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Bi-State Summit

Advancing the Regional Economy

September 12, 2006

Yellow Breakout Group,

Cynthia Copeland, Recorder

Question 1: What is your reaction to this morning’s presentation? Do you agree with the findings? Are there other factors that should be considered for this discussion?

Taxation is a missing piece. Maine is highly taxed whereas NH is not. This would need to be addressed in order to have collaborative efforts.
Arts & Culture addresses all issues as a quality of life. Collaborative efforts in this area can be particularly effective. Participants are able to influence others. The presence of arts and culture can have an impact on decision to move or stay in region. Activities bring money and people to region. Be explicit about role of arts and culture in economy.
Nonprofit entities as a factor in economy are missing.
The aging populations bring money and expertise to region. Use their wisdom to strengthen business operations.
It was unclear whether residents are makings high household income in Rockingham County or driving somewhere else to earn these incomes? [Response: there is a resident adjustment. Rockingham County does have high flow of workers into Massachusetts suburban component. This is similar for York County where workers head to eastern Massachusetts. Attitude of why change Rockingham County? Look at what we have with this rural/suburban environment now. We have the luxury of living in this geographic triangle.]
Role of at home workers: where are their numbers counted? [Response: are included in self-employed numbers. Income numbers are based on where you live.]
Small businesses with less than 20 employees and entrepreneurial and micro enterprises are a significant part of the economy. They tend to nurture their own staff, as they cannot compete with incentive in larger regions and states. [Response: analysis not done. Region is dominated by small businesses and the expansion of small businesses. This can become a quality of life trap as business owners decide to stay at a level that maintains their income and quality of life.]
Business is over regulated
Retail is a large component of economy and cannot support families at adequate levels.
Health care is a large contributor to economy. Federal regulations influence these businesses, such as reimbursement of wages/salaries for services. Need to have fed reimbursement that accurately reflects wages needed for recruitment and retention of staff. We have a shortage of docs and nurses.
Federal employment facilities have a role to play, beyond the Shipyard. Look at Visa Center at Pease. These are good opportunities for stable employment.
Opportunities for affordable housing and liveable communities. New England way of life is a quality of life issue. Can capture the imagination of residents with the back to New England village and include affordable housing.

Responses from questionnaire

Brilliant focus on building on opportunity arising from shipyard efforts. Breaking down barriers between states. There is a looming crisis if we don’t work together to go “beyond the box”. Consider taxation differences, arts and culture sector, nonprofit sector, talent and wisdom of elder population; employment still dependent upon Massachusetts, need for affordable housing and liveable and environmental connections.
Nonprofits, retirees in region, arts community included in economy.
The major difference between the 2 states and the major impacting negative force is the taxation levels in the states on both personal and business levels.
Tech jobs are moving overseas. Why would a company move here, pay U.S. wages and benefits vs. India or China?
In-migration of retirees due to the zero personal income tax.
ACE strategy for region: arts, culture, entertainment. This supports tourism and liveability and draws educated workforce.
What about the families who moved away and now they and their children are moving back to their roots in New England.
The small, affluent areas, Rye and York Beach, skew the demographics for the region.
Affordable housing is a problem.
Qualify where people make their income vs. where they live; commuter society locally.
Town zoning and infrastructure buildout is at what cost to the quality of life.

Question 2: How can these issues be addressed on a bi-state region? What specifications do you think need to be taken?

Unique opportunity with Governors. Government can do some tasks that business cannot do. Affordable housing is an example: government mandated, then business can help.
In Maine, attracting individuals and businesses is difficult from perspective of state income and business tax, affordable housing, and transportation (congestion).
Need leadership at top to solve regional issues. As with the Shipyard, get the yellow T-shirts out. Focus on passion of residents and engaged them at grassroots with top leadership.
Hub center of high tech in late 1990’s and early 2000’s. What’s been done to attract these kinds of businesses on a national level? Keep these jobs here as they have low impact on environment and transportation. Do we have base of workers that are needed?
Educate for the jobs we want to see.
Software industry sector has small, growing companies. It is difficult to recruit 1 to 2 people at a time in this area. How challenging would be 15 to 20 employees at a time?
Tech incubators tend to stay where they start up or in radius. They have an impact on network of similar types of work.
Six Step Plan: 1. Develop a clear plan with component targets. 2. Include a concept of free zones (taxation and revenues) via legislative action. 3. Clarify areas with demands, such as education. 4. Transportation plan in place. 5. Affordable housing plan in place. 6. Support services and infrastructure will roll out from implementation of above five factors.
From a global view, the linkage for us would be New England. Do something bold to connect 6 states. Example: high speed rail with a NE Rail Authority. Focus on transportation as common ground.
Look at health care as NE wide entity.
Branding as Cold Coast, or why not Bold Coast.
Look at big picture: we have people at all levels of education and job searches, which are interdependent. Vision for our Bold Coast: we have the knowledge of what we were, now let’s create where we want to go and who we will be.
Acceleration of change: teach adaptability, teach creativity, and an ability to learn at all levels K – 12
Conflicts inherent in balancing act. Demographics trump housing. People are here because they like it and they do not want to change their lives. Educate resident and create understanding of importance of balancing factors.
Tourism promoted through cross marketing efforts.
Education through discovery and engagement with public takes a process at all levels.

Responses from questionnaires:

Level economic playing field; mandate affordable housing; NIMBY attitude adjustment as it restricts development.
Brand region as desirable location for high tech industries.
Use of technology incubators.
Address housing
Market for e-business/software; high tech; incubators for high tech.
Need a regional purchasing mechanism for energy inputs.
Need universal affordable access to wireless and broadband.
Need state and federal focus on federal funding/access for a regional focus from the Congressional delegations.
Need affordable educations for youth; again needs federal support through Congressional delegations to make it affordable and accessible. No walls between the states.
Need multiple transit, intermodal facilities across the region.
Get the Congressional delegations working together.
Work for bi-state affordable housing.
Grassroots efforts work here.
Marketing strategy for national level: pull people and industries from other parts of country back to NE
Set up Bi-state Commission target, promote, and market mixed-use business to attract people with affordable housing.
Maine needs to compete with Pease. Tax issues and differences need to be addressed. Maine needs regional business park with carefully planned access routes to this park.

Question 3: What ideas expressed today inspire you to action?

“I skate to where the puck is going to be. Everyone else skates to where the puck is…” Wayne Gretsky, via Governor King.
“The fittest are the most adaptable to change… those who embrace change flourish… those who resist change die…
We must think and act outside the box.
Need to change youths’ perceptions that the region has nothing to offer and not exciting. Educators need to promote from middle school on the careers that will be needed in the future.
Create regional development districts.
Involve government officials.
Marketing brands: “Why not ME”; NH/ME = New Hope Marketing Economy
Great numbers of attendees have some clout to make things happen. Someone or small group needs to organize this effort.