4 percent) and less expensive than some suburban Milwaukee and northernChicago suburbs. 66 Economic Development Plan 5.0 5

Racine County Economic Development Corporation Economic Development Plan 5.0 At the same time, housing has held its relative value in the County by increasing at a rate similar to other areas. Figure 5 shows that Racine County housing values increased about 90 percent between 1990 and 2007. Between 2002 and 2006, prices increased more than 40 percent. In 2007, unlike other Wisconsin metro areas, process dropped slightly county-wide. For many, the City of Racine impacts the County’s image as a safe place to live and raise a family.The City, in particular, has a long-standing poor reputation among some who express concerns about safetyand security. While crime rates county-wide are relatively low, rates are higher in the City of Racine.However, as indicated in Figure 6, these crime rates are still lower than Milwaukee and are relativelycomparable to other large urban areas. Like personal safety and security in RacineCounty, the schools in the eastern part of thecounty do not have as strong a reputation as thosein the west. While Racine Unified School Districtdoes not compare favorably with the schools inmany other urban areas, the county’s suburbanpublic schools (even within Racine Unified) havebuilt a strong reputation and can compete withmost any in the state. Certainly, this difference inthe perceived quality of public schools helps to explain partially why population growth is occurring morerapidly in the western part of the county. 67 Economic Development Plan 5.0

Racine County Economic Development Corporation Economic Development Plan 5.0 Another area in whichRacine County comparesfavorably is in its tax burden.According to data from theWisconsin Taxpayers Alliance,Racine County has the eighthlowest per capita property taxlevy of the state’s 72 counties.At $254.24 per capita in 2007-08, (See Figure 7) it is 4percent below MilwaukeeCounty, well below the stateaverage, and 23 percent belowKenosha County. Population growth is aninstrumental foundation for attracting talent to Racine County. Arelatively low cost of living, improving crime rate, quality schools, and low tax burden are among the keycharacteristics of Racine County designed to attract and retain top talent. 68 Economic Development Plan 5.0 5

Racine County Economic Development Corporation Economic Development Plan 5.0Racine County’s Workforce Composition While Racine County’s population rose modestly during the past several years, it has addedjobs at an even slower rate. According to the Wisconsin Department of Workforce Development, thecounty lost nearly 4,300 jobs between 1999 and 2003. Between 2003 and 2006, it gained about 840 ofthose jobs back. To place this trend in a larger context, the County added a net total of 1,755 jobs between1990 and 2006, according to the Wisconsin Department of Workforce Development’s Office ofEconomic Advisers (See Figure 8). While this growth is not as rapid as the need to sustain itslabor force, it does compare favorably with Milwaukee County, which lost nearly 27,000 jobsduring that same time period. Milwaukee County reached its peak overall employment level in1999. Then, it lost 7.5 percent of the county’s employment base until it reached a low point in2005. In the most recent year for which actual data are available (2005-06), Milwaukee beganto add employment again - about 2,700 jobs on a base of 490,000 in that year. Likewise,Kenosha reached its peak employment level in 1999, but its economy rebounded earlier thanRacine. In 2002, Kenosha added nearly 5,000 jobs on a base of 50,000 workers in the county. 69 Economic Development Plan 5.0

Racine County Economic Development Corporation Economic Development Plan 5.0 Unlike Racine County however, Kenosha County lost jobs in 2005-06. The greatest share of southeastWisconsin’s job growth occurred in Waukesha County, where the job based increased by nearly 82,000 netnew jobs between 1990 and 2006, an increase of 53 percent. Except for a brief drop in employment in 2002,Waukesha has steadily added jobs during the past 16 years. Waukesha even managed to defy the trendsand increase the size of its manufacturing base by 15 percent since 1990. As in other counties, Racine’s workforce is aging, and the Baby Boom generation is beginning to retire.According to the Census Bureau’s Local Employment Dynamics database, about 18 percent of the currentworkforce (or 13,500 workers) will be at or above the retirement age of 65 by 2017. In addition, another 24percent (or 18,300 workers) will reach the traditional retirement age by 2027. Among the population replacing the soon-to-retire Baby Boomers are those currently in their teens.Countywide, the Census Bureau categorizes about 27 percent of residents aged 10 to 19 as either Black orHispanic. Within the working age population, about 19.2 percent are either Black or Hispanic. TheCounty’s African-American population is slightly larger, but the county expects the Hispanic population to bethe larger minority group by 2020. 70 Economic Development Plan 5.0 5

