1. © Copyright 2005, NorthStar Economics, Inc. All rights reserved. CESA 1: SOUTHEAST WISCONSIN AND THE NEW ECONOMY November 4 tH 2005 WBIA Annual Conference David J. Ward, Ph.D. Founder & President November 4, 2005

2. © Copyright 2005, NorthStar Economics, Inc. All rights reserved. CESA 1: SOUTHEAST WISCONSIN AND THE NEW ECONOMY November 4 tH 2005 2 Regional Partnerships: Basic Elements Need / Problem / Crisis Vision / Direction Leadership that will persist A plan or roadmap

3. © Copyright 2005, NorthStar Economics, Inc. All rights reserved. CESA 1: SOUTHEAST WISCONSIN AND THE NEW ECONOMY November 4 tH 2005 3 PERSONAL INCOME PER CAPITA OF THE U.S., MINNESOTA, AND WISCONSIN Source: Bureau of Economic Analysis

4. © Copyright 2005, NorthStar Economics, Inc. All rights reserved. CESA 1: SOUTHEAST WISCONSIN AND THE NEW ECONOMY November 4 tH 2005 4 VISION 2020: A MODEL WISCONSIN ECONOMY Published by the Wisconsin Technology Council Funded by Mason Wells Private Equity Economic Research by NorthStar Economics

5. © Copyright 2005, NorthStar Economics, Inc. All rights reserved. CESA 1: SOUTHEAST WISCONSIN AND THE NEW ECONOMY November 4 tH 2005 5 NORTHSTAR HIGH GROWTH ECONOMIC MODEL RESEARCH PARKS & INCUBATORS VENTURE CAPITAL ENTREPRENEURS SCIENTISTS ENGINEERS R & D PATENTS RESEARCH CENTERS LOW CRIME RATES GOOD SCHOOLS RECREATION HEALTH CARE TELECOMMUNICATIONS INFRASTRUCTURE ENERGY SUPPLIES DEVICES & TOOLS BANDWIDTH

6. © Copyright 2005, NorthStar Economics, Inc. All rights reserved. CESA 1: SOUTHEAST WISCONSIN AND THE NEW ECONOMY November 4 tH 2005 6 18 Counties Regional approach Workforce focus Regional Stewardship Award Winner NEW ECONOMIC OPPORTUNITY STUDY

7. © Copyright 2005, NorthStar Economics, Inc. All rights reserved. CESA 1: SOUTHEAST WISCONSIN AND THE NEW ECONOMY November 4 tH 2005 7 NEW ECONOMIC OPPORTUNITY STUDY Slow growing workforce Lagging per capita income Lack of educational attainment

8. © Copyright 2005, NorthStar Economics, Inc. All rights reserved. CESA 1: SOUTHEAST WISCONSIN AND THE NEW ECONOMY November 4 tH 2005 8 K-12 EDUCATION AND WORKFORCE DEVELOPMENT AND ECONOMIC DEVELOPMENT ARE INTERRELATED AND INTERDEPENDENT. ARTICULATING THE LINK BETWEEN K-12 EDUCATION AND ECONOMIC GROWTH

9. © Copyright 2005, NorthStar Economics, Inc. All rights reserved. CESA 1: SOUTHEAST WISCONSIN AND THE NEW ECONOMY November 4 tH 2005 9 WISCONSIN STUDY Title The Economic Returns to Wisconsin’s Education System from Investment in Four-year-old Kindergarten Sponsors Trust for Early Education The Pew Charitable Trusts Pre-K Now Authors Professor Clive R. Belfield Queens College, CUNY Dennis K. Winters NorthStar Economics, Inc.

10. © Copyright 2005, NorthStar Economics, Inc. All rights reserved. CESA 1: SOUTHEAST WISCONSIN AND THE NEW ECONOMY November 4 tH 2005 10 NEW ECONOMIC DEVELOPMENT MODEL USING THE RIGHT TOOLS Traditional economic development tools produce a zero public return or worse. See A. Rolnick, Fed Reserve Bank of Minneapolis Returns to high-quality early-childhood initiatives produce strong returns. Perry Preschool 40-year study reports $17-to-$1 total and $13-to-$1 public benefit-cost ratios. (About 18% and 17% internal rates of return respectively.)

