The La Crosse Promise: Economic Impact Study

The Upjohn Institute conducted an economic impact study of a universal, place-based scholarship program for La Crosse, Wisconsin. This study examines the possibility of developing a program similar to the Kalamazoo Promise for the La Crosse area. The La Crosse area is facing a population decline, growing concentrations of low-income students, an aging infrastructure in the region’s largest school district, and regional sprawl that is consuming farmland and natural assets while creating new challenges of congestion and service delivery. As a response to these issues, this study explores the potential impact of a universal, place-based scholarship program

The Employment and Fiscal Effects of Michigan's MEGA Tax Credit Program

This paper estimates that Michigan's MEGA tax credit program to attract and retain businesses has large employment and fiscal benefits. MEGA provides discretionary tax credits to businesses, with the tax credit tied to the personal income taxes paid by employees on the new or retained jobs. We estimate the economic effects of MEGA using the Upjohn Institute's REMI model, and the research literature on how business location decisions respond to taxes. We estimate the fiscal effects of MEGA based on the research literature on how government spending and revenue respond to state personal income and population. The estimates suggest a lower bound to MEGA's effectiveness of being decisive in a little over 8 percent of the MEGA projects. Even with this modest success rate, MEGA is estimated to have fiscal benefits that offset about two-thirds of its gross fiscal costs. The net fiscal costs per job created of MEGA average less than $4,000 per job-year, which is less than the labor market benefits of job creation.State and local economic development policy, tax incentives, fiscal impact analysis, labor market benefits, regional multipliers

Small Cities Blues: Looking for Growth Factors in Small and Medium-Sized Cities

The purpose of this exploratory study is to attempt to identify particular public policies which have the potential to increase the economic viability of smaller metropolitan areas and cities. We identify characteristics associated with smaller metro areas that performed better-than-expected (winners) and worse-than-expected (losers) during the 1990s, given their resources, industrial mix, and location as of 1990. Once these characteristics have been identified, we look for evidence that public policy choices may have promoted and enhanced a metro area's ability to succeed and to regain control of its own economic destiny. Methodologically, we construct a regression model which identifies the small metro areas that achieved higher-than-expected economic prosperity (winners) and the areas that saw lower-than-expected economic prosperity (losers) according to the model. Next, we explore whether indications exist that winners and losers are qualitatively different from other areas in ways that may indicate consequences of policy choices. A cluster analysis is completed to group the metro areas based on changes in a host of social, economic, and demographic variables between 1990 and 2000. We then use contingency table analysis and ANOVA to see if "winning" or "losing," as measured by the error term from the regression, is related to the grouping of metro areas in a way that may indicate the presence of deliberate and replicable government policy.economic, development, growth, factors, erickcek, mckinney, incentives, local, regional, small, medium, cities

Cost Estimations of Potential Scholarship Programs for the Rockford Promise

This brief report presents a 10-year cost forecast for three possible Rockford Promise Scholarship programs: (1) A program that provides full, two-year, tuition scholarships for all Rockford Public School graduates who select to attend the Rock Valley College; (2) The scholarship is available for eligible students who enroll full-time at a partnering college or university in the fall following their high school graduation; and (3) The provision of an annual $4,000 scholarship for all Rockford Public School high school graduates for up to 4 years of college. The report concludes with comments on how the Rockford Promise may best achieve its mission of enhancing the region’s economic vitality

Higher Education, the Health Care Industry, and Metropolitan Regional Economic Development: What Can “Eds & Meds” Do for the Economic Fortunes of a Metro Area’s Residents?

This paper examines the effects of expansions in higher educational institutions and the medical service industry on the economic development of a metropolitan area. This examination pulls together previous research and provides some new empirical evidence. We provide quantitative evidence of the magnitude of economic effects of higher education and medical service industries that occur through the mechanism of providing some export-base demand stimulus to a metropolitan economy. We also provide quantitative evidence on how much higher education institutions can boost a metropolitan economy through increasing the educational attainment of local residence. We estimate that medical service industries pay above average wages, holding worker characteristics constant, whereas the higher education industry pays below average wages; the wage standards of these industries may affect overall metropolitan wages. We also discuss other mechanisms by which these two industries may boost a metropolitan economy, including: increasing local amenities, generating R&D spillovers, increasing the rate of entrepreneurship in local businesses, and helping provide local leadership on development and growth issues. Finally, the paper discusses possible effects of these two industries on disparities between the central city and suburbs in a metropolitan area.higher, education, medical, service, industry, regional, economic, development