Racine County Economic Development Corporation Economic Development Plan 5.0Manufacturing’s Long Term Decline in Employment This transformation of Racine County’s workforce parallels an economic transformation as well. TheCounty’s economic trends can be directly attributed in part to the existing economic base and major on-going economic structural shifts. Long the largest source of jobs, manufacturing in Racine County hasexperienced a significant employment decline. As Figure 10 illustrates, the county’s peak manufacturingemployment occurred in 1979. In fact, manufacturing employment as a proportion of the county’s economyhas declined from about 38 percent of all jobs in 1979 to less than 20 percent by 2006. After manufacturingunderwent a significant structural change in the early 1980s, the county’s sector employment stabilized at amuch lower rate, but still it grew in the 1990s until it reached a peak employment level before beginninganother lengthy decline from which the sector is not expected to recover. This most recent decline has hada significant impact on the perspectives of many workers and citizens in Racine, who are concerned thatthey and their children will no longer be able to find the kind of family-sustaining employment that wastraditionally available in manufacturing. It is not that jobs are no longer available in manufacturing. The key is distinguishing those industriesthat are growing from those that are losing jobs. While employment in the manufacturing industry may bedeclining, the data suggest that certain companies are actually adding jobs. In Racine County, thoseindustries include motor vehicle seating and trim production, machining, and soap and cleaning compoundproduction. 71 Economic Development Plan 5.0

Racine County Economic Development Corporation Economic Development Plan 5.0 Due in part to Racine County’s strategic location in the Chicago-Milwaukee Corridor, as well as theexisting economic base, the Racine County economy has witnessed the expansion and/or location ofseveral manufacturing and related distribution companies in 2007, including: a new 500,000 square-footJohnsonDiversey distribution center; a 450,000 square-foot distribution facility for S.C. Johnson Wax;, and a420,000 square-foot distribution facility by JSA Development. RexCon is expanding its 70-person operationand adding 30 new jobs with a $6.5 million investment, adding 100,000 square feet to its manufacturingfacility. In addition, the region has attracted a number of somewhat smaller projects which includemanufacturing facilities for 21 new employees at Jacquet Midwest and 10 new jobs in an enzyme productionfacility at Great Lakes Bio Systems. Also recently adding jobs are Coleman Tool; Thermal Transfer andKerry Seasonings. Previous projects include the North American headquarters and manufacturing facilitiesfor foreign owned companies BRP, Inc. (Canada); Poclain Hydraulics, Inc. (France); Putzmeister America,Inc. (Germany); and Cordstrap, USA, Inc. (The Netherlands) There may be fewer available jobs in manufacturing, but these companies continue to seekworkers. A recent review of the state’s JobNet database revealed nearly 2,638 total job openings in theCounty, and 11,220 more jobs available in adjacent counties.2 Within this database, productionoccupations remain the second largest type of available jobs listed, following only office and administrativesupport occupations in terms of the number of jobs available.3 These production jobs, however, requirevery different skills from those required by manufacturers a decade ago. In general, the jobs often requireworkers to have much higher level of technical skills and greater adaptability than ever before - oftendemanding career or technical education available from post-secondary institutions or through long-term jobexperience. Even among low-skill jobs, companies are demanding that workers have soft skills related toattitude, aptitude, and motivation as well as pass pre-screening tests on criminal background and drug use.2 Job Net statistics were available from July - December 2007 for Racine, Kenosha, Walworth, and MilwaukeeCounties.3 Betsy Falk, Racine County and City Summary Report, March 2008. Many of these jobs are available as part of thelocal economy’s natural dynamism so not all of these jobs would be filled by the unemployed. 72 Economic Development Plan 5.0 5

Racine County Economic Development Corporation Economic Development Plan 5.0 The fact that the manufacturing sector has been losing jobs does not mean that this part of the economyis any less important to Racine County than it was in the heyday of the sector’s job growth. Recent datafrom the US Bureau of Economic Analysis (see Figure 11) indicate that manufacturing continues tocomprise about 40 percent of the county’s $5.8 billion gross domestic product (GDP). GDP data indicatethat the county’s economy grew slightly despite the economic slump of the early part of the decade. Manufacturing has led the way for the county during periods of economic growth as well as those inwhich the economy has contracted. In 2002, the county’s economy continued to grow despite a slightslump in the manufacturing sector, but in 2003 and 2004, manufacturing activity outpaced the rest of theeconomy, growing by 2.6 percent in 2003 as compared with overall county economic growth of 1.5 percent.In 2004, the overall economy grew at a more rapid pace, 3.7 percent, and that growth was lead by a 6.5percent increase in manufacturing output. By 2005, the economy’s growth had slowed a bit, declining by 0.9percent. Again, manufacturing declined by 1.8 percent, foreshadowing a contraction of the county’seconomy. 73 Economic Development Plan 5.0

Racine County Economic Development Corporation Economic Development Plan 5.0Services Sector Growth Despite the long-term trends in manufacturing, the county still managed to add jobs overall between2000 and 2006. As Figure 12 illustrates, this growth was due in no small part to recent growth inemployment in the health care, professional and business services, and wholesale trade sectors. Healthcare grew at its most rapid pace during the 1990s. Even though it has slowed to a more modest pace dueto restructuring of how health care is being delivered, the sector still added several hundred jobs during thepast few years. Professional and business services added more than 1,100 jobs since 2003 whilewholesale trade increased by about 700 jobs. Many of these new service sector jobs require more post-secondary education and specialized training than did the lost production jobs. More importantly, however,these service-based jobs tend to require a different set of skills related to working directly with customers. Focusing on trends in specific industries, Racine County has experienced recent growth in severalsectors, including a few manufacturing industries. In terms of total new jobs added, we examined trends in338 industries (at the five-digit level of the North American Industrial Classification System or NAICS).Figure 13 identifies the sectors adding more than 50 jobs per year since 2002. Key sectors identifiedinclude motor vehicle merchant wholesaling, which added 659 jobs in the county during the past decade.Motor vehicle seating/interior trim production added 621 jobs. The analysis also revealed job growth intemporary employment, fast food services, and public school teaching. 74 Economic Development Plan 5.0 5

