©2007 ViTAL Economy, Inc. 1 Southern Illinois: Garden of the Gods Readiness Assessment Chapter 6: Regional Perspectives January 27, 2008; revised February.

©2007 ViTAL Economy, Inc.— 1 —

Southern Illinois: Garden of the Gods

Readiness Assessment

Chapter 6: Regional Perspectives

January 27, 2008; revised February 17

CONNECT SI

ViTAL Economy AllianceFrank Knott, Project Lead; Stan Halle, Senior Editor;

Jim Haguewood, Rob Beynon, & Neil Gamroth, Principal Economic Researchers

[email protected]; http://www.vitaleconomy.com


6.01 Demographic Picture

6.02 Economic Picture Across SI

6.03 Economic Picture by Sub-Region (COI)

6.04 Livable Community: Assessment

6.05 Infrastructure: Assessment

6.06 Healthcare: Assessment

6.07 Implications & Recommendations

Table of Contents EXECUTIVE OVERVIEW:EXECUTIVE OVERVIEW: the Big Picture & the Big Picture &

Importance of Change in SIImportance of Change in SI

READINESS ASSESSMENT (RA)READINESS ASSESSMENT (RA)

1. State, National & Global Trends1. State, National & Global Trends

2. Indigenous Resources & Industry Asset Mapping

3. Enabling Environment Necessities

4. Climate of Innovation, Incubation & Entrepreneurship

5. Southern Illinois Competitiveness

6. Regional Perspectives

7. Roadmap to Success

APPENDICES


Chapter 6:Regional Perspective

6.01 Demographic Picture ……………………………………………….. 4

6.02 Economic Picture Across SI ………………………………………. 10

6.03 Economic Picture by Sub-Region (COI) …………………………. 26

6.04 Livable Community: Assessment …………………………………. 64

6.05 Infrastructure: Assessment ………………………………………… 84

6.06 Healthcare: Assessment …………………………………………… 89

6.07 Implications & Recommendations ……………………………….. 116

Southern Illinois — "Garden of the Gods"

This Chapter of the RA provides a regional and sub-regional perspective and analysis in preparation for an overall SI economic strategy. Each sub-region (aka geographic COI) contains unique assets that can be leveraged to support the achievement of the overall Connect SI community and economic development

goals.





This Section provides a condensed overview of the demographic trends across SI, focusing on youth brain drain and educational attainment.


SI: Sizeable Population . . .

Over 419,992 residents in SI region, comparable to a major metropolitan area (as of 2006)

Greater Egypt corridors of Highway SR13 & I-55 and the home of SIU contain most of the region’s population

Three rural sub-regions are approximately equal in geographic area

SI represents 3.3% of total IL population

Source: Census Bureau data 2002, 2006

0

50,000

100,000

150,000

200,000

250,000

300,000

S5SEGWGE

% of the Total Population by Sub-Region

12% 12%

61%

15%


Critical mass exists in Southern Illinois!Critical mass exists in Southern Illinois!


-8

-7

-6

-5

-4

-3

-2

-1

0

1

SI Youth and Young-Adult Brain-Drain-Gap

Southern Illinois % Population Growth1990-2000 (census-to-census)

+0.9%

TOTALPOPULATION

-7.2%

20-29YEAROLDS

Source: BEA and U.S. Census update data

SI is losing tomorrow’s workers, 20-29 year olds

Over 18 population: 65.7% have high school education, 13.2% have Bachelors degrees

Recent trends show that high achievers are leaving the area

Recapturing departing youth is key to labor pool and economic growth

Without the next generation of workers, Connect SI strategies will be much more difficult to achieve

Without the next generation of workers, Connect SI strategies will be much more difficult to achieve



“We Loose the Best and Brightest: SI Adults Tell Our Children That There Will Be No 21st Century Opportunity in SI”

Losing Your Future Workforce SIU and the community colleges

generate an above average 20-30 year old population

This young population leaves the region for more attractive opportunities, despite SI having the resources that should help retain them

Increasing Your Burden SI is losing its most productive

age group while increasing the resource-demanding demographic of retirees

Source: U.S. Census Bureau – Table QT-P1: Age Groups and Sex: 2000 and RA Interviews

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

8.00%

9.00%

under 515 to 1930 to 3440 to 4960 to 6475 to 79

90+

Proportion of Population (%)

SI Illinois

Age Distribution Comparison

Increasing Your Burden

Losing Your

Future Workforce

The youth are already here — they need to be proactively retained

The youth are already here — they need to be proactively retained



SI Educational Attainment Gap

SI region lags Illinois in high school completion

Bachelor and higher degrees of education, SI is less than half Illinois rate

Trends run counter to modern need for increased levels of education and training

0% 20% 40% 60% 80% 100%

S5

SE

GWGE

IL

0% 10% 20% 30% 40%

S5SEGWGEILU.S.

Population with High School or Higherin SI Regions vs. IL

Population with Bachelor Degree or Higherin SI Regions vs. IL

Source: U.S. Census Bureau (2000 Census)

34% of adult workers in the U.S. have a bachelor degrees or more;

almost three times the SI rate

34% of adult workers in the U.S. have a bachelor degrees or more;

almost three times the SI rate


©2007 ViTAL Economy, Inc.— 9 —— 9 —

SI is the size of a major metro area — but doesn’t yet behave like one

The entire region is suffering from significant youth brain drain

A declining youth demographic is a major challenge to developing successful economic development strategies

The population is aging in line with the entire U.S. This will have a larger impact on the region if SI cannot recapture

the youth leaving and influencing this shift

SIU and the community college infrastructure provides a key driver to shift the aging demographic trend in SI

The overall educational attainment level will need to be increased for SI to compete in a global economy

6.01 Demographic PictureDemographics Summary





This Section provides a condensed overview of the economic development assets, conditions and trends for all of SI.


SI Regional Introduction• SI population and economy are similar to that of a major metropolitan area

o Even with this size Southern Illinois suffers from lack of political clout state-wide due to the “Chicago-land” influence

• The cities bordering SI in neighboring states are attractive and draw money and resources out of the region

o A significant proportion of medical patient dollars from the region travel to surrounding states

o Attractive job opportunities have been created in the neighboring cities that result in out-migration of disposable income expenditures

o Many top management personnel live in these communities and work in SI• From 2001-2003 the SI region lost over 2,300 manufacturing jobs or 20% of

that sectors employment• Greater Egypt dominates the SI region with respect to population and GDP, but

not in average wage levels• Government transfer payments comprise 64% of the regions personal income • The region possesses a strong and experienced social services infrastructure• SI’s land base is dominated by agriculture designation, but has been

experiencing declining economic benefit (through 2005)



Economic Profile: Southern Illinois

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

S5 SE GW GE

Overview: Employment: 207,297

Labor Participation rate 66.5%

GDP: $17.6 billion Top three GDP producers

1. Government – 20%

2. F.I.R.E. – 18%

3. Natural Resources – 13%

Number % Average

Wage

Wholesale & Retail 28,910 14% $29,339

Government 26,597 13% $51,139

Health 22,210 11% $29,363

Other 20,320 10% $29,649

Natural Resources 20,246 10% $35,097

Manufacturing 18,009 9% $54,310

Tourism 16,862 8% $16,332

Education 14,984 7% $28,285

F.I.R.E. 12,525 6% $59,720

KBEs 9,011 4% $57,617

Construction 8,996 4% $48,246

Transport & Utilities 8,627 4% $52,414

Total 207,297 100% $38,952

SI # of Jobs by Region Employment by Sector

Source: BEA data; VE Economic Scenario Model

F.I.R.E = Finance, Insurance & Real Estate



Greater Egypt Dominates SI Economy

0

50,000

100,000

150,000

200,000

250,000

300,000

Population

S5SEGWGE

Population by Sub-Region

Source: Census Bureau

15% 12% 12%

61%

$0.0

$2.0

$4.0

$6.0

$8.0

$10.0

$12.0

GDP ($Billions)

S5

SE

GW

GE

64%

14%11% 11%

GDP by Sub-Region

Source: Connect SI Economic Scenario Model

•Greater Egypt's economic progress should be linked to the other sub-regions•

•Achieving a sustainable and growing SI economy, requires that all sub-region assets should be integrated and leveraged

• It takes critical mass to be globally competitive

•Collaboration is how SI gets there!

•Greater Egypt's economic progress should be linked to the other sub-regions•

•Achieving a sustainable and growing SI economy, requires that all sub-region assets should be integrated and leveraged

• It takes critical mass to be globally competitive

•Collaboration is how SI gets there!



Population and Wages: SI versus Illinois & U.S.

Population in Southern Illinois has seen a decline in the past 25 years — a dramatic difference vs. Illinois and U.S. trends

Total wage growth in SI has been slow, far outpaced by that of both U.S. and Illinois

Source: Bureau of Economic Analysis

-5%0%5%

10%15%20%25%30%35%

U.S.

IL

SI

Cumulative Population Trend (1980 – 2005)

30.5%

11.6% (-3.0%)


Growth in Wages Over 25 Years (1980 – 2005)

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

U.S. IL SI

U.S.

IL

SI

73% Higher

Than SI

63% Higher

Than SI


Average Wages Lagging

2005 Average Wage by Sub-Region versus IL

Source: BEA, Regional Economic Accounts

SI region average wages are almost 30% lower than the state average

While IL wages are above the U.S. on average, SI wages remain below

Lower wages mean lower consumer spending power with additional impacts on healthcare, education and social services

Greater Egypt’s economy is four times the size of the other sub-regions, has the largest base of innovation assets, and two of its counties are rated as Creative-Class Counties, yet its wages are no higher than rest of SI

Greater Egypt’s economy is four times the size of the other sub-regions, has the largest base of innovation assets, and two of its counties are rated as Creative-Class Counties, yet its wages are no higher than rest of SI



SI Per-Capita Wages are Lowand Per-Capita Transfer Receipts are High

Source: Bureau of Economic Analysis Regional Bare Facts ; 2006

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

S5 SE GW GE IL KY IN

Per-Capita Wages

Per-Capita TransferReceipts

SI currently underperforms Illinois — Connect SI’s initiative would push transfer receipts down and push per capita wages up

SI currently underperforms Illinois — Connect SI’s initiative would push transfer receipts down and push per capita wages up

Southern Illinois



Where SI Personal Income Comes From

GW GE SE S5 SI Illinois U.S.

Total Personal Income (% of personal income composition)

100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

Earnings by Workplace 57.0% 69.0% 54.5% 52.0% 63.5% 79.5% 78.0%

Wage and Salary Disbursements 35.4% 48.8% 36.5% 35.1% 43.7% 57.3% 55.5%

Supplements to Wages and Salaries 10.7% 13.2% 9.4% 9.6% 11.9% 13.5% 13.3%

Proprietors' Income (Business Owners)

10.9% 7.1% 8.6% 7.3% 7.8% 8.7% 9.2%

Adjustment for Residence 8.7% -0.3% 7.0% 10.6% 3.2% -0.3% 0.0%

Dividends, Interest, and Rent 18.5% 16.6% 15.9% 14.4% 16.5% 16.5% 15.8%

Personal Current Transfer Receipts 21.4% 21.7% 28.2% 28.2% 23.3% 12.8% 14.7%

Less: Contributions for Government Social Insurance

5.7% 7.0% 5.7% 5.2% 6.5% 8.4% 8.5%

Source: Bureau of Economic Analysis Regional Bare Facts 2006; Connect SI Economic Model

SI earnings by workplace are 25% lower than Illinois, 23% lower than USSI needs to grow the job base by at least 20% = 40,000+ new jobs

SI earnings by workplace are 25% lower than Illinois, 23% lower than USSI needs to grow the job base by at least 20% = 40,000+ new jobs



SI Dependency on Government Transfer Payments Exceeds State & National Benchmarks

SI region’s income is comprised of 23.1% government transfer payments, compared with just 12.6% for IL and 14.2% for U.S.

Highest dependency on government transfer payments in Southern Five and Southeastern — percent of income through such payments exceeds 25%

Dependence on government payments restrains regional economic development and hinders entrepreneurial spirit

Source: Bureau of Economic Analysis Regional Bare Facts 2006

2006 Government Transfer Payments as % of Total Earnings

0

5

10

15

20

25

30

35

% of Total Earnings

Southern Five Southeastern

Greater Wabash Greater Egypt

SI

ILU.S.

