Tag: Pennsylvania

  • Pittsburgh’s Brain Drain Game

    Rust Belt communities are obsessed with brain drain. The demographic losers of economic restructuring, cities are employing a variety of strategies to stop the bleeding and keep the talent from leaving the region. Akron, OH recently voted down a proposal to lease the city’s sewer system in order to fund a scholarship program designed to plug the holes of out-migration. The voters balked at the initiative partly as a result of the 30-year residential commitment necessary to reap the full benefits of the funding for post-secondary education in Akron schools.

    You would think plugging the brain drain seems like a good idea. I thought so when I decided to help Southwestern Pennsylvania solve its declining population problem. However, a few months into the project I determined that the exodus from Pittsburgh ended almost two decades ago. The devastating loss of young adults in the early 1980s still echoed throughout the area and informed a great deal of policymaking.

    The most comical anti-brain-drain campaign was Border Guard Bob, a product of the Pittsburgh Regional Alliance who was invented to keep local graduates around home. The pitch was that Pittsburgh is too great of a place to leave, if you knew where to look. Bob was retired before his unveiling, hopefully because he was too ridiculous even for our local leaders, but the spirit behind it remained.

    I’m not aware of any successful anti-brain-drain program, but Pittsburgh continues to try despite having more college graduates than the region can employ. If anything, Greater Pittsburgh suffers from a glut of talent that stubbornly tries to stay. Average wages are below even those in nearby Cleveland, which sports notably more unemployment and a much more acute foreclosure crisis. Yet the initiatives keep coming.

    The Pittsburgh Urban Magnet Project (PUMP) claims to better enfranchise young adults living in the city. The ultimate goal is to retain talent by giving them reasons to stay. Empowering residents is noble enough, but I doubt PUMP can deliver the population boost the City of Pittsburgh desperately seeks.

    Maybe the problem is not that Pittsburgh or other Midwest cities are unattractive places to live. Instead the roots of the out-migration lie elsewhere – in dysfunctional economies and wretched politics. It’s not lack of “cool places” to hang out but things like a declining tax base and a growing pension debt that effectively hamstring the city.

    Frustrated job seekers aren’t heading to the Sun Belt because they need a cooler place to hang out. They are looking for jobs and opportunities. And if they hang around until their thirties, they then leave to the surrounding suburbs and their better schools.

    The Pittsburgh Promise, a child of the Kalamazoo Promise, offers a better alternative. Thanks to money from the University of Pittsburgh Medical Center (UPMC), the City doesn’t have to lease its sewers in order to provide graduates from Pittsburgh public schools with scholarships. The suburban schools don’t look quite so attractive when we are talking about a free ride for college.

    But even if it’s a step in the right direction, the Pittsburgh Promise still won’t keep families from moving to Charlotte, NC. It certainly won’t attract families from Austin, TX. Therein lies the flaw. There are no mechanisms to bring new talent into the region. Without substantial in-migration, particularly immigration, no Rust Belt city is likely to experience an economic renaissance. But the focus is always on the people who leave. The real problem is why people don’t come.

    Just about anywhere in the Rust Belt, the perception of brain drain and actual rates of out-migration are horribly out of whack. This past summer, the Land Policy Institute at Michigan State University issued a report that concluded that the number of young adults in the state was growing faster than the national average during the period of 2000-2006. The cry to stop brain drain in Michigan – epitomized by Governor Jennifer Granholm’s “cool cities” program – has never been louder. The rhetoric doesn’t concern me, but the ineffectiveness of the programs should give everyone pause.

    Basically fighting out-migration is a losing cause. The US Census found a positive correlation between increasing levels of education and the greater likelihood of leaving a region. Should Pittsburgh stop investing in its schools in order to better retain residents? Of course not. But this is no more absurd than spending a lot of money to keep people from seeking opportunity elsewhere.

    If you are a parent, then the idea of moving in order to improve your children’s opportunities makes sense. However, for a community to invest in a student likely to leave the economic area presents a conflict of interest.

    The Pittsburgh Promise isn’t a bad idea. Maybe it will encourage people to stay or even move in from the suburbs given the carrot of subsidized college tuition. But that won’t alleviate anemic regional population growth. Pittsburgh needs to sell itself globally as a place where you can access opportunity, either for yourself or your children. Pittsburgh must attract new blood. Pittsburgh, essentially, needs economic growth.

    I’ve labored over the best way to align the interests of individuals with that of the community concerning geographic mobility. I think the solution is, counter-intuitively, to promote out-migration. Pittsburgh’s exodus during the early 1980s was impressive, perhaps uniquely so. The result is what I call the Burgh Diaspora, the scattered expatriates who still retain an unusual preoccupation with their hometown.

    My idea is to use the Burgh Diaspora like an alumni network, to help Pittsburghers get a leg up on globalization. You can always find an ex-neighbor prepared to help you. Facilitating this odyssey could deepen loyalty and might eventually spark a return migration. But my hope is that non-natives would also appreciate this value proposition, seeking access to the diaspora network.

