PENSACOLA METRO REPORT 2014

CITIZEN-POWERED CHANGE Students take a reading class over the summer. FCAT results show that 73 percent of Santa Rosa third-graders are proficient in reading; in Escambia it’s 55 percent.

We set standards for third-graders. What about us?

Department of Education announces to Randy Hammer Let’s see what grade the world how well the third-graders did … is CEO and our community earns how many were “proficient” at reading, how president of the they ranked in math, and how their scores Studer Institute, and their school’s scores compared to other an organization By Randy Hammer third-graders in the district and state. committed [email protected] We don’t cut the third-graders any to improving Photo by Matthew Coughlin slack either. If their school earns an F our community’s because of their test scores, it gets printed quality of life. in the newspaper, broadcast on TV, posted e are tough on children. on Facebook and aired on the radio. Sometimes I think we’re tough- What happened to everybody gets a Wer on children than we are on trophy? ourselves. A few months ago the state released eighth-grade science scores were added in, We throw down the gauntlet before last year’s results of the Florida Compre- the state announced Santa Rosa earned an them in the third grade, making sure they hensive Assessment Test. Here’s some of know we’re going to test them and rank what we learned: A last year; Escambia a C. them to see how good they are at reading • In Santa Rosa, 73 percent of third Now here’s my question: and math. Later, we will start assessing graders were proficient in reading; What kind of year did the Pensacola their writing and science skills. We pretty 71 percent in math. City Council have? much let them know it’s going to be this • In Escambia, 55 percent were profi- What about the mayor? way until they graduate from high school. cient in reading; 49 percent in math. How about the Santa Rosa Commis- And, indeed, every spring the Florida • By the time fourth-grade writing and sion? Escambia County Commission?

2 || The Studer Institute || August 2014 Our state legislative delegation? What But there was a time in history when kind of year did we as a community have in StuderInstitute.com we didn’t make excuses. Instead, we made terms of economic development? Find video stories from the topics featured things happen. If we believe it’s important to develop in this report, plus interactive graphics and more, John Appleyard points this out in his standards to measure the performance of our at StuderInstitute.com. book “1887.” Our economy was so dominant third-graders, shouldn’t we also have a way of Follow us on social media for followups, new in the state that Florida’s first chamber of measuring the performance of our commis- information and ideas on how you can help move commerce opened its doors here on Gov- sioners and mayors, a way of telling whether our community forward: ernment and Jefferson streets. Milton and we as a community are moving forward or Bagdad were the timber capitals of the world. backward, just as we do with public schools? Facebook.com/StuderInstitute Pensacola was the red snapper capital of the What do I mean by forward or back- Twitter.com/StuderInstitute world. A decade later, the tallest building in ward? When I moved to Pensacola in the the state would be built on Palafox Street, which today is called Seville Tower. early 1970s to attend the University of West we’re doing as a community. Florida, the average worker in the Pensacola The Pensacola Metro was not only the For example, if Escambia County is tru- metro made 50 cents more an hour than the economic center of the Panhandle in 1887, but ly serious about improving our wages and average state worker. In 1970, we not only also the economic center of Florida. We had an our economy, then as a community we need had one of the best economies in the state, economy and community everybody else want- to work together to improve the high school but one of the best in the Southeast. ed, but slowly over the decades beginning in graduation rate. Jim Clifton, the chairman But 30 years later, in 2001, we made $1 1970, we lost our momentum and our standing. of Gallup, has spent years developing ways less an hour than the average Florida worker. Appleyard, who founded the Appleyard to benchmark the socioeconomic perfor- Today? Agency in 1959, has written dozens of books mance of cities. The high-school graduation We make $8,000 less than the average and pamphlets about Pensacola and West rate is one of the best indicators of a com- American worker, which hurts because back in Florida’s history over the years. He has a line munity’s economic prospects, he says. 1970 we made about the same as the average in “1887” that I think is relevant for us today: When companies explore moving to a American. That’s what I mean by backward. “In the life of every community, there In 2001, the Pensacola News Journal community, one of the first things they look are certain periods during which fate, major teamed with the University of West Florida up is the graduation rate. In Escambia, just decisions and unusual people generate to study what had happened to our wages 64 percent of our high-schoolers graduate. great change.” and living standards since the ’70s. The two For black students, it’s 51 percent. Look around our community. Look staffs gathered and analyzed key economic As Shannon Nickinson pointed out in an at how much we have changed since the and social indicators for Escambia and Santa episode of “Progress + Promise” earlier this devastation of Hurricane Ivan 10 years ago. Rosa counties to produce a 60-page report. year, these figures are morally reprehensible Look at what has risen on our waterfront. The Studer Institute has now partnered and economic suicide. “Not only for these Look at Palafox, named one of the top with Rick Harper and his Office of Econom- students, but the rest of us, too,” she said. downtown streets in America. And look at ic Development and Engagement staff at Clifton writes about graduation rates in AppRiver in Gulf Breeze, which started with UWF to refresh that 2001 report. Accord- his book “The Coming Jobs War.” He says two employees in 2002 and now has 208. ing to the numbers, we’re seeing signs of a kids drop out of school when they lose hope In the stories and pages that follow, rebound. It’s definitely not as much as we they will graduate. And they lose hope when you will read a lot about that progress. But would like, but it is a move forward. they aren’t excited about what comes next you also will read about the challenges. And So why is the Institute doing this? in their lives. there are many. First, we want to help people understand It’s upsetting to think we have so many You will see in this report that a lot of our community. The goal is to provide fact- children who feel this way in our community. good people are making a difference today, based, thoughtful analysis of issues we need to And this is a problem teachers and principals pushing us to have better schools, better address to move our community forward. We can’t fix alone. We as a community have to health, better jobs, a better community, and, plan to do this by establishing key benchmarks make this a priority for all of us. And one of yes, a better graduation rate. And it is this and indicators that we believe the community the best ways to do that is to have a goal — a army of people who have pointed us toward needs to follow to see if we’re making progress. benchmark — that lets us know every year the metrics and indicators that we are put- We all seem to understand the impor- whether or not more than 64 percent of our stu- ting together so that all of us can under- tance of annually keeping an eye on the dents are graduating, or less than 64 percent. stand year-in and year-out if we’re moving reading and math scores of our third-grad- Are we moving forward or backward? forward or backward as a community. ers. The Institute believes it is also import- We all have heard the excuses about Yes, we have problems. But I sense we’re ant to have a way to measure the perfor- why we can’t fix the graduation rate — moving in the right direction. And my hope mance of our community and its leaders. poverty, single-parent homes, drugs, poor is that John Appleyard is right, and today And just as we do with FCAT scores, we parenting, lousy schools, video games. You could be another one of those periods of great need to regularly provide a summary of how name it, we’ve blamed it. change in the life of our community.

August 2014 || The Studer Institute || 3 People gather for dinner at Al Fresco on Palafox Street in Pensacola on a recent Saturday. Al Fresco is among the many charms luring visitors to Pensacola’s vibrant downtown.

atrick Elebash saw something down- ing downtown to town last Christmas that he had never knock out multiple First, the Pseen before. gifts for multiple Shopping bags. Lots and lots of shop- people. ping bags. “I don’t ever good news From lots and lots of stores. remember seeing it The 32-year-old is the fourth generation like this.” to work in the family’s jewelry store that The renaissance of has been part of downtown Pensacola for Palafox Street didn’t Pensacola area has plenty 95 years. happen overnight. to brag about these days “We’ve always been a destination shop, Elebash Its transformation but this last Christmas, I saw people with into one of the 10 bags from Scout or Belle Amie,” Elebash “Great Streets in America,” according to the By Shannon Nickinson says, referring to other, newer additions to American Planners Association, is a sign of [email protected] downtown’s retail landscape. “For the first how far Pensacola has come. Photos by Michael Spooneybarger time it seemed to me that people were com- The vibrancy and excitement about

4 || The Studer Institute || August 2014 downtown is one of the best stories our with faith in downtown. community has to tell about our changing Justin Beck’s commercial real estate fortunes. company, Beck Property Co., will open Other bright spots in the Pensacola 151Main — a 24,000-square-foot, three-story metro include: building — on the Community Maritime • A booming financial services sector, Park property in early 2015. spurred by the $250 million investment that It will include seven retail spaces on the Navy Federal Credit Union is making in first floor and four residential condos on the Escambia County. third floor. Beck Property offices will take up • A tourism industry that rebounded the entire second floor. Beck says the decision after the 2010 BP oil spill and is expanding to build on the CMP site was a mix of timing efforts to tap new markets. and the realities of a booming downtown and • A bubble of technology- and knowl- its hot commercial real estate market. edge-based businesses in Gulf Breeze that Some of the appeal, too, was being able includes boutique specialty medical care to say in the future that they negotiated a at the Andrews Institute for Orthopaedics complex lease process successfully — to and Sports Medicine; Avalex Technologies, prove it could be done. a producer of digital mapping and display; For six months or so, he says, he and email provider AppRiver. listened to people say “Nobody else but • The region’s potential in niche man- Studer can build anything down there.” ufacturing businesses such as Offshore Finally, he says, while talking with Inland and ST Aerospace, which are linked Clark Merritt, he thought, “I should just fig- to industries that are expected to grow over ure it out for myself instead of just listening the next 10-15 years. to everybody else. We proved it does work, “We have competitive strength in busi- you can get it financed, and you don’t have ness services (Navy Federal, also staffing Justin Beck’s real estate company will open a to have hundreds of millions of dollars to firms such as Landrum), and in entertain- 24,000-square-foot building at the Community make a project work over there.” ment (tourism-related areas),” says econo- Maritime Park property in 2015. mist Rick Harper. Navy Federal’s influence “You also can see what we might call ‘areas of opportunity’... which include avy Federal’s sprawling Heritage Oaks transportation and logistics, and education The other key component of opening Ncampus near Beulah is one of this services,” he says. downtown to redevelopment was the Mari- area’s greatest success stories. time Park. The Pensacola Blue Wahoos are It began in 2003 with 11 employees and wrapping up their third season in the park’s plans for a 300-seat call center. Since then, Downtown Navy Federal has expanded to bring its stadium and team owners Quint and Rishy owntown Pensacola never would have current total in the region to more than 3,400 Studer have continued their investment in opened up if the Community Maritime employees. The credit union has invested D Pensacola. Park had not been built and the Main Street more than $250 million in Pensacola. It now includes buildings and busi- Wastewater Treatment Plant had not been An expansion announced last April will nesses at the Palafox and Main streets demolished. add two buildings to the campus and create “The sewer plant was ugly, it upset intersection and a project that likely will 1,500 more jobs, as well as a central energy people, and it said the leaders in Pensacola see the former site of the Pensacola News plant, auditorium, parking structure and don’t care about the waterfront,” says Mayor Journal turned into mixed-use development recreation area. Ashton Hayward. “Think about what that including residential and retail, built next to The company’s anticipated employment said to people. Think about how long it took a proposed $15 million YMCA. figures are so influential that Escambia us to clean up the waterfront, and that’s “I think when you look at people who County Schools Superintendent Malcolm where all the money is.” are buying spaces, redoing their buildings Thomas wants to build an elementary and Demolishing the plant “allowed people and going out and getting new tenants, it is middle school near the Beulah campus. who didn’t understand what the potential was, a great sign,” Elebash says. “You always hear “That’s why the half-cent sales tax is so to see the vision,” Hayward said. “Now they about the proper mix of residential and retail, important,” says Thomas. can look west and they can see Joe Patti’s. bars, restaurants and other businesses. The The sales tax expires in 2018 and is on They can see the waterfront. People can see big missing piece so far has been affordable the November ballot for renewal for anoth- (the lot where the plant used to be) and say, housing downtown. Now it looks like the PNJ er 10 years. It would fund construction of ‘That could be our version of South Street site is going to be that missing piece.” three new schools to alleviate crowding and Seaport,’ or ‘That could be another Aragon.’” The Studers aren’t the only investors to handle anticipated growth in the Beulah

August 2014 || The Studer Institute || 5 corridor connected to Navy Federal. The success of Vinyl Music Hall — and The tax generates on average the investment Evan and Harry Levin made $20 million a year and is a major boost to in turning the Masonic Temple building the local construction industry. into a live music venue that draws artists “It has been for the last 16 years,” Thomas and crowds from across the region — in- said. “When the economy was at its lowest spired people like Joe Abston to invest in point back in 2009, most contractors will tell Hopjacks and the Tin Cow. you we were their biggest customers. We kept And that begat more investment in new them able to keep their men employed and and existing businesses. hanging on until things started to pick up.” “The psychology of people believing we could do all these things is incredibly Expanding tourism markets important,” Hayward says. “People were thirsty for anything but what was. The same hile the beach remains the area’s 10 people were always getting paid and we Wnumber one tourism draw, recent were becoming a rest stop off I-10. People efforts to broaden the area’s appeal beyond don’t like to hear me say that, but that’s the sun-seeker are paying off. Megan Pratt, city councilwoman and director of what we were doing.” The 2014 Pensacon convention for fans the MESS Hall science museum, moved home to There are 37 square miles in the city of sci-fi, comic books, fantasy, horror and Pensacola from Boston with her husband in 2002. limits, which is why, Hayward says, “quality cosplay drew more than people dressed like is everything and that’s why density is so Stormtroopers. It pumped $1.4 million into important. The more of these little pockets the economy in February and brought 11,000 in manufacturing jobs that has swept the na- of cool neighborhoods we build, the more people over a three-day run from as far away tion since the 1970s. But we are capitalizing people will come to our city. If I put quality as California, Minnesota and Arizona. on specialty areas that show promise. on E Street, people will go to E Street.” The typical Pensacon-goer was a Offshore Inland’s lease at the Port of Building the value of what we do have 39-year-old person with a household income Pensacola would provide 100 jobs with an is a key to the city’s ability to retain and of $60,740. And 98 percent of the attendees average wage of $43,680 a year. The compa- attract talented young professionals and interviewed by Majority Opinion Research ny provides engineering support services to other newcomers, Hayward said. about their experience said they would return. ships working offshore in the Gulf of Mexico. Megan Pratt and her husband, Jerry Event chairman Mike Ensley says orga- The 15-year lease should produce at least Pratt, moved to Pensacola in 2002. She is a nizers specifically planned the event for the $200,000 annually to the port in lease, cargo native, a city councilwoman and director of tourism off-season. and vessel fees. Offshore Inland will invest the MESS Hall science museum on Tarrag- “There is a reason that it’s called $10 million to $12 million in its facility at the ona Street. He is a senior researcher at the Pensacon and I want everyone to under- port. A related business, DeepFlex, will bring Institute for Human and Machine Cogni- stand that is something that has been with some $52 million investment at the port and tion working on the Institute’s award-win- me since the beginning of doing this. It’s 100 new jobs with an average wage of $45,000. ning robotics team. because it is about Pensacola, it’s not just They could have stayed in their chic about a comic-con, it’s Pensacon. ST Aerospace’s move to Pensacola would Fenway neighborhood in Boston, near the “This is for this city,” Ensley says. bring 300 jobs to the airport. The company park designed by Frederick Law Olmsted, Cultural heritage tourism is a burgeon- maintains, repairs and overhauls aircraft. ing industry and the area — with 450 years Plans include locating a satellite operation who also designed New York’s Central Park. of history and culture to share — is uniquely on 18.6 acres at the Pensacola International They could have stayed within walking dis- positioned to capitalize on it. Airport Commerce Park with an estimated tance of some of the finest arts and cultural The University of West Florida His- price tag of $37 million. Funding would come amenities in the nation. toric Trust manages 29 historic sites in the from federal, state, local and private funds. They chose Pensacola, and they are just two-county area. Jerry Maygarden, chairman Email and cyber security provider Ap- fine with that. of the trust, says he believes that with modest pRiver has grown into a worldwide leader “Here we can walk to the symphony, we expenditures, heritage tourism could be as in its industry with offices in Gulf Breeze can walk to the Little Theatre, we can walk large as beach tourism. and Lupfig, Switzerland. It has appeared on to the baseball park,” she says. “They are not Inc magazine’s list of 5,000 fastest growing the Boston Museum of Fine Arts, but truth- private companies annually since 2007. fully, I never went to the Boston Museum of Manufacturing and tech are growing Fine Arts because it was big and fancy.” here are other promising signs that Believing the vision Pratt pauses and adds: “There are a lot Tcould prove to be the next chapter in n Pensacola, believing has been half the of things in Pensacola that could be more, our success story. Ibattle and success has come in small but first we have to convince ourselves that This area was not immune to the decline steps that built one upon the next. we are worth it.”

6 || The Studer Institute || August 2014 Ambitious 1970s capital program changed the city

By Carlton Proctor Photo by Michael Spooneybarger

n 1978 Steve Garman, then city manager of Westminster, Colo., was approached about Itaking a similar position in Pensacola. “I loved Colorado and had no reason to leave my job at Westminster,” he said. “But I came down to Pensacola and was blown Steve Garman launched an ambitious, influential capital improvements program in the late 1970s. away by the opportunities, and all the man- made and natural resources the city had. That was a huge draw for me. Read an expanded interview with portant for a city to grow its capital base “I thought, this is a canvas that’s barely MORE: Garman at StuderInstitute.com than necessarily growing its population. been painted on, and there’s a lot that could A: Growth to me is capital-based. If be done here.” population is so great, how come Phila- Question: What were some of the And a lot he did. delphia is not a better place to live than Garman took the job and went to work, things working in your favor when you took Pensacola? It’s growing the capital base of putting together the landmark program he over as Pensacola city manager in 1978? the economy that will allow quality of life to called “Direction 85.” Answer: Well, I had an incredibly effec- improve. To fund Direction 85’s ambitious slate tive staff and we had a very strict charter that Q: How important then is it for a city of capital improvements, he persuaded the spelled out distinct lines of authority and to be a driver of that capital growth? City Council to sell the city’s water and accountability between the city council, the A: It’s critical. Without the city, nothing sewer department to the Escambia County city manager and the mayor. Ultimately that’s else can happen. The bottom line is if the city Utilities Authority for some $20 million. a huge benefit for everyone because it protects government isn’t investing in itself, nothing Leveraging every dollar, Garman set you and everyone else in doing his or her jobs. is going to happen. I’ve made this point over in motion what would be perhaps the most That system was working beautifully then, and and over. But, having said that, most of the creative and influential capital improve- (Mayor) Vince (Whibbs) was perfect for that. positive results of Direction 85 came from ments program in the city’s modern history. And you didn’t have lots of personal the private sector becoming engaged and Under Direction 85, the city initiated agendas or personal hostilities on the council excited about the city’s potential. Having the the building of Spanish Trail, the Pitt Slip then. It didn’t spill over in terms of everyone private sector partner with the city is essen- marina, Bay Bluffs Park, new City Hall and deliberately getting in everyone’s way. tial for long-term progress in strengthening various recreational improvements. Q: You are a big believer in the role the foundation of the city so it can improve Garman worked closely with private cities should play in stimulating private the quality of life for its residents. developers who, with financing assistance capital investment. from the city, built Port Royal condomini- A: Yes, I am, because the one thing city Q: What are our advantages today? ums, Harborview on the Bay office building, governments can do more efficiently than A: A huge advantage Pensacola has — the Hilton Hotel (now the Crowne Plaza), the private sector — and it’s the only thing and this is pretty amazing — is you’ve got and worked closely with county officials in an international airport, an international — is capital financing. Cities can finance at getting the Pensacola Civic Center (now the seaport, and this town reeks of classic Old tax-exempt rates. The private sector can do Pensacola Bay Center) built. South. It reeks of military, and reeks of high things at a 6 percent borrowing rate, and Now retired and living in Gulf Shores, tech. All of a sudden you’ve got this combi- the city can borrow the same dollars at 3.5 Ala., Garman spoke about his role in that nation of things going on here. I defy you percent. So we took full advantage of that. era of growth in Pensacola and the chal- to find some other city the size of Pensacola lenges he faced. Q: You also believe that it’s more im- with these kinds of assets.

August 2014 || The Studer Institute || 7 Palafox leads downtown’s renaissance How do we spread energy, success beyond city’s core?