Racine County Economic Development Corporation Economic Development Plan 5.0Increasingly, examining Racine’s growth prospects involves not only tracking the performance of theseeconomic sectors but also exploring the success of certain types of businesses. For instance, Racine’sbest source for new jobs in recent years has been from growth in the county’s smallest firms and self-employment. Figure 14 illustrates that,according to the most recent dataavailable from the US Census Bureau’sCounty Business Patterns (2005), 88 netnew establishments started between 2002and 2005. The largest gains were amongcompanies with 1-4 employees and thosewith 20-99 employees. 75 Economic Development Plan 5.0

Racine County Economic Development Corporation Economic Development Plan 5.0 Unincorporated proprietorships (or self-employed individuals) also represent a significant source of jobactivity in the county. As shown in Figure 15, data from the US Bureau of Economic Analysis indicate thatnearly one of every eight jobs (12.8 percent) is created from a proprietorship (i.e., usually a self-employedindividual working as an unincorporated consultant or contractor for clients). While growing as a proportionof overall employment in Racine, the trend is not as strong in the county as it is in the rest of the country.Nationally, the proportion of jobs created by proprietors has grown from 13 percent in the early 1980s tonearly 20 percent in 2005. 76 Economic Development Plan 5.0 5

Racine County Economic Development Corporation Economic Development Plan 5.0Location in the Chicago/Milwaukee Corridor Employment growth occurring in Waukesha and Kenosha Counties as well as recent newdevelopments in the areas near Interstate 94 suggest that Racine County is becoming increasinglyintegrated with much larger regional employment centers throughout southeastern Wisconsin. Historically,Racine County has operated as an independent labor market, but commuting patterns indicate that Countyjobseekers may become more reliant on job centers to the north and south. As shown in Figure 16 commutersstill travel to jobs within the county,and most of those jobs are locatedEast of Interstate 94. Still, many othercounty residents commute tosurrounding counties, and especiallynorth to Milwaukee County.Increasingly, county residents will findjob options outside the county. This trend portends an increaseddemand for an extensive, integratedregional transportation network. Forthose without reliable privatetransportation, public transportation will likely remain an important priority that could aid or impede theireconomic success. Currently, the county’s public transportation system serves many purposes - from meeting workforcetransportation needs to helping the elderly, disabled, or indigent access medical, government, and retailservices. While many new jobs are being created in the industrial parks along the Interstate or on StateHighway 36, most bus routes are concentrated within the City of Racine or on State Trunk Highway20/Washington Avenue. Many employers interviewed as part of this planning process indicated that publictransportation routes and schedules do not meet the needs of their workers who may have jobs located insuburban areas, day-time travel needs, or shift work. Only a small proportion of Racine County residents use public transportation to get to work. Accordingto data from the 2006 US Census Bureau’s American Community Survey, fewer than 1,000 City of Racineresidents and fewer than 300 people from other parts of the county use public transportation regularly tocommute to work (See Figure 17). 77 Economic Development Plan 5.0

Racine County Economic Development Corporation Economic Development Plan 5.0 Since so few workers use public transportation, many employers face severe challenges. They haveexpressed concerns that their labor force—particularly entry level or low-wage workers—do not always haveaccess to reliable transportation for getting to and from work, resulting in increased absenteeism andinhibiting worker retention and recruitment. Even for those low-wage workers who own a private vehicle, asimple car repair bill can sometimes be the difference between being able to get to work on time and losinga much- needed job. These challenges directly affect businesses that must endure costly turnover ordiminished productivity from many otherwise reliable and valued employees. 78 Economic Development Plan 5.0 5

Racine County Economic Development Corporation Economic Development Plan 5.0Education as a Key to Workforce Success Education and skills ever-increasingly define the success of individuals, families, employers,communities, and economies. As a general rule, the successful completion of post-secondary degreesand/or certifications correlates directly with increased earnings and decreased instances of unemployment.Employers, by the same token, are ever more dependent on their ability to find and retain workers who canbring a larger and more diverse set of knowledge, skills, and abilities (KSAs). These KSAs are defined bystrong foundations in core academic subjects combined with the ability to solve problems, think critically,communicate effectively, innovate continuously, find information, use media, and successfully managepersonal and family obligations along with work responsibilities. Even as education systems across Racine County make significant steps to meet these growingchallenges, issues remain. During the past decade, the number of students in Racine County’s schoolsystems has increased by 3.1 percent to 31,368 students (See Figure 18). The increase has occurredlargely in the two Waterford school districts and other small districts in the county’s western communities.The number of students in the county’s largest school system - Racine Unified School District (RUSD) -declined by 418 during that time period. With 69 percent of the county’s school children, Racine Unified School District serves the most diversestudent population in the county, including many whose families live in some of Racine County’s lowestincome neighborhoods. Because of its size relative to the other districts in the county, Racine Unified’sperformance significantly affects both overall educational attainment in the county as well as overallperceptions of the county’s schools. For instance, average student attendance rates for county studentshave increased from 92.6 percent to 94.1 percent during the past decade (See Figure 19). This increase isdue in large part to improvements in Racine Unified School District student attendance (which increasedfrom 91.7 percent to 93.6 percent). 79 Economic Development Plan 5.0