Transfer payments: income payments to persons for which no current services are performed — payments

by government and business to individuals and nonprofit institutions serving individuals

Transfer payments: income payments to persons for which no current services are performed — payments

by government and business to individuals and nonprofit institutions serving individuals



Only 46% of SI Personal Income is Generated by Private Sector Employment

54%

33%36%

46%

67%64%

Increasing private sector percentage of personal income generation is crucial to building a climate of innovation

Increasing private sector percentage of personal income generation is crucial to building a climate of innovation

Private Sector Payroll & Benefits by Sub-Region

Private Sector Payroll & Benefits by Sub-Region

GW - 48% GE - 53%

SE - 42% S5 - 38%

GW - 48% GE - 53%

SE - 42% S5 - 38%

Source: BEA & ViTAL Economy Analysis



Income Sources: Impact on the Region

SI needs a 30% increase in private vs. public sector earnings to equal the U.S. ratio between public and private earnings

Majority of income received from the public sector reduces the climate of entrepreneurship in the region and creates a risk-averse environment

Smaller amount of per-capital income generated through productive purposes versus a much larger amount received from public sources and other transfer payments results in a weak view of business and economic opportunity

Income disparity creates negative opportunity image for youth in the region for productive work

Income disparity fuels the youth brain drain in the region by suppressing any youthful sense of hope and opportunity

With only 46% of income received from private sector earnings, SI’s ability to afford the community and economy it wants is greatly limited



SI Land Utilization is Less Than 3% Urban & Built

S5 SE GE GW SI

Agriculture 47% 59% 65% 80% 63%

Forests 21% 28% 16% 13% 19%

Urban & Built 2% 3% 4% 2% 3%

Wetland 8% 8% 10% 4% 8%

Surface Water 2% 2% 4% 1% 3%

Barren & Exposed Land 20% 0% 0% 0% 4%

0

500

1000

1500

2000

2500

Agriculture Forests Urban & Built Wetland Surface Water Barren &Exposed Land

Southern Five

Southeastern

Greater Egypt

Greater Wabash

1,581

Land Mass Utilization

239 671 216 369Sq. Mi. 5,229 8,306 Sq. Mi.

• SI developed land mass is only 57% the size of Shawnee National Forest

• Shawnee National Forest is 5% of SI land base


Source: Illinois State Dept of Natural Resources


The Value of SI Land is Shifting

1997 2002* % Change

Land in Farms (Acres) 1,185,000 1,192,000 1%

Market Value of Production ($) $184,331,000 $151,092,500 -18%

Government Payments ($) $12,919,000 $16,235,000 26%

Source: NASS 2002 Census of Agriculture

• *2007 Agriculture statistics will reflect higher market value per acre due to increased commodity prices, especially for hybrid ethanol corn

• Since 2000:

o Number of farms and acres being farmed has stayed relatively stable

o Value of farmland and buildings has increased by 27%

o Cropland rent per acre has increased by 20%

• Up to 60% lower yield in crop value per acre compared to Central Illinois or Northern Illinois

o Soil and moisture characteristics account for much of the lower yield



SI KBE: Professional, Scientific, Technical and Information (PST&I) Work Force Gap

PST workers include those in establishments specializing in professional, scientific and technical activities — engineering, computers, architecture, law, and accounting

Information industry “I” workers work with telecom and information networks

KBE success largely related to PST sector of the economy (90% of new jobs)

PST workers as percent of economy indicates ability to benefit from this growth area

SI has 50% fewer PST&I workers than IL and U.S. at a time when they are the fastest

growing job sectors of the U.S. economy

SI has 50% fewer PST&I workers than IL and U.S. at a time when they are the fastest

growing job sectors of the U.S. economy

Sources: BLS, IDES, BEA

Region KBE Workers % of SI KBE

Greater Egypt 6,227 69%

Greater Wabash 907 10%

Southeastern 1,070 12%

Southern Five 808 9%

SI Total KBE 9,012 4.3%

0%

2%

4%

6%

8%

10%

% of Employment

U.S.

IL

SI

7.7%8.5%

4.3%



Traditional Business Strengths• Agriculture: corn and soybeans• Energy: coal and oil• Southern illinois university • Manufacturing• Marine transportation and logistics

Traditional Business Strengths• Agriculture: corn and soybeans• Energy: coal and oil• Southern illinois university • Manufacturing• Marine transportation and logistics

People, Land & Jobs• % of IL Land Mass = 15.0%• % of IL Population = 3.3%• % of IL Employment = 2.8%

Dependencies• Public sector employment• Transfer payments• Social security• Pensions• Farm subsidies

People, Land & Jobs• % of IL Land Mass = 15.0%• % of IL Population = 3.3%• % of IL Employment = 2.8%

Dependencies• Public sector employment• Transfer payments• Social security• Pensions• Farm subsidies

Rising Business Stars• Transportation and logistics• Tourism, including ecotourism and vineyards• Clean coal technologies• Health services• Advanced manufacturing• Arts and artisans• Young entrepreneurs

Rising Business Stars• Transportation and logistics• Tourism, including ecotourism and vineyards• Clean coal technologies• Health services• Advanced manufacturing• Arts and artisans• Young entrepreneurs

Notable• Home to 2nd largest university in Illinois• Shawnee National Forest• Mississippi, Ohio, and Wabash Rivers• Interstate highway system and CN Rail • SICCM (Southern Illinois Collegiate

Common Market)• Mid-America geographic location• Rich historical area and assets• Proximity to five major metro areas

Notable• Home to 2nd largest university in Illinois• Shawnee National Forest• Mississippi, Ohio, and Wabash Rivers• Interstate highway system and CN Rail • SICCM (Southern Illinois Collegiate

Common Market)• Mid-America geographic location• Rich historical area and assets• Proximity to five major metro areas

Current State: Southern Illinois 6.02 Economic Picture Across SI


Opportunities• Natural resources• Transportation & logistics• Homeland security• Recreational tourism• Geography, climate & location• Quality of life • Proximity to markets• Senior living• KBE and innovation

Opportunities• Natural resources• Transportation & logistics• Homeland security• Recreational tourism• Geography, climate & location• Quality of life • Proximity to markets• Senior living• KBE and innovation

Key Trends• Youth population decline• Hwy 13 I-57 corridor growth• SIU declining enrollment• Medical professional recruitment difficulties• Coal economy rebirth• Upscale tourism unaddressed• Expanded internet infrastructure• One Region – One Vision• Aging population

Key Trends• Youth population decline• Hwy 13 I-57 corridor growth• SIU declining enrollment• Medical professional recruitment difficulties• Coal economy rebirth• Upscale tourism unaddressed• Expanded internet infrastructure• One Region – One Vision• Aging population

Challenges• Broadband coverage • Geographic isolation• Political climate • Business attractiveness• Curb appeal• Regional identity• Workforce availability• Focus on sunset industries• Self image and respect• Limit climate of collaboration

Challenges• Broadband coverage • Geographic isolation• Political climate • Business attractiveness• Curb appeal• Regional identity• Workforce availability• Focus on sunset industries• Self image and respect• Limit climate of collaboration

Growth Enablers• Emerging KBE businesses• Business incubation structures• Business startup capital, angel investor networks• Regional branding• Value-added manufacturing strategies• Connectivity & collaboration• Entrepreneur networks• Business and industry clustering• Technology transfer• e-Commerce development

Growth Enablers• Emerging KBE businesses• Business incubation structures• Business startup capital, angel investor networks• Regional branding• Value-added manufacturing strategies• Connectivity & collaboration• Entrepreneur networks• Business and industry clustering• Technology transfer• e-Commerce development

Opportunities & Challenges:Southern Illinois6.02 Economic Picture Across SI



6.03 Economic Picture by Sub-Region (COI)


This Section provides economic factors that were identified by each of the four geographic COIs, plus notable trends, and 2012 goals.


The 20 Southern Counties of Illinoisbounded by the Mississippi, Ohio and Wabash Rivers

Connect SI includes 4

sub-regions:

Southern FiveUnion, Johnson,

Alexander, Pulaski, Massac

SoutheasternPope, Hardin, Saline,

Hamilton, Gallatin

Greater WabashWhite, Wayne,

Edwards, Wabash

Greater EgyptRandolph, Perry,

Jackson, Jefferson, Franklin, Williamson

Connect SI includes 4

sub-regions:

Southern FiveUnion, Johnson,

Alexander, Pulaski, Massac

SoutheasternPope, Hardin, Saline,

Hamilton, Gallatin

Greater WabashWhite, Wayne,

Edwards, Wabash

Greater EgyptRandolph, Perry,

Jackson, Jefferson, Franklin, Williamson

6.02 Economic Picture by Region

Connect-SI Region130 Miles East-West

100 Miles North

to South

Population = 423,670 Workforce = 207,297

GEGE

SESE

GGWW

S5S5

Source: U.S. Census Bureau 2006; VE Economic Scenario Model


Economic Profile: Southern Five COI

Number % Average

Wage

Government 4,076 17% $51,139



Health 2,541 10% $29,363

Tourism 2,444 10% $16,329


F.I.R.E. 1,359 6% $59,035

Education 1,228 5% $28,285


Transport & Utilities 963 4% $55,430

KBEs 809 3% $57,478

Other 2,225 9% $29,549

Total 24,317 100% $37,641

Overview:

• Labor Participation Rate – 62.8%

• GDP: $2.1 billion

o Top three GDP generators• Government – 26%

• F.I.R.E. – 17%

• Natural Resources – 12%

Employment by Sector

Source: BEA Data and RIMS II multipliers

6.03 Economic Picture by Sub-Region

S5S5

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

S5 SE GW GE

SI Number of Jobs by Region


Southern Five Population Trends Prison Population Removed (None in S5 Open in 1980)

1980 2004 est. Change2004 est. No

Prison

Change

No Prison

Alexander 12,280 9,228 (-24.9%) 8,774 (-28.6%)

Johnson 9,691 13,029 34.4% 9,431 2.7%

Massac 15,036 15,294 1.7% 15,294 1.7%

Pulaski 8,847 6,950 (-21.4%) 6,950 (-21.4%)

Union 17,857 18,195 1.9% 18,195 1.9%

Southern Five Region

63,711 62,696 (-1.6%) 58,644 (-8.0)%

Comparison during same period: USA +13.1%: Illinois +11.2%; Illinois (without Prison Population) +10.9%

Source: COI Milestone and U.S. Census Data

Alexander County has experienced the greatest population decline of any SI county, over 25% since 1980


S5S5


Region Losing Best Resource: Young Adults (No Prison Population included)

0%

20%

40%

60%

80%

100%

64+15-64up to 15

IL S5

Fewer Children

MoreRetirees

Aging Population (2004)

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

15-19 20-24 25-29

US

IL

S5

Young Adults as %of Population (2004)

Source: U.S. Census, Prison Population Removed


S5S5



S5S5Intermodal Transportation Opportunity

Strategic Position of Cairo, Alexander County: Junction of the Mississippi and Ohio Rivers Interstate 57 Proximity to Interstate 55 and 24 Major rail carriers

Trends: Large part of U.S. trade deficit is comprised as empty containers returning to Asia Development of CN Rail traffic in the Midwest Increasing container-on-barge traffic on the Mississippi Production of export products in or in proximity to SI including cotton, soy, corn, pulp,

silica Active regional transportation providers engaged in river and barge traffic and trucking

Opportunity: connect regional products with export markets via transportation infrastructure and services

Projected annual economic impact of this Intermodal opportunity is estimated at ~$100 million in GDP (est. 1,182 direct, indirect & induced jobs)

Projected annual economic impact of this Intermodal opportunity is estimated at ~$100 million in GDP (est. 1,182 direct, indirect & induced jobs)

Source: ViTAL Economy Economic Scenario Model & Inter VISTAS Intermodal Study for City of Cairo, SIDEZ & USDA


S5 Traditional Business Strengths• Government• Mississippi barges• Forestry• Transportation• Recreation and tourism

S5 Traditional Business Strengths• Government• Mississippi barges• Forestry• Transportation• Recreation and tourism

S5 People, Land & Jobs• % of IL Land Mass = 3.3%• % of IL Population = 0.50%• % of IL Employment = 0.33%

S5 Dependencies• Government employment• Transfer payments• Government dependence on casino revenues

S5 People, Land & Jobs• % of IL Land Mass = 3.3%• % of IL Population = 0.50%• % of IL Employment = 0.33%

S5 Dependencies• Government employment• Transfer payments• Government dependence on casino revenues

S5 Rising Business Stars• Transportation and logistics• Tourism, including ecotourism and vineyards• Energy, including ethanol, bio-diesel• Advanced manufacturing• Artisans and arts• Proposed coal gasification plant• Harrah’s Casino — Metropolis• Wineries• Golf course & residential development• Mermet Springs Diving Center• LaFarge Concrete Plant

S5 Rising Business Stars• Transportation and logistics• Tourism, including ecotourism and vineyards• Energy, including ethanol, bio-diesel• Advanced manufacturing• Artisans and arts• Proposed coal gasification plant• Harrah’s Casino — Metropolis• Wineries• Golf course & residential development• Mermet Springs Diving Center• LaFarge Concrete Plant

S5 Notable• Mississippi and Ohio Rivers• CN Rail North-South line• Interstate 55• Tourism, heritage sites & events, e.g.:

• Ft. Massac Civil War Encampment• Superman Festival

• Indian settlements • Unique climate & long growing season• Shawnee College• Mermet Springs• Wine, golf, B&B trails• Extensive social service expertise

S5 Notable• Mississippi and Ohio Rivers• CN Rail North-South line• Interstate 55• Tourism, heritage sites & events, e.g.:

• Ft. Massac Civil War Encampment• Superman Festival

• Indian settlements • Unique climate & long growing season• Shawnee College• Mermet Springs• Wine, golf, B&B trails• Extensive social service expertise

Economic Profile: Southern Five COI6.03 Economic Picture by Sub-Region

S5S5


Southern Five COI: Goals

Southern Five Region

(23 Feb 2007)Baseline

2012 Same

Trend

2012 Goal

Change vs.