By Carlton Proctor Photos by Michael Spooneybarger hen restaurant entrepreneur Joe Abston opened Hopjacks on WPalafox Place in 2008, he said his goal was to help revive downtown Pensaco- la and restore its “beating heart.” Today, thanks to investors like Abston, and creators of new hot spots like Al Fresco, O’Riley’s Irish Pub and Picasso’s Jazz Club, along with mainstays like Seville Quarter, Jackson’s, New York Nick’s, Vinyl and Glob- al Grill, downtown has revived in a big way. “When Hopjacks first opened more than six years ago there were five restau- rants and one bar on Palafox Place,” said Abston. “Today there are 29 restaurants and five bars.” The lively new downtown scene is having a positive effect well beyond Palafox Place, Abston said. “Now, because we have a vibrant down- town, I truly think people like AppRiver and IHMC (Institute for Human and Machine Cognition) can use what we have going on here to attract young talent,” he said. “We’re not just some sleepy town on the Gulf Coast with nothing for young peo- ple to do.” Visible signs of this downtown renais- sance are easy to spot these days. They include: • Quint and Rishy Studer’s $16 million, 60,000-square-foot office building under con- struction at the Community Maritime Park. • Construction of a new multimillion dollar Bank of Pensacola on the corner of Restaurant owner Joe Abston’s investments in downtown eateries have boosted the area’s “hot spot” factor. Palafox and Main is well along and moving

8 || The Studer Institute || August 2014 toward a grand opening later this year. • Beck Property Co. recently broke ground for a three-story office building on a one-acre site within the Maritime Park. • Three credit unions ­— Gulf Winds, Members First and Pen Air — have renovat- ed existing buildings in the downtown core, bringing scores of new jobs with them. Downtown’s success does not stop at Palafox and Garden streets. On Saturdays the most visible and visit- ed venue north of Garden is Palafox Market. From humble beginnings in spring 2008, the market in Martin Luther King Jr. Plaza has grown steadily. Operating year round, the market’s 100-plus vendors attract between 1,500 and 4,500 customers every Saturday from 8 a.m. to 2 p.m. Besides offering customers locally grown produce, live plants, baked goods, crafts and antiques, the market is a big economic boon. “I think the Palafox Market has had a Palafox Market has grown from a simple vendors’ fair in 2008 to a year-round jewel that draws thousands tremendous impact on the downtown area,” of people downtown every Saturday for everything from baked goods, crafts and antiques to live music. said Ron Butlin, Downtown Improvement Board executive director. “I was talking to someone with the Studer Group recently, commercial sectors. Scores of commercial town Pensacola,” said advertising executive and they said the Bodacious Olive (owned properties in the downtown area are in sub- Ellis Bullock. “Even though we are creating a by Quint and Rishy Studer) used to have its standard condition or sit empty and for sale, vibrant downtown, it’s more centric to a local weakest day on Saturday. But now Saturday and have remained that way for years. This entertainment center, and it’s not attracting is their best day because of the crowds the surplus commercial floorspace has all but the kind of commerce to go along with it.” Palafox Market draws to downtown.” halted new construction in the Community Bullock and others point to large tracts Justin Beck, president of Beck Prop- Redevelopment Agency’s district, bounded of land — the 19-acre ECUA property on erty Co., sees several developing hot spots on the west by A Street, on the north by Cer- Main Street, the 9-acre Pensacola Technol- throughout the greater downtown area, and vantes St., and on the east by 17th Avenue. ogy Park and the 4-acre site of the former he expects over time those hot spots will Founded in 1980, the CRA District was Seville Inn — as key parcels that need to be spread and merge. created by the City of Pensacola to fund filled for the prosperity of Palafox’s enter- “I think there’s real momentum in the public infrastructure improvements and tainment core to spread. Belmont-DeVilliers area, and I’m seeing real stimulate private investment. Bullock is trying to sell a commercial interest from developers in the IHMC-Tech New construction permits over the past office property on Bayfront Parkway; it has Park area of the city,” said Beck. eight years have been scant, according to been vacant for three years without an offer. data provided by Sherry Morris, planning Infilling those vacant properties and Outside the core services director for the city. rehabilitating existing commercial struc- o anyone visiting downtown these days, In 2013, for example, just three permits tures were two key issues identified in the Tit’s abundantly clear Palafox Place’s were issued for new commercial construc- mayor’s Urban Redevelopment Advisory heart is beating loud and strong. tion in the district; two in 2012; none in Committee report issued in 2013. But what is the pulse like beyond the 2011; one in 2010; one in 2009; seven in Another issue holding back down- city’s retail and entertainment core in those 2008; three in 2007 and three in 2006. town growth is that some investors paid neighborhoods to the east, north and west? “When you keep your eyes open as you too much for commercial land prior to the Some would say it’s weak; there’s not drive around, it’s obvious there’s abundance Great Recession and are holding on, hoping much happening in either the residential or of commercial office space vacant in down- the market strengthens and land prices

StuderInstitute.com video: Business owners discuss growth and opportunities.

August 2014 || The Studer Institute || 9 move back to previous levels. “I know I’ve sold and bought property for people who are speculators down along the Government Street stretch,” said John Griffing, CEO of NAI Halford, a Pensaco- la-based commercial land broker. “And so far they’ve been pretty disappointed with investments they’ve made. I think it’s just going to take some time for downtown com- mercial property prices to recover.”

Give it time, some say espite what many see as a sluggish Dlocal economy, some observers say downtown’s next wave of capital investment is not a matter of “if” but “when.” “I think we’re on the cusp of seeing that recovery,” said Butlin. “Our goal at the DIB is to create an interesting place and let the market respond.” Every Saturday, thousands of people visit the Palafox Market, now a mainstay of downtown. To that end the DIB’s board has crafted a game plan called “HEAART,” an acro- nym for Housing, Economic Development, Another recent attraction is the $4 available downtown, but very few investors, Aesthetics, Arts and Culture, Retail and million expansion of Ever’man’s Natural other than the Studers, are pursuing it. Transportation. Foods, now a full-service supermarket that “It’s really important for the DIB to Among HEAART’s goals to accomplish downtown planners have long sought. work hard to continue building downtown by 2016 are: “I think we’re doing a lot right in the Pensacola, because it’s vital that the city’s • Attracting more quality retail estab- downtown area, but we get impatient time- population doesn’t slip below 50,000 peo- lishments; wise just like everyone else,” Butlin said. ple. A lot of bad things can happen if we • Increasing the number of affordable Butlin agrees there is an excess of go below 50,000 from a state and federal vacant commercial properties in the city, residential units; funding standpoint.” but he also notes that many of the existing • Increasing visitation downtown; Peacock said cities below the 50,000 buildings need to be rehabilitated before • Improving community awareness population base are at a disadvantage when they can become attractive to businesses about the economic importance of a vibrant applying for state and federal economic looking to relocate to downtown. downtown. development grants, and grants for support One way to maintain and build that of public services and capital infrastructure population base is provide more residential Housing is the key projects. units that are priced right, and more retail pinions vary on when this next new The Studers’ plans to build a mix of establishment that will attract shoppers and Ophase of downtown commercial residential housing and retail space on five downtown residents. Both Butlin and DIB development will begin, but there is near acres of the Pensacola News Journal site board member John Peacock say they are unanimity among local experts as to what’s they bought in late 2013 have boosted the encouraged by the gradual increase of retail needed to get it started: Affordable residen- spirits of many believers in downtown. stores in the downtown area. tial housing, and plenty of it. “The Studers turning the PNJ property A centerpiece of that retail growth is First the housing, then the commercial into apartments will be an amazing benefit the recently completed renovation of the investment will follow, the experts contend. to downtown Pensacola,” said Susan Camp- Artisan, a century-old building at the corner “People want to live downtown, but bell, a DIB board member. of Palafox and Main streets whose ground there’s really not the opportunity,” Peacock That planned development, which is floor will house several retailers. said. “There’s a lot of residential property expected to begin in late 2014, plus the

“People want to live downtown, but there’s really not the opportunity.” John Peacock, Downtown Improvement Board member

10 || The Studer Institute || August 2014 YMCA’s plans to build a $15 million facility on one acre of the PNJ site, have caught the attention of many would-be investors. Abston believes the Studers’ plans will have a huge impact on downtown. He’s long been an advocate for building more housing in the downtown area. “I’ve been talking quietly to a handful of people to try and promote this micro-hous- ing concept for downtown,” Abston said. “I’m talking about really well-made housing units in the 400- to 500-square-foot range. I think quality housing density is what will really spur the next big phase of growth downtown. “We need people living downtown, people who can walk to work, ride their bike to work.” Residential developer Mike Bass said rent rates in the downtown area are at an all-time high. “Rental units are getting snapped up,” Business owner Susan Campbell’s top goals as a Downtown Improvement Board member are expanding Bass said. “Many two-and-three bedroom parking downtown and creating a cottage industry district. units are going for $2,500 a month and nobody even blinks an eye at that price.” tel should be in the mix, but most everyone is for the building and own it, Luth added. While a growing downtown residential looking at it from a multi-family investment,” population is seen as integral to attracting he said. “But, certainly, that property could Thinking small isn’t a bad thing big-ticket capital investment, there are sit there for another five years.” hurdles. Attracting major capital investment to he DIB’s Campbell says it’s OK to “think “In terms of selling properties, their the downtown area is a top goal of the Great- small” when it comes to filling up Pen- values are off 40 percent of what they were T er Pensacola Chamber’s Scott Luth, senior sacola’s vacant commercial spaces. before the housing collapse,” Bass said. “But vice president for economic development. Campbell says her first priority as a DIB rents are way above the value of properties Luth, a key figure in the recent landing board member is expanding downtown park- downtown.” of ST Aerospace at Pensacola International ing access. Then, she wants to work toward Bass said there are three large-scale Airport, has turned his attention to the creating a cottage industry district, perhaps properties in the downtown area that he Pensacola Technology Park. Built with a with some tax incentives and perhaps greatly would love to develop. federal grant, the Tech Park property front- “But building costs have gone up 60 per- reduced rent costs, to attract entrepreneurs, ing Ninth Avenue has sat vacant since cent over what they were two or three years and small businesses such as microbrewer- August 2011. ago,” he said. “Just the sticker shock of those ies, food shops, art studios and craft makers. Now it is being looked at as the possi- costs, coupled with the price of the land and “The DIB can’t fund people to open ble site for a 70,000-square-foot building challenges of getting financing, is keeping a craft shops, but we can work with the state that would house a number of tenants. lot of people away from downtown.” and city to create a cottage industry district Earlier this year the Pensacola- in some of the under-utilized commercial Escambia Development Commission, and residential areas of the city.” ECUA property which controls the park, signed a Memoran- Many, including Beck, still see plenty of potential lynchpin for growing down- dum of Intent with Space Florida to proceed room for Palafox to grow. town’s population is the 19-acre former with negotiations that would lead to hiring A “What I think will happen is that you ECUA Main Street property, across from the an architect to design the building. will continue to see the Palafox core become Community Maritime Park. “We still have a good ways to go with “I think what would really help downtown our negotiations with Space Florida, but we more dense and more developed,” said Beck. is if we can put the right mix on the ECUA definitely have an anchor tenant commit- “I don’t think we’re anywhere near to seeing property,” said Griffing. “What the market ted to the park, and have several letters of what Palafox will look like going forward. It is telling us is that site is best suited for a intent from others companies interested will always be the place to be. multifamily component. But the most recent in locating there,” Luth said. “We’re very “But that doesn’t mean the other areas studies say we don’t have the market yet. excited about this project.” in the city won’t eventually develop,” he “Some developers I’ve talked to say a ho- Space Florida would secure financing added. “We’re getting there.”

August 2014 || The Studer Institute || 11 You may believe that “everyone already knows” low education levels are tied to poverty, crime rates and low per capita income. I believe that is the argument of deflection.

12 || The Studer Institute || August 2014 Be honest about where we are Pensacola Heights, from Warrington to Nine Mile Road. Could this be the time Pensacola We need to acknowledge our successes — Navy Federal’s expansion, landing Southwest Airlines, the buzz gets out of its own way? around downtown’s renaissance, moving tourism dollar gover- nance definitively into the sunshine, declining unemployment — but we need to keep our eyes on the prize. By Shannon Nickinson, [email protected] If we want to mark our progress, we need to do so in ways that are measurable, meaningful and honest. Our team has developed a community scorecard to create ensacola is a big enough small city that you sometimes a data-driven snapshot of where the community is and to pro- get the feeling folks are only separated by six degrees. vide a baseline for where we want to go. To move forward we For a while I thought it was a thing I noticed because I must be honest about where we are. P The cynics will say we use data to say things we already married a local, and we couldn’t go anywhere without running into someone he knew from school or childhood. know: that generational poverty and lack of educational But it isn’t. attainment have a tight grip on portions of Pensacola and Here the people are friendly, they make you feel at home that is what keeps this community from making a great leap quickly and once you see the sunset over Pensacola Bay, or forward. you are at Fort Pickens and see the Blue Angels zoom by at You may believe that “everyone already knows” low edu- what seems a fingertip’s distance, it’s hard to think of this cation levels are tied to poverty, crime rates and low per capita place without a warm feeling welling up in your chest. income. I believe that is the argument of deflection. Sometimes all that closeness lends an air of doing for The question, friends, isn’t whether you know that already. The question is what are you prepared to do about it. You, the others so that they will do for you. Which makes that warm public official. You, the elected office holder. You, the business feeling in your chest feel like heartburn. owner. You, the citizen. That’s when that down-homey niceness starts to feel like Because the data is not new. And it has been this way for it’s meant to put you in your place. You know the types, the years. In some cases, decades. We have allowed it to go on, ones who like to remind you of all the people they know, in through politically expedient decisions and sins of omission case you were wondering. and commission. It seems a peculiar Pensacola-ism to talk about luring We, the citizens of this community — with all of its poten- talented people from outside the area to come here and then tial and beauty and opportunity — pay for those low wages and dog-cuss them for trying to do things differently. poor job prospects and undereducated residents every time a Such criticisms usually fall into two broad categories: list of “the most dangerous small cities in America” makes it “You aren’t from around here,” and, “Who do you think you are to the top of someone’s search engine results with our commu- to criticize that?” nity’s name attached. Friends, both of those arguments put you on shallow We cannot change that unless we measure it honestly. intellectual ground. When either of those things are directed And keep it at the top of our collective civic mind. at me, my response is: That is why we produced this report. That is what we want Yes, I’m not from around here, but that doesn’t mean to do with this data. These measures, and others, will be the I don’t love it here. yardstick we use to mark Pensacola progress. We hope it helps This is not my hometown, but it is my home. And if that’s remove the politics from government and inspires focused not enough for you, it says more about you than about me. conversation on the things we must do to help more of our Now is the time for Pensacola to get out of its own way. neighbors do better than just getting by. I honestly believe we could open a lot of big doors for this The nice thing about data is that it speaks for itself. community. We need to let those doors swing wide. We need No spin cycle required. to let all kinds of voices be heard, from the Westside to East You don’t need to be from around here to see the value in that.

DON’T REST 1 Navy Federal expansion. But let’s keep moving the ON SUCCESS 2 Southwest Airlines arrival. needle on challenges such as Let’s acknowlege the good: 3 Downtown’s renaissance. education levels and poverty.

August 2014 || The Studer Institute || 13 The work we still need to do Low wages, education levels, poor health plague our area

By Shannon Nickinson [email protected] Photo by Michael Spooneybarger

f you live and work in Escambia and San- ta Rosa counties, on average you make I$8,000 less than the typical American worker. But if you lived and worked in the Pen- sacola metro in 1970, you made $2,200 more than the typical Florida worker, and almost as much as the typical American worker. That is the economy of Escambia and Santa Rosa counties in 2014. And based on predictions about the kinds of jobs that will grow in the next six years, it could be our reality for some time to come. As the service economy rose and the manufacturing economy declined in the last 30 years, so went the standard of living. “We now produce more stuff, but we do it using fewer people, and this is true both in manufacturing and in the military,” says Rick Harper, director of UWF’s Office of Economic Development and Engagement. Dr. Earl Crosswright of Pensacola sees about 1,500 patients a year. On an average day, most of the Moving forward, the drivers of our local patients he sees have hypertension, diabetes and obesity issues. economy will be service jobs that can’t be outsourced, but often don’t pay that well. Of the top 10 jobs that are predicted to mary objectives,” says Chamber President “When I became superintendent it was in grow locally between now and 2020, five are Jerry Maygarden. “We’ve commissioned the 57-58 percent range,” says Superintendent service-related — customer service, retail a gap analysis for what are the jobs of the Malcolm Thomas. “(Now) we have people who sales, janitorial services and food prep. future. It can be a game-changer.” When jobs offering a “living wage” do have to lean on free- and reduced-rate lunch It will need to be, as low educational come to town, too often employers struggle who never thought about doing that before.” attainment and the poverty that often goes to find enough qualified candidates. Look at schools that get poor scores on with it have plagued this area for 30 years. In March, the Greater Pensacola Chamber, state standardized tests. Most often they Pensacola State College and George Stone serve low-income neighborhoods. Technical Center partnered to host a job fair Education is the key, and the hurdle The Florida Office of Early Learning says for 300 openings at ST Aerospace, an aircraft he impact of generational poverty on the on average 33 percent of Escambia 5-year- maintenance company moving to Pensacola. Tcommunity’s economic and educational olds are not ready for kindergarten. Often At the fair, 330 people turned out; only half prospects is reflected in measures such as those children come from poor families. met minimum requirements for employment. the free- and reduced-price lunch rate — “Poor kids can learn,” Thomas says. “Workforce education is one of our pri- which in Escambia County is 62 percent. “The way poor kids learn is that poor

14 || The Studer Institute || August 2014 parents must understand the value of ier workforce is the single most important that hopefully will carry over into adulthood. education. They promote it and they push attraction for business and industry,” May- The district has been measuring body it. Neither of my parents had a high school garden said. mass index for students in first, third and diploma. There were times my mother If that is true, we are starting out behind. sixth grades since 2007, with minimal im- couldn’t help me with my homework, but Smoking and obesity cost Escambia provement, Price says. Seeing the fruits of she made me do my work because she un- and Santa Rosa employers $800 million in that investment takes years. derstood the value of getting an education.” 2013, says David Sjoberg, who heads the Crosswright believes tackling the prob- Then he tells of a recent example in which Partnership for a Healthy Community. lem means changing our behavior and culture a grandmother raising her grandson called him The costs of an unhealthy workforce are around food throughout the whole community. on a Friday to ask for his help. Her grandson realities that employers must deal with. For example, he said, when food is part got a job at a fast-food restaurant and was It is a reality that has confronted the Santa of our community or church life, add more going to quit school, as he had just turned 16. Rosa School District, one of the largest employ- fruits and eliminate the cookie table. Build Thomas reminded her that the boy could ers in that county with 2,634 employees. parks with equipment that encourages kids to only do that with her written permission. Karen Rutherford is human services move. Reinstitute physical education classes He asked her for time to talk to the principal and risk management manager for the San- every day in public schools. Make sure folks so someone could talk to her grandson on ta Rosa School District. at all income levels have access to full grocery Monday to persuade him to stay at school. “It is a problem and the only way to truly stores with a good selection of fresh foods. But Monday came and the student lower health costs is to lower the claims,” Healthy eating is more expensive, wasn’t in school. Then came the letter from says Rutherford. “We’ve done some wellness something that cannot be discounted in an the grandmother, signed, giving her grand- initiatives. We do an annual health screen- area with traditionally low wages. son permission to drop out. ing. We do think we’ve turned the corner, but “Many of these students who are at it is typically three to five years before you Our wage reality risk … their families are at-risk,” Thomas see any benefit from implementing it.” says. “They aren’t always seeing education well-educated workforce is undoubted- Diseases most prevalent here are heart ly a key to raising the standard of living through the same lens. I’ve had them tell disease, diabetes and high blood pressure. A me, ‘I didn’t graduate from high school and I for more residents of Northwest Florida. These are things we have the power to Of the top 10 jobs forecast to grow in turned out OK.’ I tell them the world is a lot reduce through behavior. more complicated than it was back then.” the two-county area, only half require edu- It will be a long row to hoe. cation beyond high school. But a workforce Also holding the area back — high school Dr. Earl Crosswright, a native Pen- graduation rates that are 64 percent overall. whose skill sets stop growing after high sacolian and family practitioner, has been school is not nimble enough to respond to The state average is 75.6 percent overall. practicing medicine for 21 years. He sees an Harper says creating a quality labor changes in the economy. average of 1,500 patients a year. And it certainly isn’t likely to draw a force that is “trained well across the breadth In an average day, 70 percent of the pa- of the community,” and capitalizing on our paycheck that builds long-term security. tients he sees have hypertension, diabetes environmental and cultural amenities, is Harper says that 32 percent of the local and obesity issues, conditions that can cost the key to reversing population decline and workforce earns $32,000 a year or less. between $150 and $500 a month in medica- improving the job outlook. Of those same top 10 jobs, only four — tions to manage. The biggest improvement we could licensed practical nurses, registered nurses, Though Crosswright sees these diseas- make to ensure long-term growth? elementary teachers and post-secondary es in older patients, more frequently, they “Turning out literate and numerate teachers — have average annual salaries are appearing in young people. 4-year-olds who are ready and enthusiastic above the $32,000 line. “With fast food and soda consumption about learning,” Harper says. Or look at it this way. we’re seeing the weights escalating, and In 2012, Habitat for Humanity built there’s a direct correlation with obesity and 211 new single-family homes, making it Poor health holds us back diabetes and hypertension,” he said. the most productive Habitat chapter in the aygarden, who spent 30 years in the Escambia County Health Department nation, says Executive Director Tim Evans. Mhealthcare industry, believes that busi- data shows that 18 percent of our students are A salary of $32,720 qualifies a single nesses have to understand the link between obese based on their body mass index and person for a Habitat house, said Peggy poor health, lost productivity and the bottom another 16 percent are considered overweight. Fowler, neighborhood revitalization initia- line. For example, three missed days out of 30 The story is the same in Santa Rosa tive coordinator for Habitat. For a family of work days is a 10 percent loss of productivity. County, where 30 percent of students are two, the maximum income is $37,440. Employers look at three things when considered obese or overweight. So if you think that Habitat homeown- determining the basic cost of health insur- Debbie Price, the school health coordi- ers are all “low-income people,” Fowler said, ance: the health of a population, absentee- nator for the Santa Rosa Health Department, “our teachers would then be low-income. ism and productivity. says programs are in place to help build Our policemen would be low-income. That’s “We believe a better educated, health- better health habits in youngsters, habits who many of our people are.”