Racine County Economic Development Corporation Economic Development Plan 5.0 Overall, 78 percent of seniors graduated from Racine County high schools in four years. By comparison,the state average graduation rate was 89.3 percent. As Figure 20 illustrates, only 71.3 percent of RUSDstudents who entered high school in the fall of 2002 graduated with their senior class in 2006. This rate iswell below that for the other school districts: 92 percent graduated in four years at Union Grove, 96 percent atBurlington, and nearly 97 percent at Waterford. Statewide, the average is 89 percent. However, RacineUnified School District was the only one of the County’s districts that showed improvement in graduationrates from ten years ago. Of particular note, Burlington had a decline of nearly 5 percent between the twodecades. The percentage of Racine Unified School District students who drop out in any particular year is about3.8 percent (down from 5.7 percent in 1997). By comparison, Union Grove has the next highest rate at 1.6percent (up from 1.4 percent in 1997). Burlington and Waterford have single year drop-out rates of 0.9percent and 0.6 percent - both holding relatively steady since 1997. Racine Unified School District hasmade particular progress in this regard as part of an overall effort to reduce truancy. Within the RacineUnified School District, the truancy rate in high schools was 19 percent (compared to 16 percent Statewide). 80 Economic Development Plan 5.0 5

Racine County Economic Development Corporation Economic Development Plan 5.0 Student test scores and reported post-secondary remediation requirements suggest that too many highschool graduates do not have the skills required to compete effectively in either the world of work or inhigher education settings. Overall, student test scores held steady between 2005 and 2006 (see Figure21).4 The county’s overall student test score results also reflect the unique challenges facing RacineUnified School District. About 8 to 10 percent fewer Racine Unified School District students achieved a”proficient” or “advanced” level on the 2006 math tests administered through the Wisconsin Knowledge andConcepts Exam (WKCE) or the Wisconsin Alternate Assessments (WAA) for Students with Disabilities. Butthe true challenge may be in the area of reading, where nearly 30 percent fewer Racine Unified SchoolDistrict students achieved proficiency. In an annual ranking of ten peer urban school districts inWisconsin, Racine Unified School District students ranked lowest in the most recent survey (2006-07) in thepercent of students scoring at the “proficient” or “advanced” level on 13 of 14 WKCE tests for students atdifferent age levels or subject areas.4 Data before 2005 are not comparable. 81 Economic Development Plan 5.0

Racine County Economic Development Corporation Economic Development Plan 5.0Impact of Educational Attainment on Income Ultimately, the success of Racine County’s workforce will depend in no small measure on the availabilityof an educated and adaptive populace that can earn significantly higher incomes. Figure 22 illustrates thatRacine County residents earning an “average” living must have an associate’s degree or at least somecollege experience. The same is true for City of Racine residents, even if average earnings tend to besomewhat lower. Furthermore, whether in the city, the county, or statewide, there is a clear correlationbetween average earnings and educational attainment. While overall job growth in the county has been slower than in some other regions, employers in RacineCounty will quickly assert that employment opportunities abound for jobseekers. In talking with companyexecutives, many firms are urgently seeking qualified, prepared, and willing workers. But too manypotential workers are not prepared; they simply do not have the education or skills required for the changingworld of work. About 49 percent of Racine County residents aged 18 or older earned a high school degree or less,according to the 2006 American Community Survey. However, 65 percent of Racine County’s unemployedreport that either they have earned just a high school degree or have no degree at all. Thus, not only doskilled workers earn more, but they are also less likely to suffer from unemployment. Because of this direct correlation between educational attainment and earnings, it is especially 82 Economic Development Plan 5.0 5

