Recapping our Fall Policy Symposium

Recapping our Fall Policy Symposium

Economic development and getting the “biggest bang” for public dollars were major themes at our Fall Policy Symposium, which was held in Lincoln on Sept. 1 and attended by more than 190 people.

In his keynote presentation, Dr. Timothy Bartik of the W.E. Upjohn Institute for Employment Research discussed economic development strategies states can implement that offer high return on investment. Such policies include:

• Increased investment in high quality early childhood education, which Dr. Bartik noted can have a 6 to 1 return on dollars (ROI) invested;
• Mandatory summer school for elementary students who are academically behind a grade level, which can have a 13 to 1 ROI;
• Career academies for high school students in fields that play to Nebraska’s strengths, which can have a 13 to 1 ROI;
• Customized job training programs and manufacturing extension services that meet the needs of local employers, which can have a 6 to 1 ROI; and
• Targeted, well-designed business incentives, which Dr. Bartik said can have a 3 to 1 ROI.

Across-the-board business-tax and personal income-tax cuts are not targeted enough to be considered sound economic development policies, Dr. Bartik said, adding that such cuts could actually be detrimental to growth should they be funded by cuts to public services.

Pew-MacArthur Initiative helps governments make better policy choices

The symposium also featured a presentation about the Pew-MacArthur Results First Initiative, which works with states and local governments to implement an innovative cost-benefit analysis approach that helps them invest in policies and programs that are proven to work. As part of a panel that included representatives from the Pew Charitable Trusts as well as Nebraska Sens. Heath Mello and Kate Bolz, Rep. Toby Barker of the Mississippi Legislature discussed using the initiative to improve his state’s corrections system. The Results First Initiative helped identify which corrections functions were evidenced-based and working well and which need to change, Barker said. Evidenced-based policymaking can help states ensure they are getting what they aim for regarding their policy goals and make best use of their limited resources, he said.

Tax cut talk takes focus off real challenges and opportunities

In a discussion of tax reform in Nebraska, Sens. Galen Hadley, Kate Bolz, Jim Smith, Paul Schumacher and Tanya Cook talked about recent tax policy developments in the state and about what may be on the horizon. Sen. Hadley distributed a document that showed the state has passed tax cuts in the past decade that reduced state revenue by about $754 million in this year alone and noted that any real discussion regarding tax cuts must also focus on what services will be reduced to fund the tax cuts. Sen. Smith – who plans to introduce an income- and property-tax cut plan in the next legislative session — said he believes Nebraska needs to lower taxes in order to grow its economy. Sen. Schumacher, however, said constant talk of tax cuts impedes the state from dealing with important challenges such as a budget shortfall, an aging population, issues with the corrections system and growing mental health needs.

Nebraska’s career pipeline lacks balance

The symposium also featured a presentation about Nebraska’s education to workforce pipeline by Sen. Greg Adams, former Speaker of the Legislature and now president and CEO of Accelerate Nebraska. Adams noted that Nebraska has a workforce imbalance that leaves us with too few employees qualified to do jobs that require associates degrees or less and not enough jobs for our residents who have earned bachelor’s degrees. As such, he echoed comments made earlier by Dr. Bartik that Nebraska’s economic focus should be on creating better jobs rather than just more jobs.

NU’s role in economic development

Dr. James Linder of the University of Nebraska discussed the university’s role in growing the state’s economy and noted that the university’s three primary contributions to the state are its graduates, innovation and service. He added that that each year, about 70 percent of NU’s graduates enter into Nebraska’s workforce.

Task force aims to help Nebraska “grow from within”

While discussing the Legislature’s Venture Development and Entrepreneurship Task Force on a panel with Sen. Dan Watermeier and Dan Hoffman, CEO of invest Nebraska, Sen. Matt Williams said a key goal of the task force is to help the state grow its economy from within as, “it’s easier to work with what you have than it is to recruit what you don’t.”

Nebraska has a lot going for it

During a final panel discussion that addressed economic development in Nebraska more broadly, Dr. Bartik said Nebraska has a lot to build on including good schools, safe communities and reasonable home prices. His sentiment was echoed by Jeff Yost of the Nebraska Community Foundation, who said Nebraska is in a good position to create the economy it needs because “things work” in our state.

As noted earlier, presentation slides from the symposium can be downloaded online and video from the symposium is being processed and will be available soon.