August 2014 || The Studer Institute || 15 Who we are The western gate to the Sunshine State isn’t growing as fast as it once did. After steeply increasing every decade between 1970 and 2000, our population essentially stagnated. We had been adding an average of 27,900 households every 10 years from 1970-2000. At the current pace, the two-county area will add fewer households in this decade than it has in the last 50 years. Population growth by age

Age Age Age Age Age 0 to 17 18 to 24 25 to 44 45 to 64 126,080 65 and over 117,190 108,550 102,640 91,907

72,310 67,140

49,780

38,790 39,320

1990 2000 2010 2014* 1990 2000 2010 2014* 1990 2000 2010 2014* 1990 2000 2010 2014* 1990 2000 2010 2014* SOURCE: U.S. Census *Estimate Graphics by Ron Stallcup, [email protected] 16 || The Studer Institute || August 2014 Free and reduced Population by race Number of households price school lunch 200,000 Escambia, Santa Rosa counties 2014* Escambia, Sata Rosa counties Percentage of students eligible

181,914 65% ESCAMBIA COUNTY Asian 180,000 64% 173,538 Native 3.1% Hispanic 55% American 56.6% 0.9% 5.3% 160,000 155,300 Black 45% 140,000 17.6% 129,228 SANTA ROSA COUNTY 40.5% 35% 120,000 30.5% 101,020 25% White 100,000 73.1% 15% 80,000 71,485 5% 60,000 *Estimate 0 Numbers do not add up to 100% due to rounding 1970 1980 1990 2000 2010 2014* 2003-2004 2007-2008 2013-2014 SOURCES: U.S. Census, American Community Survey SOURCES: U.S. Census, American Community Survey *Estimate SOURCE: Florida Kids Count

Two parent Food Stamps Social mobility households EBT or Electronic Benefits Transfer Escambia, Sata Rosa counties with children

Chances of a ESCAMBIA COUNTY child earning more than their 2000 36.6% parents: 56,835 2012 43.2% 60,000 ESCAMBIA COUNTY 39.7% 55,000 50,000 chance SANTA ROSA COUNTY 45,000 40,000 37,055 2000 8.8% 35,000 2012 8.5% 30,000 26,037 A child born in the 25,000 24,169 UPPER 20% 22,129 bottom of the income 20,000 FLORIDA range reaching the upper 1989 1995 2000 2005 2011 20% income range: 2000 29.4% 18,000 SANTA ROSA COUNTY 16,076 6.1% chance 2012 37.1% 16,000 14,000 INCOME 12,000 UNITED STATES DISTRIBUTION 10,000 2000 25.3% 7,599 8,000 6,898 6,000 5,093 2012 32.9% 4,668 LOWER 20% 4,000 1989 1995 2000 2005 2011

SOURCES: U.S. Census, American Community Survey SOURCE: United State Department of SOURCE: The Equality of Opportunity Project Agriculture Economic Research Service August 2014 || The Studer Institute || 17 Rick Harper, director of UWF’s Office of Economic Development and Engagement, says much of Pensacola’s wage decline was driven by drops in manufacturing jobs and federal employment. A special place, and a crucial time

“Pensacola has a long and rich history, 2011 period in Chart A on page 19 to see Where our economic outlook but things are changing,” he wrote. “Growth how the data looked as we put together the stands, and how we got here and wealth have shifted to the east, and 2001 project. What was striking then was those communities don’t have some of the the decline in labor income for West Florida problems that are the legacy of our older relative to the national average. By Rick Harper city. Help us paint an economic picture of What was even more striking was [email protected] our community. It should be data-driven Pensacola’s decline relative to Fort Walton Photo by Michael Spooneybarger and tell what’s good and what’s not so good. Beach and Panama City in the last three For community leaders to work together decades of the 20th century. Happily, n early 2001, then-Pensacola News to make things better, they have to know several things have changed since 2001. Journal Executive Editor Randy where to begin.” The good news has been a rebound in IHammer sent UWF’s Haas Center The Hass Center worked with the PNJ earnings per job that lasted an entire for Business Research and Economic to produce a 64-page report on the region’s decade. But it wasn’t enough to catch us Development an invitation: economy. Put your hand over the 2000 to up to where we were before the 1990s.

18 || The Studer Institute || August 2014 What caused job losses? CHART A uch of Pensacola’s wage decline Net earnings per job percent of U.S., 1970 - 2011 relative to the national average over M By place of residence, 2-year moving average those 30 years was driven by a sharp fall 100% Pensacola in manufacturing jobs and by shrinking Fort Walton Beach federal employment. While we still produce Panama City a substantial volume of paper and nylon products at International Paper and Ascend 90% Performance Materials, we do it using far fewer people — thousands of high-wage manufacturing jobs are gone for good. The 80% federal civilian jobs lost at the Pensacola Naval Aviation Depot are also gone for 76% good, while overall employment to support 1970 1980 1990 2000 2011 SOURCE: WOODS & POOLE ECONOMICS, 2014 other military missions has also declined. Net earnings - wages, salaries, proprietor’s income, other labor income, residence adjustment, minus social insurance contributions To some extent these changes were unavoidable and simply mirror the national experience, although our own manufactur- ing job loss has been more extreme. • The number of jobs in manufacturing fell by 56 percent in Pensacola over the CHART B 1969-2014 period, while it fell by 36 percent Employment in selected sectors, 1969 - 2014 nationwide. As share of Pensacola total employment • The number of jobs in federal civilian 18% Manufacturing and military employment fell by 23 percent Federal civilian in Pensacola over that period, while it fell by Military 20 percent nationally. Because jobs in other sectors of the 10% economy generally have grown over time, manufacturing and federal job performance look even weaker when measured as a share 4% of the overall economy. Back in 1969, manu- facturing and federal employment (military 0% plus civilian) made up 39.4 percent of total 1969 1980 1990 2000 2014 employment and paid 49.4 percent of total SOURCE: WOODS & POOLE ECONOMICS, 2014 wages in our two-county area. By 2014, those shares had declined to 11.5 percent of employment and 25.5 percent of total wages. Even though we have fewer military CHART C jobs than before, those jobs pay well. In fact, much of the rebound in earnings per job Employment in selected sectors, 1969 - 2014 following 2001 has been due to the Bush As share of Pensacola total employment ramp-up in defense spending. 14% Professional and technical services Nationally, enlisted pay rose 40 percent Administrative and waste sevices and officer pay 20 percent over the decade, Heath care and social assistance while private sector wages were stagnant or falling. A statistical look across the 380 met- 8% ro areas in the United States shows a strong correlation between income growth and the 4% share of military jobs in the local economy. While this is encouraging for a community like Pensacola, it isn’t likely to persist in an 0% age of sequestration and base realignment 1969 1980 1990 2000 2014 and closure. SOURCE: WOODS & POOLE ECONOMICS, 2014

August 2014 || The Studer Institute || 19 Service sectors have grown CHART D n the meantime, jobs in the service sec- Dividends, interest and rent tors have grown. The health care service I Per capita as percent of U.S., 1970 - 2011 sector has doubled its share of the economy. 140% Other services have grown as well, particu- larly call centers. The accommodation and 120% Pensacola food services sectors, while large, have not Fort Walton Beach grown as rapidly as health care. Our tour- 100% Panama City ism sector has always been large, and it has 80% held its own in importance in the economy. Much of the focus in 2001 was in 60% comparing Pensacola to our faster growing neighbors in Fort Walton Beach and Panama 40% City. The conclusions we reached then still 1970 1980 1990 2000 2011 hold. Fort Walton Beach and Panama City SOURCE: WOODS & POOLE ECONOMICS, 2014 closed the wage gap with Pensacola between 1970 and 2000; since then, Fort Walton’s CHART E wage growth has outpaced both Pensacola Total personal income and Panama City. This is mostly due to wage Per capita as percent of U.S., 1970 - 2011 growth in the military and in defense con- 100% tracting. There is no other county in Florida Pensacola where military employment has a larger 95% Fort Walton Beach Panama City share of the economy than in Okaloosa. 90%

85% Income from wealth and income from government transfer payments 80% here is more to personal income than 75% wages, alone. T 70% Personal income is measured by wages and other income to labor, income from 1970 1980 1990 2000 2011 accumulated wealth (from dividends, inter- SOURCE: WOODS & POOLE ECONOMICS, 2014 est and rents), and transfer payments from the government, which increasingly over CHART F time in the U.S. go to older Americans (as Transfer payments opposed to poorer Americans). Charts D, E Per capita as percent of U.S., 1970 - 2011 and F present these measures. 115% Once other sources of income beyond wages are added to the picture, we get a 105% picture of total personal income. All of the 95% coastal metros look better under this mea- 85% sure than under the labor income measure, Pensacola but again, Fort Walton comes out on top. In 75% Fort Walton Beach order to explain these differences between Panama City 65% metro areas in our Northwest Florida Florida region, we need to look at the components 55% that make up personal income. 1970 1980 1990 2000 2011 Much of the explanation for the rise in SOURCE: WOODS & POOLE ECONOMICS, 2014 total personal income, even as labor income was falling, is the 2013 inclusion of Wal- counties have become stronger over time. ence, has seen a large increase in the number ton County in what the U.S. Census calls Okaloosa has been home to the most concen- of retirees who call South Walton home. the Crestview-Fort Walton Beach-Destin trated federal military, civilian and defense An influx of wealthy retirees appears to metropolitan statistical area. Inclusion in a contracting employment in Florida. Walton fuel a large increase in earnings flowing from metro area depends on commuting patterns, County, which has always had a relatively accumulated wealth. While all three coastal and the links between Okaloosa and Walton small population and a robust tourism pres- metros have improved relative to the nation,

20 || The Studer Institute || August 2014 growth has been exceptional for Fort Walton, CHART G whose trend diverged from Pensacola and Panama City in the early ’80s. Over the 1970- Median age of resident population 2011 period, per capita income from wealth 42 1970 - 2011 grew from $1,409 per resident per year to 38 $8,818 (in 2009 dollars) in Fort Walton, while 34 it grew from $1,506 to $5,810 in Pensacola. 30 Pensacola The growing attractiveness of Pensac- Florida ola as a retirement location, combined with 26 United States Median age in years an outbound migration of younger people 22 seeking economic opportunity, has led to the 1970 1980 1990 2000 2011 median-age Chart G. That chart sheds some SOURCE: WOODS & POOLE ECONOMICS, 2014 light on why transfer payments in our region have increased, as shown in Chart F. of wealth now flow more to Pensacolians activity and wealth. Some, such as oil and gas A large and perhaps not widely recog- than they did 45 years ago. We’ve shifted out reserves, are specific to a particular geograph- nized phenomenon is that our Northwest of manufacturing and government jobs and ic location – the oil and gas fields of North Florida demographics are starting to look into services jobs and retirement income. Dakota have transformed economic oppor- more like Florida in terms of age. This is im- tunity for that area. The reality of the 21st portant because transfer payments in the U.S. What does the future hold? century is that many productive assets can be located anywhere and the skills and abil- are targeted largely at senior citizens, with the he reality of the 21st century workplace is ities of our residents determine how well we biggest programs being Social Security and that cost-lowering innovation in technol- T perform relative to our neighbors. Medicare. These are called transfer payments ogy (e.g., automation) and globalization (e.g., The best chance for our local middle because they are not a payment for current containerization) provide relatively few high- class to perform well in the modern econ- effort. They are instead a means-conditioned wage work options for people doing tasks omy is to prepare our residents for the payment for work done earlier in one’s life. that can be automated or done offshore. This high-wage jobs of the future and to create Chart F shows that transfer payments change has been a disaster for people who economic opportunity across the board. to Floridians have been somewhat un- decades ago would have earned a reasonable This calls for: changed relative to the national average. wage on the assembly line and in many other • Ensuring that as many children as Florida has always attracted a large number jobs. possible show up for their first year of of retirees, but Northwest Florida is now in- But on the upside, higher incomes now creasingly a destination for older residents, flow to those who design and run the auto- school ready to learn. and thus their transfer payments. mated processes or who can sell their skills • Maintaining high achievement across across the globe. Just look at NBA teams who the K-12 system so that more of our young- sters finish high school either ready for The bottom line have started to play regular season games overseas. And English soccer star David Beck- university, for college, or for work. hat is the takeaway from the informa- ham that wants to build a stadium in Miami. • Making ongoing workforce training Wtion presented here? The most basic Both high and low-end retailers have expan- more readily available, since workers switch story is actually a good one. Our per capita sion plans, while middle-class retailers like jobs more often. personal income, which fell relative to the JC Penney’s and Sears fade away. • Promoting population growth for our nation for the last three decades of the Our sense that the middle class fac- community. Economic opportunity happens 1900s, recovered dramatically in the 2000s. es challenges and that intergenerational when there are new customers and workers, It now stands at 87 percent of the national poverty is hard to eradicate match our not when there is stagnation. average, which is as high as it has been in national experience. Recent academic work • Capitalizing on our unique access to any period during the last two generations. finds that the United States has not seen areas that are opening to subsea drilling However, that income now comes from improved intergenerational class mobility and exploration by promoting services different sources than it once did. Our me- relative to peer nations, despite decades of aimed at that industry. dian age in 1970 was 24, now it is 38 — we’re spending associated with the War on Pover- • Promoting visitation and relocation to 14 years older, while over the same period ty. The same factors that spur luxury sales our historic and beautiful community. the median age for Florida and the nation also increase income inquality and limit the • Supporting growth of quality educational increased by 9 years. Age has its privileg- growth of a middle-class market that might programs at our colleges and university. es, and one of them is retirement pay and otherwise buy expensive new products and If we can provide a community with medical benefits funded by the U.S. taxpay- technologies. safe streets, good schools, and the econom- er. Moreover, older people are on average The residents of a community use a va- ic opportunity that comes with a growing wealthier than younger ones, and the divi- riety of assets, including labor, capital assets, population, then many of the challenges we dends, interest and rent that flow to owners good ideas and hard work to create economic face will take care of themselves.

August 2014 || The Studer Institute || 21 Tauheedah Rasheed changed her family’s lives when she was accepted into a Pensacola State College program providing education and other assistance for low-income students. Rebuilding our middle class could start here

auheedah Rasheed knows the value of nearly impossible. What forces can we hard work. Enter Pensacola State College’s Health count on to drive our T A single mother with two young Profession Opportunity Grants program. children and then only a high school educa- Rasheed’s dreams came true. region’s economy? tion, Rasheed could barely make ends meet In 2011, Rasheed became a certified working in customer service. nursing assistant. Two years later, she got “Our lights were never off, our house licensed as a practical nurse, a field that was always secure,” Rasheed said. “But I just expands her career options and allows her By Mollye Barrows want to provide more for my kids.” to build a better life for her kids. [email protected] Rasheed, 32, dreamed of attending col- “It’s going to make a tremendous Photos by Michael Spooneybarger lege and becoming a nurse. But even with difference,” Rasheed said. “It just gives me assistance, paying for school and keeping a lot of avenues and it has made a positive her household running would have been change in me and in my kids’ lives.”

22 || The Studer Institute || August 2014 Funded by a five-year, $8.5 million grant Dave Ivey is an example of the kind of through the Affordable Care Act, the pro- opportunity the oil and gas industry can offer. gram provides education and training for The Munson native spent eight months low-income students for jobs in health care a year traveling to find work before he that are expected to be in demand. latched onto his new gig as a welder for In a metro area such as Pensacola, Offshore Inland four years ago. where health care is expected to fuel the Now he can support his family and was regional economy for the next several years, home this year to see his daughter graduate this path to success is good for Rasheed — from Baker High School. and for Pensacola overall. “I get to go home every night and be Financial services, fueled by Navy with my family; that’s the main thing for Federal Credit Union, along with service-re- me,” Ivey said. “I was missing my daughter lated industries, are other strong sectors in growing up and I got to actually raise her the area’s economy, according to data from the last four years.” the University of West Florida’s Office of More good economic news is on the Economic Development and Engagement. way, now that a new deal promises to bring Also set to increase in our job market about 200 jobs to the port. Offshore Inland are service-related jobs — janitors, con- is partnering with Houston-based DeepFlex struction laborers and food preparers — that to make flexible pipe used in deepwater don’t require much education. They pay industries. Renovations at an existing ware- lower wages. house at the port will allow the companies to Manufacturing jobs — once a key con- manufacture up to 62 miles of pipe a year. tributor to the middle class economy — are diminishing. It is an economic shift that is Aeronautics and tech unfolding across the state and nation. ensacola city leaders also see potential Job opportunities are expanding at the for growth in the aeronautical industry. top for workers with education and skills. Buddy McCormick is vice president of Offshore P Inland, which runs out of the Port of Pensacola. It not only provides higher-paying jobs, but At the bottom are low-paying jobs available many in the local workforce have the skills for workers with little education and skills. needed for the positions. The result is a shrinking middle class toward the central Gulf and Pensacola is “The potential is great,” said City that struggles to find good-paying jobs. right there,” said Buddy McCormick, vice Administrator Colleen Castille. “We already Initiatives like PSC’s Health Profession president of Offshore Inland, which oper- have an experienced workforce that is com- Opportunity Grants (HPOG) program can ates out of the Port of Pensacola. ing out of the military, so it’s not just Pensac- provide job training and help improve the Offshore Inland doesn’t drill for oil and ola, it’s a regional workforce allocation.” health of the area’s economy. gas in the Gulf, but it helps maintain and In March, about 300 people turned out Keith Samuels, technical adviser for the service vessels that do. for the ST Aerospace job fair, a company program, said they do more than provide an The vessels are hard to miss at the port. that performs aircraft maintenance, repair opportunity for affordable education. They Ships like Global 1200, a deep-water, and overhaul. The city is finalizing a deal also help some students learn how to succeed. with the Mobile-based business to build a pipe-laying ship with 12-story-high cranes, “They don’t think this is where they can $37 million facility adjacent to the dominate the downtown skyline at the port. be, so it’s not their culture,” he said. “Some- Pensacola International Airport. Some Those ships mean money not only for times it’s just getting them to do something 300 jobs are expected to come with it. Offshore Inland, but also nearby businesses. to get their foot onto a college campus.” Besides aerospace, several other tech- Offshore Inland started operations at nology-related industries are planting seeds the port in 2008. Officials say they chose that are taking root locally. They include Skilled manufacturing Pensacola over Mississippi because it’s an cybersecurity, computer-generated manu- easy port to navigate and is centrally locat- killed manufacturing is another area facturing, as well as trade and logistics. Sthat is expected to grow in the regional ed for the drilling lease areas opening up in job market, especially in the oil and gas the Gulf of Mexico. industry. The lease includes the promise to add Finance sector Expected job growth in mining, quar- at least 100 jobs with an average wage of ocal schools and colleges are providing rying and oil and gas extraction, according more than $43,000 a year. Lmore educational and training opportu- to the 2012 Economic Census Advance, is McCormick is confident his company nities in these areas, but for the most part good news for Northwest Florida. can fulfill the commitment based on the the finance industry remains one of the “The market for drilling is moving growing demands of the oil and gas industry. most viable industries in Northwest Florida,

August 2014 || The Studer Institute || 23 thanks to Navy Federal Credit Union. Navy Federal began operations at the Heritage Oaks Campus in Beulah in 2003 with 11 employees. The original plan includ- ed a 300-seat call center. Since then, Navy Federal has expanded to include all major business units. There now are about 3,400 employees, with plans to add 1,500 jobs in three to five years. In 2012, Navy Federal bought the ad- joining 240 acres from 4-H and developed a master plan for future expansion. Phase I includes two buildings, a central energy plant, auditorium, parking structure and recreation area. Construction should be completed by early 2016. Deborah Calder, senior vice president for Navy Federal, said a quality workforce is one of the reasons the company chose Pensacola. Navy Federal averages more than 1,000 At the Port of Pensacola, large seagoing vessels frequently tower over the downtown skyline. applicants a month, but there are some concerns about finding the right employees in the future, Calder said. Navy Federal has a strong partnership community. We can then focus our resourc- “Our talent pool right now is great,” with the UWF to assist with certificate es on others who need more help than they Calder said. “What I have to think about is programs, host virtual classes and tailor will need.” 10 years down the road, what is that talent curriculum to meet the company’s needs. pool going to look like?” Calder said. In fact, the Heritage Oaks site is a satellite Setting priorities as a region Calder said they had a relocation blitz for campus for UWF. usiness leaders including Calder and current employees and many came from some PSC and vocational schools such as Jerry Maygarden, president of the of the top school districts in the country. George Stone are also designing some of B Greater Pensacola Chamber, believe the Many chose to live in Pace and Gulf their programs to meet the growing de- region needs to set priorities to address its Breeze in Santa Rosa County. mands of the changing market. While Escambia County has some A most fundamental challenges. They believe the community needs schools, the majority are average or below av- Workforce education and support erage, compared to Santa Rosa County, which to create a broad strategy that provides boasts some of the best schools in the state. hat focus on workforce development opportunities for middle- and lower-class The issue of quality education in Twill need to be even stronger in the residents. Escambia County is too important for local years to come if the area is to prosper. Helping residents like Rasheed succeed business leaders to ignore, Calder believes. Sometimes workforce development helps the entire Pensacola community. Without a healthy, educated workforce, means tailoring education to include skills Rasheed is the first in her family to earn a economic development will be grim for any outside the technical requirement of a job. college degree. She works two nursing jobs and industry in Pensacola. Calder wants to see For example, administrators of the HPOG no longer relies on government assistance. She the top 10 industries in the area meet with program at PSC found that students often is saving money to buy her first house. local educators. need support in basics such as time and And she is showing her children a bet- “I worry about that for us from a money management. ter way to live, something she gives credit labor-pool perspective for two reasons,” They often have difficulty planning for to the HPOG program for helping her do. Calder said. “Our talent will continue to be the day, much less their future, so admin- Rasheed recalled other women in her educated here. Will they still be what we’re istrators set up a network of services and classes who once were living in public seeing today? Then there’s economic devel- case managers to help with childcare, gas, housing but now, with more education and opment as a whole. utility bills and emotional support. better jobs, have transitioned to bigger “We want to see other industries thrive in “I think it helps them and our commu- dreams and better lives. Pensacola because then their kids will be ed- nity is going to be richer,” PSC’s Samuels “The goal is not to get there and stay ucated here and their spouses and they might said. “If we can help them break out of (the there,” Rasheed said. “It’s about getting come to work for Navy Federal,” Calder said. cycle of poverty), they become a giver to the there, getting a little help, and moving on.”

24 || The Studer Institute || August 2014 Community-building events help spread success

Pensacola Network fosters strong business relationships

By Mollye Barrows [email protected] Photo by Michael Spooneybarger

obin Reshard wants to hear your story. R She calls it being nosy, but it’s a curiosity born from a genuine interest in people and a desire to see them succeed. “I like people,” Reshard said. “I think people have amazing stories that connect them at a basic foundation.” You can find her at DeVilliers Square in Robin Reshard speaks with Escambia County schools Superintendent Malcolm Thomas at a network event. Pensacola, the fourth Friday of every month, encouraging others to share their stories as “so there were black folks getting together us where they thought would be best, so part of the Pensacola Network. around business ideas and building economic they connected us to people,” Reshard said. The professional networking event development and community development “I met governors and potentates. I met was launched by Reshard and her husband, long before we came on this plain. Doing this pimps and prostitutes and all of them were Lloyd, to strengthen relationships in the is nothing new to any community.” important to building the community.” African-American business community. At each event, there’s time to mix and Building community remains a priori- “It is for anybody and everybody who mingle, then Reshard often interviews a ty for Reshard. She moved to Pensacola in has good in their hearts for building up the special guest. She hopes to spark conversa- 1993, to teach at the U.S. Navy cryptology African-American community,” Reshard said. tions that help people. school at Corry Station. She has been here Lloyd Reshard successfully ran a simi- lar networking opportunity in Fort Walton Reshard believes open dialogue is the ever since, working to make a positive im- for years. The Reshards saw the same need key to connection. pact through a variety of creative channels. for connection in Pensacola and started the “Diversity in business is good business She has written two published books Pensacola Network a year ago. Now they practice, so this is not solely for getting one in addition to some unpublished plays and draw about 100 people to each event. particular community together,” Reshard said. a movie script, two motivational CDs, and a “We have a lot of resources that are “When you see who comes to our networking, documentary. She has two more documenta- available to us and when you don’t know it’s not just black folks, it’s not just white folks, ries in the works. She also hosted a public af- about them, it’s harder to succeed,” Lloyd it’s not just business folk, it’s not just college fairs show on WSRE for several years called Reshard said. “What’s rewarding to me is if folk. It’s a blend of all that. They are all com- “Connecting the Community,” and continues someone finds something they didn’t realize ing together and understanding the good.” to host and produce several web series, was there, and they become successful. They In many ways, Reshard is a community including one for the Pensacola Network. get a scholarship or they get a job, that’s the educator at heart. She credits her parents. Reshard’s many projects keep her busy, reward. It’s like our way of giving back.” Growing up in rural Arkansas, her but the opportunity to see people connect Guests pack the meeting hall in the mother was a teacher and her father was and find success makes it all worthwhile. heart of Pensacola’s historic Belmont-DeVil- a real estate purchasing agent. They kept “I want people to fulfill their purpose. liers neighborhood, a historically diverse and Reshard and her seven siblings busy with I want Pensacola Network to be a vehicle to culturally rich area. Reshard, who also runs everything from sports to volunteering. help them achieve that purpose, whether it’s her own production company, recently pro- “They raised eight children and I don’t for business or personal,” Reshard said. duced a documentary about the community. care how much money you have, eight “I want the Pensacola Network and all of the “There was an African-American busi- children will eat it up. They really had to people, organizations and companies that ness alliance here in the 1800s,” she said, make use of their limited resources to get come there to help them on their way.”