Racine County Economic Development Corporation Economic Development Plan 5.0important to track how committed high school graduates are to continuing their academic careers beyondhigh school. In 2006, about 67 percent of all county high school graduates indicated that they planned tocontinue their education at a two or four-year college (see Figure 23). By comparison in 1997, 69 percentplanned to attend a post-secondary educational institution. While the proportion of students planning to goto a four-year college gained slightly (from 51 to 52 percent), the proportion of those indicating that theyplanned to attend a two-year college declined from 18 percent in 1997 to 16 percent in 2006. Furthermore,while 4-year college-going rates are increasing in the districts west of Interstate 94, Racine Unified SchoolDistrict’s 4-year college-going rates declined during the past decade. During the same ten-year timeperiod, Union Grove and Waterford students were dramatically less likely to choose to attend a two-yearschool as more students opt for four-year post-secondary institutions. Post-secondary education is particularly important in light of increasing business demand for skilledworkers and the desire of jobseekers to obtain work that offers a wage high enough to help achieve self-sufficiency. According to recent research, the Wisconsin self-sufficiency wage (adjusted for inflation in2008) for two adults with an infant pre-schooler is approximately $13.25 per hour for each of the two wageearners. For a single adult with an infant, the wage needed is about $17.13 per hour.5 Gateway TechnicalCollege reported in a 2005 survey of its graduates that those acquiring full-time work earned an estimated$16.76 per hour in 2008 dollars6 - not quite enough to meet the needs of a single adult with a small child,but certainly more than sufficient to sustain a single adult or to combine with another wage earner to supporta family.5 Adjusted for inflation by CREC from data derived from Diana Pearce, Ph.D. with Jennifer Brooks, “The Self-Sufficiency Standard for Wisconsin 2004,” prepared for the Wisconsin Women’s Network, April 2004, page 61. The2004 hourly self-sufficiency wages in Racine were $11.55 for a household with two adult earners and a small childand $14.93 for a single adult with an infant.6 Gateway Technical College, “2005 Graduate Follow up Study.” The study reported that graduates with a full-timejob earned an average of $15.12 per hour in 2005. CREC adjusted these estimates for inflation to 2008. Education at all levels is critical to achieving personal economic prosperity as well as meeting employer 83 Economic Development Plan 5.0

Racine County Economic Development Corporation Economic Development Plan 5.0skill needs. Personal earnings and income reflect a combination of the quality of jobs in the region as wellas the value of worker talent. Fortunately, Racine County compares favorably with its peer counties inWisconsin in terms of per capita income earned, but the City of Racine often falls short in comparisons withits peer cites. A more in-depth analysis suggests that the City of Racine may be particularly handicapped in thesecomparisons in part because it is losing middle and upper income residents, leaving behind those with thelowest incomes and the greatest needs. Figure 24 shows the per capita income in 1999 (based on datafrom the 2000 Census) as well as more recent 2005 data for the City of Racine and peer communities in thestate. The table also highlights the particular challenge facing both the city and the county in the relativeincomes of residents living the inner city neighborhoods that comprise Census Tracts 1-5. In theseneighborhoods, per capita income is about 15 percent lower than for the city overall and more than 40percent below that the rest of Racine County. 84 Economic Development Plan 5.0 5

Racine County Economic Development Corporation Economic Development Plan 5.0The Inner City Workforce Certainly, it is widely known that concentrated unemployment and poverty characterize the City ofRacine’s inner city neighborhoods. These challenges strain county and city resources and affect howpeople perceive the city and its quality of life. Census Tracts 1-5 (also referred to here as “inner city areasof the City of Racine”) have about 20,600 people, representing about 25 percent of the city’s population andabout 11 percent of the county’s. Another important characteristic of the neighborhoods of Census Tracts 1-5 is that they also represent alarge concentration of the county’s increasingly diverse labor force. About 70 percent of the residents inCensus Tracts 1-5 are either African-American or Hispanic. Nearly 9,400 African-Americans live in theseneighborhoods, representing nearly half of all African Americans in the county and 57 percent of the city’sAfrican-American population. About 5,100 or nearly half (45 percent) of the city’s Hispanic residents alsolive in inner city Racine; this represents about one-third (35 percent) of the county’s Hispanic population. The inner city areas of the City of Racine has been particularly hard-hit economically. The 2000Census provides the most recent reliable data on unemployment rates in the inner city. At that time, 1,300jobseekers, or 14 percent of the labor force, were unemployed - twice the unemployment rate of the city asa whole. Today, unemployment in these neighborhoods may be as high as 19 to 20 percent.7A significant part of this unemployment can be attributed to city residents who are not prepared for today’sworkforce. According to the 2000 Census, 4,358 inner city adults (or about 39 percent of the aged 25 orover) had not earned a high school degree - a rate that is more than twice the city’s overall rate and nearlytwice the proportion of county adults who had not earned a high school degree. Similarly, about 5,600inner city residents live in poverty, representing half of the city’s 11,100 residents in poverty and 36 percentof the county’s 15,500 resident living in poverty. In addition, more than 80 percent of the City’s 3,200impoverished children live in the inner city, and collectively they represent 25 percent of Racine UnifiedSchool District’s total enrollment. Many of the children who live in poverty also reside in homes headed by a single person - oftenfemale. This is notable because the poverty rate for county families with a single-person family head-of-household is about 23 percent. By comparison, only three percent of the county’s married-couple familieslive in poverty. Furthermore, the poverty rates for female head-of-household families living in the city (36percent) are higher than the county-wide poverty rate for female head of household families (29 percent).7 Assumes the rate in the inner city has risen at a similar rate as the City of Racine. 85 Economic Development Plan 5.0