Baseline

Change vs. 2012 Same

Population (2004) 58,644 53,971 63,000 +7.4% +16.7%

Employable Population (16-64) (2000)

35,887 33,014 40,950 +14.1% +24.0%

Labor Participation (16-64) (2000)

62.8% 62.8% 71.0% +13.1% +13.1%

Employed 2004 All Ages 24,317 25,550 26,856 +10.4% +5.1%

Average Wage 2004 $27,959 $35,980 $37,591 +$9,632 +$1,611

Total Region Wages 2004 $679.9m $919.3m $1,010m +$329.7m +$90.3m

Determination of specific measurable, wage & employment goals from change in regional wages vs. 2012 trend

NEW JOBS: 784 WAGE: $43,500 $34.1m

NEW JOBS AT AVERAGE WAGE: 522 WAGE: $36,517 $19.6m

IMPROVEMENT OF EXISTING JOBS: 4,863 WAGE: $5,000 $24.3m

CLIMATE OF ECONOMIC OPPORTUNITY: $12.2m


S5S5


Southern Five COI: Opportunities

KBE Process materials and piping, CO2 in process piping Mental health expertise, exportable mental health product Wetland recovery, flood plains Music production, college instruction and local artists Local history experts Artisans and products Goal: Start 35 businesses with 10 employees each by 2012

Logistics/Transportation Identify best practices and trends in trucking and transportation Identify additional training funds for programs Closure of Cairo Airport, best practices of airports in rural areas, location, operations, security issues, trends in

air transport

Energy Learn from other communities that have gone through a large project development process Improve communication between communities within 20 county area Research switch grass cellulose potential Nuclear power

Tourism B&B’s golf and wineries; build off of successful activities Dining and restaurant needs in support of tourism Aggregate demand with wineries and B&B’s Define the specific regional tourism goals, quantifiable and measurable Linking the different trails together


S5S5


Southern Five: Highlights

S5 Opportunities• Geography location; transportation & logistics• 50% of U.S. market within 10 hours of S5• Community College System and SIU• Increase healthcare availability • Tourism, bed & breakfast, wineries• Shawnee National Forest and state parks• Agribusiness opportunities • (e.g. ethanol and bio-diesel)• Unique natural locations• Significant historic site• Senior services

S5 Opportunities• Geography location; transportation & logistics• 50% of U.S. market within 10 hours of S5• Community College System and SIU• Increase healthcare availability • Tourism, bed & breakfast, wineries• Shawnee National Forest and state parks• Agribusiness opportunities • (e.g. ethanol and bio-diesel)• Unique natural locations• Significant historic site• Senior services

S5 Key Trends• Strong core of community leadership• Growth of bed and breakfast facilities• Expansion and growth of lodging facilities in Metropolis• Investment in residential developments• Region is receiving major investments attention• Most high level executives do not live in the area• Limited availability of workforce

S5 Key Trends• Strong core of community leadership• Growth of bed and breakfast facilities• Expansion and growth of lodging facilities in Metropolis• Investment in residential developments• Region is receiving major investments attention• Most high level executives do not live in the area• Limited availability of workforce

S5 Challenges• Lack of skilled workforce for current and future jobs • Lack of cooperation, collaboration, and regionalism• S5 lacks the assets to grow and retain tech-based

jobs• No sense of urgency• K-12 system needs support• Limited healthcare availability to Alexander, Johnson

and Pulaski Counties• Electrical rates• “There are so many problems, where do you start”

S5 Challenges• Lack of skilled workforce for current and future jobs • Lack of cooperation, collaboration, and regionalism• S5 lacks the assets to grow and retain tech-based

jobs• No sense of urgency• K-12 system needs support• Limited healthcare availability to Alexander, Johnson

and Pulaski Counties• Electrical rates• “There are so many problems, where do you start”

S5 Climate for Growth• Travel and tourism; history, experience• Outdoor recreation activities and events• Mississippi and Ohio river transportation • Golf and wine trails• Transportation and logistics • Alternative energy

S5 Climate for Growth• Travel and tourism; history, experience• Outdoor recreation activities and events• Mississippi and Ohio river transportation • Golf and wine trails• Transportation and logistics • Alternative energy

Source: Connect SI COI, RA Interviews and VE


S5S5


Economic Profile: Southeastern COI

Number % Average Wage



Government 2,763 13% $51,139

Health 2,264 10% $29,363

Tourism 1,590 7% $16,329

F.I.R.E. 1,336 6% $60,261

Transport & Utilities

1,109 5% $51,629


Education 1,021 5% $28,285

Manufacturing 823 4% $54,310

KBEs 1069 5% $58,134

Other 2,203 10% $29,352

Total 21,903 100% $39,458


Source: BEA Data and RIMS II Multipliers

Overview: Labor Participation Rate – 69% GDP: $2.0 billion

Top three GDP generators

1. Natural Resources – 22%


3. F.I.R.E. – 17%


SESE

0

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40,000

60,000

80,000

100,000

120,000

140,000

160,000

S5 SE GW GE

SE Number of Jobs by Region


Southeastern: Population Trends

1980 2005 est. Change

Gallatin 7,590 6,152 (-18.9%)

Hamilton 9,172 8,301 (-9.4%)

Hardin 5,383 4,718 (-12.3%)

Pope 4,404 4,211 (-4.3%)

Saline 28,448 26,072 (-8.3%)

SE Region 54,997 49,454 (-10.0%)

Comparison during same period: USA +13.1%, Illinois +11.2%; (without Prison population 10.7%)

Source: COI Milestone


SESE

In the past 25 years, all five SE counties have lost significant population


Shawnee National Forest Visit Profile and ProjectionsRoom for Increased Daily Spend Rates

CharacteristicLocal Day

TripsNon-local Day Trip

Motel Camp TOTAL

Current Visitors 46% 12% 27% 9%

Visitor Segment 230,000 60,000 135,000 45,000 500,000

Shawnee Spend $27 /day $27 /day $118 /day Est. $113 /day $64 /day

Estimated Expenditures

$6.2 m $1.6 m $15.9 m $5.1 m $30.2 m

National Spend $33 /day $ 52 /day $181 /day Est. $143 /day $105 /day

Potential Expenditures

$7.6 m $3.1 m $24.4 m $6.4 m $41.6 m

Potential Revenue Gain

$1.3 m $1.5 m $8.5 m $1.4 m $12.7 m

Current Impacts: Shawnee National Forest Annual Visitation 500,000

Source: NPS Spending and Payroll Impacts, 2005, Spending Profiles for National Forest Visitors, May 2005

Note: Total potential spend for Shawnee is based on totaling national spend category columns, not total visitors x average national spend


SESE


Shawnee National Forest: Opportunity6.03 Economic Picture by Sub-Region

SESE

Increased spending leads to tourism jobs

Achieving national averages of daily spend rate estimated to create 235 new jobs in Southern Illinois

This is based on forest-related spending alone

Increased non-forest spending would create more jobs

Infrastructure and camp improvements are needed to achieve this result

0

100

200

300

400

500

600

700

800

JobsPotentialCurrent

25 N

ew J

obs

30 N

ew

Jobs

160

New

Jobs

25 N

ew

Jobs

Non

-loca

l Day

Tr

ips

Cam

p

Mot

el

Loca

l Day

Tr

ips

TOTA

LS

Note: Analysis based on BEA RIMs II model analysis

Increased Spend Rates to National Averages Would Create 235 Jobs


SE Traditional Business Strengths• Coal mining• Agriculture• Hunting• Aggregate rock• Historical sites and museums• Barge and river industry

SE Traditional Business Strengths• Coal mining• Agriculture• Hunting• Aggregate rock• Historical sites and museums• Barge and river industry

SE People, Land & Jobs• % of IL Land Mass = 3.07%• % of IL Population = 0.40%• % of IL Employment = 0.30%

SE Dependencies• Government jobs • Transfer payments

SE People, Land & Jobs• % of IL Land Mass = 3.07%• % of IL Population = 0.40%• % of IL Employment = 0.30%

SE Dependencies• Government jobs • Transfer payments

SE Rising Business Stars• Tourism, including ecotourism• Recreational manufacturing• Mining-related spin-offs• Coal mining• Guiding and Outfitting• Disaster recovery knowledge

SE Rising Business Stars• Tourism, including ecotourism• Recreational manufacturing• Mining-related spin-offs• Coal mining• Guiding and Outfitting• Disaster recovery knowledge

SE Notable• Ohio Scenic Byway• Coal reserves• Shawnee National Forest, Garden of the Gods• Southeastern Illinois College• Tourism & heritage sites & events, eg: Slave

House, Trail of Tears, Milestone Bluffs• Festivals: Fresh Water Shrimp Festival, etc.• Undeveloped tourism sites• Dixon Springs Ag Center• Unique climate & long growing season

SE Notable• Ohio Scenic Byway• Coal reserves• Shawnee National Forest, Garden of the Gods• Southeastern Illinois College• Tourism & heritage sites & events, eg: Slave

House, Trail of Tears, Milestone Bluffs• Festivals: Fresh Water Shrimp Festival, etc.• Undeveloped tourism sites• Dixon Springs Ag Center• Unique climate & long growing season

Economic Profile: Southeastern COI6.03 Economic Picture by Sub-Region

SESE


Southeastern COI: Goals

Southeastern Region


2012 Same

Trend

2012 Goal

Change vs. Baseline


Population (2004) 49,465 47,833 56,000 +13.2% +17.1%


31,115 30,373 36,400 +17.0% +19.8%

Labor Participation (16-64) (2000) 63.4% 63.4% 70.0% +10.4% +10.4%


Average Wage 2004 $27,494 $35,604 $40,206 +$12,782 +$4,672



NEW JOBS: 3,746 WAGE: $43,500 $163.0m

NEW JOBS AT AVERAGE WAGE: 2,498 WAGE: $40,276 $100.6m




SESE


OpportunityWhat is the market

opportunity?What unique assets are

being leveraged?

Lodging capabilitiesExpanded tourism stays,

$175-$200/dayLocating the facilities near unique areas

Training facilities

By linking resources and upgrading skills it will increase the visitor expenditures per day in the region

The Outfitter experience, Ohio Scenic Byway, Festivals

Teaching mine training

A clear growing need to support the expanded employment need and also the near future retirement of miners

SIC (potential link to Rend Lake) — abandoned mines in the area to create a real life training center

Correctional Officer Training Center

Train our own CO, Police, etc. rather than 12 weeks of time and funds spent in Springfield

Existing knowledge base of correction and law enforcement in SI and facilities

Increase marketing accessBringing Producer closer to Consumer

for SI productsShrimp, PM building materials, wines

Drug Rehab Center

NO existing program of its kind in SI; Termination of price per day or course needs to be researched.

Connect to Tourism (trails) as part of rehab; knowledge base; lodging

Shawnee National Forest Service participation

Expanded tourism stays, $175-$200/day

Shawnee National Forest as one of the most unique locations on North America

Southeastern COI: Opportunities (1 of 2)6.03 Economic Picture by Sub-Region

SESE



OpportunityWhat is the market

opportunity?What unique assets are

being leveraged?

Lodging, Condos, Cabins

Hundreds of visitors experiencing a variety of activities including hiking, biking, hunting, etc.

