Hartford Business Journal

12 Hartford Business Journal • June 3, 2019 • www.HartfordBusiness.com By Matt Pilon mpilon@hartfordbusiness.com G reater Hartford's econ- omy faces monumental challenges in the years ahead, but that's not stopping regional plan- ners from targeting ambitious growth goals over the next half-decade. What might be the most in-depth economic plan for Greater Hartford in years was quietly published a few months ago, receiving little publicity because it still needs key approvals from state agencies. However, the lack of fanfare thus far belies its contents and vision for the region. The so-called Comprehensive Eco- nomic Development Strategy (CEDS) — developed by the Capitol Region Council of Governments (CRCOG), Hartford Foundation for Public Giving and MetroHartford Alliance in con- junction with outside consulting firms — lays bare many of the weaknesses and threats facing Greater Hartford, but also sets aggressive goals for the region to accomplish over a five-year period starting in 2020: • Population growth of 3 to 4 percent; • Real GDP growth of at least 5 percent; • Slashing, by one-third or more, Black and Hispanic poverty, unem- ployment and income disparities, compared to white and non-His- panic residents. It's a tall order for a region whose population and per-capita GDP have been essentially flat since the end of the last recession, and in a state with some of the steepest income inequal- ity in the nation. Despite that, the leaders of the trium- virate that created the new CEDS all say their targets are achievable, and they're placing a heavy focus on strengthening, rejiggering and investing in — poten- tially to the tune of tens of millions of dollars — the region's workforce-devel- opment strategy. And while some of the plan contains common-sense strategies like staying in better contact with area companies, it also goes out on a limb with some recommendations. For example, it calls for a "regional funding district" that would raise tax revenue to pay for quality-of-life and infrastructure improvements in Greater Hartford. It's a similar system used in other regions across the coun- try like those anchored by Oklahoma City, Pittsburgh and Denver. Here, it would likely mean charging some additional tax (such as a sales tax) to the approximately 38 area towns to help pay for transit facilities, parks, museums, cultural institutions and other public places. Ironically, the same proposal was included in a regional economic-de- velopment plan created 20 years ago, but it went nowhere. That speaks to how difficult it is to act on big ideas, said Lyle Wray, executive direc- tor of the Capitol Region Council of Governments, the organization that would take the lead in pushing such an initiative. It sounds like a tax that could be controversial in the legislature, but Wray said some U.S. regions that have enacted such a system, including Seattle, were once facing their own steep challenges, and are now leaders in population and economic growth. Regardless of how long it takes to garner political support for the new plan, Wray and his co-collaborators vow the CEDS won't "sit on a shelf." Hartford Foundation President Jay Williams, a former mayor of Young- town, Ohio, part of a region with big- ger economic struggles than Greater Hartford's, said he urges perspective and leaving room for some optimism. "This is a region whose momentum is shifting toward an upward trajec- tory," Williams said. "There are very real issues with education funding, the state budget, and infrastructure, but none of them in my mind are insur- mountable over the course of time with a very intentional, deliberate, thought- ful and collaborative approach." Even if the region falls short of the goals by 2025, Williams — who previ- ously served as head of the U.S. Eco- nomic Development Administration — has been deeply involved in CEDS plans at the federal level, and said many regions have been shifting their focus toward workforce development. As a result, common themes in Greater Hartford's new CEDS involve educating and retaining talent, with a focus on underserved populations; enhancing regional amenities and quality of life in order to draw and keep that talent here; and creating a coordinated approach to attracting, retaining and expanding businesses. Williams says Greater Hartford's various not-for-profits, colleges and employers must work together in deep- er ways to "marshal their resources" to develop new and overlooked talent. "The collaboration and approach is more important," he said. An honest look CEDS are done every five years or so in states around the country as a way for regions to qualify for U.S. Depart- ment of Commerce funding. As part of the report, the U.S. Economic Develop- ment Administration demands a "SWOT" analysis for each region. Greater Hartford's plan, titled "Metro Hartford Future," doesn't hold back on listing the challenges and threats the region faces: Sluggish-to- flat growth in GDP, wages, employ- ment, population and new businesses; a declining number of young-adult workers; relatively high property tax rates and a dearth of housing stock for more modest incomes; relatively low high school and college attain- ment rates; an economy that's disproportion- ately weighted toward sectors with lower-pay- ing jobs; sharp income and em- ployment imbal- ances for people of color; a lack of downtown amenities; and, of course, the state's own looming debt crisis. "We're at the bottom on a whole bunch of stuff, we're not where we need to be," said Wray. "The place of a CEDS is to have a clear-headed assessment." Wray and his fellow partners say the 80-page CEDS report represents their attempt to craft just a few strategies, but ones they believe could, if enacted, have a significant impact on the re- gional economy. The plan proposes initiatives that would cost tens of millions of dollars over five years. The biggest ticket item is a $60-mil- lion to $70-million "flexible workforce skills training fund," meant to quickly deploy capital to employers with ur- gent training needs. It's something competitor states Growth Blueprint Greater Hartford's new economic plan contrasts ambitious vision with stark challenges Jay Williams, President, Hartford Foundation David Griggs, CEO, MetroHartford Alliance Lyle Wray on Main Street in Hartford. Wray leads the Capitol Region Council of Governments, which is one of three regional groups that crafted a fresh strategic plan for the Greater Hartford economy. HBJ PHOTO | MATT PILON

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