Racine County Economic Development Corporation Economic Development Plan 5.0 Children live in poverty because their family’s primary wage earner cannot earn enough to sustain thefamily, often because the wage earners for families in poverty tend to have lower educational attainment.Figure 25 shows that poverty rates are five times higher than average among married couples in which thehead of household does not have a high school degree. For single-female heads of households, which tendto have relatively higher rates of poverty, low educational attainment levels significantly influence the povertyrates. Among the entire county’s households headed by a single female without a high school diploma, 46percent live in poverty; in the City of Racine that number is 59 percent. To emerge from poverty, these wage earners must become better connected to employmentopportunities and create more stable home environments in which to build long-term wealth and securefamily support networks. An important element of making these employment connections will involveincreasing educational attainment among people, especially young women, living in the inner city of the Cityof Racine. The issue involves helping those currently in poverty through more focused education andtraining combined with wrap-around services. The issue also involves efforts to prevent another generationof Racine County residents from becoming trapped in poverty through greater success in formal educationand secure family environments. Because so many of the children of these poorer Racine Countyresidents attend Racine Unified, the district’s success in providing a quality education, preventing drop out 86 Economic Development Plan 5.0 5

Racine County Economic Development Corporation Economic Development Plan 5.0prevention, and spurring a larger proportion of graduates to advance seamlessly to post-secondaryeducation and training attendance is essential. Because these inner city adults represent such a significant source of potential workers and a largeproportion of the County’s currently unemployed residents, reducing poverty and improving educationalattainment in Census Tracts 1-5 can have a direct impact on the entire county. While human servicesexpenditures accounted for 32 percent of the County’s budget in 2004, today the cost of these servicesaccounts for 36 percent and is likely to continue to grow. Accomplishing these goals among residents of theinner city of the City of Racine will help reduce the fiscal burdens of providing social services to the County’sunemployed and impoverished residents. Achieving our vision of full employment in the county will require overcoming the challenges facingyoung single mothers with limited education, limited time for education or training activities, limitedavailability of affordable, flexible, quality day care, and limited access to good paying jobs or education. 87 Economic Development Plan 5.0

Racine County Economic Development Corporation Economic Development Plan 5.0Aligning Workforce Investments with High Growth Potential Racine County’s growth prospects remain bright despite these challenges in no small measure becausepublic and private leaders are coming together to address the most fundamental economic and workforcechallenges. While Racine County must make significant in-roads in adapting to a changing economicclimate and addressing fundamental workforce challenges, county leaders have concluded they must do sowith the recognition that they have limited resources and a well-defined challenge. By targeting itsworkforce investment, the county can generate a bigger impact per workforce dollar invested. Thus, thecounty must focus on addressing the needs of selected high-impact industries that help drive and sustainthe county’s growth. Two key factors influencing the selection of these targets include their: • Potential for emerging as important economic drivers, and • Role in employing a significant proportion of Racine County’s existing and future workforce. The efforts to develop an appropriate, competitive talent pool should then consider the specific needs ofboth existing high-demand industries as well as emerging growth sectors. As part of a separate economicdevelopment planning process, the Racine County Economic Development Corporation, in collaborationwith a number of key partners, identified industries that it has determined will drive Racine’s future growth.These industries were selected as the focus of the county’s economic development activities andinvestments. In anticipation of success, the county must also prepare a ready and willing workforceavailable to help these industries compete in Racine County. We anticipate that enterprises in theseindustries will represent a significant proportion of the county’s emerging growth companies. In addition, a number of existing industries continue to add employment, and many of those jobs offereither career opportunities providing family-sustaining wages or potential career-entry jobs. These jobs areparticularly important for workers with lower or entry-level skills who might otherwise struggle to attain self-sufficiency. The existing growth industries combined with Racine County’s emerging companies in conomicdevelopment-targeted industries represent important areas for focusing county workforce developmentinvestments.DRIVE! Initiative Targets: A Source for Emerging Industries In the DRIVE! Initiative, the Racine County Economic Development Corporation and its allies arerecruiting and aiding companies in several key industries. These industries were selected because theyoffer the potential for adding greater wealth to the Racine County economy. These targeted industriesfrequently produce goods and services locally, but sell those services through a multi-county, multi-state, 88 Economic Development Plan 5.0 5

Racine County Economic Development Corporation Economic Development Plan 5.0national, or even global value chain of buyers and sellers. The DRIVE! Initiative industries can be found inthree broad categories: next generation manufacturing, professional services, and foreign owned firms(Figure 26). The County seeks to foster the growth and development of innovative next generation manufacturers ina number of economic sectors, especially in machinery production, instruments, transmission equipment,machine shops, and machinery manufacturing. These industries are found in codes 332, 333, and 334 ofthe North American IndustryClassification System (NAICS). Tosupport these and other high-valueeconomic sectors, the county alsoseeks to expand the presence ofrelated suppliers and professionalservice companies in computersystems design, professional andtechnical services, and specializeddesign (found in NAICS code 541).Furthermore, foreign-owned firms,especially from northern Europe,appear to be concentrating inRacine County, and the County would like to continue encouraging these direct foreign investments.Racine’s High-Growth, High-Demand Industries In addition to these economic development targets, 12 industry sectors (using three-digit NAICSclassification levels) account for 43 percent of the County’s workforce and are projected to add 4,400 jobs inthe next five years, representing almost all of the net increase in County employment. These sectorsinclude: local governments, administrative & support services, hospitals, professional and technicalservices, chemical manufacturing (which includes soap and cleaning supplies production), specialty tradecontracting, ambulatory health care services, merchant wholesalers of durable goods, general merchandisestores, repair & maintenance, food manufacturing, and educational services. Five-year projections forthese industries are included in Figure 27. The figure illustrates that seven of the twelve industries(representing nearly 29,000 jobs) offer higher than average earnings for the County.88 Earnings combine traditional wage and salary income with other income including benefits, transfer payments, andcapital gains to provide an estimate of total wealth being created for the workforce by each industry. 89 Economic Development Plan 5.0