Shawnee National Forest and Glen O. Jones Lake

Food & Dining

Improvement of the overall tourism and visitor experience and product in the region

Existing facilities and programs that can be leveraged without large upfront costs

Game Cuisine

Unique culinary experience. Preparation of hunters game during their stay in the area. Deer-related products

Large variety of game available in the region

Market regional festivals together

Master calendar and extended stays at $175-$200/day

Leveraging visitors to meet local products bringing Producer closer to Consumer

Team With Rend Lake Culinary Arts School

Improvement of the overall tourism and visitor experience and product in the region

Existing facilities and programs that can be leveraged without large upfront costs, Job Corps, RLC, SIC

Garden of the GodsExpanded tourism stays,

$175-$200/dayOne of a kind natural resource

Southeastern COI: Opportunities (2 of 2)6.03 Economic Picture by Sub-Region

SESE



Southeastern Tourism Goals

Recognizing the extensive indigenous resources in Southeastern and under-tapped tourism industry potential, the COI set several goals:

Increase expenditures by $10m/yr Increase lodging taxes by $85k/yr Increase daily spending by 19% ($60 to $76) Increase occupied room-nights in the region by 8,000 per year Focus on three areas (take 19 areas through the filter):

Fee-hunting Historical tours Eco-tourism

Source: Southeastern COI


SESE


SE Opportunities• Bring resources to SE through relationships and

alliances• Natural and small town environments are positive

places to live, work and play• Leverage the Dixon Springs Center, unique climate• Grow reputation for entrepreneurship• Grow tourism industry by leveraging unique

location, heritage sites and natural features• Unique small river towns• Leverage coal mining knowledge base in new ways;

disaster recovery, safety systems, training

SE Opportunities• Bring resources to SE through relationships and

alliances• Natural and small town environments are positive

places to live, work and play• Leverage the Dixon Springs Center, unique climate• Grow reputation for entrepreneurship• Grow tourism industry by leveraging unique

location, heritage sites and natural features• Unique small river towns• Leverage coal mining knowledge base in new ways;

disaster recovery, safety systems, training

SE Key Trends• Growth and prominence of Southeastern College• Rebirth of coal industry• Transportation of coal from Shawneetown terminal• Regional recognition including videos highlighting

the unique natural features• Growth of the Ohio Scenic Byway• Weak workforce availability

SE Key Trends• Growth and prominence of Southeastern College• Rebirth of coal industry• Transportation of coal from Shawneetown terminal• Regional recognition including videos highlighting

the unique natural features• Growth of the Ohio Scenic Byway• Weak workforce availability

SE Challenges• Overall limited resources in the area• Declining tax revenue base• Change age demographic• Limited broadband penetration • Lack of lodging facilities (187 rooms)• Limited affordable housing• Industrial water availability in Hamilton County for

mine expansion• Entrepreneurship support structures• Quality housing stock

SE Challenges• Overall limited resources in the area• Declining tax revenue base• Change age demographic• Limited broadband penetration • Lack of lodging facilities (187 rooms)• Limited affordable housing• Industrial water availability in Hamilton County for

mine expansion• Entrepreneurship support structures• Quality housing stock

SE Climate for Growth• Agriculture research and development• Comfortable mild Midwest climate: senior living• Tourism; unique natural environment & locations• Vast amount of coal resources• Variety of coal industry knowledge• Processing of coal closer to raw material• Mine to mouth energy production• Growing need for coal workers & disaster training• Entrepreneurship and innovations• KBE workers in unique small towns

SE Climate for Growth• Agriculture research and development• Comfortable mild Midwest climate: senior living• Tourism; unique natural environment & locations• Vast amount of coal resources• Variety of coal industry knowledge• Processing of coal closer to raw material• Mine to mouth energy production• Growing need for coal workers & disaster training• Entrepreneurship and innovations• KBE workers in unique small towns

Southeastern Highlights



SESE


Economic Profile: Greater Wabash COI

Number % Average

Wage




Government 2,452 9% $51,139

Health 2,377 9% $29,363

F.I.R.E. 1,949 7% $61,000

Tourism 1,334 5% $16,345


Education 1,045 4% $28,285

Transport & Utilities

940 4% $54,220

KBEs 906 3% $57,349

Other 2,641 10% $28,484

Total 26,392 100% $41,009




GWGW


Top three GDP generators1. Natural Resources – 25%2. F.I.R.E. – 19%3. Government – 13%

Lowest % in SI region

0

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100,000

120,000

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160,000

S5 SE GW GE

GW Number of Jobs by Region


Greater Wabash: Population Trends

1980 2004 est. Change

Edwards 7,993 6,785 (-15.1%)

Wabash 13,776 12,601 (-8.5%)

Wayne 18,157 16,814 (-7.4%)

White 17,964 15,221 (-15.3%)

Greater Wabash Region 57,890 51,421 (-11.2%)

Comparison during same period: USA +31.1%, Illinois +11.2%

Source: Bureau of Economic Analysis and Census Bureau

GW has the greatest population loss in SI from 1980 to 2004 — more recent estimates show trend continuing


GWGW


Older Age Distribution Puts SI at Economic Disadvantage versus Illinois

0%1%2%3%4%5%6%7%8%9%

10%

Under 510 to 1420 to 2430 to 34 40 to 4450 to 54 60 to 64 70 to 74 80 to 84

90+

Proportion of Population (%)

Greater Wabash Illinois

Dramatic loss of 20-34 yr olds in GW region

GW has a greater percent of people over 55 than the rest of Illinois

Median age higher in GW (40) than Illinois (34.7)

Source: U.S. Census Bureau – Table QT-P1: Age Groups and Sex: 2000

Age Distribution Comparison

To grow economically, the region needs to retain

younger workers and grow job opportunities

To grow economically, the region needs to retain

younger workers and grow job opportunities


GWGW


Out-Migration is Eroding GW’s Future

Out-migration of Healthcare Revenues

* $32.9m of $55.5m

Out-migration of Healthcare Revenues

* $32.9m of $55.5m

Out-of-Region Jobs & Disposable Income Spending

* $14.7m-$23.6m per year* Worth 200-315 Jobs

Out-of-Region Jobs & Disposable Income Spending

* $14.7m-$23.6m per year* Worth 200-315 Jobs

Youth Brain Drain(Future Workforce)

* 16.3% drop in 10 years* $19.1m in lost wages

Youth Brain Drain(Future Workforce)

* 16.3% drop in 10 years* $19.1m in lost wages

Economic Value Lost to GW: $56.7m-$75.6m EVERY YEAR! Economic Value Lost to GW: $56.7m-$75.6m EVERY YEAR!


— 49 —

GWGW


GW Traditional Business Strengths• Agriculture• Mining• Manufacturing, eg: Airtex, Champion Labs• Oil extraction• Education system

GW Traditional Business Strengths• Agriculture• Mining• Manufacturing, eg: Airtex, Champion Labs• Oil extraction• Education system

GW People, Land & Jobs• % of IL Land Mass = 3.0%• % of IL Population = 0.41%• % of IL Employment = 0.35%

GW Dependencies• Transfer payments• High coal industry retirees• Pension income• Manufacturing employment

GW People, Land & Jobs• % of IL Land Mass = 3.0%• % of IL Population = 0.41%• % of IL Employment = 0.35%

GW Dependencies• Transfer payments• High coal industry retirees• Pension income• Manufacturing employment

GW Rising Business Stars• Tourism, especially hunting • Energy• Oil industry supplies and equipment• Outfitting/Hunting, eg:

• Campbell’s Outfitters• Entrepreneur businesses: Elastec, Dinger Bats

GW Rising Business Stars• Tourism, especially hunting • Energy• Oil industry supplies and equipment• Outfitting/Hunting, eg:

• Campbell’s Outfitters• Entrepreneur businesses: Elastec, Dinger Bats

GW Notable• Wabash River• Business connections with Indiana• Interstate (I-64); proximity to Evansville, IN• Nearby Toyota plant (Princeton IN)• Postcard small towns• College System: Illinois Eastern Community

Colleges, Frontier, Wabash Valley• Oil reserves • Online education initiatives• Major regional business owners live in the area• Major source of water in the area• Lower unemployment rate then the rest of SI

GW Notable• Wabash River• Business connections with Indiana• Interstate (I-64); proximity to Evansville, IN• Nearby Toyota plant (Princeton IN)• Postcard small towns• College System: Illinois Eastern Community

Colleges, Frontier, Wabash Valley• Oil reserves • Online education initiatives• Major regional business owners live in the area• Major source of water in the area• Lower unemployment rate then the rest of SI

Economic Profile: Greater Wabash COI6.03 Economic Picture by Sub-Region

GWGW



Greater Wabash COI: Goals

Greater Wabash Region


2012 Same

Trend

2012 Goal

Change vs. Baseline


Population (2004) 51,421 49,561 53,000 +3.1% +6.9%


31,980 30,777 32,913 +2.9% +6.9%

Labor Participation (16-64) (2000) 71.1% 71.1% 72.5% +1.97% +1.97%


Average Wage 2004 $26,311 $33,671 $36,517 +$10,206 +$2,846



NEW JOBS: 1,381 WAGE: $43,500 $60.1m

NEW JOBS AT AVERAGE WAGE: 920 WAGE: $36,517 $33.6m




GWGW


Greater Wabash COI: Opportunities6.03 Economic Picture by Sub-Region

GWGW

• Energyo Become an Alternative Energy Capital of the Worldo Methane Gas, ethanol and bio-diesel, geo-thermal technologies,

green coal concept

• KBEo Recertification programso Connect with tourism to improve quality of the industryo Continuing education; lawyers, accountants, realtors, etc.o Local PC support group

• Tourismo Four wheeler activities, racetracks, competitions, training tracko Hunting facilities and guide services, turkey and deero Lone Ranger Festival, Mt. Carmelo Beall Woods, trails, improvement of facilitieso Underground coal mine park view the faulto Underground four wheel tours and adventureso Develop a spillway for the Wabash River; 4 ft.


GW Opportunities• Leverage the community college system for high

demand online areas such as nursing• Attractive climate and environment for KBE workers • Utilize the college system to attract young adults to

slow the youth brain drain • Unique small town atmosphere near Evansville• Entrepreneurship and business incubation• KBE opportunities from energy knowledge base• Utilization and leveraging of the expanded

broadband infrastructure; education, services, connections with external resources and customers

GW Opportunities• Leverage the community college system for high

demand online areas such as nursing• Attractive climate and environment for KBE workers • Utilize the college system to attract young adults to

slow the youth brain drain • Unique small town atmosphere near Evansville• Entrepreneurship and business incubation• KBE opportunities from energy knowledge base• Utilization and leveraging of the expanded

broadband infrastructure; education, services, connections with external resources and customers

GW Key Trends• Significant youth brain drain• Out migration of healthcare services to Indiana• Employment opportunities in Indiana• Substantial consumer spending in Indiana• Expanded economic dependence on Champion

Labs and Airtex• Strong base of annual community events• Large farmers purchasing additional land• Limited availability of workforce• Growth and improvements in Fairfield• East of I-57 & South of Hwy 50 negative growth

GW Key Trends• Significant youth brain drain• Out migration of healthcare services to Indiana• Employment opportunities in Indiana• Substantial consumer spending in Indiana• Expanded economic dependence on Champion

Labs and Airtex• Strong base of annual community events• Large farmers purchasing additional land• Limited availability of workforce• Growth and improvements in Fairfield• East of I-57 & South of Hwy 50 negative growth

GW Challenges• Youth brain drain• Uncomfortable attitude towards change• Bedroom community (for out-of-state employment)

and spending)• Consumer spending trend in Indiana• Residential curb appeal – risk of lowering value• Lack of a clear regional differentiation in SI

GW Challenges• Youth brain drain• Uncomfortable attitude towards change• Bedroom community (for out-of-state employment)

and spending)• Consumer spending trend in Indiana• Residential curb appeal – risk of lowering value• Lack of a clear regional differentiation in SI

GW Climate for Growth• Unique small town atmosphere; bedroom

community• Low cost property values• Export of educational programs• Oil, gas and coal extraction knowledge• Entrepreneurship strategy – business

incubation linked with expertise and existing loan funds; GWRPC, SDC, City of Carmi, Wayne City, City of Fairfield

• KBE businesses and employment

GW Climate for Growth• Unique small town atmosphere; bedroom

community• Low cost property values• Export of educational programs• Oil, gas and coal extraction knowledge• Entrepreneurship strategy – business

incubation linked with expertise and existing loan funds; GWRPC, SDC, City of Carmi, Wayne City, City of Fairfield

• KBE businesses and employment

Greater Wabash: Highlights



GWGW


Economic Profile: Greater Egypt COI


Top three GDP generators


2. F.I.R.E. – 18%

3. Manufacturing – 11% Highest in SI region

Jobs % Average

Wage


Government 17,306 13% $51,139

Health 15,028 11% $29,363


Education 11,690 9% $28,285

Tourism 11,493 9% $16,332


F.I.R.E. 7,881 6% $59,430

Transport & Utilities 5,615 4% $51,749


KBEs 6,227 5% $57,658

Other 13,250 10% $29,947

Total 134,685 100% $38,703




GEGE

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

S5 SE GW GE

SI Number of Jobs by Region


Greater Egypt: Population Trends Prison Population Adjusted

19802004 est.