August 2014 || The Studer Institute || 25 2014 Percent Location Median Hourly Avg. Hourly Description 2020 Jobs Change Education Level Pensacola’s Jobs Change Quotient Earnings Earnings Customer service Short-term 3,627 4,031 404 11% 1.22 $12.23 $12.43 representatives on-the-job training Retail Short-term 7,324 7,703 379 5% 1.33 $9.91 $11.42 job forecast salespersons on-the-job training Postsecondary Nursing assistants 2,169 2,415 246 11% 1.17 $10.99 $11.26 non-degree award table Registered nurses 4,670 4,904 234 5% 1.37 $25.77 $25.66 Bachelor’s degree Short-term Janitors and cleaners 2,249 2,472 223 10% 0.75 $9.24 $10.03 This forecast compares the number of on-the-job training jobs in the two-county metro area in Food preparation Short-term 5,015 5,207 192 4% 1.28 $8.77 $8.85 2014 to the number expected in 2020. and serving workers on-the-job training Construction Short-term 1,272 1,423 151 12% 1.18 $11.97 $13.14 The table is divided into three sections: laborers on-the-job training Postsecondary teachers 1,516 1,661 145 10% 0.82 $26.84 $31.57 Doctoral degree • The first section shows the top 11 Licensed practical and Postsecondary occupations ranked by the expected 1,195 1,340 145 12% 1.26 $18.01 $18.61 growth in the number of jobs. licensed vocational nurses non-degree award Elementary school teachers 2,174 2,304 130 6% 1.28 $23.31 $23.81 Bachelor’s degree • The second section shows the seven Secretaries and Short-term 3,553 3,680 127 4% 1.13 $13.55 $14.08 occupations that are gaining employ- administrative assistants on-the-job training ees at the highest percentage growth rate. Software developers, 59 79 20 34% 0.11 $42.02 $41.28 Bachelor’s degree systems software • The last section shows expected growth for the 12 occupations that Information security analysts 20 26 6 30% 0.21 $38.16 $41.15 Bachelor’s degree today employ the most people. Editors 34 42 8 24% 0.28 $22.65 $24.46 Bachelor’s degree Personal financial advisors 70 86 16 23% 0.30 $25.34 $33.48 Bachelor’s degree The “location quotient” shows the Meeting, convention, 61 73 12 20% 0.60 $15.97 $15.44 Bachelor’s degree share of the job in the local workforce and event planners relative to the share of the job in the Market research analysts 181 215 34 19% 0.34 $29.55 $32.43 Bachelor’s degree national workforce. The national aver- and marketing specialists age equals one. Child, family, and 131 154 23 18% 0.36 $16.07 $17.47 Bachelor’s degree school social workers For example, there are 22 percent more customer service jobs locally compared to the nation. There are Military occupations 12,941 12,925 (16) 0% 5.28 $15.58 $16.97 N/A 11 percent as many software devel- Short-term Cashiers 5,236 5,331 95 2% 1.24 $8.94 $9.28 opers as we would have if our job on-the-job training makeup exactly matched the national Short-term on-the- Waiters and waitresses 4,156 4,183 27 1% 1.37 $8.88 $9.50 average. job training Short-term Office clerks 2,906 2,973 67 2% 0.73 $11.64 $12.24 Median and average earnings per hour on-the-job training represent the local economy; the edu- Short-term Stock clerks and order fillers 2,563 2,566 3 0% 1.13 $10.38 $11.23 cation level shows the level of educa- on-the-job training tion needed for entry-level positions. Work experience First-line supervisors of retail 2,358 2,475 117 5% 1.53 $17.75 $20.14 in a related sales workers occupation Bookkeeping, accounting Moderate-term OCCUPATION DATA 1,893 1,996 103 5% 0.86 $14.57 $15.00 Economic Modeling Specialist Inc. and auditing clerks on-the-job training occupation employment data are based on Moderate-term Cooks, restaurant 1,801 1,889 88 5% 1.36 $10.70 $11.18 final EMSI industry data and final EMSI on-the-job training staffing patterns. Wage estimates are based Short-term Teacher assistants 1,783 1,842 59 3% 1.13 $11.32 $11.55 on Occupational Employment Statistics on-the-job training (QCEW and Non-QCEW Employees classes Moderate-term of worker) and the American Community Correctional officers and jailers 1,722 1,807 85 5% 3.11 $16.80 $17.46 on-the-job training Survey (Self-Employed and Extended Maids and housekeeping Short-term Proprietors). Occupational wage estimates 1,707 1,803 96 6% 1.21 $9.13 $9.54 also affected by county-level EMSI earnings cleaners on-the-job training by industry. Receptionists and information Short-term 1,678 1,719 41 2% 1.29 $11.65 $11.84 clerks on-the-job training STATE DATA SOURCES Total 175,499 183,295 7,796 4% $16.88 $18.06 Florida Department of Economic Opportunity.

26 || The Studer Institute || August 2014 ASHEVILLE

HUNTSVILLE

MONTGOMERY COLUMBUS

FORT WALTON GULFPORT BEACH MOBILE TALLAHASSEE LAFAYETTE

PANAMA CITY PENSACOLA

FORT MYERS Peer cities Labor force participation rate The number of residents between the ages of 15 and 64 as a How Pensacola compares percentage of total employment. Note that this figure as calculated does not take into account employees that may commute in from The Studer Institute selected 11 metro areas to compare outside of the geographic boundary of the MSA. with Pensacola. Fort Walton Beach, Panama City and Mobile were included because of their location and size 100% 96.4% in relation to Pensacola. We also looked for metro areas Pensacola Fort Myers in the Southeast that are similar in population and econ- 90% omy. Several metro areas in the tables have military Fort Walton Beach 78.9% installations and draw tourists and retirees. 80% 74.4% The labor force participation rate shows the number of 70% 68.6% jobs in the metro area divided by the number of adults 67.3% 65.8% who reside there. The rate could be high because there 60% may be fewer older or younger people per adult. In Fort Myers, for example, the rate is lower because a 50% large population of retirees brings down the ratio. 1970 1980 1990 2000 2010 2014* Fort Walton Beach, on the other hand, has a relative- Pensacola 67.3% 66.3% 73.1% 76.2% 72.0% 74.4% ly small number of retirees compared to other areas Fort Walton Beach 65.8% 66.2% 79.2% 90.0% 91.4% 96.4% (although that is changing as more retirees move to Panama City Destin and South Walton), and the higher-paid defense 66.3% 68.6% 80.3% 80.0% 82.7% 85.2% contracting jobs bring in workers who live outside the Tallahassee 66.7% 71.0% 85.9% 86.2% 79.2% 80.3% metro area. Fort Myers 68.6% 77.3% 83.3% 84.4% 76.0% 78.9% Gulfport 73.7% 71.7% 74.5% 86.5% 82.9% 82.9% Other contributing factors could be a high number of Mobile 63.0% 70.7% 74.1% 83.5% 83.5% 86.2% people dependent on an income earner (more children Montgomery 76.5% 76.7% 84.9% 89.5% 87.4% 88.1% or more retirees), and a large “gray” or “casual” labor Lafayette 61.1% 77.2% 75.7% 84.2% 89.8% 92.7% market where many people provide services on a cash Asheville 70.0% 73.5% 86.5% 89.7% 85.3% 88.6% basis, with some of that income not reported. Columbus 74.8% 71.4% 79.9% 88.8% 88.1% 89.8% Pensacola’s low measured rate is likely attributable Huntsville 76.0% 76.0% 93.0% 96.0% 92.0% 94.0% to both of these reasons, as well as to some of our * Estimate working residents holding jobs in other metro areas. Graphics by Ron Stallcup, [email protected] August 2014 || The Studer Institute || 27 POPULATION The number of persons living within the geographic boundary of the MSA. It includes the civilian population, military population, college residents, institutional populations and estimates of undocumented aliens. Peer cities 700,000 666,086 How Pensacola compares Pensacola 600,000 Panama City Fort Myers is the largest metro area in in median age of 60 percent and 468,002 this group with a population of 666,086. 500,000 Fort Myers 67 percent, respectively. In 1970, it was half the size of Pensacola. 400,000 This aging has implications for the impor- Now there are six Fort Myers residents 300,000 tance of income from federal government 244,669 for every one resident who lived there in 192,296 200,000 1970. transfer payments such as Medicare and 107,549 Social Security. 100,000 Pensacola’s population growth was much 85,944 0 slower than Fort Myers, but it is nearly Employment increased at a greater rate 1970 1980 1990 2000 2010 2014* triple that of Mobile. Inland Columbus, than population in all of the metros as Ga., with a heavy reliance on military, more women entered the workforce, Pensacola 244,669 291,810 345,706 413,085 449,984 468,002 and some tourism, grew only 22 percent especially in Lafayette and Mobile. How- Fort Walton Beach 104,947 132,134 172,290 211,955 236,101 248,669 over the 44-year time period. Panama City 85,944 108,989 138,809 162,959 185,151 192,296 ever, in some metros, a relatively greater Fort Myers also has the highest median Tallahassee share of the older and of non-working 158,834 213,074 261,192 321,336 367,915 384,432 age, at 46.1 years. Asheville is a close Fort Myers 107,549 208,127 339,012 444,311 620,450 666,086 second. Its median age has grown only populations slowed that employment Gulfport 242,197 301,121 312,471 365,397 371,520 382,332 by 17 percent, while Pensacola and Fort growth rate. This is true in Fort Myers Mobile 318,473 366,057 379,167 400,073 413,116 419,331 Walton Beach led the pack with increases and Pensacola. Montgomery 239,490 286,382 306,042 347,080 375,203 389,871 Lafayette 297,624 361,444 383,397 425,158 467,550 492,517 Asheville 246,640 283,713 309,502 370,615 425,567 442,960 NOTE: All metrics represent the Pensacola Metropolitan Statistical Area Columbus 254,840 259,775 266,931 282,431 295,639 309.851 (MSA), which includes all of Escambia and Santa Rosa counties. Huntsville 228,664 243,611 294,353 343,972 419,380 438,881 * Estimate Median age The age that divides a population into two numerically equal groups - i.e. one half of the population is younger and one half is older than this age. Employment The measure of the number of full-time and part-time jobs by place of work. Pensacola 50 350,000 Tallahassee 46.1 Pensacola 307,163 45 Fort Myers 300,000 Panama City (in years) 250,000 Fort Myers 230,382 40 38.4 39.3 200,000 35 32.5 150,000 104,525 108,156 30 100,000 24.0 42,485 25 50,000 23.7 35,241 20 0 1970 1980 1990 2000 2010 2014* 1970 1980 1990 2000 2010 2014* Pensacola 24.0 28.4 32.1 36.0 38.3 38.4 Pensacola 104,525 131,667 167,252 211,619 219,205 230,382 Fort Walton Beach 23.6 28.2 31.9 36.9 39.4 39.5 Fort Walton Beach 43,343 60,452 91,625 128,428 145,546 156,774 Panama City 26.1 29.6 33.1 37.7 39.9 40.3 Panama City 35,241 50,036 73,231 87,305 103,529 108,156 Tallahassee 23.7 26.5 29.4 31.2 31.8 32.5 Tallahassee 68,043 104,810 156,015 200,309 212,490 220,473 Fort Myers 39.3 41.3 41.6 45.2 45.7 46.1 Fort Myers 42,485 96,757 164,023 218,689 284,120 307,163 Gulfport 23.4 26.8 31.6 34.8 36.8 37.1 Gulfport 109,737 142,302 154,160 211,288 206,620 208,259 Mobile 25.4 27.8 32 34.5 36.7 37.2 Mobile 121,226 167,989 181,718 217,774 229,305 235,647 Montgomery 26.2 28.3 31.8 34.2 36.0 36.2 Montgomery 109,721 142,171 170,903 207,472 221,811 229,305 Lafayette 23.5 26.1 30.3 33.2 34.6 35.2 Lafayette 106,399 181,103 186,876 235,648 282,919 302,212 Asheville 31.7 33.8 37.9 40.3 42.7 43.5 Asheville 107,388 135,097 171,956 215,322 235,329 247,511 Columbus 23.5 27.0 30.4 32.8 34.5 34.5 Columbus 122,625 125,644 142,033 166,255 175,190 184,703 Huntsville 24.7 28.6 32.0 35.8 37.6 38.1 Huntsville 107,132 126,605 191,463 225,094 264,676 276,231 * Estimate * Estimate 28 || The Studer Institute || August 2014 Graphics by Ron Stallcup, [email protected] Total personal income per capita Personal income is the income received by all persons from all sources by place Peer cities of residence. Personal income per capita is calculated as the personal income of the residents of an area divided by the population of that area.

How Pensacola compares $50,000 $46,181 $45,000 Pensacola The increase in average earnings per job ment income replaced earnings from labor. Lafayette $42,554 was the greatest in Lafayette, La. and $40,000 Because we started the 1970 – 2014 Columbus, Ga. The economies in those $35,000 Fort Myers $39,041 period with higher personal income per (in current dollars) metro areas are driven by energy pro- $30,000 capita than all but two peer metros, even duction and the military. Inflation adjusted $25,000 with weak growth we still outrank four of earnings per job increased by 87 percent those communities in 2014. $20,000 in both metros over the 44-year period. $15,000 Of a dozen metros during the same Mean household personal income growth $10,000 $3,886 period, Pensacola performed the worst has been roughly on par with that of $5,000 Huntsville, Ala., and Asheville, N.C., but $3,467 $2,637 as military and manufacturing jobs were 0 well below that of Lafayette and Fort replaced by lower-paying jobs serving the 1970 1980 1990 2000 2010 2014* needs of retirees and tourists. Walton Beach. The effects of shrinking household size appear in communities Pensacola $3,467 $8,265 $15,834 $23,987 $34,496 $39,041 Those changes are not unique to Pen- where retirees are moving, such as Ashe- Fort Walton Beach $3,058 $7,543 $16,350 $25,863 $38,954 $43,987 sacola; jobs in the military and manufac- ville and Pensacola. Panama City $3,072 $7,866 $15,463 $23,599 $35,128 $38,907 turing have declined nationwide. Average household income in Lafayette Tallahassee $3,006 $7,583 $16,447 $25,343 $33,890 $37,609 Pensacola outpaced growth in the national reflects growth of the energy industry in Fort Myers $3,886 $10,149 $19,939 $29,451 $41,548 $46,181 average earnings per job because of mili- that community’s economy. Gulfport $3,096 $7,736 $14,134 $24,101 $35,228 $38,183 tary pay raises during the past few years. Fort Walton Beach’s income growth Mobile $2,918 $8,074 $14,410 $21,847 $31,515 $35,271 However, the peer metros saw more reflects the impact of the 2005 Base Montgomery $3,219 $8,411 $17,006 $25,855 $35,449 $39,304 growth in total personal income per capi- Closure and Realignment Commission Lafayette $2,637 $9,195 $14,280 $22,967 $38,201 $42,554 ta than Pensacola. process, which brought that area more Asheville $3,115 $8,175 $17,084 $26,895 $32,928 $36,606 The difference, however, is smaller than for military jobs relative to other military Columbus $3,229 $7,541 $15,450 $24,349 $36,621 $42,651 average earnings per job because retire- communities. Huntsville $3,616 $8,707 $19,318 $27,822 $38,814 $43,152 Average earnings per job Mean household total personal income * Estimate Earnings are defined as the sum of wages and salaries, other labor income Mean income is the average income earned per household within the geographic and proprietors' income. Average earnings are calculated by dividing the boundary of the MSA. It is calculated by dividing the aggregate personal total earnings by place of work by the total employment in the area. income of all households by the number of households in the area.

Pensacola $108,978 $60,000 $110,000 Pensacola $56,356 $100,000 Lafayette $98,968 $55,000 Huntsville Montgomery $96,485 $50,000 Fort Myers $80,000 $44,750 $45,000 $60,000 $40,000 $35,638 $40,977 $40,000 $35,000 $32,682 $20,000 $10,646 $30,000 $27,602 $11,281 $9,331 $25,000 0 1970 1980 1990 2000 2010 2014* 1970 1980 1990 2000 2010 2014* Pensacola $32,682 34,023 $36,030 $38,155 $43,060 $44,750 Pensacola $11,281 $23,289 $41,303 $60,773 $85,911 $96,485 Fort Walton Beach $30,445 31,626 $34,314 $37,878 $46,151 $47,367 Fort Walton Beach $10,139 $21,131 $42,233 $64,080 $94,748 $106,003 Panama City $29,126 30,934 $32,154 $36,933 $41,151 $41,695 Panama City $9,834 $21,681 $39,339 $57,339 $85,182 $93,771 Tallahassee $26,877 29,235 $33,656 $40,223 $42,607 $43,353 Tallahassee $9,524 $20,738 $41,912 $61,630 $82,317 $90,766 Fort Myers $27,602 27,659 $31,228 $38,808 $39,828 $40,977 Fort Myers $10,784 $25,033 $47,296 $68,166 $97,854 $108,401 Gulfport $29,530 33,013 $34,626 $41,307 $48,065 $49,004 Gulfport $10,507 $22,968 $38,444 $63,086 $91,112 $98,032 Mobile $28,942 33,621 $34,978 $38,449 $43,486 $45,350 Mobile $9,872 $23,552 $39,142 $57,121 $81,059 $90,007 Montgomery $26,790 31,876 $35,236 $40,409 $45,014 $46,289 Montgomery $10,646 $24,329 $45,868 $66,126 $89,932 $98,968 Lafayette $26,194 35,747 $32,665 $37,549 $47,366 $48,854 Lafayette $9,331 $27,933 $39,877 $61,428 $98,862 $108,978 Asheville $25,943 28,823 $30,916 $37,131 $36,405 $37,065 Asheville $9,402 $21,461 $41,127 $62,812 $76,168 $84,100 Columbus $26,983 30,037 $34,621 $40,179 $46,980 $50,507 Columbus $10,598 $21,542 $41,475 $63,204 $92,399 $106,820 Huntsville $35,638 36,796 $43,849 $47,733 $54,916 $56,356 Huntsville $12,332 $25,122 $50,029 $69,009 $95,505 $105,541 * Estimate * Estimate August 2014 || The Studer Institute || 29 One of Pensacola’s advantages in the tech sector is the presence of the Florida Institute for Human and Machine Cognition, which is widely recognized for its research and innovation in robotics. Pensacola-area tech sector is on the move

“Research and jobs in the communi- security services, and Avalex, which de- Region is strengthening its ty is what we’re doing here,” said Johnny signs display and mapping systems for use foothold in the tech world Godowski, another IHMC research asso- by the military and law enforcement world- ciate. “We’re proud to be doing that in a wide. They are just two companies that community that appreciates it.” could have relocated to more urban areas, By Mollye Barrows Building the technology sector and but have made a commitment to building Photos by Michael Spooneybarger providing more opportunities like those at Pensacola’s tech-community footprint. IHMC is critical to expanding Pensacola’s • A quality of life that makes Pensacola economic footprint. an appealing place to live. etting a 350-pound robot to walk “The beauty of tech businesses is that Brice Harris, associate director of the like a human is half art, half science. we’re clean, we have high-paying jobs and University of West Florida’s Office of Eco- It’s the kind of thing the robotics we bring resources,” said Julie Sheppard, nomic Development and Engagement, says G general counsel at IHMC. “Wherever we tech-based jobs can be the third leg to our lab at the Florida Institute of Human and can grow our own companies here, that’s economic stool. Machine Cognition specializes in. what we need to do.” “We already have two, military and “We’re trying to build in the intelligence The Pensacola area has a foothold in tourism,” Harris said. “The advanced tech- to balance and move,” said Doug Stephen, a the growing technology world thanks to: nology and manufacturing industries have researcher who designs software for “Atlas,” • The growth of IHMC, which is becom- the potential to (diversify our local econo- a humanoid robot built for disaster response. ing an internationally recognized hub for my) if we make wise choices.” More than two dozen researchers at the robotics research and innovation. Local tech industry leaders say attract- lab are grateful for the opportunity to work on • The presence of companies such as ing more talent and tech based companies “Atlas.” And they’re glad to do it in Pensacola. AppRiver, a leading provider of email and is key to growing the tech sector.