Racine County Economic Development Corporation Economic Development Plan 5.0Identifying Existing and Emerging Occupations These industries, in conjunction with the emerging industries identified in the RCEDC DRIVE! Initiativewill create demand for workers in a wide array of occupations - ranging from very high skill to lower skill.Some of this demand for workers in key occupations will result from new job creation, but more significantly,existing companies will demand many new workers to replace those leaving their jobs to retire or changecareers. Figure 28 shows 20 occupations that are expected to have the greatest amount of new andreplacement job openings between 2007 and 2012. Data for occupations are available based on surveys of companies to determine their “recipe” ofworkers by occupation. Thus, national data suggest that certain industries have a large proportion of theirworkers who are engaged in production activities as well as some administrative or technical occupations.Each industry has its unique mix that is organized into a matrix of typical occupations in an industry. Usingthis matrix, it is possible to estimate an approximate number of workers required for each occupation in anindustry regionally. In this effort to target investments for preparing workers in selected occupations, themix of jobs required for Racine County’s existing and emerging industries is particularly important. 90 Economic Development Plan 5.0 5

Racine County Economic Development Corporation Economic Development Plan 5.0 Local-serving industries, which are the largest economic sectors, tend to employ about 70 to 80 percentof a local workforce. Frequently, those jobs are more likely to be lower skill or part-time. They ofteninclude retail, personal services, and similar industries. These tend to figure prominently in analyses of totaljob creation. But not all of these jobs are low-skill, low-wage. Figure 28 also illustrates the mix that Racinehas in terms of the skills required for fast-growing existing industries. For instance, healthcare clearlyrequires many new and replacement workers, following a national trend of high turnover and a rapidly agingworkforce. Healthcare-related industries offer jobs in occupations that provide a wide range of earnings andrequire a wide variety of skills. Among the fastest-growing occupations in these industries are registerednurses, nursing aides, orderlies and attendants, and home health aides. All of these occupations areprojected to add many new jobs in the next few years. Another industry, the education sector (includingpublic schools), is also projected to demand a large number of workers in the next few years. In particular,teachers at all levels are in demand, particularly elementary and secondary school teachers, needed toreplace an anticipated large number of retirees. Among the County’s emerging growth industries, the professional and technical services industry is 91 Economic Development Plan 5.0

Racine County Economic Development Corporation Economic Development Plan 5.0projected to require many more workers in certain in-demand occupations. For example, companies inRacine County are expected to need roughly 20 new and replacement interviewers and customer servicerepresentatives annually over the next five years. Companies in the professional and technical services arealso expected to create employment, albeit at a slower rate, in more highly specialized management and infinancial occupations such as accountants and auditors. 92 Economic Development Plan 5.0 5

Racine County Economic Development Corporation Economic Development Plan 5.0Appendix 2: The Planning Process To spur collective action that addresses the concerns facing Racine County, the community must createconsensus about how best to act. This consensus is articulated in the workforce strategy that addressesthe critical challenges facing the community. To this end, Racine County leaders embarked on a process to(a) review and interpret socioeconomic data about the county; (b) identify the most critical challenges facingthe County; (c) identify potential solutions; and (d) develop consensus on which of these solutions to pursuebased on a broader community consensus. Following is a review of that process.Community Kick-Off and Issue Identification Nearly 100 community members attended the official kick-off of the strategic planning process onOctober 10, 2007 at the Center for Advanced Technology and Innovation (CATI) in Sturtevant. With the aidof facilitators from the consulting team of Center for Regional Economic Competitiveness and PAROSGroup, the session provided a forum for a wide range of people in the county to identify the County’s mostpressing workforce challenges. At the session, Steering Committee members helped to frame the discussion by identifying several keyprinciples that would guide the plan’s development and implementation. In addition, the SteeringCommittee sought to ensure an open and inclusive process by meeting with a series of key stakeholdersboth before and immediately after the October 10 session to ensure that: • There was broad awareness of the process • Invitations were extended to a broad array of individuals to participate and contribute to the process; and • Divergent voices and input were welcomed into developing the strategic plan Focus groups were held with employers both east and west of Interstate 94 as well as withrepresentatives from the secondary and post-secondary educational system. The leadership alsoconducted small group sessions with representatives of the African-American and Hispanic communities, in-school students at Gateway Technical College, secondary school teachers, the faith community, socialservices providers and a variety of other groups. Three main themes emerged from the focus groups and small group discussion sessions, and wererelatively consistent across all the groups, regardless of ethnicity, geographic location (whether east or westof Interstate 94) or organizational affinity (i.e., whether participants represented business, education, orcommunity/faith-based organizations): 93 Economic Development Plan 5.0