Change2004 est. Adjusted

Change Adjusted

Franklin 43,393 39,498 (-9.0%) 39,498 (-9.0%)

Jackson (P) 61,846 58,186 (-5.9%) 56,031 (-9.4%)

Jefferson (P) 36,837 40,323 9.5% 38,463 4.4%

Perry 21,794 22,691 4.1% 22,691 4.1%

Randolph 35,686 33,242 (-6.8%) 33,242 (-6.8%)

Williamson 56,846 63,124 11.0% 63,124 11.0%

GE Region 256,402 257,064 0.2% 253,049 (-1.3%)

Comparison during same period: USA + 31.1%, Illinois +11.2%

Lowest % population loss in SI region from 1980 to 2004Largest prison population in SI approx. 4,000

Population figures included SIU students = 21,000+ per year

Lowest % population loss in SI region from 1980 to 2004Largest prison population in SI approx. 4,000

Population figures included SIU students = 21,000+ per year


GEGE


Comparisons with IL Industry Mix:Higher than State Average in Services, Gov’t Jobs

Greater Egypt employs more workers than Illinois average in retail trade, lodging accommodation, food services and government jobs

GE is below average for KBE related jobs** such as finance, professional and technical even with a major University

Source: Bureau of Economic Analysis

Percentage of Non-Farm Jobs by Sector

Combined =1/2 of State

average


GEGE

IL (%) GE (%) Difference

Wholesale Trade 5.1 1.6 -3.5

Retail Trade 12.0 16.6 4.6

Finance and Insurance** 7.0 4.9 -2.1

Professional and Technical** 7.8 2.5 -5.3

Administrative 7.6 4.9 -2.7

Accommodation & food services 7.2 9.8 2.7

Government (includes SIU staff) 14.1 27.5 13.3

% Non-farm employment 60.8 67.8


SIUC: an Economic Engine in SI

21,598 enrolled in 2006 $13,520/yr per student spent locally Every 100 students generate 18 local

jobs Direct economic impact = $284 million R&D Research Spending $150 million R&D parks in the SI region $70 million

impact on local economy SIUC is one of the largest employers

in Greater Egypt with 5,042 FTE jobs

Source: SIUC Provost & web site

Total Economic Impact ≈ $653 million 5.8% of Greater Egypt’s GDP

Total Economic Impact ≈ $653 million 5.8% of Greater Egypt’s GDP


GEGE


GE Traditional Business Strengths• Wholesale & retail• Healthcare• Manufacturing • Education• Tourism• Coal mining

GE Traditional Business Strengths• Wholesale & retail• Healthcare• Manufacturing • Education• Tourism• Coal mining

GE People, Land & Jobs• % of IL Land Mass = 5.6%• % of IL Population = 2.0%• % of IL Employment = 1.9%

GE Dependencies• Public sector employment• Transfer payments• SIUC• Large manufacturing companies and employment

GE People, Land & Jobs• % of IL Land Mass = 5.6%• % of IL Population = 2.0%• % of IL Employment = 1.9%

GE Dependencies• Public sector employment• Transfer payments• SIUC• Large manufacturing companies and employment

GE Rising Business Stars• Tourism, including ecotourism and vineyards• Minor league baseball; Southern Illinois Miners • Alternative energy, including ethanol• Health services• Advanced manufacturing• Artisans and arts• Warehousing & distribution• Marion Regional Airport• Wineries• Continental Tire• Aisin Manufacturing• Crownline Boats

GE Rising Business Stars• Tourism, including ecotourism and vineyards• Minor league baseball; Southern Illinois Miners • Alternative energy, including ethanol• Health services• Advanced manufacturing• Artisans and arts• Warehousing & distribution• Marion Regional Airport• Wineries• Continental Tire• Aisin Manufacturing• Crownline Boats

GE Notable• Southern Illinois University Carbondale

R&D knowledge base at SIU• John A. Logan College• Rend Lake College• St. Louis residential impact on Randolph Co. • Highway 13 – I-57 growth corridor• World Shooting Complex• Unique natural features; Lake of Egypt, Crab

Orchard Lake, Rend Lake• Winery growth• Energy knowledge base• Pockets of extreme poverty

GE Notable• Southern Illinois University Carbondale

R&D knowledge base at SIU• John A. Logan College• Rend Lake College• St. Louis residential impact on Randolph Co. • Highway 13 – I-57 growth corridor• World Shooting Complex• Unique natural features; Lake of Egypt, Crab

Orchard Lake, Rend Lake• Winery growth• Energy knowledge base• Pockets of extreme poverty

Economic Profile: Greater Egypt COI6.03 Economic Picture by Sub-Region

GEGE



Greater Egypt: Goals

* Jobs are the result of action plans related to industry cluster and workforce development strategies.

Greater Egypt Region


2012 Same Trend

2012 Goal

Change vs. Baseline


Population (2004) 253,049 258,869 274,432 +8.45% +6.0%


164,134 167,909 179,238 +9.2% +6.8%

Labor Participation (16-64) (2000)

66.0% 66.0% 71.0% +7.6% +7.6%


Average Wage 2004 $27,830 $35,765 $40,765 +$12,935 +$5,000

Total Region Wages 2004 $3,748m $5,019m $6,432m +$2,684m +$1,413m


NEW JOBS:* 10,468 WAGE: $43,500 $455.4m

NEW JOBS AT AVERAGE WAGE:* 6,979 WAGE: $40,765 $284.5m

IMPROVEMENT OF EXISTING JOBS:* 26,937 WAGE: $5,000 $134.7m



GEGE


Opportunity Global/National TrendIndigenous Resource

Leveraged

Securing Foreign Trade Zone for the region

Relationship of the Americas to the rest of the world

Location – interstate highway system, rivers

Gain more inter-modal facilities and ports

Short sea shipping & river Barge Mississippi and Ohio Rivers

Letting Central and Northern IL know that you can ship to many cities to the south from here.

Traditional ports (east & west) are too busy

Our location

Expanding logistics, transportation & storage in the Region

Increased emphasis on inland intermodal logistics

Mid-America location IL 24, 57 & 64

Increasing Freight and Passenger Air Service

New transportation systems Our area airports

Diversifying the face of the region Diversity

SIU international student body, Tech Center, Community Colleges

Health Care being tasked with caring for Spanish speaking

Increased influx of Hispanics Bilingual individuals

Net Energy Exporter High petroleum pricesBiomass Crops, Coal, Steam,

Research Centers

Greater Egypt COI: Opportunities6.03 Economic Picture by Sub-Region

GEGE



OpportunityGlobal/National

TrendIndigenous Resource

Leveraged

Become a National Leader in Water Recycling Possible water shortages Water

Maximize our ability to offer affordable fuel Upward trend of transportation fuel

Biomass hydrogen

Ethanol-Bio-dieselNeed for energy

Corn-soybeans-coal water availability?

Rend Lake - Tourism Opportunities: Randolph County, Crab Orchard, Linking State Parks (Bike Trails/Repair shops), Road Maintenance, Google: SI Tourism

One stop shopping at a central website/the opportunity to find prospects and pay at one site

Tourism opportunities: natural resource, regional package,Little Hot Spots/World Shooting Complex/Pyramid State Park (needs promotion)

Call Centers Those jobs going overseas

People & products competitive wages

Tourism Support Booking an entire trip online

Extensive tourism destination assets

Mentorship: Business owners teaching our young people how to start a successful business

Aging of the population Experienced successful retirees

Commercialization of Regional Private Research/KBEs

Growth of business innovation

SIU

Incubation (Needs to Cross COI boundaries) Network Action Team that works independently

Growth of global incubation seeking access

Existing incubators & research parks

Greater Egypt COI: Opportunities6.03 Economic Picture by Sub-Region

GEGE



GE Opportunities• Highly educated population• Technology transfer from SIUC and SIUE• Quality of place and proximity to St. Louis• Energy sector: coal, alternative fuels, etc.• Foreign student population at SIUC• Workforce development resources - Man-Tra-Con• SIU & community colleges• Price of residential and commercial real estate• Transportation Education Center at SIUC• 1,000’s of skilled dislocated manufacturing workers• Young entrepreneurs and companies/creative class

GE Opportunities• Highly educated population• Technology transfer from SIUC and SIUE• Quality of place and proximity to St. Louis• Energy sector: coal, alternative fuels, etc.• Foreign student population at SIUC• Workforce development resources - Man-Tra-Con• SIU & community colleges• Price of residential and commercial real estate• Transportation Education Center at SIUC• 1,000’s of skilled dislocated manufacturing workers• Young entrepreneurs and companies/creative class

GE Key Trends• Hwy 13 & I-57 corridor growth• SIU Declining Enrollment• Medical professional recruitment difficulties• Growing population of young professionals• Growth and investment in Randolph County• Growth of Cedarhurst Center for the Arts in Mt. Vernon• Growth of wine industry and winery destinations• Turnaround of Continental Tire• Growing artisan community including Southern Five • Local leadership conducting Energy Symposiums• Leadership understanding that GE can benefit from a

regional SI economic initiative

GE Key Trends• Hwy 13 & I-57 corridor growth• SIU Declining Enrollment• Medical professional recruitment difficulties• Growing population of young professionals• Growth and investment in Randolph County• Growth of Cedarhurst Center for the Arts in Mt. Vernon• Growth of wine industry and winery destinations• Turnaround of Continental Tire• Growing artisan community including Southern Five • Local leadership conducting Energy Symposiums• Leadership understanding that GE can benefit from a

regional SI economic initiative

GE Challenges• Culture of Poverty• Comfort with being the dominate economy in SI• Population decline even with a major University• 2,000 recent dislocated workers• Lack of quantity and commitment of leadership• Weak region wide communication• Limited access to public and private capital • Cost of transportation for goods• Anti-business climate•Litigious environment•Bureaucratic mind-set

GE Challenges• Culture of Poverty• Comfort with being the dominate economy in SI• Population decline even with a major University• 2,000 recent dislocated workers• Lack of quantity and commitment of leadership• Weak region wide communication• Limited access to public and private capital • Cost of transportation for goods• Anti-business climate•Litigious environment•Bureaucratic mind-set

GE Climate for Growth• Rebirth of coal industry• Movement of high net-worth individuals from

St. Louis to Randolph County• SIU research and development departments• Knowledge Based Enterprises working closely

with SIU research departments• Outdoor recreation activities• Arts and culture linked with wineries• Transportation and logistics hub; air, rail,

interstate• Senior living

GE Climate for Growth• Rebirth of coal industry• Movement of high net-worth individuals from

St. Louis to Randolph County• SIU research and development departments• Knowledge Based Enterprises working closely

with SIU research departments• Outdoor recreation activities• Arts and culture linked with wineries• Transportation and logistics hub; air, rail,

interstate• Senior living

Greater Egypt: Highlights



GEGE


Regional Economic Summary

Greater Egypt (64% GDP and 61% of SI population) dominates the SI region — bodes

well for GE, but weak neighbors impact the entire neighborhood

SI possesses the economic critical mass ($17.6B GDP) and the population (419,992) to

compete with many metro areas and especially globally

SIU has a significant direct economic impact on the region ($284 million), but could

have a much broader benefit

The region has numerous major private sector employers that need to be engaged in

Connect SI to support competitiveness; Continental Tire is a example

The predominance and burden of government on the regions GDP (20%) needs to be

reduced immediately to allow growth to occur including restructuring of tax base

SI has a robust inventory of unique natural and knowledge assets that are not being

leveraged

The region possesses a vast variety of small town amenities and qualities that are in

demand by KBE workers that can chose where to live






This Section provides a condensed overview of the livable community assets, conditions and trends of each of the economic sub-regions of SI.


Livable Community: Introduction

In a Knowledge Based Enterprise (KBE) economy livable community elements are valued equally with economic development

Development of a Livable Community is the foundation from which successful and sustainable economic growth becomes possible

Highly successful regional economies have realized the value of well planned livable community programs in attracting new businesses and workers

Highly skilled, mobile and well compensated KBE professionals can chose where to live and work



Resources Required for a Livable Community (1 of 2)

Healthcare — Meet the health and social needs (including physical, mental, spiritual and

emotional) of the community citizens

Arts/Culture/Heritage — Support for enhanced arts, culture and heritage, assure they

will stimulate and support the transition to sustainability in your community

Recreation & Leisure Activities — Provide recreation and leisure activities for both

residents and visitors. Deliver or exceed expectations while protecting the environment

Economic Opportunities — Focus efforts on how your community will create a strong

and sustainable local economy, innovative and resilient businesses supported by a strong

skilled workforce

Energy Resources — Access to low cost, reliable, sustainable energy while managing

greenhouse gas emissions and air quality

Water Resources — A dependable supply of high quality water in a way that maintains

healthy aquatic environments and uses water efficiently

Localized Food Systems — Ensure a healthy, nutritious and sustainable food supply

that maximizes opportunities to build the social, ecological, cultural and economic capital

of the community, “Grow and buy local” campaigns help any community


Source: VE Alliance Research


Natural Environment — Seek ecosystem integrity and biodiversity will be protected

and where possible restored in your community/region

Built Environment — Develop and renovate buildings, neighborhoods and facilities

that will contribute to making your community unique, livable and sustainable

Transportation — Move residents, employees, visitors, and materials to, from and

within the community in a more effective & sustainable manner

Life-Long Learning — Provide residents of all ages formal and informal lifelong

learning opportunities both online and at physical locations

Healthy Community — Community culture that places superior value in health and

promotes activities that support healthy living

Affordability & Housing — Make living and playing in your community affordable for

residents, and also meets housing needs of diverse permanent residents

Resources Required for a Livable Community (2 of 2)6.04 Livable Community: Assessment

Source: VE Alliance Research


Key Findings of 2004 Illinois Poverty Report

1. Poverty and its impacts are pervasive in Southern Illinois

2. The rural disadvantaged are typically older, less healthy

and less active in the work force

3. Gaps in transportation, economic, health, housing

infrastructure, and loss of population plague high poverty

areas

4. Lack of education attainment in rural areas impedes

improvements

5. Earnings of workers in rural areas substantially lag urban

areas

Source: Key findings of the 2004 Report on Illinois Poverty“An Analysis of Rural Poverty,” Heartland Alliance



Pervasive Poverty

Only one SI county (Randolph) has a lower % of poverty than Illinois

Only one SI county (Randolph) has a lower % of poverty than Illinois

Source: 2000 US Census

Poverty as a % of Population by SI

0%

5%

10%

15%

20%

25%

30%

AlexanderGallatinHamilton

HardinJacksonJeffersonJohnsonMassacPope

PulaskiRandolph

SalineUnionWhite

WilliamsonFranklin

PerryWayneEdwardsWabash

Series1

Poverty as a % of Population by SI

0%

5%

10%

15%

20%

25%

30%



PulaskiRandolph

SalineUnionWhite

WilliamsonFranklin


Series1

U.S. Average 12.7%

Illinois Average 10.7%



Pervasive Poverty Impacts the Sense of a Bright Future for the Children in SI

Children in poverty — twice the rate (22%) than that of Adults 65+ in SI (11%)

Children in poverty — twice the rate (22%) than that of Adults 65+ in SI (11%)


Children vs. Adults 65+ in Poverty by SI County

0%5%

10%15%20%25%30%35%40%45%



PulaskiRandolph

SalineUnionWhite

WilliamsonFranklin


Children

Adults 65+

Children vs. Adults 65+ in Poverty by SI County

0%5%

10%15%20%25%30%35%40%45%



PulaskiRandolph

SalineUnionWhite

WilliamsonFranklin


Children

Adults 65+

Children U.S.

