Colorado s Competitive Business climate. Tom Clark CEO Metro Denver Economic Development Corporation

Transcription

1 Colorado s Competitive Business climate Tom Clark CEO Metro Denver Economic Development Corporation

2 Major Trends Impacting Us Today 2 34 year old migration Colorado now 4 th fastest growing state and 1 st choice of this key demographic. Retiring Baby Boomers will pose less drain on Colorado/Metro Denver than Midwestern states due to inmigration of this 2 34 crew. Return of oil and gas development to the economy Now a headquarters region: 6 8 new per year No longer the place where companies consolidate out of Now seen as a center of innovation in key industry clusters The return of manufacturing results in lower average wages but creates larger pathways into middle class

3 Most New Activity is Occurring in Clusters Major tax and regulatory changes in California and Illinois drive new activity from outside Colorado. Income tax increases and carbon tax are primary drivers. Tax flight California corporate income tax now 13.%. Illinois corporate income tax % Magnitude of jobs/project is significant

4 Colorado Brand Holds Strong Innovation center Regional, collaborative thinking and acting Your competitive advantage. executive from global company CleanTech hub Educated, healthy workforce Moderate tax environment Strong corporate and governmental leadership with middle right fiscal politics, coupled with more leftcenter social politics Where Midwest sensibility meets California quirkiness.

5 Innovation Clusters in Metro Denver 06-11

6 Metro Denver Industry Clusters 07 12

7 IN 12, ALL CLUSTERS EXCEPT BROADCAST TELECOM SAW INCREASES IN EMPLOYMENT

8 Game Changers USPTO satellite office Non stop to Tokyo and Asia Space Port and UAVs Completion of Air Train Additional destinations in Europe with Icelandair Death of boom and bust

9 How do we compete?

10 0 State Competitiveness Index Beacon Hill Institute 3rd Best 1 Rank DE MA WY WA VT CO NV AR LA WV MS Competitive states have the ability to generate and maintain personal income growth. The State Competitiveness Index utilizes 44 indicators to identify which states are poised for long term prosperity. Colorado has ranked in the top- states since the first publication in 01. Fig. 1

11 Rank rd Best State Competitiveness Index Beacon Hill Institute Colorado vs. Competitors CO UT TX GA AZ NM Governmental and fiscal policy, security, infrastructure, technology, and other factors contribute to a state s competitiveness. Colorado and Utah have consistently ranked among the most competitive states. New Mexico continues to rank toward the bottom Fig. 2

12 Rank Venture Capital Investments per $1,000 of State GDP PricewaterhouseCoopers MoneyTreeReport 3rd Highest MA CA CO NH VA IA AK WV SD WY Venture capital investments are often highest in states with a strong culture of innovation and entrepreneurship. With 1 completed deals in 11, venture capital investment in Colorado was about $628 million. Wyoming was one of several states that had no significant investments in Fig. 21

13 Initial Public Offerings Information Technology and Innovation Foundation; Ewing Marion Kauffman Foundation 0 (Top Five States) 1 th Highest Rank WA MA CA CO IL This measure ranks states based on the number and value of initial public offerings (IPOs) as a share of total worker earnings. Many states tie for last place in this ranking with no IPOs issued in the measured years. Colorado companies are among the top creators of IPOs in the country. Fig. 23

14 0 Number of Patents Granted per One Million Residents U.S. Patent and Trademark Office 12th Highest Rank ID VT CT MN MA CO AK AL WV HI MS Colorado s high concentration of tech workers and strong research universities create an environment conducive to new inventions. With 470 patents granted per one million residents in Colorado, the state vastly outranks states such as Mississippi. Fig. 33

15 0 1 Rank Lowest Workers Compensation Rates Oregon Department of Consumer & Business Services 8th Lowest VA IN SC KS MD CO NV RI CA LA FL Colorado s average workers compensation rate of $1.42 per $0 of payroll in 12 was nearly percent lower than it had been in 00. Colorado s average rate has declined steadily since reform measures were introduced in Fig. 61

16 Percentage of Public School Fourth Graders Proficient or Better in Reading National Center for Education Statistics 0 1 9th Highest Rank 2 3 CT MA NH NJ MN CO CA NV LA NM MS Colorado not only has a high percentage of proficient fourth grade readers (38. percent), it exceeds every other western state in the percentage of fourth graders who read at advanced levels. Fig. 89

17 Percentage of Public School Eighth Graders Proficient or Better in Reading National Center for Education Statistics 0 1 Rank th Highest MA NH SD VT ND CO LA HI MS NV NM Colorado s eighth grade reading rankings have not been as consistent as its fourth grade rankings, with its rank generally fluctuating in the second quartile. The state s percentage of eighth graders proficient or better in reading increased from 34.6 percent in 07 to.3 percent in 11. Fig. 93

18 0 1 Lowest Obesity Prevalence Among Adults Trust for America s Health Rank st Lowest CO HI MA RI VT KY LA WV AL MS Colorado s adult obesity rate exceeded percent for the first time in 11. However, Colorado still reports the lowest adult obesity rate in the nation. Healthy workers are more productive, require fewer health services, and enjoy longer working lives. Fig. 12

19 Infrastructure Index Beacon Hill Institute 0 2nd Best 1 Rank AK UT CO NH WY LA IL NY AR MS Beacon Hill Institute s infrastructure index is a sub index of the State Competitiveness Report. The index is comprised of the concentration of mobile phones, access to high speed lines, air travel, worker commute times, and access to an affordable cost of living. While the indicators have changed slightly over time, Colorado consistently ranks well in the infrastructure index. Fig. 11