30 || The Studer Institute || August 2014 “I think the biggest issue we’ve got there. It uses technology and sales savvy to Innovation Coast showcases companies right now is that people don’t know the help businesses thank their clients with the and professionals along the Northern Gulf area,” said Jim McClellan, director of mar- right gift. Coast from entrepreneurial start-ups to estab- keting at AppRiver. White believes if any one of the dozen lished leaders. Harris is executive director. or so businesses now simmering at the CIE “We want to provide social networking Tech talent hits it big, all of Pensacola will benefit. for tech industries,” UWF’s Harris said. “We “I think the one thing we need is for want to see a cluster of tech companies rom its Gulf Breeze headquarters, Ap- just one company to make it and to make emerge and attract new companies as well pRiver serves 47,000 corporate custom- F it on a significant scale,” White said. “That as talent. The tech sector is more likely to ers around the globe. The company recent- will spin off such wonderful benefits for the be successful if a potential employee sees a ly opened offices in Atlanta and Austin rest of us here in terms of talent recruit- number of opportunities.” because of bigger talent pools. ment and convincing people to come here.” Organizers have hosted a number of “We’ve got a thriving tech sector here The CIE’S mission is to help build the social events, but their signature event this that’s brewing,” McClellan said. “We care technology sector in Pensacola and make it year is the Innovation Awards. about it, we worry about it, and we are very attractive for entrepreneurs. The business plan competition offers interested in expanding our tech impor- “Just because Silicon Valley has a lot of $215,000 in cash and prizes. The first prize tance here.” successful engineers, doesn’t mean Silicon is $100,000; second is $50,000 and the third Vernon Niven, a 51-year-old entrepre- Valley is the only place where engineers can prize is a year’s worth of free space in the neur, has worked in software his entire thrive,” said Daryl Tucker, senior analyst for CIE. Microsoft is also giving the applicants career. He moved to the Pensacola/Gulf College Frog, another CIE company, which free software and will select three finalists Breeze area 20 years ago for his family and provides an online platform for accounting for a software makeover. the lifestyle. students to post their resumes. “We just loved the place,” he said. “We The competition is a partnership among could live anywhere we want so we said, Innovation Coast, Space Florida, and the ‘Let’s go to the beach!’ That was 1994 and Getting the word out Florida Small Business Development Center, we’ve had a home here ever since.” espite the challenges, industry leaders which will coach the top 20 companies, offer- Niven’s latest enterprise is NeedTagger, Dand entrepreneurs are taking steps to ing help with anything from strengthening a social media-monitoring tool that helps show there is vitality in Pensacola’s tech business plans to finding angel investors. market his clients to potential customers. climate. The showcase and awards are planned He’s able to work from home part-time, The CIE and IHMC have co-hosted two for Nov. 6-7 on Pensacola Beach. a benefit of the software business. But most Startup Weekend events in the last year, The IHMC’s Sheppard is vice chair- young people starting out want to live each drawing 100 or so people. Startup woman of Innovation Coast. She hopes the where there are more opportunities, he said. Weekends are organized online and draw competition not only will boost the local “Most people who have software en- entrepreneurs, angel investors and business tech sector but also raise the area’s profile. gineering degrees will work in the metro gurus together for a 54-hour marathon of “We’re really trying to network and areas where they can move around from brainstorming and collaborative business help each other and help the community, so company to company for the first couple of planning. kids who are going away to get degrees can years, from project to project,” Niven said. White was a part of those events and come home and know they will be able to “When you get to Pensacola, the risk is very believes the networking and synergy will find a place to work.” high if they lost a job, they’d have to move. foster success. She also hopes Innovation Coast, which That’s probably the biggest obstacle for us.” “For me, the goal is that in 20 years, launched just two years ago, becomes a The Center for Innovation and Entre- when we have 40 of Startup Weekends, we resource for businesses and professionals preneurship, a business incubator formed will have an economy that resulted from a and the community at large. by the Greater Pensacola Chamber and couple of big wins from it,” White said. The network already has formal rela- Pensacola State College, is designed to help Strengthening the ties that bind the local tionships with UWF and PSC, with hopes grow technology-based businesses. technology sector is also the aim of Innova- of creating more educational opportunities, The CIE takes up the third and fourth tion Coast, a not-for-profit network of technol- including tailoring curricula to support tech floors of the college’s downtown center, ogy and knowledge-based companies. industries. offering office space, support services and AppRiver is collaborating with other “We want to make sure we are doing business coaching, all at a reduced rate. local tech industry leaders including Avalex everything we possibly can to help them Frank White’s “thank.hu” is housed and the IHMC to support it. recruit talent here,” Sheppard said.

“The tech sector is more likely to be successful if a potential employee sees a number of opportunities.” Brice Harris, UWF Office of Economic Development and Engagement

August 2014 || The Studer Institute || 31

How our jobs compare Where do we work Goods Goods Goods Government production Government production Government production 35.46% 22.28% 26.60% 15.50% 18.22% 10.31%

Service Service Service Industry Industry Industry 42.26% 57.90% 71.47% 1970 1990 2014 Median earnings: ESCAMBIA COUNTY $50,000 These earnings figures are by “place of residence.” For example, many in Santa $44,055 $44,559 Rosa County commute to higher- paying $41,634 $40,000 jobs in Escambia and Okaloosa counties, $38,724 which is where higher-wage jobs are $36,293 $35,216 $34,816 $34,104 $34,095 located. $32,259 $31,510 $30,000 $26,922 $26,360 $26,916 $25,748 $26,447 $24,506 $23,914 $22,446 $21,981 $21,895 $20,000

$10,000

2005 2010 2012 2005 2010 2012 2005 2010 2012 2005 2010 2012 2005 2010 2012 2005 2010 2012 2005 2010 2012 0 Private for-profit Employee of Self-employed in Private Local State Federal wage and salary private company own incorporated not-for-profit government government government workers workers business workers wage and workers workers workers salary workers $55,218 $55,044

$50,000 Median earnings: SANTA ROSA COUNTY

$39,576 $40,107 $39,291 $40,713 $40,000 $38,234 $38,750 $37,345 $35,694 $32,862 $29,885 $29,097 $30,022 $30,212 $30,000 $27,757 $26,909 $26,048 $25,159 $24,742 $25,133

$20,000

$10,000

2005 2010 2012 2005 2010 2012 2005 2010 2012 2005 2010 2012 2005 2010 2012 2005 2010 2012 2005 2010 2012 0 Private for-profit Employee of Self-employed in Private Local State Federal wage and salary private company own incorporated not-for-profit government government government workers workers business workers wage and workers workers workers Source: U.S. Census Bureau American Community Survey salary workers 34 || The Studer Institute || August 2014 Average annual wage Median income DEEPWATER $50,000 START OF THE by gender IRAQ / AFGHAN WARS HORIZON $49,289 OIL SPILL FINANCIAL Worked full-time, year-round in past 12 months HURRICANE IVAN CRISIS ESCAMBIA SANTA ROSA HURRICANE $45,000 DENNIS COUNTY COUNTY $43,211 $55,000 Male $50,981

$45,000 Male $40,000 $40,937 $38,406 Female $36,685 $37,370 $35,000 Female United States $32,151 $32,281 $35,000 $33,330 $23,348 Florida $25,000 $22,808

$15,000 $30,000 Escambia County

$5,000 Santa Rosa County $25,000 0 0 1999 2005 2010 2012 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 1999 2005 2010 2012 SOURCE: U.S. Census Bureau American Community Survey and 2000 Decennial Census SOURCE: U.S. Bureau of Labor Statistics

Median income by race ESCAMBIA COUNTY SANTA ROSA COUNTY

$59,515 $56,150 $50,080 $47,719 $48,345 $42,515 $46,250 $45,583 $35,448 $36,718 $39,479 $31,611 $33,558 $26,804 $25,875

White Black American Asian Native Some Two or Hispanic White Black American Asian Native Some Two or Hispanic Indian or Hawaiian other more or Latino Indian or Hawaiian other more or Latino Alaska race races Alaska race races Native Native

FLORIDA UNITED STATES $71,709 $59,979 $56,203 $54,938 $50,042 $50,555 $42,618 $46,787 $39,159 $38,831 $40,860 $40,405 $41,994 $34,690 $35,564 $37,469

White Black American Asian Native Some Two or Hispanic White Black American Asian Native Some Two or Hispanic Indian or Hawaiian other more or Latino Indian or Hawaiian other more or Latino Alaska race races Alaska race races Native Native

Graphics by Ron Stallcup, [email protected] August 2014 || The Studer Institute || 35 Mobile has cast its lot with industry; should we? What lessons can we take from another port city?

By William Rabb Photos from Alabama State Port Authority Graphic by Ron Stallcup This aerial photo shows the Port of Mobile. The city has had success in attracting large manufacturers.

hen officials from the Mobile others working on the area’s economic de- blue-collar town, expanded its love affair with Area Chamber of Commerce velopment realize that a strong downtown, jobs that required sweat, steel and skills. Wvisited Pensacola recently, they spinoff companies and white beaches are “As an outside observer, I can say that oohed and ahhed about Pensacola’s thriving not enough to sustain the future. whatever Alabama is doing seems to be downtown business district, as well as the So the question becomes: Why can’t very successful,” said Michael Huggins, in- waterfront ballpark and its array of nearby we land more shiny, new manufacturing or terim dean of the College of Arts & Sciences restaurants and nightspots. high-tech employers over here? at the University of West Florida. These same Mobile officials were quick The answer is, says Maygarden, we’re If the Pensacola area doesn’t move more to remind the locals, however, that Mobile working on it, but a lot of work remains. in that direction, our pool of qualified workers has had its share of successes of late, particu- Broadly, there are four ideas that Mo- “will be swallowed up” by southern Alabama’s larly attracting huge manufacturing plants. bile has embraced more than the Pensacola growing industrial base, said Tony Fiorentino, The Alabamians were in town at the area has, and these are the difference be- president of Marianna Airmotive, a Canton- invitation of Greater Pensacola Chamber tween them and us — offering bigger incen- ment company that builds and refurbishes President Jerry Maygarden. And that ex- tives, building targeted industry clusters, components for the C-5 Galaxy, the Air Force’s change has turned up the heat on a long-sim- investing tax dollars in public education, largest cargo plane. “It’s going to drain us.” mering debate, as Mobile seems to land one and investing in skilled workforce training. The Panhandle already is facing a crit- broad-shouldered industry after another: These findings are based on state and ical shortage of skilled workers, including European aircraft manufacturer Airbus, federal data, and interviews with dozens of plumbers, metal fabricators, electricians and with 1,000 jobs; the 2,000-job AM/NS local and regional officials, manufacturing more, according to the Northwest Florida Calvert steel mill, one of the largest and company leaders, economists and universi- Manufacturers Council. The 12-county region most advanced on the continent; not to ty professors. from Escambia to Franklin counties will need mention other aerospace, ship-building and For decades, Northwest Florida “was fat at least 3,400 new and replacement workers chemical industries in the Mobile area. and happy to rely on tourism and the mili- in the next five years, but only about 860 will While pleased with the blossoming tary,” said Jennifer Landrum Grove, Gulf Pow- be produced through existing schools and downtown and signs of growth in Escambia er Co.’s workforce development coordinator. training programs, council projections show. and Santa Rosa counties, Maygarden and But while we weren’t looking, Mobile, always a South Alabama, on the other hand, has

“Florida for a long time pretty much gave up on getting kids into skilled trades.” Jennifer Landrum Grove, Gulf Power Co.’s workforce development coordinator

36 || The Studer Institute || August 2014 gone whole hog to provide skilled workers for its manufacturing base, and that makes it a good place for Escambia to look for ideas.

Manufacturing is Mobile’s advantage obile County is a fair comparison for Mthe Pensacola area, with similar de- mographics, education levels, and pockets of poverty and population size. By almost every measure, Escambia County’s econom- ic numbers are slightly better than Mobile County’s and have been for years: • Per-capita income in Escambia is A state-of-the-art marine terminal at the Port of Mobile. The Alabama State Port Authority slightly higher. and APM Terminals invested $300 million in the terminal, which opened in 2008. • Median household income is almost $44,000, about $1,000 higher. • The percentage of residents with bache- AM/NS Calvert steel mill lor’s degrees, and the percentage that finished Atmore OTHER LESSONS high school, is a full three points higher here, 65 CENTURY JAY 1 Industries flock together. So, in recruiting, our according to 2013 U.S. Census data. 29 sights are set on hubs. Pages 38-39 • Unemployment in the Pensacola met- FLORIDA MOBILE ALABAMA 2 How much do we lag in incentives? Page 40 10 MILTON ro area for April, the latest figures available, 10 3 How do we measure up in education and was 5.6 percent, significantly better than 10 Airbus at workforce training? Pages 41-43 the Mobile metropolitan area, according to Brookley PENSACOLA the U.S. Bureau of Labor Statistics. Aeroplex • Over the last five years, the Pensacola area has added more than 5,000 jobs, while in heavy industry,” Cover said. the total number of employees in the Mo- The $600 million Airbus plant, now un- bile area has remained essentially flat since and have more knowledge workers in Florida.” der construction in Mobile, is the culmination the end of 2009, according to UWF’s Office Mobile County and Alabama have made of that two-decade-long industrial offensive of Economic Development and Engage- three major pushes in recent years: in Alabama, Cover and others have said. ment, which analyzes federal data. • Massive incentives packages for man- Escambia and Santa Rosa counties now find In one category, Mobile County has far ufacturing companies, including tax breaks, themselves playing catch-up, wondering what outpaced the Pensacola area: Manufacturing. direct subsidies and government develop- we can do to attract similar operations here. Census data show that manufacturing ment of industrial parks known as megasites. “Why can’t we get an Airbus here? For one shipments in Mobile were six times the • Changes in public education, with tax thing, I don’t have any place to put them,” said number here, topping $12 billion in 2013. increases for schools, and a major push for Scott Luth, senior vice president for economic Manufacturing employment has rebounded more non-college career paths for students. development at the Pensacola Chamber. in Mobile in recent years, almost reaching Indeed, Airbus and 75 other commercial • More emphasis on workforce de- levels not seen since the early 2000s, ac- and light industrial operations in Mobile are velopment and skilled labor, including cording to the U.S. Bureau of Labor Statis- built on a closed U.S. Air Force base, Brookley state-funded training for companies, and tics analyzed by the UWF Office of Econom- Field. When Brookley closed in 1969, and elim- a statewide marketing campaign to steer ic Development and Engagement. inated almost 10 percent of the jobs in Mobile, As labor costs rise in China, and North more youth into skilled trades. it took the Port City years to bounce back. American energy costs drop, more and It all began in 1993 when Mer- “By 2001, we still had not recovered from more of those manufacturing, assembly and cedes-Benz built a state-of-the art manufac- the closing of Brookley,” said Carolyn Akers, related operations are coming stateside, turing plant in Vance, Ala., near Tuscaloosa, a longtime education leader in Mobile. economists say. Mobile County has perfectly said James Cover, an economics professor Since then, though, the Mobile area has positioned itself to capitalize on that trend. at the University of Alabama. “The entire made the changes that have put it on the “Mobile and Alabama love their heavy state was changed by this plant.” map for heavy industry and aerospace. industry and skilled trades. But Florida for When Mercedes agreed to locate For the Pensacola area to offer a similar a long time pretty much gave up on getting in Alabama, thanks in large part to the aerospace industrial site, with a 9,000-foot kids into skilled trades,” said Grove, who most-expensive incentive package then runway and barge access, would require has studied workforce needs for years. “We seen in the United States, “it changed the closing Pensacola Naval Air Station — or thought we wanted all kids to go to college, entire perception of the state among people building something similar.

August 2014 || The Studer Institute || 37 The robotics team at the renowned Florida Institute for Human and Machine Cognition. IHMC is a great advantage as Pensacola looks to attract technology organizations. Our sights are set on industry clusters

say they are actively pursuing a number of state’s aerospace economic development Pensacola wants to create clusters, including aerospace and technol- agency, and could eventually house up to 300 aerospace, technology hubs ogy industries. ST Aerospace is a prime workers, according to news reports. Other example, said Scott Luth, vice president companies are in the works, but local officials for economic development at the Greater say they can’t disclose them at this time. Pensacola Chamber of Commerce. But nearby Baldwin County, Ala., By William Rabb That success story is partly the result is building a 3,000-acre industrial park, Photos by Michael Spooneybarger of a decision that airport authorities made known as a megasite, near Bay Minette. to not build a parallel runway, but open up The site, not far from another huge park in more land for commercial development. north Mobile County, is nestled between lusters of industry work, econom- Another example is an unnamed Interstate 65 and a rail line and is aimed at ic experts say, because they feed aerospace supply corporation that will be attracting suppliers for Airbus and for the Coff each other and build a critical the first company to build in the Pensacola automobile manufacturers that now dot the mass of skilled workers and suppliers that Technology Campus downtown, vacant for landscape across Alabama. support each other, easily attracting similar more than three years. Baldwin County officials made the site operations. The supplier’s 70,000-square-foot facility possible by spending $32 million in 2012 to Pensacola city and Chamber officials will be funded largely by Space Florida, the purchase the land. Such a site will undoubt-

38 || The Studer Institute || August 2014 edly lead to spinoff companies and jobs for Pensacolians, but it’s also more competition for attracting industry to the Panhandle, Luth said. Pensacola has worked similar site deals, but on a much smaller scale. Escambia County spent almost $2 million to buy 600 acres in Santa Rosa County so it can be swapped with the U.S. Navy for a helicop- ter-training field. The Navy’s existing field in Beulah can then be used for a commerce park that will house another expansion for Navy Federal Credit Union’s burgeoning campus. That park could eventually hold as many as 4,000 jobs, according to news reports. Other sites are in the works and can’t be disclosed, chamber leaders said. But can Pensacola do more to carve out a niche? Sebastien Cotton started Robotics Unlimited to market a running robot developed by Cotton and his The Palm Beach, Tampa and Orlando team at the Florida Institute for Human and Machine Cognition. communities built biomedical clusters around research universities and the exist- ing supply of scientists and grad students. better support for homegrown firms and University of West Florida is consid- Private sector support key here ered a regional university and has only one spinoff companies. o a large extent, the private sector has doctoral degree program, in education. IHMC has one such spinoff. Robotics Tnurtured the fledgling tech industry in That means it does not have the science and Unlimited, started by IHMC researcher the Pensacola area. engineering graduate and post-doctoral Sebastien Cotton, has developed a running Innovation Coast, a group organized by students that some high-tech companies robot, which can move along the ground on Avalex Technologies, email and web security need, nor does it have the tech incubators two legs at up to 20 mph for two hours. It provider AppRiver and other local technol- and venture capital pipelines that major will be marketed as a toy or as the perfect ogy companies, is hosting the Innovation research universities put in place long ago, pacing device for long-distance human run- Awards this November, with a top prize of said Michael Huggins, interim dean of the ners. So far, the company has raised about a $100,000 going to the entrepreneur with the College of Arts & Sciences at UWF. third of the $150,000 it needs to get started best business plan for a tech-based startup. “That’s just not who we are,” Huggins on manufacturing, said Cotton. Winners will receive expert coaching and said. “Our focus is getting undergraduates “It would be great to see more incen- exposure to other potential investors. ready for the job market, or for a graduate tives for startup tech companies,” Cotton “The idea is to build a critical mass of school that is at the research level.” said. “That is one of the big issues, finding tech people here,” said Tad Ihns, founder funding for starting companies like ours.” and CEO of Avalex, the Gulf Breeze-based A robotics hub? Besides Space Florida, the state also firm that makes high-definition recording and surveillance equipment and software he Florida Institute for Human and offers the Florida Institute, which provides for the military and law enforcement. “With- Machine Cognition, famous for its up to $300,000 in seed money for commer- T out that critical mass, it’s hard to attract groundbreaking research into robotics, is cialization of public research. But those enough top people and capable workers.” one great advantage Pensacola has. What organizations make awards to only a few Instead of giving a big incentive to lure would it take to build a cluster of robotics companies each year. companies around IHMC? one company with, say, 600 jobs, the Inno- With a larger, local pool of startup “We would welcome the chamber to vation Coast group advocates helping 60 funding, it would not be hard to attract exploit our presence in Pensacola to help smaller companies with at least 10 jobs each. attract new technology organizations,” said more top scientists and engineers to the To market the area, the group supplies con- IHMC Director CEO Ken Ford. “That said, Pensacola area, Cotton said. tact cards to hotels, encouraging vacationing recruiting top-level technology companies “We love it here.” And Cotton should tech people to consider locating here. is not easy and the old-school incentives are know about nice places to live: He’s from “There are so many great things in this rarely effective.” the south of France and has had opportuni- community,” Ihns said. “But if we don’t raise Instead, Ford suggested providing ties to work all around the globe. our profile, people aren’t going to notice.”

August 2014 || The Studer Institute || 39 We lag in economic development subsidies

president for economic development at the How much are we willing to Greater Pensacola Chamber of Commerce, because it involved building a hangar from spend to recruit industries? scratch on prime airport real estate. Unlike some states’ megadeals, the City of Pensacola will keep ownership of the structure and lease it to ST for a bar- By William Rabb gain-basement price, Luth said. Photo by Michael Spooneybarger “That’s the incentive: the lease price,” he said. So, if Northwest Florida were to tate and local officials agree that continue down the fat-wallet incentives Alabama has had success in attract- route, or decide to go even bigger with Sing big-name manufacturers in part Alabama-sized incentives, it would require because, unlike Florida, it can pull from an hefty spending and big tax breaks by city, extra source of revenue — the residential county and state governments. income tax. To match an Airbus-type incentives With that base, Alabama has offered package, for example, local taxpayers would handsome infrastructure spending and oth- have to be willing to put up a third to half of er subsidies. In the case of Airbus, the sub- the bill. That would amount to as much as sidies amounted to $158 million, or $158,000 $260 per capita in tax breaks and spending per job, according to state data and news Manfred Laner, president and CEO of Custom for a company — about eight times what reports. For the AM/NS Calvert steel mill in Control Solutions, is among companies where historically has been laid out per capita Mobile County, local and state governments small subsidies make no difference. in Escambia County, according to Florida guaranteed an eye-popping $1 billion in incentives data. incentives, according to some estimates. “It’s very difficult to provide incentives Over the past two decades, economic nies, power plants and NASA. on that scale,” said Jerry Maygarden, presi- development subsidies in Escambia and Laner has yet to pursue the paper- dent of the Pensacola Chamber. Maygarden Santa Rosa counties have amounted to a work for $45,000 in incentives that were has seen his fair share of incentive packag- mere $33 million — about $3,650 per job promised after his company expanded to es as a former Pensacola mayor and state created, according to data from the Florida a 100,000-square-foot facility at Ellyson legislator. Department of Economic Opportunity and Industrial Park in Pensacola. But it’s not unheard of in other parts of from Good Jobs First, an advocacy group The local incentives game may be Florida. that has tracked subsidies nationwide from changing. Most of the state has historically shied a range of state and local sources. To lure ST Aerospace, one of the world’s away from offering huge incentives packag- Half of that incentive money has come largest aircraft maintenance and repair es: With beautiful beaches, warm weather, from the state. companies, for example, the city, county no personal income tax and robust popu- “Historically, Florida does not play in and state this spring pledged more than lation growth, Florida felt it didn’t need to the big leagues with incentives,” said econ- $30 million for a new building and other offer further bait, Harper said. omist Rick Harper, director of the Office of infrastructure for the 300-job operation. But in a few of the most-populated Economic Development and Engagement at That’s more than $100,000 per job, a ratio counties, mostly in South Florida, the story the University of West Florida. that approaches some of Alabama’s mega- is far different. In the last 20 years, state For some companies, those low deal incentives. It’s unclear if that is the and local coffers there have offered almost amounts of subsidies just weren’t enough to beginning of a trend. Less than a fourth $2.5 billion in economic development incen- make a difference. of the money is coming from local gov- tives in just 10 counties, databases show. “They can keep them; I’d rather spend ernments. Much of it will come from the That’s the vast majority of Florida’s total my time going after new customers than Florida Department of Transportation and subsidies over the last two decades and is going after that amount of tax breaks,” funding set aside by the state’s Oil Spill almost exactly what the entire state of Ala- said Manfred Laner, president and CEO of Recovery Act. bama has offered in that time. About half of Custom Control Solutions, which makes The ST Aerospace deal was more the incentives came from local governments, sophisticated control panels for oil compa- expensive than most, said Scott Luth, vice the other half from the state, records show.