Racine County Economic Development Corporation Economic Development Plan 5.0 • The challenges facing Racine County did not emerge in isolation or because of any single contributing factor. Consequently, the solutions to these challenges will only be realized through a County-wide, community-wide collaborative effort that draws on the knowledge, strengths, and influence of a wide range of organizations and individuals. Conversely, not working collaboratively and inclusively will negatively impact the likelihood of success. • There is a tremendous entrepreneurial spirit in Racine County, and all efforts should be made to support entrepreneurs and small businesses. • At the same time, there is a significant need to help a large portion of Racine County residents understand what it takes to be successful in the economy, whether as an employee or as an entrepreneur. Attention must be paid to helping Racine County’s workforce understand and obtain a wide range of fundamental employability skills so they can gain and hold good jobs and careers, and to help Racine County’s employers remain competitive and successful. These three themes were repeated consistently and were heard loud and clear. They have beeninextricably woven into the strategies found in this report. In addition to the focus groups, briefings were held with three of the region’s newspapers: Insider News,The Journal Times, and the Milwaukee Journal Sentinel. These briefings were designed to inform themedia of the process and to expand interest in the project among the broader citizenry of Racine.Issue Narrowing and Initial Strategy Identification Following the Kick-Off session, the Strategic Plan Advisory Committee participated in a series ofdecision-making sessions. These sessions were held at the Wingspread Conference Center. TheAdvisory Committee was charged with providing input and representing the broad range of communityvoices, reviewing materials, and helping to guide decisions toward the creation of a workforce strategy.The Advisory Committee held its first meeting in December 2007. The group received a briefing on theCounty’s economic development plan, a summary of key relevant economic and workforce data, and asynopsis of the information generated from the October kick-off session and subsequent focus groupinterviews. During this session, the Advisory Committee conducted a brainstorming exercise to review the issuesidentified in the kick-off session, organize the information into broad categories, and identify an initial list ofthe challenges that might be addressed in the strategic plan. 94 Economic Development Plan 5.0 5

Racine County Economic Development Corporation Economic Development Plan 5.0Strategy Formulation and Narrowing Based on the information generated at the December work session, the Advisory Committee identified33 different key concerns in six broad challenge areas. The Steering Committee, with assistance from theconsultants, developed each of these concerns into questions that could lead to goal statements. TheAdvisory Committee was then surveyed to help in determining which of the concerns were deemed to bethe highest priority. Additional data were generated on these priorities from selected interest groupsincluding business leaders from the inner city of the City of Racine and West of Interstate 94 as well asminority representatives. The Advisory Committee met for a second time on January 30, 2008. The consultants presented thesurvey results and the Advisory Committee used this information to select five priority challenges on whichto focus their strategy formulation activities. The Advisory Committee also conducted a brainstormingsession of key tactics to address those strategies.Strategy and Tactics Finalization Based on input received in January, the Steering Committee, working closely with the consultant team,refined the challenge statements, defined goal statements, and then narrowed the list of AdvisoryCommittee-suggested strategies to seven. For each of the seven strategies, the Steering Committeeorganized the Advisory Committee’s previous ideas into short-term, medium-term, and long-term tactics. In preparation for the third and final meeting at Wingspread, Steering Committee members participatedin two validation sessions aimed at reviewing the strategies and goals with key stakeholders. Thesesessions were held with a group of employers West of Interstate 94 and with representatives of the Hispanicand African-American communities in the County. The Steering Committee also met to discuss the visionstatement, further refine how the challenge statements were articulated, and review key tactics and potentialmodels. The Advisory Committee met for the third time on March 12, 2008. At this session, the SteeringCommittee provided a briefing on the five challenges and seven related strategies. The Advisory Committeethen provided feedback on key stakeholders, potential resources, and suggested outcome metrics. Thekey stakeholders include those potential partners that will be critically important in implementing thestrategies. The Advisory Committee sought to determine which metrics might be used to monitor thecounty’s success in responding to the identified challenges. Also, potential resources included bothpotential funders as well as available staff to move the strategies and tactics forward. That iteration of thestrategies, goals, and tactics serves as the foundation for this report. 95 Economic Development Plan 5.0

Racine County Economic Development Corporation Economic Development Plan 5.0 After this working session, the Steering Committee, working as a Committee of the Whole and insubcommittee, invested additional time during late March and April to refine the challenge statements,goals, strategies, and tactics, as well as to create more explicit measures for success. This input wasbrought together for additional validation and review to core constituencies - especially the African-American and Hispanic communities - and presented for feedback to several organizational boards. 96 Economic Development Plan 5.0 5

Racine County Economic Development Corporation Economic Development Plan 5.0 For the full report on-line visit www.wdc.racineco.com This study was prepared by Center for Regional Economic Competitiveness97 Economic Development Plan 5.0