    Read Jim’s Rust Belt writings at Burgh Diaspora.

  • Pennsylvania – Political Positioning or Realistic Chance?

    The keystone of the McCain campaign’s victory scenario during the final weeks was a surprise victory in Pennsylvania despite that fact that polls (Real Clear Politics had the gap at 7 points on Election Day) clearly showed Obama comfortably ahead. Why?

    Pennsylvania has a Democratic Governor from Philadelphia who was elected twice with sizable margins. Democrats have gotten a big boost over the past two years in voter registration. The political shift from Republican to Democratic in the Philadelphia suburbs is nearly complete – at least when it comes to statewide and federal offices.

    This said, no Democratic candidate has ever held the statewide office of Attorney General. The State Senate had a 29 – 21 Republican advantage going into the election and until 2006 Republicans in the State House held 110 seats to the Democrats 93 (currently 102 – 101 Democratic).

    In other words, statewide the sum of Republican parts remains greater than Republican voter registration. It was this anomaly that very likely gave McCain hope for winning Pennsylvania by running more a regional than statewide campaign.

    This strategy was likely bolstered by what was perceived to be still disaffected Hillary voters. Senator Clinton carried the state by more than 200,000 votes and captured nearly 55 percent of the vote. In Pennsylvania, the divisions between the electoral bases of the two Democratic primary candidates were most clear. Clinton carried the older, rural and lower income Democrats while Obama won the better educated, urban and minority bases. The Clinton Democrats are the same “swing voters” Republicans need to win in the more hotly contested districts.

    Obama won 7 of 67 counties in the Primary Election. Obama’s only significant victory was in Philadelphia County which he carried by 130,000 votes. Obama won only two of the four Philadelphia collar counties. Meanwhile, Clinton won many of the state’s rural counties by margins of 2 – 1 or greater.

    Yet potential weakness for Obama did not overcome the huge challenges facing the McCain campaign. Democrats now outnumber Republicans by 1.1 million registered voters statewide. According to the Pennsylvania Department of State, Democratic registration grew by 855,000 or 14 percent over the past year while GOP registration shrank by 4 percent or 145,000 voters. In 2000, the difference between the parties was less than 500,000. George W. Bush lost Pennsylvania in 2004 having a much more favorable electoral environment than did McCain in 2008.

    The framework for statewide Democratic victories was established by Governor Ed Rendell in 2002. In that race, Rendell won the five counties that comprise the Greater Philadelphia region by 515,000 votes. The vote in the rest of the state, which he lost, didn’t really matter. This is in large measure the model Obama would follow to victory.

    McCain has a far more difficult road to victory. He needed to emulate Republican U. S. Senator Arlen Specter’s 2004 victory, which was based on limiting his losses in Philadelphia County to 270,000 votes and winning Delaware, Bucks, Chester and Montgomery Counties (collar counties) by 145,000 votes. This enabled him to achieve a nearly 600,000 vote victory statewide – the highest margin for any statewide Republican candidate in recent history.

    The other victory scenario was that used by Republican Attorney General, Tom Corbett in 2004. Corbett won statewide by around 100,000 votes. Corbett lost Philadelphia by almost 400,000 votes, but he won all four collar counties albeit with 90,000 less votes than Specter.

    On Tuesday, McCain ended up looking more like a far more strident conservative candidate, former U. S. Senator Rick Santorum who lost to now Senator Bob Casey by more than 700,000 votes in 2006. In that election, Santorum got only 15 percent of the vote in Philadelphia County and lost the collar counties by 175,000 total votes. This was a swing of nearly 320,000 votes compared to those won by Specter two years earlier.

    So why did McCain play the Pennsylvania card? Maybe it was the belief that the state’s “Hillary Voters” still felt disaffected from Obama. It may also have been that he had to believe in Pennsylvania in order to have even the most remote chance at victory. Hoping for an October surprise, he thought Pennsylvania would keep him in the game. Without Pennsylvania the election was almost surely lost with states like Virginia, Ohio, and Florida trending toward Obama.

    In the end, McCain lost Pennsylvania by more than 600,000 votes and one Republican incumbent in Congress lost in the Erie region. Obama won Philadelphia and it collar counties big, basically replaying Rendell model.

    But does this mean that Pennsylvania is now a solid “Blue State?” The answer here is mixed. Republican incumbent Attorney General won statewide by nearly 400,000 votes. The Republican State Senate has seemingly increased its caucus by one Member to 30 – 20. The State House, at this writing, remains in Democratic control by a margin of 104 – 99. Certainly this was not a big change election.

    What we saw here was an anti-Bush vote in Pennsylvania that followed the national trend of wanting a change of direction. Locally, voters seem just fine with a status quo that may tilt a bit blue, but still has room for dashes of red.

    One thing for sure, at least for now the politically powerful southeast collar counties hold the key to winning statewide in Pennsylvania. A candidate must win at least one of these counties to have any hope of a statewide victory.

    Dennis M. Powell is president and CEO of Massey Powell an issues management consulting company located in Plymouth Meeting, PA.