Smart Communities

What to do on Monday--The Squirrels Have it Right

When you start sounding like your parents you know that you are aging. On saving for a rainy day, however, I think my parents were right. They always believed in "pay as you go" and "if you can't afford it, don't buy it." While this sounds archaic in the age of easy credit, in times like these I know they were right. This all is layered for me on a question I was asked yesterday, "how much do you need for retirement." I really don't know--few of us do. So our assignment for Monday is to understand better how this recession will affect not only us but our community. Further, we all need to prepare for what might be a long economic downturn ahead. There are wonderful tools for all of this available to us. Learn more about saving, planning for retirement, and helping our children learn about money. If nothing else, we will sleep better!

Economic Development Plans for Small Towns

Unless you have been without all communication for the last few months, you know that our economy is in trouble. The testimony from the Federal Reserve reinforced what we have been saying for months. Communities and individuals have been feeling the pinch at the grocery store and the service station. I advocated many months ago that communities get a plan in place quickly to manage the fall-out--unemployment, demand for services, and declining business spending. In addition, communities need to be thinking about what they will do when the upswing comes...and it will. This economic development plan is very practical for small towns and larger ones as well. So many of us want the "silver bullet" answer in the form of one industry or business with mega jobs. That is the exception rather than the rule. It is a mult-faceted process that includes community building as well as economic development.

Smart Beginnings

This week I joined the dean of the University of Virginia's Curry School of Education, an executive with Bank of America, and our local United Way vice president to talk about an initiative to insure that children in our area have a "smart beginning." That means in essence that we have quality child care and that every child is ready for school (the two go together of course). My job on the panel was to talk about our findings from Learning to Finish about the relationship of dropping out of high school to earlier school performance. It is true that children who come into school unprepared often never catch up and the result is not completing high school. The other point I stressed was the long-term economic benefits of investing in young children. We know from earlier posts that early brain development can be altered by stressed home situations and lack of positive adult interactions. We also know that the remedy for that is very expensive to the system as the child gets older. Remedial and special education costs far exceed investments in assuring that all children have a smart start or smart beginning. How can I be so sure? You must read this report, "Early Childhood Education for All: A Wise Investment." about the economic benefits of early childhood investment by Leslie Calman and Linda Tarr-Whelan. Now we need to be sure that our state legislators and the general public understand the opportunity costs of investing early and often. You will have no doubt about the need for a clear strategy to give all children what they need from the beginning of their lives--no matter what it takes.

Health Care Costs Soar

Yesterday's entry discussed hospitals and health care research facilities as economic engines. Today we tell you why. According to recent reports, by 2017 we will be paying more than $4 trillion for health care: one out of every five dollars spent. The growth--three times the rate of inflation--will be driven by increased demand and higher prices. Now the rub. If you don't have a hospital or close access to one, you are behind in what you can offer members of your community. If you try to build one, they are very expensive. So as the trend moves toward more care not less, the challenge to communities is to decide if they will ride the wave and expand what they have or use another community's investment as an asset they can leverage. There are obviously at least two points to this dilemma: first, health care is a growing national industry that could be part of local economic growth as we discussed yesterday; and second, the demand for health care will be greater and greater. Either way community leaders and citizens need to begin the conversation now about how health care will be provided within the community, how those who are uninsured or underinsured will get the care they need, and whether any piece of this national trend of health care can be incorporated into the community's economy. For more places to learn more how Americans are approaching this problem see the series in USA Today.

Hospitals as Economic Engines

When people talk hospitals, they are usually talking about access to health care. However they should add to that sentence "and access to jobs." Hospitals are often the largest employer in communities along with the school system. In addition, they are often good community partners as philanthropists, volunteers, and sponsors. Cities are realizing that advances in health care and the facilities that support them can build a new economy--and a rich one at that. This week's Economist includes an article on Rochester, MN and the Mayo Clinic. Mayo's revenues in 2006 were $6.3 billion. Add to that the additional dollars spent in hotels, restaurants, etc. and the economic impact is huge. Likewise Cleveland with the Cleveland Clinic and other hospitals grosses revenues in 2006 of $4.4 billion.