Average 17%

Adults 65+ U.S.

Average 9.6%



Highest % in rural region

Highest poverty rate

Highest unemployment

rate since 09/03

Lowest % college

graduates

Highest % enrolled in Medicaid

Highest % age 5+ with a disability

#1 #1 #1 #1 #1 #1

Highest % of population over age 65

Highest % age 65+ in

poverty

Highest % age 65+ with a disability

Lowest % of population 0-10

Highest % age 0-17 in

poverty

Highest % households

owner burdened

#1 #1 #1 #1 #1 #4


lack complete plumbing


lacking complete kitchen

Highest % commuting to

work from other IL counties

Lowest % population

work and live in same county


rent burdened

Highest % of Adults with no High School

Diploma

#1 #1 #1 #3 #3 #1

Source: IL Poverty Summit, “2004 Report on Illinois Poverty,” Based on U.S. 2000 Census or IL Dept of Employment Security data & Atlas of Illinois Poverty Spring 2003

High Poverty Rates Impact Many Quality of Life Elements in SI6.04 Livable Community: Assessment


Low Educational Achievement Impacts Other Economic and Community Factors; Healthcare, Social Services, & Poverty

SI Population % 25+ without High School Diploma

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%


HardinJacksonJeffersonJohnsonMassac

PopePulaski

Randolph SalineUnionWhite

WilliamsonFranklin


SI PovertyIllinois Average 11.1%

Only two SI Counties (Jackson & Wabash) have a better than State of Illinois average of citizens without a high school diploma

Only two SI Counties (Jackson & Wabash) have a better than State of Illinois average of citizens without a high school diploma




Youth at Risk & Youth Perceptions

Southern Illinois has mixed youth risk factors: SI counties have higher child abuse/neglect rates and

higher divorce rates than Illinois average Lower high school drop out rates and higher standard

test scores than rest of Illinois Other risk factors are comparable to State averages

Source: IL Criminal Justice Information Authority

Local High School Students: “We want to stay in region, but see no good job opportunities”

“Fear of being stuck here” — the female students defined: “getting stuck means getting pregnant”

Local High School Students: “We want to stay in region, but see no good job opportunities”

“Fear of being stuck here” — the female students defined: “getting stuck means getting pregnant”


Source: RA and EF Hutton Interviews conducted by VE Team


Youth: the Key to SI’s future Young people are being told that working with your hands is a dead end — as

a result there are very few skilled trades people available Schools are outdated in their physical infrastructure and curriculum The SI entrepreneur group recognized and agreed that a top priority in the

region was to implement a youth entrepreneur program

From SI’s youth themselves:

Why should we kids care, when adults don’t enforce the rules to keep our community safe, attractive and vibrant

Most of us are leaving — no apparent job or career opportunities — most needed to work while in school and coveted a job at McDonalds!

We want to stay but can’t; this realization saddens us because the area is beautiful and would be a very nice area to live in

This area is viewed as “dead!”




Affordable Housing With a Hidden Story

SI Advantages Home ownership in

Southern Illinois is higher than in Illinois

Overall, housing costs are low

SI Challenges Much of housing stock is

aging and small Financing can be difficult

since cost of construction is higher than final appraised value

Southern Illinois vs. Illinois:More people own homes, fewer rent

Despite low housing costs, over 21% of households pay more than 30% of income for housing

Despite low housing costs, over 21% of households pay more than 30% of income for housing


0%

20%

40%

60%

80%

Owners Renters

IL

SI

Source: HUD Comprehensive Housing Affordability Strategy (CHAS) Data 2000


Bankruptcy Rates

Illinois Low business bankruptcies High personal bankruptcies IL and the surrounding Midwest

states among the worst in U.S. for personal bankruptcy

Southern Illinois Lowest business bankruptcies in

Illinois If the region was a state, it would

rank # 2 in the U.S. Highest personal bankruptcies in

the state If the region was a state, it would

rank # 45 in the U.S.

State Bankruptcy Rates, June 2005-06

Business Non-Business

Per Business

State Rank

Per Person

Sate Rank

Illinois 0.29% 14 0.59% 36

Indiana 0.46% 35 0.95% 50

Kentucky 0.38% 23 0.71% 44

Missouri 0.25% 9 0.66% 42

Note: Rank of 1 is lowest rate, rank of 50 is highest rate

IL Bankruptcies by District, June 2005-06

Business Non-Business

Northern 0.29% 0.56%

Central 0.34% 0.67%

Southern 0.16% 0.73%

Note: Southern District covers the 38 southernmost counties in IL

Source: U.S. Bankruptcy Courts



Lower Crime Rates SI has 14% lower rate

than Illinois for total crime index offenses

19% lower rate for general thefts – the most frequent

Motor vehicle thefts, robberies, murders also lower in SI than Illinois

SI has higher rate of burglaries and assaults, and sexual assaults

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

Total TheftBurglary

Agrvt. Assault/ BatteryMotor Vehicle Theft

Criminal Sexual Assault

Robbery

IL

SI

2005 Crime: Number of Offenses Per 100,000

Source: Illinois State Police

Meth labs in Southern Illinois remain a crisis — labs operate across the region and users are more common in rural than urban areas

Meth labs in Southern Illinois remain a crisis — labs operate across the region and users are more common in rural than urban areas

Source: Shane Koch et al, “Southern Illinois Methamphetamine…,” 2007.



SI Environment Highlights

Southern Illinois maintains a generally healthy eco-environment

Water quality and quantity is high (state management is higher than

neighboring states)

Open pit mine areas need remediation

Numerous vacant abandoned industrial & manufacturing sites now

are brownfields requiring clean-up

Mild climate year round

Long growing season

Useable waterways and many spring fed lakes

Natural forests aplenty

Ancient history untapped archeology throughout SI

Source: EPA; VE Research & Analysis



SI’s Rich Cultural Assets: Just a Short List

A Range of Museums Offerings Cobden Museum (Cobden) Custom House Museum (Cairo) Elijah P. Curtis Home/ Museum (Metropolis) General John A. Logan Museum (Murphysboro) Edwards County Historical Society Museum (Albion) L. Haas Store Museum, Matsel Cabin Museum,

Sen. Robinson Stewart House (Carmi) Ratcliff Inn Museum (Carmi) Superman Museum (Metropolis) Flourspar Museum Johnson County Courthouse Jefferson County Historical Village (Mt. Vernon)

An Astounding Variety of Annual Festivals & Events Big Muddy Film Festival Shrimp Festival Superman Festival The Archery Shooters Association Pro-Am Little Wabash River Festival Corn Days in Carmi Wabash Ribberfest BBQ Fort Massac Encampment River to River Relay Southernmost Illinois Birding Fest Multiple wine and food festivals

Unique Art Galleries Around the Region Cedarhurst Center for the Arts (Mt. Vernon) Southern Illinois Art & Artisans Center

(Whittington) Southern Illinois Art Gallery Associated Artists’ Gallery (Carbondale) Renaissance House: A Working Art Gallery

(Eldorado) Shawnee Hill Barn Antiques Fox’s Flea Market Antiques

Entertainment Abounds! Harrah’s Casino (Metropolis) SIU Salukis college sports teams (Carbondale) Sesser Historic Opera House (Sesser) Marion Cultural & Civic Center Southern Illinois Symphony Orchestra (SIU) World Shooting and Recreational Complex

(Sparta) Kornbread Junction Southern Illinois Miners Winery Entertainment

The Art Trail of Southern Illinois20 Distinctively Unique Galleries within a 70 mile radius

The Art Trail of Southern Illinois20 Distinctively Unique Galleries within a 70 mile radius



A Community Development Resource SI can be Proud of

Led by Man-Tra-Con, Corporation, Access SI is an online community resource directory designed to support the SI region plus ten additional Southern Illinois counties with a community resource directory

Community citizens have online access to a variety of resources including health, social services, education, governmental, cultural, recreation, civic, and workforce employment training and transition

Unique Features:

• Over 80 service categories are available and searchable on the Internet site

• Semi-wiki format: The site allows or individual and organizational updates with content filtering by Man-Tra-Con

• Allows for volunteers to contact agencies and organizations for support

Unique Features:

• Over 80 service categories are available and searchable on the Internet site

• Semi-wiki format: The site allows or individual and organizational updates with content filtering by Man-Tra-Con

• Allows for volunteers to contact agencies and organizations for support

Qualities to emulate:

• Open access wiki-format that creates efficiency and constant quality improvement

• Achieves the one-spot access for individuals from anywhere in SI

• Creates a collaboration of related services that brings benefit to the citizens of the SI region

Qualities to emulate:

• Open access wiki-format that creates efficiency and constant quality improvement

• Achieves the one-spot access for individuals from anywhere in SI

• Creates a collaboration of related services that brings benefit to the citizens of the SI region

www.accesssi.org



Criteria Rating Assessment Rationale

Healthcare and Social Services

• SI has a solid healthcare infrastructure and services in the GE area, but have limited extension into the rest of the region

Arts, Culture and Heritage

• The region has a robust heritage and history that has not been leveraged. The arts are not well recognized currently, but growing in

Recreation & Leisure activities

• SI has a strong variety of outdoor recreation venues; indoor leisure activity improvements needed to attract KBE workers

Economic Opportunities

• SI has limited economic opportunities, but with a commitment to the Connect SI framework a transformation could occur

Energy Resources• Access to energy is good with localized electrical generation; cost of

electricity has a negative impact on industrial business competitiveness

Water Resources• Quantity and quality of water is good for commercial and residential

users. Multiple lakes is a recreational asset

Livable Community Assessment: (1 of 2)

= Weak to None = Improving = Average = Good = Strong




Natural Environment• The SI regional environment is unique and varied with natural

amenities in close proximity to cities and towns

Governance

• SI governmental structures are in a complicated situation; there is a much larger than average number of entities, most with limited resources and expertise — dramatic restructuring will be difficult to accomplish

Transportation

• The region has complete package of above average transportation access and infrastructure, including interstate highways, railways, airports and waterways; however, outside of the GE area, public transportation is limited

Education and Learning• SI has a strong collection of educational assets that can be utilized to

transform the regions workforce to meet global needs

Housing

• The housing stock overall is aged; current economic climate hinders the development of new housing stock due to cost of construction versus market value; and lack of building standards results in reduced predictability

Localized Food Systems

• The region has tremendous potential to build local food systems with vast agriculture knowledge, research facilities, optimum climate — strategies need to be employed to expand farmers markets and farm to table initiatives

Livable Community: Assessment (2 of 2) 6.04 Livable Community: Assessment


Livable Community: Summary

SI sits in one of the most desirable and livable natural environments in the mid-west, though lags in meeting 21st Century livable community amenities, infrastructure and expectations

Most communities do not have building or zoning standards Many communities do not have 911 emergency communications

systems and in have recently voted them down Access to basic healthcare services in many cities and towns

outside of the GE region are limited SI has a low curb appeal that hinders its ability to attract KBE

businesses and workers

SI has developed a vast amount of community and social service agency knowledge base that can be leveraged for greater benefit for the region






Infrastructure is a key element of community development, which includes both above and below ground components. Infrastructure assets support safe and livable communities.


