Kentucky Faces the Future

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Kentucky Faces the Future

• Preparing Our Workforce
• Time is running out!

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The ChallengeKentuckys ability to sustain and
propel a 21st century, Knowledge-based economy,
is dependent on intellectual capital.
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Regions that accumulate the most human capital
will prosper in the 21st century economy.
Source Strategic Plan for the Office for the New
Economy 2002
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Observation 1 Kentuckians are not prepared to
meet the workforce challenges of the New Economy.
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• MIT economist David Birch noted in 1983
• Youre like a Third World country within the
  United States. Your economy is dead because
  youve got the most poorly educated work force in
  America. To become prosperous, you must improve
  your schools and colleges.

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Current data continue to paint a bleak picture
for that future. . .
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With regards to the number of adult Kentuckians
with less than a 9th grade education . . .
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• US average 7.4
• KY average 11.7
• 110 KY counties below the national average

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Counties exceeding the national rate (7.4) for
more than a 9th grade education among adults 25
10/120 counties
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With regards to adult Kentuckians who have at
least a high school diploma . . .
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• US average 80.4
• KY average 74.1
• 109 KY counties below the national average

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Counties at or above the national average (80.4)
for adults 25 with a high school diploma.
11/120 counties
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With regards to the number of Kentuckians with a
college degree . . .
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• US average 24.4
• KY average 20.8
• 115 KY counties below the national average

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Counties exceeding the national average (24.4)
of adults ages 25 with 4 or more years of
college. 5/120 counties
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• What can we do to prepare our workforce?

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• The dilemma of the data.

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• Birchs observation is no longer true . . .
• We no longer have the most poorly educated
  workforce in the country.
• TGFM!

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• According to the 1990 Census . . .
• Kentucky was 49th in percent of adults with a
  high school diploma.
• Kentucky was 48th in percent of adults with a
  4-year degree.

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• We have made significant strides in the past
  decade.
• First in the nation in increased percentage of
  adults with a high school diploma.
• Fourth in the nation in increased percentage of
  adults with a 4-year degree.

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• That would have been great . .
• but no one else
• stood still . . .

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• At our current improvement rate we will hit the
  national average by the next census .
• The bad news is that in 2010 it will be the
  national average of 1990!

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• According to the 2000 Census . . .
• Kentucky was STILL 49th in percent of adults with
  a high school diploma (TGFM).
• Kentucky had improved to 47th in percent of
  adults with a 4-year degree.

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• The Milkin Institutes State Technology and
  Science Index for 2002 ranked Kentucky at 46.
• After significant work and progress, the 2004
  index ranked Kentucky at 48!

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• How did this happen?
• Kentucky slipped two notches to 48th in 2004
  with its biggest regression in risk capital and
  entrepreneurial infrastructure (Milken, 4, 2004)
• Ohios Governor Taft has been moving
  aggressively on the Third Frontier Project . . .a
  1.6 billion plan to create high-paying jobs for
  Ohioans. (Milken, 9, 2004)

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• Kentucky will not have the workforce to sustain
  new economy industries by going from good to
  gooder
• New Economy success is dependent on going from
  good to great.

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Observation 2

• Our success as a state depends on how we meet
  this challenge.

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New Economy Plan

• New Economy Infrastructure
• New Economy Industries for Kentucky

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• New Economy Infrastructure

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New Economy Infrastructure

• Business Startup Assistance
• ICC Program
• Help entrepreneurs launch and grow their high
  tech businesses

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New Economy Infrastructure

• Seed Stage investment funds
• Commercialization Investment Funds (CIF)
• 4.5M pre-seed and seed stage investment funds
• Early high tech companies
• Provide capital and support in new market
  development

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New Economy Infrastructure

• Venture Development
• Commonwealth Seed Capital, LLC
• More robust venture capital industry
• Fund of funds
• 16M invested to date
• 45M in leveraged returns

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New Economy Infrastructure

• Information Technology development
• connectKentucky
• IT focused for enabling and improving Kentucky
  IT infrastructure
• E-learning
• Rural healthcare
• Supply chain managementS

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New Economy Infrastructure

• Seeding Innovation
• Focus on aligning Kentucky education with New
  Economy areas of focus.

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• The ThinkLink Initiative
• Kentucky Department of Education
• Kentucky Education Cabinet
• KCTCS
• P-16 Council
• CPE
• Workforce Development Cabinet
• Partnership for Kentucky Schools
• Office for the New Economy

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• The State Scholars Program
• 4 English
• 3 math (including Algebra II)
• 3 science (biology, chemistry, physics)
• 3 social studies
• 2 foreign language

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• Earls Economics observation
• A GED can be more valuable than a diploma because
  its value is anchored.

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• The American Diploma Project
• Focus on English and mathematics
• Standards Tests
• Achieve, Inc.1775 Eye Street NW, Suite
  410Washington, DC 20006Phone [phone]
  Fax [phone]
• http//www.achieve.org/achieve.nsf/home?openform

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• With open admissions institutions, virtually
  anyone can go to college, and the vast majority
  of high school senior intend to. But about half
  who go never earn a degree 52 percent of those
  with C averages or lower in high school do not
  earn even one college credit.
• from American Educator, Spring 2004

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• New Economy Industries

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New Economy Industries

• Medical Devices
• Circulatory assists

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New Economy Industries

• Biosciences
• Natural Products Industry
• Tobacco and other plants, animals and microbes as
  factories of valuable compounds with applications
  in the pharmaceutical and chemical industries

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New Economy Industries

• Advanced Manufacturing
• Computer-generated virtual environments to
  greatly reduce design and manufacturing costs.
  This will improve Kentuckys ability to retain
  jobs and expand into new markets, including
• K-12 education.

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New Economy Industries

• Energy and Environment
• Coalbed Methane Extraction
• Coal Gasification
• Federal Clean Coal Facility
• Biodiesel

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New Economy Industries

• Safety and Security

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Observation 3

• There are solutions for Kentuckys current
  position.

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• Build and sustain a strong research and
  development capacity.

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• Create and maintain a thriving entrepreneurial
  climate supported by programs that inspire and
  facilitate the commercialization of ideas.

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• Foster and retain a highly motivated, highly
  educated workforce which can participate in and
  prosper from the commercialization of ideas.

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Observation 4

• We all have a role to play in the resolution of
  this problem.

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As history clearly shows, our economy is best
served by full and vigorous engagement in the
global economy. Consequently, we need to
increase our efforts to ensure that as many of
our citizens as possible have the opportunity to
capture the benefits that flow from that
engagement. . .
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One critical element in creating those
opportunities is to provide rigorous education
and ongoing training to all members of our
society.
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Federal Reserve Board Chairman Alan
Greenspan Feb 20, 2004
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The future of our citizens and the economic
future of your communities and the State rests on
our success in producing life-long
learners, capable of participating in the New
Economy.
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There ARE alternative ways to think about the
future of our Commonwealth. . .
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. . .and we must be about the business of
providing them.