It is not just about your average hospital of course. These medical centers have developed specialties that are sought by patients from all over the world. There have been heavy investments in research and development. One only has to think for a moment to come up with other names: M.D. Anderson in Houston of Memorial Sloan Kettering in New York. However other cities are getting into this are big time. Grand Rapids, MI is and has developed a huge health and biohealth complex. My own home town of Birmingham, AL, has a world-class medical center and specialties ranging from orthopedics to genetics. What these complexes offer to communities is an opportunity to change the future. In order for them to grow or even be sustained, there needs to be a well-trained local workforce, a high quality of life, and an opportunity for entrepreneurs to spin off new technologies and start-ups. In other words, start thinking about how we can capitalize our first-rate health care system in this global economy.

What to do on Monday--Save

Normally this column is not about individual issues but today I want to talk about our national financial crisis in terms of our personal spending habits. With the tax rebate likely to come our way, many of us still have doubts about the wisdom of dribbling hundreds of millions of dollars out in small amounts at a time that our country is in a war and in debt. In today's New York Times, sociologist Dalton Conley, discusses the cons of this strategy very well. The other part of this op-ed talks about the personal responsibility of getting our collective houses in order--that is, quit spending so much and save more. While the President and others want us to spend our tax rebate to stimulate the economy, that in my view is a band-aid approach. What we need at the federal level and at home is more fiscal responsibility. Lack thereof is what got us to this situation in the first place. We are spending money we don't have and the piper had to be paid. So what to do?

The Federal Reserve Bank of Chicago has put together a simple guide to budgeting and saving that is well worth taking a look at over the weekend. Also CNN/Money Magazine has some "what you should know" tips. With easy credit, multiple credit cards, and unlimited wants, we are prey to consumerism of the first order. I am certainly guilty too. As to the community implications of this, it would be worth revisiting a series of family management seminars offered by banks and others to help young people and others understand the idea of a household budget and the dangers of debt.

My almost 90-year old mother who still clips coupons has a framed article in her home entitled, "The Pleasure of Standing Tall," which says in essence that paying your way, owing less, and managing on what you have allows you to stand tall. She looks pretty good to me after 90 years of following that advice.

Small City: No Limits--Morrilton, AR

Morrilton, AR is a small town on a mission. In the nineties when two of its major manufacturers folded up shop, the town responded. Called by then governor now presidential candidate, Mike Huckabee, as the Morrilton Miracle, the town has shown that a good offense is the best defense once again. How did they survive? In my language they used the Smart Communities model--high quality of life paired with thriving economy. The economic development leaders knew that they had to have a well-trained, dedicated workforce to attract new businesses as well as a town that people wanted to live in and visit. In my mind, they have done both.

Cities are the Engines for Growth

Cities of all sizes are under siege. In too many cases they are underfunded, underpopulated, and underinvested. However we know that strong--smart--cities are the anchors for community and economic development according to the National League of Cities and others. There are some places to point to make the case. Boston as a city helps fuel the fire of Route 28 development as well as the entrepreneurs at Cambridge and MIT. A city that is vibrant, offers access to the arts, and has winning sports teams makes a difference. There are other cities that have not quite made the turn and their regions suffer. Having said all this I wonder where our candidates stand on an urban policy that takes us in new and different directions. An editorial in the New York Times yesterday called for the same. What cane we expect from a McCain/Obama/Clinton presidency in regards to cities? Is is a retooled version of the urban policies of the sixties or something new that matches the demands of the 21st century economy with infrastructure that exists? Is a plan for urban schools that tests and invests in the next generation of workers? Whose saying what?