U.S. Infrastructure Is Failing

American Society of Civil Engineers (ASCE) created an Infrastructure Report Card

U.S. infrastructure is failing The ASCE gives a “D-” grade

to America’s infrastructure

Total U.S. infrastructure needs$1.6 trillion over 5 years

Total U.S. infrastructure needs$1.6 trillion over 5 years

2005 Report Card for America’s Infrastructure

Aviation D+

Bridges C

Drinking Water D-

Energy D

Navigable Waterways D-

Public Parks & Recreation C-

Roads D

Solid Waste C+

Transit D+

Wastewater D-


Source: Report Card For America’s Infrastructure 2005, American Society of Civil Engineers and Infrastructure 2007: A Global Perspective, Ernst & Young


Illinois ASCE Report Card 39% of major roads are in poor or mediocre condition

Motorists spend $2.2 billion a year in extra vehicle repairs; roughly $271 per motorist

17% of bridges are structurally deficient or functionally obsolete

31 state-determined deficient dams

176 high-hazard dams

Dam rehab costs estimated at $171.3 million

Drinking water infrastructure needs $6.15 billion over next 20 years

$11.89 billion in wastewater infrastructure needs

Top three infrastructure concerns in Illinois:— roads, bridges, wastewater —

Top three infrastructure concerns in Illinois:— roads, bridges, wastewater —

Source: Report Card For America’s Infrastructure 2005, American Society of Civil Engineers and

Infrastructure 2007: A Global Perspective, Ernst & Young



Applying the Report Card to SI

If SI’s infrastructure is proportional to Illinois ASCE Report Card:

Roads: Poor conditions cost $40.7 million per year in lost time, additional fuel consumption, and vehicle repairs

Bridges: Approximately 20% of bridges are deficient

Water Systems: SI drinking water infrastructure requires $130 million over five years

Wastewater: $260 million repairs in wastewater infrastructure are needed

Assumptions: 75% of area residents are motorists. Infrastructure requirements allocated as proportion of total population

Given the relatively small population in SI and limited political clout

historically in Springfield and Washington, SI’s infrastructure

may be in greater disrepair

Given the relatively small population in SI and limited political clout

historically in Springfield and Washington, SI’s infrastructure

may be in greater disrepair

Source: Report Card For America’s Infrastructure 2005, InterVISTAS Development Economics 2007



SI Infrastructure: Summary

Nine primary water producing Water Districts serve SI SI water supply is in good shape with excess capacity in most systems Most sewer systems were built during the “coal age”; well built then, but many

don’t meet current design criteria — 30-40 year old systems need repair USDA & IL-EPA have funded rebuilding a number of systems serving 200-300

person communities Most systems can absorb additional population of 20-30% and small business

growth of 20-30 persons per location — out-migration left excess capacity Any major industrial expansion will require additional capacity and existing

sewer system upgrades Road systems are maintained by either township road districts, county, state

or federal governments — annual maintenance of township roads take a backseat to capital improvements

USDA has invested heavily in repaving & upgrading road systems in SI — while many roads have been improved, a lot more needs to be done

Energy supply is reliable with a choice of providers throughout SI

Source: USDA Rural Development Regional Water Systems & Community and Business Program Analysis, GE, SE, S5 & GW CEDS






Chapter 6.06 provides a review and assessment of the health of SI citizens, access and conditions within the healthcare industry, and the work of the Connect SI Healthcare COI.

This Section recognizes the enormous amount of investment and effort already done by the healthcare industry in addressing major fundamental challenges.


Healthcare Assessment: Intro Good physical and emotional health of the region’s workforce is required to build and

sustain a vibrant economy

Healthcare is often viewed as a social service, however, it is an important industry that often supports the economic well being of a region through high paying, high skill level jobs

Access to high quality healthcare services is a predominate decision factor for KBE companies and also for workers when deciding were to live.

Healthcare will continue to be a growth industry as the healthcare needs of 77 million aging boomers increases

Many rural regions are challenged more than urban centers with rising age of residents, diminished resources for care, and declining infrastructure.

Rural regions with high levels of poverty result in elevated demand for mental health providers and services

The CSI Healthcare COI has focused on five measurable improvement targets; Improved health outcomes Provider profitability Regional skills shortage Connectivity



SI Healthcare is Big Business

Healthcare Jobs

% of Healthcare Jobs of Sub-

regional Economy

Total Wages

% of Healthcare Wages of Sub-

regional Economy

% of Total SI Healthcare

Economy GDP

Southern Illinois

22,210 11% $652M 8% 100%

GE 15,028 11% $441M 8% 67.6%

SE 2,264 10% $66.4M 8% 10.2%

S5 2,541 10% $74.6M 8% 11.4%

GW 2,377 9% $69.0M 6% 10.7%

• National employment in healthcare and social services averages 10.9%

• In SI, $93,000 of healthcare spending creates one local healthcare job

• Healthcare industry is the third highest employer in the SI region

• SI Healthcare has a 1.5 economic multiplier on wages

• 49% of healthcare employment is Registered Nurses, Licensed Practical Nurses and Nursing Aides and Attendants

• Over 50% of these jobs have a higher wage than the SI average wage

Source: Connect SI Health Scenario



Healthcare Is Very Complex: SI Is Missing Many Industry Components

PayersFiscal

IntermediariesProviders

(SI Focus)Purchasers Producers

• Government

• Employers

• Individuals

• Employer Coalitions

Public Health Districts

• Insurers

• HMOs

• Pharmacy Benefit Managers

• Medicaid

• Medicare

• NGOs

Hospitals

Physicians

Pharmacies

IDNs**

Pharmacies

Alternate Site Facilities

Community Health Sites

• Wholesalers

• Mail Order Distributors

• Group Purchasing Organizations

• Drug Mfrs

• Device Mfrs

• Medical Surgical Manufacturers

• Health Information System Firms

Source: Wharton School Study of Healthcare Value Chain - Commissioned by The Center for Healthcare Management Research

* IDN= Integrated Delivery Networks


In order for SI to achieve the goals set by the Healthcare COI, many more organizations along the Healthcare Value Chain

need to be brought to the table

In order for SI to achieve the goals set by the Healthcare COI, many more organizations along the Healthcare Value Chain

need to be brought to the table


Out-migration of Healthcare Services Are an Economic Opportunity for SI

Regional Hospitals Admissions Patient Days Charges

GE 16.5% 23.2% 26.2%

SE 23.3% 31.9% 42.8%

S5 49.0% 58.9% 62.7%

GW 45.2% 50.8% 62.1%

Total SI Leakage 25.5% 33.1% 37.2%

The total value of healthcare charges being paid outside of

SI region =$1.06 billion

• Missouri Hospitals – 19.8%

• Indiana Hospitals – 8.1%

• Kentucky Hospitals – 7.4%

• St. Johns Hospitals – 1.4%

• Memorial Springfield - .6%

Source: Connect SI Health Scenario, CSI Healthcare COI

Causes of Out-Migration• Misconceptions re type and quality of healthcare services

offered in SI

• Lack of certain healthcare specialists in SE, S5 and GW.

• Population chooses Indiana over GE healthcare facilities

• Follow-ups are also done outside SI — a “ripple effect”

• A perception that bigger hospital provides better service

• Referrals by SI physicians to hospitals outside the area to protect their business clientele

• Successful marketing strategies by hospitals outside SI

SI Regional Healthcare Services Leakage


©2007 ViTAL Economy, Inc.— 94 —— 94 —— 94 —

SI Has Higher Incidents of Serious Illness Than Illinois

SI ILHigher Rate of

Deaths

Coronary Heart Disease

215 161 +34%

Cerebrovascular Disease (Cancer)

66 51 +29%

Lung Cancer 84 53 +58%

Colorectal Cancer 29 20 +45%

Local Hospital Executives: “We have people with worse health and less access to care”

Local Hospital Executives: “We have people with worse health and less access to care”

Increased Deaths per 100,000 Population in SI vs. State of Illinois

Source: IPLAN

• Incidence of many serious illnesses resulting in death are much higher in Southern Illinois than in Illinois

• Lifestyle & preventative improvements are required to address public health




Heart Disease in SI

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%IllinoisEdwards

Wabash

Wayne

White

Randolph

Perry

Franklin

Jackson

Jefferson

Willamson

Hamilton

Pope

Gallatin

Hardin

Saline

Johnson

Massac

Pulaski

Union

Alexander

Greater Wabash

Southern Five

Southeastern

Greater Egypt

Primary Cause of Death — 15 of 20 SI Counties Above State Average

Source: IPLAN



Coronary Heart Disease in SI

0%

5%

10%

15%

20%

25%

30%

35%IllinoisEdwards

Wabash

Wayne

White

Randolph

Perry

Franklin

Jackson

Jefferson

Willamson

Hamilton

Pope

Gallatin

Hardin

Saline

Johnson

Massac

Pulaski

Union

AlexanderSource: IPLAN

Greater Wabash

Southern Five

Southeastern

Greater Egypt




Malignant Neoplasms in SI

0%

5%

10%

15%

20%

25%

30%IllinoisEdwards

Wabash

Wayne

White

Randolph

Perry

Franklin

Jackson

Jefferson

Willamson

Hamilton

Pope

Gallatin

Hardin

Saline

Johnson

Massac

Pulaski

Union

AlexanderSource: IPLAN


Greater Wabash

Southern Five

Southeastern

Greater Egypt



Cerebrovascular Disease in SI

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%IllinoisEdwards

Wabash

Wayne

White

Randolph

Perry

Franklin

Jackson

Jefferson

Willamson

Hamilton

Pope

Gallatin

Hardin

Saline

Johnson

Massac

Pulaski

Union

AlexanderSource: IPLAN; *Note: 8 counties showed “not reported”

Primary Cause of Death — 9 of 12* SI Counties Above State Average

Greater Wabash

Southern Five

Southeastern

Greater Egypt



Lung Cancer in SI

0%

5%

10%

15%

20%

25%IllinoisEdwards

Wabash

Wayne

White

Randolph

Perry

Franklin

Jackson

Jefferson

Willamson

Hamilton

Pope

Gallatin

Hardin

Saline

Johnson

Massac

Pulaski

Union

AlexanderSource: IPLAN; *Note: 4 counties showed “not reported”

Primary Cause of Death — 7 of 16* SI Counties Above State Average

Greater Wabash

Southern Five

Southeastern

Greater Egypt



Poverty Places Pressure on the Healthcare System

“People in poverty are less able to access preventative care, have limited opportunity to engage in health promotion activities, and are less likely

to be offered health insurance through their jobs. These issues, compounded by rising healthcare costs, leave low-income SI residents

struggling to meet their health needs.” **

“People in poverty are less able to access preventative care, have limited opportunity to engage in health promotion activities, and are less likely

to be offered health insurance through their jobs. These issues, compounded by rising healthcare costs, leave low-income SI residents

struggling to meet their health needs.” **

Individuals Below Poverty Percentage # in SI

Southern Illinois 16.4% 71,584

Greater Egypt 15.2% 45,117

Southeastern 16.9% 7,938

Southern Five 18.4% 10,838

Greater Wabash 16.2% 7,691

United States (overall) 12.7% —

Illinois 10.7% —

Implication: High poverty = High Medicaid Services


**Source: “2004 Report on Illinois Poverty,” IL Dept of Employment Security data & Atlas of Illinois Poverty Spring 2003


SI Has a Higher Amount of Medicare and Medicaid Payments for DRG’s

Payor BreakdownPercent

Connect SI Hospitals

Missouri Hospitals

Indiana Hospitals

Kentucky Hospitals

St. Johns Hospital

Memorial Springfield

THIRD PARTY PAYOR 17.2% 2.7% 28.1% 14.9% 10.1% 18.2%

MEDICAID 13.7% 11.4% 7.2% 4.1% 9.5% 19.6%

MEDICARE 60.2% 44.6% 56.9% 50.3% 62.6% 34.1%

OTHER 6.1% 38.3% 2.8% 27.6% 16.5% 13.8%

SELF PAY 2.9% 3.0% 5.0% 3.1% 1.2% 14.3%

TOTAL 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

Average Per Day Charges

Connect SI Hospitals

Missouri Hospitals

Indiana Hospitals

Kentucky Hospitals

St. Johns Hospital

Memorial Springfield

THIRD PARTY PAYOR $4,514 $8,937 $4,507 $4,761 $6,973 $5,628

MEDICAID $3,122 $2,424 $2,741 $2,940 $4,903 $2,863

MEDICARE $3,454 $4,326 $4,328 $4,275 $7,864 $6,561

OTHER $3,721 $4,566 $2,257 $5,233 $7,366 $6,794

SELF PAY $3,458 $4,801 $5,723 $3,179 $4,922 $5,805

TOTAL $3,562 $4,112 $4,143 $4,436 $7,222 $5,059

Connect SI hospitals have a 23% higher rate of Medicare and Medicaid patients than neighboring hospitals

Note: slide data has been averaged and may not be precisely accurate; DRG – Diagnosis Related Group Source: Connect SI Healthcare COI

• Medicare and Medicaid payments in SI are 25% less than commercial private payor • Medicare and Medicaid payments in SI are 25% less than neighboring hospitals• Connect SI hospitals only receive 71% reimbursement levels of what other neighboring hospitals receive for

medical services



2004 HOSPITAL

VISITS% of VISITS GOAL

Third Party Payer 10,674 16.2% + 5% to 21.2%

Medicaid 11,856 18.0% - 5% to 13.0%

Medicare 32,639 49.6% 49.6%

Other 8,232 12.5% 12.5%

Self Pay 2,409 3.7% 3.7%

TOTALS 65,810 100.0% 100.0%

Changing the Private Insurance Proportion in Payer Mix

Source: CompData, Connect SI Healthcare COI, Illinois Medical Insurance Underwriters, 2005