40 || The Studer Institute || August 2014 SUBSIDY SNAPSHOT: What if we spent as much on our What kind of jobs did Florida get schools as we do on incentives? for its money? By William Rabb elementaries were put on extended days. Four of those showed slight improvements hen Florida as a o big or stay home, the saying goes. in reading comprehension from 2012 to state has gone for W In that spirit, if public education 2013 for grades 3-5, district data shows. Two incentives, those breaks have is, in fact, a problem in Escambia, as schools showed slight declines. not focused on blue-collar G • Professional development for faculty so many local leaders seem to believe, then manufacturing jobs. perhaps it’s time to do something about it — — training teachers to be better at what they do, particularly in using technology in the Most of the $2.5 billion in and something big at that. Instead of giving up $158 million for classroom and in ways to engage students incentives spent in the last in more hands-on learning. Instead of ask- 20 years in South and Central one manufacturer with 1,000 jobs, as Mobile ing kids to memorize an algebraic formula, Florida were used to attract and other areas have done, what if the for example, students would design some- prestigious medical research Pensacola community made a bold commit- thing that requires the use of algebra to institutes (and one digital ment to spend a similar amount on public animation studio that went education? solve a problem. bust, costing St. Lucie Coun- It’s not such a far-fetched idea. Palm • Incentive pay and bonuses for the ty taxpayers millions of dollars Beach County committed $89 million in top-performing teachers and principals. in direct subsidies). local dollars for a research institute, and • A laptop or computer tablet for every it was matched by the state. If Escambia student, and more integration of the tech- Since 2005, St. Lucie County pledged the same amount per-capita, it nology into all aspects of learning. and the state together have would come to about $20 million. With Other community activists in the Pen- offered $82 million to land matching funding from the state, plus some sacola area have said that gains will come the Torrey Pines Institute for federal and private dollars, it’s not incon- through community-wide and volunteer ef- Molecular Studies, and ceivable that this county could find $100 forts, especially ones that aim to have more $118 million for the Vaccine million to spend. young children learning to read on time. and Gene Therapy Institute. That amount of money would hire an Every Child a Reader in Escambia, Altogether, those moves extra 250 teachers for 10 years, for example. known as ECARE, is recruiting 130 volun- have provided about 400 While there’s been much hand-wringing teers to spend time reading with needy chil- high-paying jobs. Over the about parents in some impoverished Pen- dren. The goal is to someday have mentors last 15 years, St. Lucie and sacola neighborhoods not having their chil- to help students throughout the county, said the state have incentivized dren ready to learn, often-cited studies by Ashley Bodmer, executive director. at an average of more than Marzano Research Laboratory in Colorado Others suggest hiring more family and $176,000 per job, databases show that effective teaching in the schools community liaison workers to visit homes show. can, in fact, have a great effect on student and determine where children and parents achievement. need help the most, or setting up communi- In nearby Palm Beach Coun- ty centers in impoverished neighborhoods, ty, the county commissioners With millions more in funding, Es- or beefing up Head Start centers, with in 2008 allocated $89 million cambia School Superintendent Malcolm to help build and operate a Thomas wouldn’t hire many more teach- books and computers for children, and skills branch of the world- ers, but he says he would invest heavily in training, parenting classes and more for renowned Max Plank Insti- three areas: parents. tute, a biomedical research • Extension of the school day from 6.5 “We can’t think of education as a school facility. The state matched hours to at least 7.5 hours. Florida’s school responsibility or a state responsibility,” said that amount. Five years day is one of the shortest in the nation. In Jennifer Landrum Grove, Gulf Power Co.’s earlier, the county and the 2012, the state required 100 of the low- workforce development coordinator. “It’s a state offered up almost $600 est-performing schools to add an extra hour community responsibility. The whole com- million to lure the Scripps for reading instruction. After a year, three- munity here has to own it.” Research Institute. About half fourths of the schools had improved reading The good news, she said, is that 10 of that money came from a scores on the Florida Comprehensive years ago, this community wasn’t even one-time windfall of federal Assessment Test, according to a study done talking about these issues as much as we Medicaid dollars. for the Florida Legislature. In Escambia, six are today.

August 2014 || The Studer Institute || 41 Fix education; high-income jobs will follow

Better education is the goal, but how do we get there?

By William Rabb Photo by Michael Spooneybarger

n Pensacola, our economic prospects are all about education. I When asked what our area needs more than anything to develop more high-quality Claire Hedgepeth uses a magnifying glass to investigate along with others in a pre-K class at Myrtle Grove jobs and a vibrant economy, many Pen- Baptist Church Pre-School Learning Center. Many educators consider pre-K essential to get kids ready to learn. sacola leaders stress improved education, Almost 72 percent of the 4-year-olds in Escambia participate in voluntary pre-K programs. particularly early education, for students in the lowest-achieving sections of the county. others have done to improve school readi- much of the faculty and administration at “We're not going to have the high-in- ness, graduation rates and skills training. those schools, and gave $4,000 bonuses to come jobs we want here until more children high-achieving teachers to work there. show up to first grade ready to learn,” Rick Eventually, teachers said the bonuses Harper, director of the Office of Econom- Funding support made little difference: It was having sup- ic Development and Engagement at the y the late 1990s, Mobile County's public portive, forward-thinking leadership at the University of West Florida, said at a recent school system was in perilous condition. schools that helped them reach the neediest economic symposium. B With many white families moving to private students, officials said. But few local leaders seem to know how schools and to Baldwin County, tax support Mobile County schools also invested to achieve that goal, other than a vague no- was dwindling. The schools were so short of heavily in teacher development, training tion of having parents in low-income areas funding that the superintendent threatened teachers in reaching under-performing more involved in their kids' development. to close high school football programs. kids, and placing more emphasis on skilled “I think there are “And he would have done it, too,” said trades, as well as science, technology, some best practices out “15 to 20 percent Carolyn Akers, a longtime education leader engineering and math, according to school there, but I don't think in Mobile. officials and news reports. County voters in of our kids are we have found the key The threat to football galvanized the 2011 voted to renew other property taxes, not ready yet,” said Jerry May- community. The Mobile Area Education keeping $55 million annually going to garden, president of Foundation, with Akers at the helm, also got schools. for kindergarten.” the Greater Pensacola involved, building a grass-roots coalition Chamber of Commerce. and an intensive “Yes We Can!” campaign. Malcolm Thomas, Without changes, In 2001, county voters agreed to raise sales Career academies and more Escambia superintendent this area could be slip- and property taxes, generating more than he district worked closely with local ping into a permanent $28 million in annual revenue. Tbusiness and industry to determine two-tiered society of haves and have-nots, “That gave us a stable footing to start what skills were needed most, said Martha Harper said. addressing our needs,” Akers said. Peek, Mobile's schools superintendent since While Mobile County has plenty of Next, the school district moved to late 2011. have-nots, here's what that community and transform five failing schools, dismissed Eight of Mobile County's 12 high

42 || The Studer Institute || August 2014 schools now have signature career acad- ing the number of kids who are ready to emies, specializing in career paths from learn when they enter school.” engineering to aerospace to manufacturing to teaching to medical fields. Graduates Workforce development earn career-readiness certificates. “For years we were dancing with busi- ther community leaders say all of ness and industry; now it's time to hug,” Othe emphasis shouldn’t be on early Peek said. education. Companies considering locating Almost all students take advanced here are asking Jennifer Landrum Grove, placement exams to determine who should Gulf Power Co.'s workforce development enroll in higher-level classes. For suspend- coordinator, “why so many kids are going to ed students, the district offers afternoon college, and to the wrong kind of college.” classes when most other kids aren't around. Thomas acknowledges that there must Older kids who have been held back may be a bigger push locally and across Florida attend twilight school in the evenings, with to get more students into skilled trades. other students their age. “Not every kids needs to go to college,” The changes appear to have paid off, at he said. “There's a desperate need out there least by some measures. Mobile County's for brickmasons, plumbers, welders.” four-year graduation rate for high school- The Florida Legislature's course re- ers has climbed steadily in recent years, quirements may have hamstrung schools to reaching 75 percent last year — almost 10 some degree, requiring vo-tech students to points higher than the 64.2 percent rate in take algebra II and chemistry, he said. Escambia County for 2012-2013. Shemetri Charley helps a student in her pre-K Before ST Aerospace agreed to touch Escambia school leaders are quick to class at Wee Kare Academy. Wee Kare’s program down in Pensacola, this area had no point out that they have taken almost all the had a readiness rate of 100 percent last year. FAA-certified aircraft mechanic training same steps that Mobile has. The most no- schools. Now, both Pensacola State Col- ticeable difference between the two districts lege and George Stone Technical Institute appears to be in teacher pay. be ahead of Mobile — but maybe not for are building programs to fill the needs of The average teacher salary in Mobile long. Almost 72 percent of the 4-year-olds ST and future aircraft service companies. County is about $10,000 more per year than in Escambia participate in voluntary pre-K But more may be needed to keep up with a in Escambia, state data show. Escambia programs, according to the Florida Office of growing demand, company leaders said. schools also offer 61 career academies in Early Learning. That compares to a 50 per- Alabama has leaned heavily on the all high schools — almost five times the cent rate in Mobile County. Mobile officials skilled-labor-training angle, spending as number just six years ago. A construction hope to raise that figure in coming years. much as $40 million a year to train com- panies' workers through the Alabama academy at Pine Forest High School, for “Universal pre-K — that is our goal,” Industrial Development Training agency, example, has received high marks, but it al- Mobile’s Akers said. compared to just $12 million from a similar ways needs more lumber and other materi- Some states, including Oklahoma and program in Florida. als, said Escambia Schools Superintendent Georgia, have instituted mandatory pre-K The AIDT branch in Mobile now has a Malcolm Thomas. for all 4-year-olds. Some of those programs highly visible center right next to the inter- Thomas stressed that the differences have produced significant gains in school state and is a clearinghouse for skilled-la- people claim to see in Mobile and Pensaco- readiness, studies suggest. la-area schools may be an illusion. bor jobs. The state also advertises frequent- Like most school initiatives, results ly on television, with commercials featuring “Florida has a higher standard than al- depend on the quality of the program, how most every state on grades and graduation “Dirty Jobs” TV start Mike Rowe urging well trained the teacher is, and what the young people to go into trades that require requirements,” he said. “If we lowered our teacher-to-student ratio is. standards, we could have higher rates, too. only two-year degrees or less. Thomas said he would not implement But we take a more rigorous approach and To steer more youth into fields that re- mandatory pre-K for everyone, but would we look bad because of it.” quire only an associate's degree or training assess all 4-year-olds in the county. Chil- certification, Grove advocates more schol- dren needing help would have to attend arships and grants for those students and Pre-K all-day programs, he said. The all-day pro- asking corporate leaders to advertise the sk an elementary school teacher if grams would also serve as day care, allow- need for those types of workers. Apre-kindergarten classes are needed ing parents to work. “Everyone wants their child to go to to prepare children to learn, and most will “Right now, 15 to 20 percent of our kids college and have a sexy job, but let's not answer with a resounding “yes!” are not ready for kindergarten,” Thomas forget that the backbone of an industrial In that respect, Escambia County may said. “And that's the ultimate prize, increas- economy is skilled trades,” she said.

August 2014 || The Studer Institute || 43 Hannah Gainer prepares for Pine Forest High School’s graduation. Hannah overcame first-semester troubles to make it to the end and praises the help she received from Pine Forest educators. Last year, 1 in 3 Escambia students didn’t graduate

would have had limited opportunities after becoming a fashion designer. “For them to Grad rates have risen, but high school. do these things means a lot to me.” county still has a way to go Hannah forged ahead and embraced High school completion is, obviously, the help she got from her principal and an important step in a teenager’s life. guidance counselor. But in Escambia County, more than By Reggie Dogan She raised a first semester F in 35 percent of students didn’t finish high [email protected] geometry to a B. school with their graduating class in 2013. Photos by Michael Spooneybarger After four tries, Hannah nailed the It was worse for black students, as only Florida Comprehensive Assessment Test. 51.4 percent completed high school that Hannah worked extra hard to earn year, compared to 71.2 percent for white n a sunlit June afternoon, Hannah her diploma, but she gave high praise to students, according to data from the Florida Gainer beamed as she zipped up her Principal Frank Murphy and guidance Department of Education. Oscarlet gown. counselor Kelli Lowe, for prodding, pushing On the bright side, Escambia County’s After a senior year filled with perils and and pulling her along the way. high school graduation rate has risen pitfalls, Hannah graduated from Pine Forest “What they did for me was unbeliev- incrementally in recent years, from High School. able,” said Hannah, 17, who plans to attend 56.2 percent in 2009 to 64.2 in 2013. But the Without a diploma, Hannah knew she Pensacola State College and dreams of sad truth is that for one out of three high

44 || The Studer Institute || August 2014 school seniors — and nearly half of black FACT: The typical high school “What we expect out of students in the students in Escambia County — there is no first grade today is no way near what we diploma after 12 years of school. graduate will earn more, be less expected out of a first-grader in my gen- The result is a generation of young peo- likely to rely on public money for eration,” Thomas said. “As a community ple with limited options and limited earning health care and welfare and be we have to realize we always have to keep capacity who lack basic skills needed to learning. I don’t think we have that sense as enter the world and take care of themselves. less likely to be involved in the a community.” criminal justice system. In neighboring Santa Rosa County, Measuring stick the graduation rates are consistently higher than Escambia and the state’s averages. t a time in which accountability and grades calculation. Santa Rosa’s graduation rate has transparency are watchwords for virtu- A Escambia’s graduation rate has remained steadily inched up, from 72.9 percent ally anything government does, it is easy to below the national average over the past in 2009 to 78.9 percent in 2013. understand the appeal of graduation rates. decade. In 2013, the national graduation rate Black students in Santa Rosa graduated In Escambia County, the aberrant grad- rose to 80 percent, its highest level in history. at a rate of 74.1 percent, compared to uation rate has been a thorn in the side of The percentage of students in Florida 78.3 percent for white students. school administrators for years. earning a high school diploma stood at 75.6 Thomas hears the question of why “We are the professionals and we in 2013, up from 74.5 percent in 2012. Escambia schools lag behind Santa Rosa’s. should be able to fix it, but the reality is that “To start with, we don’t look alike,” we can’t do it by ourselves,” said Carolyn he said. “Just look at the demographic Spooner, director of the district’s high Cost is clear differences.” school education. “We have to have the he litany of reasons for low graduation Thomas pointed to Santa Rosa’s higher parental involvement, we have to have the Trates run the gamut — high absentee- per capita income, less poverty, less diversi- community involvement. It is a collabora- ism, poorly engaged students, inadequate ty and fewer single-parent households. tive effort and if we don’t have that, then it parental education, work or family respon- The poverty level in Escambia as mea- is an uphill battle.” sibilities, behavior problems, attending a sured by the number of students who quali- It’s a battle that’s being fought across school with low achievement scores. fy for free or reduced-priced lunch reached the state and nation. Regardless of the “why,” the cost is a staggering 64 percent in 2013, up from The high school graduation rate is an clear — and heavy. 57 percent nearly a decade ago. important measure of the success of a com- Educated workers are the basis of eco- In Santa Rosa, about 40 percent of stu- munity’s education system and the quality nomic growth. They are critical sources of dents qualify for free or reduced-price lunch. of its workforce. innovation and productivity given the pace To qualify for the program in the Numerous studies show unemployment and nature of technological progress. 2011-12 school year, a family of four’s rates are lower and lifetime earnings are Studies show that the typical high annual income was $29,055. substantially higher for high school gradu- school graduate will earn more — 50 percent To highlight the degree of poverty in ates than for those who don’t finish. to 100 percent increase in lifetime income — Escambia County, Thomas pointed out that Scott Luth, senior vice president of eco- and be less likely to rely on public money for more than a third of his schools have 80 per- nomic development for the Greater Pensac- health care and welfare and less likely to be cent or more of their students eligible for free ola Chamber of Commerce, said graduation involved in the criminal justice system. or reduced-price lunches. Only one school in rates are one of many factors companies Because of those better incomes, grad- Santa Rosa County has 60 percent of students weigh before moving to a community. uates contribute more in tax revenue over who qualify for the lunch program. “Having a high school diploma impacts their lifetime than non-graduates. “If you want to be an A or B school, the earning potential and the type of jobs they In today’s competitive economy with No. 1 factor of all characteristics is to have can get,” Luth said. “Higher wage-earners’ high unemployment rates, prospective em- less than 30 percent of students with free income trickles down in the economy.” ployees need all the credentials they can get. and reduced-price lunch,” Thomas said. “If The graduation rate measures the per- Having a high school diploma is a ne- you want to have the probability of being an centage of students who completed school cessity. Malcolm Thomas, superintendent of F school, have 70 or 80 percent of students within four years of starting it. It includes Escambia County schools, understands the on free and reduced lunch.” standard diplomas but excludes GEDs, both dilemma schools face in trying to prepare regular and adult, and special diplomas. students for an evolving, complex workforce. Starting in 2010-2011, the U.S. Department The manufacturing jobs for unskilled Making progress of Education adopted a new calculation workers are no longer available, and stu- scambia County’s Pine Forest High method to develop uniform and comparable dents today absolutely need, at the very ESchool, in the Bellview area west of graduation rates across the country. least, to finish high school, learn a trade or U.S. 29 on Longleaf Drive, has pockets of This rate currently is used in Florida’s go to college to prepare them for the mod- poverty among its student body. More than accountability system in the high school ern job market, Thomas said. 70 percent of students there qualify for the

August 2014 || The Studer Institute || 45 lunch program. scheduled conferences with parents. A school with a 91 percent graduation rate Students graduated at a rate of 60 Murphy realized the vital role that in 2013. percent in 2013, about four points below the educators play in providing extra help for Its mission is to prepare students for county’s average. at-risk students who may not have a lot of entry into chosen career fields or college Pine Forest Principal Frank Murphy support in their homes. through a combination of learning by mesh- knows that poverty can affect a school’s “We cannot shut doors on children re- ing academic and technical skills. grade and graduation but he refuses to use gardless of what neighborhoods they come It’s like a vocational school on high- it as an excuse. from,” he said. tech and profession-driven steroids. Murphy put plans in place that helped “We are servants of the community, and The school offers 12 academies, from boost the at-risk graduation rate eight if we were to sit back and not do anything aerospace engineering to sports medicine. points in one year, from 52 percent in 2012 on behalf of these children, we are in the Even with the highest graduation rate to 60 percent in 2013. wrong profession.” in the county, Principal Eric Smith wants to “We spend an enormous amount of Things may have turned out differently for aim higher. time on senior credits and communication Dusty Wiggins if she had found the help that “It’s always heartbreaking to lose one,” with parents and students so that it is very Murphy provided his students at Pine Forest. Smith said. “Out of that 91 percent it hurts us clear what they need in order to be gradu- Wiggins quit school in her senior year to lose that 9 percent. But there are a great ates,” Murphy said. at Washington High School in 2012. number of them who come back and finish.” Murphy is putting in the work and Wiggins said she rarely missed a day, Like Smith, Thomas laments when any using creativity to motivate and inspire her grades were good, but she struggled student fails to graduate. students to achieve. with reading and passing the FCAT because While the 64 percent graduation rate “A lot of what we did … was just through of dyslexia. leaves a dark cloud over the district’s mo- hard work and dedication, the love that we One day, without consulting the principal rale, Thomas finds bright spots to highlight: put forth for our students,” Murphy said. “I or guidance counselors, Wiggins dropped out • Advanced Placement and dual enroll- know every school has that; we just like to of school, a decision she came to regret. ment participation has increased 33 per- put a personal touch on it.” Now a mother, Wiggins, 19, said she’s cent. In 2013, the College Board recognized The personal touch includes assigning able to make ends meet and bring home the district for leading the state in increas- counselors to entering freshmen deemed diapers working as a cashier at a tool and ing AP enrollment. at-risk and tracking them throughout their equipment store. • Career academies increased from 13 high school years. She wants to get a GED and become a in 2008 to more than 60 in 2014. Academy nursing assistant. They build relationships. They collect choices are available at every middle and “If I had stayed in school maybe I data and pinpoint deficiencies to improve. high school in the district. wouldn’t have a kid,” said Wiggins. “I If a student is not proficient in math or • Every new teacher is provided a thought it was stupid, but everyone makes reading, the counselors ensure that the master teacher as a mentor to model and mistakes and hopefully I’ll learn from them.” student gets tutoring in the subject. ensure that the new teacher has a chance to It means identifying seniors who need become a quality instructor. to make up courses through credit recov- Cream of the crop “We’re changing the destinies of kids,” ery. It also means going over each senior’s stone’s throw from Pine Forest High Thomas said. “We have an opportunity, and if transcript in detail, making sure everyone ASchool sits West Florida High School we don’t do it, I don’t think anyone else will.” has an opportunity to graduate. of Advanced Technology. It is the gem of Looking down the road, Thomas hopes It’s that kind of attention that helped Escambia’s high schools. to improve graduate rates, but he knows the push students like Hannah Gainer toward a The students are considered the cream requirements to graduate will get tougher. diploma. of the crop. They have a rigorous appli- Next year students will have to earn one Murphy assigned guidance counselor cation process, and then are chosen from credit in algebra and one in geometry. They Kelli Lowe to make at-risk students her pet a lottery. Once selected, they must sign also must have courses in biology and a projects. She gave lessons and techniques a pledge to work hard, stay in school and rigorous science course, such as chemistry. on taking the End of Course exams and the away from trouble. To help in the effort, the district offered FCAT. She tracked students using data and Only 38 percent of students are eligible summer school for at-risk eighth-graders report cards, transcripts and courses. She for free or reduced lunch. West Florida is an for the first time this year.