20 Lowest State Tax Revenue per Capita U.S. Census Bureau, Government Finance Series 0 1 Rank th Lowest SD TX TN NH AL CO MA MN DE HI CT Colorado has a decentralized tax structure with low levels of state government taxation. Colorado ranked th in with an average of $1,700 per person received in state tax revenue. Georgia ($1,600) ranked first while Alaska ($6,3) ranked last due to its high level of energy related tax revenues. Fig. 1

21 0 1 Rank 2 3 Lowest Residential Property Tax Rate in Largest City in Each State District of Columbia, Office of the Chief Financial Officer 3rd Lowest HI AL CO WY NY WI NH NJ RI CT Passed in 1982, the Gallagher Amendment has kept the assessment ratio of residential property in Colorado low. As a result, Colorado has the third lowest residential property tax rate in the nation. The effective rate in Colorado is 18 percent of the effective rate in Rhode Island Fig. 6

22 Challenges

23 Lowest Local Government Tax Revenue per Capita U.S. Census Bureau, State and Local Government Finances 0 1 Rank th Highest AR MS WV NM KY CO MD CT NJ NY States with low levels of state tax revenue generally compensate with higher levels of local government tax revenue; Colorado is no exception with $2,360 in local revenue per capita. Maryland ($2,2), Connecticut ($2,3), New Jersey ($2,860), and New York ($3,749) all rank among the states with the highest taxing local governments and these states have some of the highest state taxes as well. Fig. 169

24 0 Lowest Urban Commercial Property Taxes on $1 Million Property Minnesota Taxpayers Association 1 Rank th Lowest WY HI NV WA NC CO MN CT MI RI IL The Minnesota Taxpayers Association measures the tax burden for a hypothetical commercial property valued at $1 million with $0,000 of fixtures for the largest metro area in each state. Colorado s effective tax rate (1.9 percent) for this type of property ranks in the middle of the states. Fig. 17

25 0 Lowest Rural Industrial Property Taxes on $1 Million Property Minnesota Taxpayers Association 1 Rank th Highest DE HI WY NM MD CO TX SC RI VT KS Colorado s rural industrial tax burden was high partly because of the location chosen by the Minnesota Taxpayers Association. While some rural counties have average mill levies that compare to the rate for Walsenburg, Colorado (about 71 mills), an average rate in rural counties in Colorado is closer to around mills. Fig. 179

26 State Business Tax Climate Index: Corporate Tax Index The Tax Foundation 0 1 th Best Rank NV SD WY UT VA CO IA MA DE MI NH Colorado s flat corporate tax benefits larger corporations. In addition, the single factor apportionment method implemented in 09 allows companies to pay taxes based solely on sales in Colorado. States with no corporate tax rank highest. Michigan s rank jumped to 7th in 12 with the implementation of major corporate tax reform and the elimination of a gross receipts tax. Fig.

27 Lowest State and Local Tax Revenue per Capita U.S. Census Bureau, State and Local Government Finances 0 1 Rank 2 33rd Worst AL TN MS AR SD CO MN MA NJ NY CT While Colorado has one of the lowest levels of state tax revenue per capita, its ranking declines when both state and local tax revenue are considered. Colorado ranked 33 rd lowest among the states with $4,061 in state and local revenue per capita. Fig. 171

28 State Broadband Internet Speeds Communications Workers of America, Speed Matters 0 1 Rank st Highest RI DE NJ NY MA CO WY AR MT AK VT High speed Internet contributes to productivity and a better quality of life. Colorado s ranking improved from 09 to, and the state now ranks among the top 2 states with over half of Colorado residents that have broadband access that meets or exceeds the FCC speed standard of four megabits per second. Fig. 13

29 State and Local Public Higher Education Support per Full Time Student NCHEMS Information Center 0 1 Rank rd Lowest Colorado continues to offer one of the lowest levels of support per full time higher education student ($3,774). The highest level of support was in Alaska ($14,387) in 11. AK GA CT WY HI CO WV MT NH VT Fig. 194

30 Lowest Percentage of Family Income Needed to Pay for a Public Four Year College NCHEMS Information Center Rank rd Lowest WY LA TN GA UT CO OR DE VT PA OH College affordability for each state depends on the cost of tuition, room and board, and federal, state, and institutional aid. About 16 percent of the median family income in Colorado was needed to pay for a public college in 09. This compares to Wyoming at 9.3 percent and Pennsylvania, the lowest ranked state, at 23.2 percent. Fig. 119

31 Highway Performance The Reason Foundation 0 1 Rank 00 34th 2 Lowest WY ND SC GA MT CO AR NY HI MA NJ This ranking is a cost effectiveness index that measures each state s highway budget per mile compared to each system s quality and performance. States with lower ratios do more for less. Wyoming s ratio was 0.8 in 08 compared with the ratio in Colorado of 1.1, which is about equal to the national average of Fig. 218

32 Annual Percentage Growth in Population 3

33 North west Projected Annual Avg. Population Growth by 3: 1.0% North east Projected Annual Avg. Population Growth by 3: 2.6% South west South east Projected Annual Avg. Population Growth by 3: 1.1% Projected Annual Avg. Population Growth by 3: 1.7%

34 Annual Percentage of Job Growth 3

35 North west Projected Annual Avg. Employment Growth by 3: 1.3% North east Projected Annual Avg. Employment Growth by 3: 1.9% South west Projected Annual Avg. Employment Growth by 3: 1.2% South east Projected Annual Avg. Employment Growth by 3: 2.0%