Proposed5% Swap:

Increasecommercial

clients +5%,

ReduceMedicaidclients

-5%,

Proposed5% Swap:

Increasecommercial

clients +5%,

ReduceMedicaidclients

-5%,

• 72% of SI healthcare payments are Medicare and Medicaid in SI

• Medicare and Medicaid reimburse medical providers 7% less than third party payers

• Co-pay insurance has increased 11-to-14% in the last five years in Illinois

• Nationally, 24.4% of medical services are not paid for by the patient


Achievement of CSI economic growth goals will expand 3rd party revenues, increase access to healthcare, and reduce the n umber of patients/families using Medicare, and dramatically reduce the

percent of uncompensated & under-compensated medical services

Achievement of CSI economic growth goals will expand 3rd party revenues, increase access to healthcare, and reduce the n umber of patients/families using Medicare, and dramatically reduce the

percent of uncompensated & under-compensated medical services


Mental Health Issues and Challenges Are Greater in a Region With High Poverty

Child & adolescent psychiatric services are generally limited in SI Lack of transportation has been determined as the #1 issue facing

patient access, resulting in missed appointments Services for the underserved and low income are lacking and

typically individuals are placed on waiting lists — while waiting many decided not to engage services

SI has a strong perceived stigma of seeking mental health services that creates a barrier to entry

‘Depth-of-enterprise’ limits the ability for patients continued counseling in SI

Source: RA Interviews, Rural Health Association, Illinois Delta Network Summary

“Getting children out of poverty can improve their mental health, but does not fix everything — improvements were seen in behavioral problems, but depression

and anxiety remained largely unchanged” - Journal of the American Medical Association; Duke University 7-yr Study Rural North Carolina, 2006

“Getting children out of poverty can improve their mental health, but does not fix everything — improvements were seen in behavioral problems, but depression

and anxiety remained largely unchanged” - Journal of the American Medical Association; Duke University 7-yr Study Rural North Carolina, 2006



Complications Within the Healthcare Industry Impact Cost, Profitability and Quality of Care

• Bad debt and uninsured patients – bills for service that cannot be

collected

• High level of publicly insured patients: Medicare and Medicaid

• Level of publicly-insured patients likely to rise due to ‘Illinois Covered’

• Rising costs from the delayed and declining reimbursements

• Limited physician control and professional assessments when

referring

• Account receivables over 90 days are approximately 25% of billings

causing excessive burden on operational cash flows

• Abuse and fraud within the entire system for Medicaid and Medicare

• Diminishing physician access for Medicaid patients is compounded by

limited transportation to other counties or states

• Lack of skilled workforce especially in nurses with college degrees


Source: Blue Cross-Blue Shield of Illinois 2004 Study

©2007 ViTAL Economy, Inc.— 105 —— 105 —— 105 —

Projected Health Skills Shortages Will Challenge Connect SI Goals

The U.S. is facing a health skills shortage and so is SI The Connect SI Healthcare Community of Interest (COI)

identified projected needs in many job types The table below reflects projected job needs in the region – a 47%

increase in key health personnel

Areas of Critical Skill Shortages

2004 Employee

Levels

8-Year Change

Based on COI2012 Goal % Change

Registered Nurses 3,249 1,776 5,025 55%

Nursing Aides, Orderlies … 2,210 672 2,882 30%

Licensed Practical Nurses 794 272 1,066 34%

Medical Assistants 336 240 576 71%

Pharmacists 274 192 466 70%

Total Jobs 9,976 4,676 14,676 47%

Projected Health Skills Needs of Select Occupations for SI

Potential Opportunity

Potential opportunity



Potential Critical Skills Goal Impact:New Health Positions

Jobs Earnings GDP Output

Direct SI impacts 4,676 $214,688,000 $260,284,000 $469,836,000

Indirect and induced 2,408 $75,371,000 $156,289,700 $253,371,000

TOTAL 7,084 $282,265,000 $424,506,000 $688,194,000

Total Potential Impact of Critical Skills Goals

Indirect Employment: Employment in down-stream industries that result from the presence of a particular business, activity or industry. Indirect employment is generally generated in industries that supply or provide services the direct business, activity or industry.

Induced Employment: Employment generated because of expenditures made by individuals employed directly or indirectly by the particular business, activity or industry.

Source: Calculated using BEA RIMS II multipliers

SI Healthcare industry has the potential to supply 30% of the Connect SI job goals, but will require tapping existing under-employed and leveraging

the regions vast workforce training and education resources

SI Healthcare industry has the potential to supply 30% of the Connect SI job goals, but will require tapping existing under-employed and leveraging

the regions vast workforce training and education resources



Local Physicians’ Priorities• Expand broadband connectivity for providers & health facilities

• Connections needed in short-term between hospitals, outpatient surgical centers, ambulatory care centers and clinics

• Connections needed for practitioners at home and at office in near-term• Route 13 physician practices meet with NP COI to advance connectivity across all

health centers

• Network Provider meetings in COI regions need to include healthcare providers who can identify connectivity gaps & solutions linked to COI broadband rollout

• Implement regional secure exchange of healthcare information• Critical and urgent care sites, radiology groups, FQHC’s, labs, hospitals, nursing

homes, pharmacies, rehab centers, health departments, free clinics, physicians in the office, at home and on the go throughout SI

• Critical need to simplify and improve healthcare system inter-operability for physicians whose patients are served by multiple independent healthcare sites

• Improve patient outcomes, safety and convenience, reduce liability and malpractice premiums, increase reimbursement, help physicians be more efficient

Source: RA interviews and Healthcare COI



Healthcare Practitioners’ Suggestions for Change

Get doctors to think as a group & establish an identity — we are Southern Illinois, not a suburb of any other region

Share our expertise within the region

Market within our region and to each other (cross referrals), changing referral patterns

Make paperwork easier, more common sense & logical — create a solution that is beyond “individual hospital” mentality

Change competition perception to collaboration model. Receiving hospital compliments the referring physician. This relationship builds

confidence in patient opinion and within the healthcare system. Compliment rather than tear down

Ensure immediate and accurate access to health information

Enable new physicians in setting up their practices — e.g., a business incubator or “welcome wagon”. An outside entity is necessary to

work within the Stark laws


Source: RA interviews and Healthcare COI


Impact of Addressing Physician Priorities

Improving access to medical records Spending more time with the patient by reducing paperwork Providing real-time, continuous loop of patient health information Integrating best practice for the patient, including preventative health

for the general population Helping practitioner to do his/her job by providing them information

about the cases so better care decisions can be made Reducing medical errors Reducing missed preventative opportunities Reducing unnecessary costs, thereby expediting diagnosis and

treatment Working within pay-for-performance initiative

Source: Healthcare COI



Healthcare COI Believes Connectivity Enables Reaching Goals

Connectivity positively impacts health outcomes and industry profitabilityConnectivity positively impacts health outcomes and industry profitability

50 individuals representing 30 different healthcare organizations within the Connect SI region reviewed 14 different connectivity applications

Five priority eHealth applications were identified: Electronic master patient index Linking hospitals and physicians with electronic health records Mental health primary consulting Workforce education and training Tracking system for drug seekers



Healthy Living Strategies: the Key Goal

A shift in thinking is required because medical services alone cannot make people healthy

Healthy living behaviors are the key to healthy lives, and a healthy economy

Healthy People 2010 has identified two key goals Increase the quality and years of healthy life Eliminate health discrepancies

Healthier U.S. identified four pillars Be physically active Eat a nutritious diet Get preventive screenings Make healthy choices

Medical services alone do not create a healthy community — SI citizens have the personal responsibility for healthy living habits and, therefore, improved health outcomes

Medical services alone do not create a healthy community — SI citizens have the personal responsibility for healthy living habits and, therefore, improved health outcomes


Source: Health People 2010



Retention of medical service revenues

• SI has a very high out migration of services to neighboring states, over $1 billion, 37.2% — focus of the Healthcare COI

Profitability

• Healthcare service provider profitability is under extreme pressure with 72% of patients covered by Medicare and Medicaid

Skilled Workforce Availability• The SI healthcare industry is currently challenged with

workforce availability and it will become greater in the future

Specialist Availability• SI has limited specialty healthcare services outside of the

GE region which drives out-migration

Access to Patient History• Physicians and medical service providers cannot access

patient records easily

Mental Health Services• SI has a shortage of mental health services and

professionals

Healthcare Education & Training

• SI has an immediate need for increased healthcare training

Cost of healthcare services • The cost-to-value ratio must be competitive with neighbors

Improved health incentives• Providers, insurers, employers and regulators need to

collaborate to expand preventive programs

VE Assessment: Healthcare6.06 Healthcare: Assessment


Healthcare COI Outcomes: 2012 Goals

The Healthcare Outcomes group identified one key, overarching measure to identify better outcomes through healthy living:

Reduce cardiovascular disease mortality from 215 to 166 deaths per 100,000 population by 2012, a 23% reduction

— based on the Healthy People 2010 goal —

The group identified four strategies to reach this goal and increase healthier living in Southern Illinois; these are:

• Increase physical activity levels (exercise)• Improve eating habits• Decrease tobacco use• Increase diabetes management

Source: Connect SI Healthcare COI



Potential Impacts of Connect SI Job Goals:Improved Healthcare Revenue Mix

Insured population 10%

Medicaid 26%

Medicare 18%

UninsuredUninsured 32% 32%

>$2 BillionNew Annual

Wages

41,461 Existing Jobs

>$5,000/Yr

27,298 NewHi-Wage Jobs

$642 MillionNew KBE Activity

1,600+ Firms

+4500 Families with Healthcare

Coverage

Lift 10,000 Citizens Out Of Poverty

$200 Million Information Technology Investment

0

10

20

30

40

50

60

Estimated Percentage

Note: 60% of the US population hademployment-based insurance in 2004

Current State 2004Current State 2004 Desired Future State 2012Desired Future State 2012

A Far BetterPayor-Mix

than Today

A Far BetterPayor-Mix

than Today

Insu

red

Med

icai

dM

edic

are

Uni

nsur

ed

Source: Estimates based on IPLAN, and Census Bureau data



Healthcare Summary

The SI healthcare industry is big business with even bigger opportunities 11% of SI jobs are in healthcare with an average wage of $36,617

Over 37% of each healthcare expenditure is spent outside the 20 county SI region

(over $1 billion)

74% of patient services inside-SI are only being reimbursed at 71% of the outside

patient services rates

Opportunities: 5% shift in Medicaid to Third Party Payer insurance means +$4.5 million in

increased reimbursements, adding 50 healthcare jobs

$21.9 million in healthcare services recapture, adding 239 healthcare jobs

The overall SI citizens health is lower than Illinois with higher levels of chronic

disease

Opportunity: Education and healthy living strategies are a key component of a robust economic

development strategy







Regional Perspective: Implications SI is below the Illinois average in key community sustaining areas; educational attainment,

population health, poverty, and income The below average elements are balanced by:

Many positive natural resources of the area Strong education facilities Geographic location Economic size Skilled workforce that have great untapped potential

Continued predominance of public sector income dependency stifles entrepreneurship and lowers the chances for growth and economic improvement to occur

Unless private sector business development and incomes increase, the tax base to fund infrastructure improvements is hampered

If the 20-35 age group continues not to see future opportunity in SI and decide to stay, then economic stagnation will very likely continue

Without improved curb appeal, quality housing and sound community infrastructure, attraction and retention of skilled workers is challenged

Continued loss of healthcare revenues to surrounding providers, when equal services are available locally, severely limits healthcare expansion

Limited entrepreneurial structure and incubation facilities restrains SI’s adaptability to global market opportunities



Regional Perspective: Recommendations

Use Connect SI as the vehicle to bring the 20-county region together under a common strategy with critical mass equal to a major metro area

Expand healthy living initiatives and preventative programs — Healthy People = Healthy Economy Implement a more robust communication strategy designed to recognize the uniqueness and many

positive aspects of SI, share short-term wins — helps reorient thinking & build momentum Focus on private sector business development and income supported by linking entrepreneurship,

incubation and finance resources — strengthens the tax base Implement a Youth Engagement Strategy designed to train and retain this key population sector Implement a region-wide Crossing Boundaries Institute to bring together individuals from across the

region to focus on a common vision for SI — collaboration needs to be a guiding principle for all aspects of SI life!

Develop and form a Livable Community Forum to address key challenges of curb appeal and address other elements contained in the livability index

Develop new and innovative financing mechanisms to deal with aging infrastructure Refocus education and training to ensure alignment with new KBE and healthcare workforce

demands as well as address skilled labor shortages Expand and continue the great work of the Network Providers and Healthcare COI’s to collectively

achieve the goals that will enable overall economic improvement


©2007 ViTAL Economy, Inc. 1 Southern Illinois: Garden of the Gods Readiness Assessment Chapter 6: Regional Perspectives January 27, 2008; revised February.

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