“We’re changing the destinies of kids. We have an opportunity, and if we don’t do it, I don’t think anyone else will.” Malcolm Thomas, Escambia County superintendent

46 || The Studer Institute || August 2014 Pine Forest High School prepares for a commencement. The school boosted at-risk students’ graduation rate by eight points in a year, going from 52 percent in 2012 to 60 percent in 2013.

The students spent the summer at the struction from dedicated teachers. ensure that Escambia County schools rise school they would attend in the fall, learn- Evidence gathered over the years to the top, Thomas believes. ing the ropes and getting a head start in the seems to suggest that some of the better He wants fewer people sitting on the classroom by taking a course to earn a credit. approaches need to start earlier. For exam- sidelines criticizing and debating statistics During the school year, if a student is ple: Preschool for 3- and 4-year-olds, who are and numbers, and more people rolling up failing, he will be eligible to make it up in a fed and taught in small groups, followed up sleeves to go to work to help. night class or online. with home visits by teachers and with group “We have to quit throwing rocks and To keep students in school, disciplinary meetings of parents. making everyone feel like they’re the big- action will be curtailed for violations Thomas was aware of the deficiencies gest losers in town,” he said. “I will accept involving cell phones and dress codes to in the district when he was elected superin- my responsibility for my role in the School reduce the number of 10-day suspensions. tendent in 2008. District. If it’s bad news I’m going to own If a student is suspended, he or she can “I knew I was going to face a big ele- up to it. If it’s good news I’m going to share make up work to stay on track in class. phant, and how do you eat him?” he said. that, too.” “One bite at a time.” For students like Hannah Gainer, the Working together Thomas believes to improve graduation good news is that under difficult circum- ome education reformers believe rates requires the entire community. stances and with diligence and dedication, Sschools can increase graduation rates When policymakers, parents, educa- she got her diploma. and prevent students from dropping out tors, business leaders and other important “It was a top priority for my family and by replacing larger schools with smaller education stakeholders work together and me,” she said. “It’s so hard to make it today learning communities where low-income focus on programs and reforms that are and you really can’t get a good job without a students can get more attention and in- proven to make a difference, everyone can diploma.”

August 2014 || The Studer Institute || 47 Making the grade

Kindergarten readiness High school graduation rate

ESCAMBIA COUNTY SANTA ROSA COUNTY Percentage completing four years of high school Average kindergarten Average kindergarten readiness rate for children readiness rate for children 80% 78.9% Escambia County 67% 81% Santa Rosa County or 2,039 or 1,443 75.6% SCHOOL STATS of the children of the children Florida scored ready 75% Total number of K-12 scored ready students (for 2013-14) Escambia Elementary 20,485 70% Middle 9,050 High school 11,218 Total 40,753 65% 64.2% Santa Rosa Elementary 11,907 Middle 6,178 60% High school 7,814 Total 25,899 55%

Student/teacher ratio 50% (for 2013-14) SOURCE: Office Of Early Learning 2004-’05 ’06-’07 ’08-’09 ’10-’11 ’12-’13 Escambia 12.9 to 1 Santa Rosa 14.5 to 1 State average 13.7 to 1 Education attainment of adults

ASSOCIATE DEGREE BACHELOR’S DEGREE GRADUATE or Average teacher salary PROFESSIONAL DEGREE 2012-13 Escambia Santa Rosa Escambia Santa Rosa Escambia Santa Rosa Escambia $40,573 County County Florida County County Florida County County Florida Santa Rosa $45,005 State average $46,583 18.6% 17.1% Sources: Florida 16% 15% 15.8% Department of Education; 14.9% National Center for Education Statistics 9.6% 10.4% 9.4% 10.2% 8.2% 8% 7.8% 8.3% 9% 7.4% 7.9% 8.2%

2005 2012 2005 2012 2005 2012 2005 2012 2005 2012 2005 2012 2005 2012 2005 2012 2005 2012 SOURCE: American Community Survey

Graphics by Ron Stallcup, [email protected] 48 || The Studer Institute || August 2014 Escambia public schools worked for me

ducation means different things to different remain in public schools worked out fine for me. How one family people. In middle school I found my niche. My E For my parents, it meant leaving a house eighth-grade gifted language-arts teacher al- navigated our and a familiar neighborhood on the west side of lowed me to study classic works of literature in Pensacola to move to East Hill in search of better a way I’d never experienced before. She instilled school system schools for me and my brother. in me a hunger for knowledge and a drive toward I owe them a lot for that. I not only got a creative expression that I still have today. By Carly Borden good education, but a great education. But not After middle school, I chose to attend Booker [email protected] everyone who goes to school in the Escambia T. Washington High School. The International Photo by Michael Spooneybarger County School District can say that. Baccalaureate program at Pensacola High School I started my freshman year at Washington offered a challenging course load, but Washing- High School in 2006. By the time ton was a better fit for me. I graduated in 2010, only 55 per- I remember in ninth grade sitting in an ad- cent of the students in the district vanced-placement human geography class having who started their freshman year to defend my position on an issue. It was a class with me ended up graduating. where we used a Socratic method of debate. My What’s even more discouraging teacher cultivated a classroom where vigorous is that only 44 percent of blacks discussion, strong arguments and enlightened in the district graduated in 2010. speeches flowed in a way that made each student Sometimes I wonder why our want to channel his or her inner Cicero. school system didn’t work as I got involved with various clubs and organi- well for some kids who started zations, some social and some academic. Most of school when I did. our teachers were already involved with clubs on One of the reasons I’m with the campus and urged us to get involved, too. They Studer Institute is because I want felt it was a great way to keep students engaged to better understand why some in the school community. And, indeed, it was. children succeed in school and My junior year, a teacher encouraged me to others don’t. More important, I run for office and I was elected student government want to study ways we can im- president my senior year. I learned quickly that prove not only graduation rates, coming to a consensus with students, teachers and but also preschool education. administrators was not an easy task. As I begin my work and At the time, we had just merged with Woodham research at the Institute, I’ve High School and the influx of new students not ac- thought a lot about why the customed to our school had created some friction. system worked for me. Looking With the help of the administration, however, we back, I can see it was a mixture were able to plan events that increased school spirit of parents, community, teach- and made the school community more inclusive. ers and drive. I grew up in a After graduating from Washington, I was ac- close-knit neighborhood with cepted into the University of Florida. I graduated many kids my age who also had last December with a bachelor’s degree. involved and supportive parents. Despite the criticism that public education That kind of environment was receives, it worked well for me. What I can say is just as important as my schools. that there’s not one key or solution to the prob- Carly Borden’s educational journey began My school journey began at the lems in public schools today. It takes a motivated at N.B. Cook Magnet School of the Arts. N.B. Cook Magnet School of the Arts in kindergar- community, willing students, participating par- ten. I was in the initial first-grade class to attend ents and supportive administrators and teachers. school in the new state-of-the-art building. At Cook, There’s no one thing that’s going to fix the I want to study ways we can students to this day perform in plays twice a year, system, and no one thing that’s responsible for the before a standing-room crowd in an auditorium. problems. The one thing I know, however, is that improve graduation rates The popular opinion seems to be that public if it weren’t for my parents, my teachers and my and preschool education. schools don’t measure up. But my decision to neighborhood, I wouldn’t be where I am today.

August 2014 || The Studer Institute || 49 Milton High ‘D’ brought hearts, minds together to change it Success took group effort

By Reggie Dogan Photo by Michael Spooneybarger

n 2009, Milton High School almost failed. I The school got a D under the state’s grading system, a drop of a letter grade from the previous year. Panther pride was wounded. Instead of complaining and cursing the darkness, they lit a candle. City and civic leaders organized the City of Milton Education Committee. The Santa Rosa County School District hired a new principal. The principal and his staff rolled up their sleeves and went to work. In 2010, Milton’s grade soared to an A. “A lot of folks asked, ‘Hey, what’s the secret?’ ” said Principal Mike Thorpe. “Well, there is no one secret. We feel like it’s a mixture of a lot of things.” One of those things, according to Thorpe, was making education personal ­— literally. That meant principals spent time poring over data, meeting individually with teachers and students. That meant teachers not only taught, but also reached out and touched students in nearly every aspect of their lives. Under Thorpe’s leadership, the school identified key problems. They targeted under-performing and at- risk students and worked harder to help them; they raised graduation rates and school rat- ings; they increased the number of students earning dual enrollment degrees or college credits by 130 students in five years. One of the major initiatives Milton High School Prinicipal Mike Thorpe started was to focus on working “You have to do like Mr. Thorpe has done: one-on-one with students and teachers to improve the quality of education there.

50 || The Studer Institute || August 2014 take those who are struggling and give them a 2009. Thorpe was the right person at the right school. “He’s very engaged with students and hand,” said Milton Mayor Guy Thompson, one time to take the helm at Milton. that’s contagious.” of the founders of the education committee. Thorpe grew up in Milton. He attended Scott recalled that Thorpe made only one “We want people to know that we are getting Hobbs Middle School. He played football and request after becoming principal. He wanted as good an education as anywhere.” baseball at Milton High School. A mixture of a new science wing. Tim Wyrosdick, superintendent of Santa brawn and brains, Thorpe excelled in math It took five years, but the science wing Rosa schools, said Thorpe’s work and suc- and science in the classroom. opens this school year. Students can take dual cess are emblematic of what’s taking place He dreamed of becoming an astronaut, enrollment classes, upper-level courses, ad- throughout the county. but a stroke six weeks before his high school vanced placement calculus and work in labs “Mike has infinite knowledge of and love graduation changed the course of his life. comparable to what they’ll find in college. for this community,” Wyrosdick said. “He’s He went on to Auburn University but left able to bring community leaders and groups school to get married. He ended up earning Focusing effort on at-risk students together for the common good.” his bachelor’s and master’s degrees from the s much as Thorpe celebrates the school’s University of West Florida. top rating, he’s even prouder of the work After college, Thorpe taught math at A Making it work they’ve done with at-risk students, especially Holley-Navarre and Milton High schools. t the beginning of the 2009-2010 school those who didn’t pass FCAT’s reading and He taught web design and TV production at year, Milton administrators and educa- math in the eighth grade. A Milton, before moving into administration. tion committee members met once a month While Milton’s graduation rate in 2012 When the call came for him to step in as to find some quick fixes. was 78.4 percent, the rate for at-risk students principal, Thorpe was ready. They raised money for a lighted sign on was a dismal 54 percent. “Things worked out exactly the way I the edge of campus. They bought equipment That was unacceptable, Thorpe recalled. would have wanted it to be,” he said. to increase technology. They held celebration The graduation rate for those at-risk Among the poorest schools in Santa luncheons for teachers. students kept Milton from being an A school Rosa, half of the 1,740 students qualify for free Milton was the only school in Northwest in 2011 and 2012. or reduced-price lunch, which means their Florida without tennis courts. The city built The way the scores are computed, even families fall below the federal poverty level. the school the best tennis courts in the coun- though students showed improvement and a Of the 90 teachers, nearly 40 percent ty. They realized that for the community to majority passed the FCAT, the school would have advanced college degrees. Thorpe put in thrive, the school had to strive to be better. drop a letter if fewer than 65 percent of at-risk a plan to take advantage of that talent. “People don’t realize how important it is students graduated with their designated Thorpe and his three assistants divided to have premium schools,” Thompson said. class in four years. During those two years the teachers among themselves, about 22 “Milton High School is an important heart- when Milton received a B, the school’s grade apiece. The teachers made each of their stu- beat to our city and community.” was an A, but it was penalized because of the dents a personal project. Randy Jorgenson, staff to the education at-risk graduation percentage. At least three times a year, the principals committee, said the bond among the school, Thorpe poured his energy into raising and teachers met to track students’ progress. city and community can’t be underestimated. at-risk students’ graduation rates. They broke down data for every class and Good schools attract residents who eat In 2013, the score increased 20 points, to student. They kept eyes on attendance and in restaurants, shop in stores and buy houses 74 percent. discipline, set goals for every nine weeks, and and cars, he said. Milton’s overall graduation rate rose in talked about the students’ trials and triumphs. While the committee played an im- 2013 to 82.7 percent, nearly three points high- Thorpe said he met with nearly 100 stu- portant role in helping the school improve, er than the county’s rate at 78.9 percent. dents a week to see how they were performing Jorgenson said the credit ultimately goes to Thorpe said administrators and teachers Thorpe and his staff. and where they may need help. have to understand the issues at-risk students “The success of the school is because of If teachers found students struggling in are dealing with to help them achieve success. the investment of the people who work there,” any area academically or personally, the stu- “Dealing with poverty is tough. It’s hard said Jorgenson, director of planning for the dents had one-on-one sessions with principals for a kid to think about algebra if he’s worry- City of Milton. to discuss the problem and find solutions. ing about if he’s going to get fed at night.” “We have real conversations,” Thorpe Thorpe won’t rest on his laurels. He has said. “We might say, ‘Hey Jimmy, tell me why his sights on ensuring that every student who The power of leadership you are struggling when it comes to cells in enters Milton earns a high school diploma. o one person or group takes credit for biology.’ Kids have to be accountable for their “Lots of people thought Milton High NMilton’s turnaround. The education com- performance.” School would never be an A school,” Thorpe mittee gives kudos to Thorpe. Thorpe points School Board member Diane Scott said said. “Folks at this school never say ‘never.’ to his teachers, staff and students. Thorpe has been a catalyst for change. We expect to get a 100 percent graduation No matter who gets the praise, everyone “He eats, sleeps and drinks Milton High rate, and whatever it takes, we quite simply agrees it started with the leadership change in School,” said Scott, whose District 1 covers the won’t rest until that happens.”

August 2014 || The Studer Institute || 51 Are our children ready to learn?

early a third of children entering Rating providers Too many are already kindergarten in Escambia County lorida is among 40 states that in the past behind before they Naren’t ready for school. F10 years started state-funded preschool That’s sobering news because the programs, serving about one-quarter of even start kindergarten future of Escambia’s economy and work- 4-year-olds. force very likely depends on those pre- Ideally, voluntary prekindergarten, or schoolers and how well they are prepared VPK, improves school readiness by provid- for school. ing high-quality preschool. The educational window from birth to In 2010, Florida revised its preschool By Reggie Dogan age 4 is crucial. Preschoolers exposed to rating system. [email protected] a rich vocabulary with a variety of words, A successful VPK is one where 70 per- Photos by Michael Spooneybarger who have books easily accessible and adults cent or higher of students receive a passing who read to them are much more likely to score on their kindergarten readiness test. become better readers If the scores drop below 70 percent, the and better students. VPK is deemed nonperforming. Ultimately they Of the 92 providers rated in Escambia become adults better County in the 2012-2013 fiscal year, prepared to deal with 75 percent had a readiness of 70 or higher. a changing workforce The average rate was 78.6 percent. and an economy Providers in Santa Rosa County fared built increasingly on much better. Of 37 programs, 89.2 percent workers who have the rated 70 or higher. The average rate was intellectual flexibility 85.8 percent. to adapt as the work Programs with fewer than four students world changes. are not rated by the OLC. But the sad reality Escambia’s readiness rate for providers is, too many children averaged 75 percent during a three-year in Escambia County period, receiving 72.9, 75.1 and 78.6 percent aren’t ready when it’s respectively. time for kindergar- ten, and they remain Isabella Stacy and Claire Hedgepeth read along with audio at Myrtle behind through their Early lessons last a lifetime Grove Baptist Church Preschool Learning Center. years in school. arly learning has become the buzz Malcolm Thomas, Escambia County Eacross the country. President Obama schools superintendent, believes that early has thrown his weight behind high-quality learning is the most important component pre-K for all children. New York City recent- “If they come of the education system. ly received a $300 million commitment for “If they come to school not ready, it state lawmakers to expand pre-K programs. to school not ready, it makes all teachers’ jobs much more diffi- It’s been proven that the highest-quality cult,” Thomas said. “It’s no mystery that in programs can produce up to a year of addi- makes all teachers’ jobs the third grade 15 to 20 percent score the tional learning. Children see gains through- much more difficult.” lowest on the FCAT.” out their lives — from improved graduation Last year, only 67 percent, or 2,039 of rates and earnings to decreased rates of Malcolm Thomas, children in Escambia’s VPK programs were crime and adolescent pregnancy. Escambia superintendent scored ready to start school, according to Research shows that children born into data provided by the Florida Department of poverty hear 30 million fewer words by age Education’s Office of Early Learning. In San- 3 than more affluent children, and that can ta Rosa, 81 percent, or 1,445 children scored affect test scores and IQ. ready to begin school. It also shows that a quality pre-K

52 || The Studer Institute || August 2014 Shemetri Charley watches over her pre-K class at Wee Kare Academy in Pensacola. The Academy is nationally accredited, and its program had a readiness rate of 100 percent last year.

program can improve a student’s early improve the quality of some programs. ceived a readiness rate of 100 percent last language, literacy and math skills during an But research also shows that qualifica- school year. important time for brain development. tions alone do not ensure greater gains for Brenda Hardy started the program in Children who are the most vulnerable children during the course of preschool. 1988 with one part-time child. Now more — particularly low-income children of color than 125 children, from infants to 12 years, — benefit the most from participation in Wee Kare Academy’s success attend the Academy on 12th Avenue. high-quality preschool. The Academy is nationally accredited. Those programs have larger impacts on etter preschools had quality and on- Eight of the 20-member staff have worked children’s development and are more likely Bgoing supports to teachers to ensure there for more than 20 years. And each of to create gains that are continued after the that the experiences of children, provided the eight head teachers has Florida Child child leaves preschool. through activities and interactions, were Care Professional Certification credentials. Teacher qualifications such as higher rich in content, stimulation and emotional Hardy credits the staff’s longevity, education attainment and background, support. stability and parental involvement as keys certification in early childhood or higher Wee Kare Academy in Pensacola is to the program’s success. pay than average for the field have shown to considered a high-quality program. It re- “We all are working together as a

August 2014 || The Studer Institute || 53 team,” Hardy said. “All of us are on the same playing field.” Kequanda Stallworth has experienced the success of Wee Kare from both sides. Stallworth, 22, teaches the Academy’s 3-year-old class. She has two children enrolled and she attended the preschool as a child. “I knew my kids would do OK and be prepared when they finish,” she said. “I’m happy with the foundation they are getting.” On a warm, sunny spring morning at Wee Kare, Shemetri Charley led a bouncy bunch of 4-year-olds through a series of songs, alphabets and two-syllable words. In a cramped room covered with post- ers of alphabets, numbers and children’s art work, Charley transitioned with ease from one lesson to the next. The 12 pupils sang, clapped and Shemetri Charley’s pre-K class at the successful Wee Kare Academy. jumped to the tune of “One Little Monkey.” Charley corralled the class into a circle and dumped laminated index cards on the says the assessment is flawed. but they don’t afford that same opportunity alphabet rug. “I don’t find it to be all that accurate,” to VPK.” “Let’s go Andarus, let’s go!” Charley Watson says. “It would be much fairer and If a VPK provider falls below 70 percent said in unison with her class. more equitable if they could find a way to based on the kindergarten assessment, it is Andarus picked up a card and read drive the testing back into the VPK pro- placed on probation for up to three years, each letter of another child’s name. cess.” has to submit an improvement plan and “One of the tricks to learn Four-year-olds in VPK are assessed adopt a new curriculum. the alphabet is to learn three times over the course of a school year If the program fails to meet standards it “Parental somebody’s name besides to gauge their progress. is shut down and has to reapply for VPK. their own,” said Charley, But the final determination of a center’s Another issue, Watson notes, is that involvement is who has been a lead teach- readiness score doesn’t come from those small differences in the testing pool can so important.” er for nearly 10 years. tests: It comes from tests given to the chil- make a big difference in a VPK’s rating. Hardy, the school’s direc- dren within the first month of kindergarten If one or two children in a class of tor, said success comes Brenda Hardy, by their new kindergarten teacher. 10 don’t do well, or if one or two of those from teachers and parents Wee Kare Academy The evaluation comes from two tests. students end up going to private school working together to make One is observational in which the teacher for kindergarten and aren’t tested as their a successful child. watches the child’s interaction with peers, public school peers are, the center’s rating “Parental involvement self-control and problem-solving skills. suffers. is so important,” Hardy said. “Kids know “It’s really not a formal test as much as In the other test children are assessed exactly what to do and when to do it.” it is a subjective analysis,” he said. on phonetics, recognizing letters and the Most of the 12 children in this class will Superintendent Thomas agreed that it’s beginning and ending sounds of words. move on next year to kindergarten. Their unfair to VPK and public schools that the The timing of the testing concerns Wat- assessment will determine readiness rate assessment is given at the start of kinder- son because he says it comes at the start of for Wee Kare next year. garten instead of the end of preschool. a new school year, at a new school, with a “Measure them at the end of VPK,” he new teacher after being on summer break. said. “For some reason they have pushed Flawed system “They don’t take the results of the that on to the public school.” roviders and education officials alike kindergarten teachers and give them an Phave concerns about the evaluation assessment when they start first grade system for preschoolers. with a different teacher,” Watson said. Challenges come with keeping score Bruce Watson, director of the Early “They allow the same teacher to do their ary Ann Winstead, director of Myrtle Learning Coalition of Escambia County, post-assessment on the front and back end MGrove Preschool Learning Center,