11. © Copyright 2005, NorthStar Economics, Inc. All rights reserved. CESA 1: SOUTHEAST WISCONSIN AND THE NEW ECONOMY November 4 tH 2005 11 Minnesota already offers 4K in all 341 School Districts & 4 Tribal Schools Postponing the investment postpones the rewards. It’s good for the kids; It’s good for business; It’s imperative for Wisconsin WISCONSIN 4K BETTER SOONER THAN LATER

12. © Copyright 2005, NorthStar Economics, Inc. All rights reserved. CESA 1: SOUTHEAST WISCONSIN AND THE NEW ECONOMY November 4 tH 2005 12 Participation in the regional economic development discussion Help shape/lead a regional economic vision Workforce Development Curriculum - New Economy Professional Development – New Economy Economic Contribution / Impact of K-12 THE K-12 OPPORTUNITY CURVE:

13. © Copyright 2005, NorthStar Economics, Inc. All rights reserved. CESA 1: SOUTHEAST WISCONSIN AND THE NEW ECONOMY November 4 tH 2005 13 CESA 1 covers most of SE Wisconsin CESA 1 schools play a key role in SE Wisconsin communities CESA 1 has an existing, functioning organization that spans six counties CESA 1 schools are key to 1/3 of the state’s future workforce THE CESA 1 OPPORTUNITY CURVE CESA 1 Strategic Advantages:

14. © Copyright 2005, NorthStar Economics, Inc. All rights reserved. CESA 1: SOUTHEAST WISCONSIN AND THE NEW ECONOMY November 4 tH 2005 14 Higher Education MCW UWM MSOE Marquette Workforce Development Boards PIC SEWDB WOW WDB Tech Transfer MCW Foundation TechStar CATI THE CESA 1 OPPORTUNITY CURVE Here are the potential partners within the CESA 1 boundary: WCTC UW Parkside Carthage College Alverno Cardinal Stritch GTC UW Colleges MATC

15. © Copyright 2005, NorthStar Economics, Inc. All rights reserved. CESA 1: SOUTHEAST WISCONSIN AND THE NEW ECONOMY November 4 tH 2005 15 Economic Development Organizations Chambers Economic Development Corporations (Milwaukee, Waukesha, Racine, Kenosha, Ozaukee) Competitive Wisconsin Greater Milwaukee Committee THE CESA 1 OPPORTUNITY CURVE Potential Partners:

16. © Copyright 2005, NorthStar Economics, Inc. All rights reserved. CESA 1: SOUTHEAST WISCONSIN AND THE NEW ECONOMY November 4 tH 2005 16 The Business Community The Wisconsin Technology Council The Wisconsin Department of Public Instruction The Wisconsin Department of Workforce Development THE CESA 1 OPPORTUNITY CURVE Potential Partners:

17. © Copyright 2005, NorthStar Economics, Inc. All rights reserved. CESA 1: SOUTHEAST WISCONSIN AND THE NEW ECONOMY November 4 tH 2005 17 Move the regional cooperation conversation forward. Create discussion and vision around a “Southeastern Wisconsin Vision 2020”. Create or join regional economic development partnerships. Articulate the positive economic impact of k-12 schools. Align k-12 more closely with workforce development boards. THE CESA 1 OPPORTUNITY CURVE Action Steps: What could CESA 1 do?

18. © Copyright 2005, NorthStar Economics, Inc. All rights reserved. CESA 1: SOUTHEAST WISCONSIN AND THE NEW ECONOMY November 4 tH 2005 18 David J. Ward, Ph.D., President Phone: (608) 279-3393 Email: dward@northstareconomics.com Fax: (608) 441-8064 Web: www.northstareconomics.com