Poverty Solutions Must Include the Community

Poverty is one of those thorny, generational issues that continues to affect millions of Americans directly and the rest of us indirectly. Children who grow up in poverty never get to the same starting line as other children writes Paul Klugman in yesterday's New York Times. Granted the answer requires government intervention and investment at all levels but it also can be influenced by the community's response. As you might remember, the Pew Partnership has been a part of the Northwest Area Foundation's Horizons program for the last few years. Here is an account of how one community is approaching the issue of poverty.... and doing something about it. The following report was sent to me by one of the Horizons state partners:

Tuesday, January 8, 2008
January Update – 2007 Year in Review-Eveleth, Minnesota
”No matter how carefully you plan your goals they will never be more than pipe dreams unless you pursue them with gusto.” – Clement Stone

In January-March, over two hundred people studied poverty issues in Eveleth – we learned that over 45% of Eveleth residents, according to the 2000 census, do not make enough money to meet their basic needs. We spent hours discussing the causes of poverty in our diverse groups; we grappled with issues of racism, lack of jobs, lack of support, lack of personal responsibility, economic inequality, bad public policy, cuts in education funding, and many other causes of poverty. We looked at successes of other small towns, we identified our assets, and we brainstormed short, intermediate, and long-range projects to help eliminate poverty and turn Eveleth into a thriving community. Nearly 30 people attended an advanced leadership training to learn how to put the ideas into action.

Some of the small projects have already been accomplished:
- Summer soccer program
- Community blog (http://www.eveleth.blogspot.com/)
- Recruitment of volunteers to serve on city commissions
- Assisted AEOA in securing a state transportation grant of $150,000.
- Monthly summer clean-up of Grant Avenue’s business district
- Inaugural participation in National Night Out activities
- Skateboarding Competition and Open House at the newly relocated skatepark
- Learn to Skate program at the Hippodrome
- Involvement in planning a regional visit of the Legislative Poverty Commission
- Creation of a sliding hill

Eveleth Has a Vision! – On November 1, facilitator David Beurle led discussion on his top ten attributes for successful communities. Among the things going well in Eveleth, according to the participants, were strong belief in and support for education and a strong presence of traditional institutions that are integral to community life. Eveleth came out luke warm on evidence of strong community pride and inclusive culture, investing in the future, and self-reliance of the community. Growth opportunities included creating a participatory approach to decision making, creatively building new economic opportunities, supporting local business, deliberate transition to new leaders, and a willingness to seek help from the outside. Next, the group created a vision for the Eveleth they’d like to have in 10-15 years:

Our rich culture and history defines who we are. Our community is a safe, close-knit place where neighborhood values make Eveleth a great place to raise a family. We are a progressive, cohesive and collaborative community that works together to make our community thrive. We have a range of unique and exciting community events that attract people from across the world to celebrate our heritage, our history, and our culture. In particular, we are renowned for our world-class Hockey Hall of Fame!

Eveleth is a business-friendly community that builds on taconite, timber, and tourism. Our entrepreneurial economy is evident in our vibrant and bustling downtown that provides diverse opportunities for all. The fresh face on our historical buildings demonstrates community pride and innovation. Recreation opportunities provide welcoming ways for the young and old to come together.

Volunteers signed up to work on the following committees: Economic Development; Blight/Beautification; Youth Activities/Involvement; Community Activities; and, Downtown Revitalization. Contact Heather at 218.305.4456 for more information on opportunities to get involved. Let’s begin 2008 with gusto!

“Don’t judge each day by the harvest you reap but by the seeds that you plant.”
–Robert Louis Stevenson

Levittown: Going Green

This week we will be featuring communities that are trying to implement smarter ways of working and living. We will begin with the efforts of America's first suburb, Levittown, NY. Levittown became the archetypical model of suburbia with low-cost housing dotting street after street. As the GI's came home from World War II, the demand for housing exploded. Levittown was the answer that spawned hundreds of thousands of homes like these across the United States.

But now they want to break a new mold and be the model for a "green" community. Community leaders are trying to persuade every business in town to rethink its emissions, waste, and environmental impact. Quite a noble feat I would say. This is exactly the kind of broad-based thinking that we need if we are going to have real change in our community. The first step is getting everybody rowing in the same direction. Levittown is on its way.