54 || The Studer Institute || August 2014 laments the perils of readiness scores. While Thomas doesn’t advocate that In 2012, Myrtle Grove’s readiness fell VPK teachers be required to have four- to 63 percent, seven points below the rate year degrees and teacher certification, considered success. The next year proba- he does see a need for more professional tion was lifted when the scores rose to 77. development in early childhood education. In 2012, some of Myrtle Grove’s high- There’s also the problem with access. er-performing preschoolers moved away The state only funds a four-hour day. That or entered private school and didn’t take puts a strain on some parents who have to the kindergarten test, Winstead said. work eight hours and can’t pick up their The challenge now is keeping the children in the middle of the day. scores up to avoid the perils of probation, “Parents may want to participate but Winstead said. That means skimping on can’t,” he said. “It’s easier to leave them extracurricular activities such as music, with a relative than to enroll in VPK.” art and dance to focus more on core aca- Extending hours could increase participa- demics. tion by providing better access, but Thomas “There’s a notion out there that pre- stops short of endorsing mandatory pre-K. school is daycare and nothing needs to be Zareigh Cunningham works in pre-K class at He does like the idea of making it man- learned,” Winstead said. “It takes more Wee Kare Academy in Pensacola. datory for children who don’t meet basic people seeing the benefits and sharing the standards or who are considered at-risk. importance of preschool.” of the federal poverty level was estimated to Winstead believes that better access to be 6,280. Only 41 percent, or 2,584 children, Good investment preschool programs will give more children took advantage of school readiness pro- a better chance of being school ready, fin- ith more than 100 VPK programs to grams. ishing high school and being career ready. choose from, Watson wants to help That means that more than 3,600 of W “Birth to 5 years old is critical,” she set the high-quality programs apart from low-income children who qualify and could said. the rest. Next year he will implement the benefit from VPK weren’t served last year. Quality Rating and Improvement System. To reach more families and get more Programs will be assessed and given Work in progress children to enroll in VPK, Watson said the star ratings. New programs will get one star erry Maygarden, Pensascola Chamber coalition works closely with and the ones that go above Jof Commerce president and CEO, said agencies such as United and beyond in every catego- early learning is vital for workforce de- Way, Escarosa and the “Birth to ry will receive four stars. velopment. He recalls the Early Learning Department of Children and That way, Watson believes, Coalition saying that about 27 percent Families. 5 years old is people can determine which of children arrive unprepared for school Watson also uses a programs are doing well and never catch up. variety of publications to critical.” and which need improve- “The No. 1 thing I hear from employers advertise, civic and commu- ment. nity groups and career fairs. Mary Ann Winstead, is to send us people ready for work, but a lot Myrtle Grove Preschool “It’s not just to rate them, A campaign to adver- of young people don’t enter school ready to Learning Center it is also to assist them and learn and are not completing high school,” tise on ECAT buses will hit inspire them to improve,” Maygarden said. “I always tell people that the streets in the summer, Watson said. workforce development begins in prenatal.” he said. The bottom line is that high Getting the children who need such He realizes more work needs to be quality early education is a strong invest- services to use them is a challenge this done. ment that yields a high return. community must face. “The truth of the matter is 25 percent or Watson says that only $1 invested is es- In Escambia, 28.5 percent, or 1,049 out so of our children are not ready for kinder- timated to save at least $7 in unemployment of 3,681, of 4-year-olds are not enrolled in a garten,” Watson said. “Do you know how and criminal justice costs. VPK program, according to population data many kids fail to successfully negotiate the “Studies show that children who are not provided by the Florida Legislative Office of third-grade reading FCAT? It’s about 25 per- ready for kindergarten are more likely to be Economic and Demographic Research. cent.” incarcerated, have more social issues, use There is concern about reaching more Thomas also has some concerns about drugs, you name it,” Watson said. families of children who would benefit most the state-sanctioned early learning pro- “It’s not a guarantee but the statistics from VPK. gram. are what statistics are: If you can get that The number of birth- to 4-year-olds He believes VPK needs standardized child ready for kindergarten, you can get below 150 percent (family of four at $35,325) curricula and testing. him that leg up on life.”

August 2014 || The Studer Institute || 55 Studer Institute researcher/writer Reggie Dogan taught school for three years. He left the classroom to join the Institute, where he hopes to help improve the lives of area residents. Our best teachers’ influence never ends

’ve always admired teachers. In my three years in the classroom, Through my years of school, I can pinpoint wonderful I learned as much as I taught Iteachers who had an enormous impact on my life. When I became a teacher, my admiration became ado- ration. It brought to light the yeoman’s work teachers do for little praise, a pittance of pay and a lot of stress and sacrifice. By Reggie Dogan During my three years in the classroom, I learned as [email protected] much as I taught. The teacher became the student. In the best Portrait by Michael Spooneybarger classrooms teaching and learning are reciprocal. One of the

56 || The Studer Institute || August 2014 Imagine if every child had a teacher who recognized her uniqueness every day. That would be a powerful place for learning to take place. most important lessons for me was gaining a deeper appreci- the impact my first-grade teacher had on my life. I am forever ation for the value of teachers. grateful to my high school English teacher who recognized in I’m no longer in the classroom, but I hope to continue to me a latent talent for writing and pushed me to pursue jour- teach as much as I learn. nalism in college. Or the retired teacher who, while subbing I’m excited to be a part of The Studer Institute. I joined one day, admired my hard work and drove me around the the Institute because I believe in its purpose and goal: to state of South Carolina to visit colleges and universities. improve significantly the quality of lives for area residents. I can’t get my head around the contradiction that places That’s a lofty goal, but one worth pursuing and dedicat- the utmost importance in education but underestimates the ing my energy and efforts to help accomplish. value of teachers. Like most people, I desire to have purpose, do worthwhile Numerous studies show that the quality education work and make a difference. I believe The Studer Institute is students get is proportionately related to the quality of their the right place to do work that impacts people and makes a teachers. I worked with amazing teachers. They labored under difference in the community. difficult circumstances and monumental pressures. As a teacher, I was able to touch the lives of children and, Anyone who believes that teachers have it easy working in some ways, make a difference. 7:30 a.m. to 3:30 p.m. has never spent a day in a classroom. Dedicated and diligent teachers make a difference every They often arrive at sunup and don’t leave until sundown, jug- day they walk into a classroom. It bothers them when people gling multiple duties, from managing classrooms to making say they are incompetent and lazy, and when they get blamed late-evening home visits. for almost every problem, from failing students and schools They have to deal with hungry and homeless students, stu- to dysfunctional families and disengaged communities. dents with anger issues, mental and physical disabilities, and Teachers work hard to see the potential in even their students whose parents are in prison or nowhere to be found. most challenging students. They realize that the right attitude I saw teachers use their money to buy supplies for their and an occasional pat on the back can make a difference. classrooms or bring extra snacks for the kids who didn’t get Becoming a good teacher is not magic. It takes a delicate breakfast each morning. balance of passion, energy and creativity. Despite the master teachers’ best efforts, our schools still The best teachers impart high levels of creativity and are falling short and students are failing to make the grade. imagination to grab their students’ attention. Once they have There are myriad reasons for the problems, but the sad it, it is art in motion witnessing students in full participation reality is more than 35 percent of high school seniors don’t in the learning experience. graduate in Escambia County. It’s especially dismal for black Good teachers know and understand their curriculum and students, as nearly half of them don’t finish school. students. They know how to create a learning incubator. This The beginning is no better than the end. Too many chil- demands a scientific understanding of how the brain learns dren enter kindergarten unable to spell their names. Some are and how to engage students. But it takes an artist’s touch to so poorly prepared for school they don’t know a single letter of create a powerful and profound learning environment. the alphabet, can’t speak in complete sentences and face a dis- Having a school-aged child helped me become a better mal future without a miraculous intervention and turnaround. teacher. I tried to look at students from both sides of the desk. I’ve discovered over the years that no matter where we I began to ask how I would want my son to be taught. I started live, we all are neighbors in the human race of life. It takes all to give as much as I want my son to receive. of us working together to make our cities and communities Before I chastised or corrected a student, I’d take a breath better and brighter for all of us. and ask, “You’re a father, how would you react?” I’m grateful to have left a mark in the classroom and I’m ex- I realized that I needed to get to know each student as the cited about this new opportunity to do as the poet Ralph Waldo unique person he or she is. I needed to take the time to see Emerson said: “Go where there is no path and leave a trail.” each student’s particular combination of habits and gifts. The Studer Institute is going into uncharted territory. Imagine if every child had a teacher who recognized her We’re not sure where the path may lead. We’re not even sure uniqueness every day. That would be a powerful place for what we may find along the way. But with courage, conviction learning to take place. and commitment we seek to go where there is no path and Teachers can and do affect lives for a lifetime. They never leave a trail. truly know where their influence stops. I’ve never forgotten I hope you will come along with us.

August 2014 || The Studer Institute || 57 Quality of life Crime rate

VIOLENT CRIME Escambia County Santa Rosa County Florida PROPRTY CRIME Rate per 100,000 of population Rate per 100,000 of population 900 5,000 4,840.9 815.3 800 4,500 700 4,000 600 3,500 3,313.2 492.6 500 3,000 400 2,500 300 2,000 1,445.4 200 157.7 1,500 100 1,000 2000 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 2000 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 SOURCES; Florida Department of Law Enforcement, Crime in Florida, Florida uniform crime report, 1995-2012, Florida Statistical Analysis Center

Diabetes incidence rate Obesity rate Smokers Percentage of adults diagnosed with diabetes Percentage of adults who are obese Percentage of adults who are current smokers

ESCAMBIA SANTA ROSA FLORIDA ESCAMBIA SANTA ROSA FLORIDA ESCAMBIA SANTA ROSA FLORIDA 28.7%29.7% 29.8% 28.6% 27.2% 26.3% 24.1% 24% 23.5% 22.4% 22.6% 22% 22.2% 21.3% 20.4% 19.3% 17.4% 17.1% 12.5% 10.7% 11.2% 10.4% 9.2% 8.5% 8.7% 7.7% 8.2%

2002 2007 2010 2002 2007 2010 2002 2007 2010 2002 2007 2010 2002 2007 2010 2002 2007 2010 2002 2007 2010 2002 2007 2010 2002 2007 2010 SOURCES: The County Behavioral Risk Factor Surveillance System, Florida Department of Health

Escambia County Santa Rosa County Florida

Voter turnout Obama vs. McCain Obama vs. Romney Bush vs. Kerry Bush vs. Gore Clinton vs. Dole 79.7% 76% 74% 75.2% 75.5% 80 71% 70% 70% 71.5% 69% 67% 71.4% 70 65% 65% Bush vs. McBride Scott vs. Sink 66.1% MacKay vs. Bush Crist vs. Davis 54% 54% 55% 60 50% 48% 46% 46.9% 46.8% 49.2% 48.7% 50 43.4% 45% 40 30 20 10 0 1996 1998 2000 2002 2004 2006 2008 2010 2012

58 || The Studer Institute || August 2014 Graphics by Ron Stallcup, [email protected] Housing affordability Hurricanes Economic Ivan, Dennis downturn

ESCAMBIA and $160,000 SANTA ROSA COUNTIES

$140,000

$120,000 Median price of single-family home: $130,000 $117,000

$100,000 Cost-burden of renting Percent of people who spend more than 30 percent of monthly income on rent. $80,000 ESCAMBIA SANTA ROSA FLORIDA 57.8% 59.6% 53.9% 47.9% 49.5% $60,000 Median family income: $57,700 $50,700 34.2%

$40,000

2005 2012 2005 2012 2005 2012 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 SOURCE: American Community Survey 2005 and 2012 SOURCE: National Association of Home Builders

Cost of child care Average cost as a percent of median income Median ESCAMBIA COUNTY income Pre-schooler Infant Infant and Families with children under age 18 in 2012 only only pre-schooler Married couple families $70,399 9% 10% 19% Single parent families headed by a male $35,335 17% 20% 38% Single parent families headed by a female $21,691 28% 33% 61% Average cost as a percent of median income Median SANTA ROSA COUNTY income Pre-schooler Infant Infant and Families with children under age 18 in 2012 only only pre-schooler Married couple families $73,281 8% 8% 16% Single parent families headed by a male $35,028 18% 16% 33% Single parent families headed by a female $28,578 22% 19% 41% SOURCE: Office of Early learning Market Rate Report

August 2014 || The Studer Institute || 59 What gets measured gets improved.

Objective benchmarks are vital to gauging progress and identifying areas that need improvement. In cooperation with the University of West Florida Office for Economic Development and Engagement, the Studer Institute has created this dashboard of 16 metrics to provide an at-a-glance look at the area’s growth, educational attainment, economic prospects, safety and civic life. All metrics represent the Pensacola Metropolitan Statistical Area (MSA), which includes all of Escambia and Santa Rosa counties.

POPULATION MIDDLE CLASS HOUSEHOLDS +4.0% +0.6% 468.0k VS. 4 YEARS PRIOR 65.5% VS. 4 YEARS PRIOR To prosper, a community needs to grow. Data shows that after steeply increasing A healthy percent of people earning middle class wages adds to the economic every decade between 1970 and 2000, our population essentially stagnated. Inside activity, stability and vibrancy of a community. “Middle class households” are Pensacola city limits, the population actually decreased from 2000 to 2010. defined here as those that earned between $20,000-$99,000 in 2009 dollars.

MEDIAN WORKFORCE AGE FREE & REDUCED-PRICE LUNCH +0.0% +3.6% 39.9 VS. PREVIOUS YEAR 55.0% VS. PREVIOUS YEAR It is no news flash that Florida is a state that is grayer than most. But it is critically This helps measure poverty in a community. Children living in households at or below important to maintain — and increase — a healthy population of “young professionals” 185% of the poverty level are eligible to receive free or reduced-price meals at their to add the intellectual and creative capacity that vibrant cities thrive upon. schools. On a county level, Escambia’s rate is 63.5% while Santa Rosa’s is 41.9%.

LABOR FORCE PARTICIPATION UPWARD SOCIAL MOBILITY +9.9% -37.5% 66.4% VS. 2 YEARS PRIOR 6.1% VS. NATIONAL AVERAGE The unemployment rate is often reported as a measure of joblessness, but it Based on 30-year lookback using IRS data, this measures the chances that a child leaves out people who quit looking for work. Labor force participation shows raised in the lowest 20 percent of household income will move into the top 20 how many people who are eligible to work are doing so. percent of household income in his or her lifetime. Nationally this number is 9.76%.

REAL PER CAPITA INCOME RENT-BURDENED HOUSEHOLDS +1.8% +2.2% $33.4k VS. PREVIOUS YEAR 51.2% VS. 2 YEARS PRIOR Real per capita income represents the total GDP of our area, adjusted for How affordable is it to live in a community? This data measures the cost inflation and divided by the population. It is a useful measurement of the burden of renting in a community by looking at the percentage of people average person’s purchasing power and economic well-being. who spend more than 30 percent of their monthly income on rent.

60 || The Studer Institute || August 2014 PENSACOLA METRO DASHBOARD

COST OF CHILD CARE (% INCOME) OVERWEIGHT & OBESITY RATE -12.8% +2.1% 43.5% VS. STATE AVERAGE 64.6% VS. 3 YEARS PRIOR This measures average child care costs (for infant and preschoolers) as a percentage Two out of three people in the Pensacola metro area are either overweight or of median income for single-parent households. Statewide this number is 49.9%. For obese, meaning they have a body mass index (BMI) of 25 or higher. Obesity many parents, these high costs may lead them to leave the workforce entirely. correlates with a variety of other health problems, like heart disease and diabetes.

KINDERGARTEN READINESS VOTER TURNOUT +1.8% -6.1% 82.6% VS. PREVIOUS YEAR 71.8% VS. 4 YEARS PRIOR This measures the percentage of 5-year-olds considered kindergarten-ready when How healthy is democracy in your community? Voter turnout is a measurement evaluated by teachers in the first month of the school year. Kindergarten-ready that gauges how many eligible voters turned out at the polls in an election students tend to have greater success throughout their academic careers. cycle. The higher the turnout, the more representative a democracy we have.

HIGH SCHOOL GRADUATION RATE CRIME RATE (PER 100,000) +2.5% -7.0% 69.8% VS. PREVIOUS YEAR 3,973.3 VS. PREVIOUS YEAR This measures the percentage of students who completed their high school This measures the number of crimes reported per 100,000 citizens, including both career within four years of starting it. A vast gulf exists between Escambia violent crimes and property crimes. After spiking in 2012, crime rates dropped County’s graduation rate (64.2% in 2013) and Santa Rosa’s (78.9% in 2013). significantly in 2013, but remain above the state average (3,572.9 per 100,000).

SINGLE-PARENT HOUSEHOLDS BED TAXES (2% NORMALIZED) +9.3% +13.9% 35.1% VS. 7 YEARS PRIOR $534.5k VS. YEAR-AGO MONTH This gives a snapshot into the social and economic conditions in which our The tourist development tax, also called the “bed tax,” is collected from hotels and children are being raised. Children living in single-parent families often face more other lodging establishments and is a measure of tourism traffic in a community. economic and sociological hurdles than their peers from two-parent families. Due to seasonal variation, we compare to the same month one year ago.

Graphics by Joe Vinson, [email protected] Visit the Studer Institute’s online dashboard for more detailed information and analysis, interactive charts, and comparisons to peer MSAs and state averages. StuderInstitute.com/dashboard

August 2014 || The Studer Institute || 61 What are the takeaways?

Focus on education, skills and modern economy

By Rick Harper, [email protected] Rick Harper is ties in enrollment. director of the Both UCF and the University of West n important ways, the last dozen years University of Florida have excellent programs that pro- have been kind to our community. We’ve West Florida’s duce well-trained graduates. Enrollment Imade up lost ground in personal income Office of Econom- growth is almost the only source of financ- and we’re adapting to changing demo- ic Development ing for new cutting-edge higher education graphics. But we’re not the working-class, and Engagement. programs under Florida’s funding formula. Harper’s office manufacturing and military Pensacola that When combined with sustained quality, we were two generations ago. teamed with the the problems of growth are better than the We are on average older than before, Studer Institute for problems of stagnation. as retirees increasingly choose us over this report. Orlando has become a more diverse crowded South Florida, and visitors con- tribute an increasing share of our spending. and dynamic economy where well-trained How do we ensure that the ebb and flow of enough to keep STEM-savvy kids in town graduates can get a job and investors can people looking for economic opportunity and attract new ones, although the IT needs generate consistent returns year-round. and quality of life moves in our direction? of growing firms are making a noticeable For a similar growth dynamic to catch The articles in this special report have an positive difference. hold here and create more widespread overarching focus on people, and how and A self-sustaining critical mass will economic opportunity, businesses need why they connect with our community. come only when the sector is big enough so customers beyond our traditional summer Here, as in communities around the that tech companies can count on finding beach season. Many of the articles in the nation, the modern economy — global and skilled workers, and so that tech workers report have shown how people are doing knowledge-intensive — has rewarded those know their current employer is not the only just that. with scarce skills even as it punished many game in town. We like to say that Escambia and Santa whose skills are not in short supply. The Our fastest-growing sectors have been Rosa counties are joined at the hip. But only strategies that will give our residents health care, education and the service we are actually closer than that. Commute economy, with a large and healthy tourism higher living standards call for full engage- patterns tell us that the thin blue lines that sector. But many jobs in tourism are on the ment: from teachers, schools, students, separate our counties exist only on the map. residents, businesses, community leaders lower rungs of the job ladder. Can tour- High-wage jobs in the Pensacola urban core and politicians. ism contribute to a higher quality of life? and at the military bases in Fort Walton Education has to come first, and when Land was cheap when Walt Disney flew Beach support high-quality residential life- we get it right, community health and pov- over Orlando in 1963, the same year that erty outcomes will improve dramatically. Florida passed laws creating universities styles and schools of Santa Rosa County. The answer is not all about STEM — sci- in Pensacola and Orlando. He was report- We should advertise our diverse ence, technology, engineering, math — but edly impressed not just by the weather, but neighborhoods to curious businesses and it is all about engagement, commitment and also by the transportation infrastructure of potential workforce as one community. education. Interstate 4, the Florida Turnpike and the Since our residents find that it makes their You’ve read about fast-growing tech- airport. Demography is destiny, and the lives better to commute across the bay, our nology companies with owners committed University of Central Florida now consis- leaders should find it worthwhile to bridge to our community. The sector is not yet big tently ranks in the top three U.S. universi- their differences.

Education has to come first, and when we get it right, community health and poverty outcomes will improve dramatically.

62 || The Studer Institute || August 2014 08 11 07 16 03 09 14 01 05 12 17 15 01 04 02 18 06 13

10

data and research skills at UWF Office of Economic Develop- former award-winning reporter and anchor for WEAR-TV. In ment and Engagement and the Studer Institute. 2004, she wrote, “Perversion of Justice,” which chronicled the case of two young Pensacola boys convicted of killing their father. Contributors bios 08. Michael Spooneybarger is the institute’s staff photogra- pher. He does photo, video, audio and multimedia projects. He 16. Carly Borden, a recent graduate of the University of Flor- 01. Quint and Rishy Studer founded the Studer Institute in was a photographer at the Pensacola News Journal and The ida, is in charge of outreach programs to help engage citizens Pensacola. They started the Studer Group in 2000 with four Tampa Tribune. He’s freelanced with national news agencies, and organizations in the community. full-time employees. Today it employs 205 people and is one of including the Associated Press and The New York Times. only two consulting firms in the nation to receive the Malcolm 17. Shannon Nickinson is the editor of Progress + Promise, a Baldridge Award. Rishy is the founder and president of three 09. Reggie Dogan is content analyst for the Studer Institute. sister website of the Studer Institute. She was the lead writer downtown businesses. The couple also owns the Pensacola Blue He worked as a reporter, editor and columnist at The (Rock Hill) and editor of the Pensacola Metro Report. She worked as Wahoos, a Double-A affiliate of the Cincinnati Reds. Herald in South Carolina and the Pensacola News Journal. reporter and city editor at the Huntington Herald-Dispatch in West Virginia; and as a metro editor and columnist at the 10. Nicole Webb oversees marketing for the Studer Institute. 02. Carlton Proctor is a freelance reporter and screenwriter. Pensacola News Journal. A former reporter for the Pensacola News Journal, he con- She formerly worked at the Greater Pensacola Chamber of tributed to the Pensacola Metro Report with a series of stories Commerce and as a media consultant at Cox Media. 18. Randy Hammer is the Institute’s CEO. He worked for the about downtown Pensacola. Pensacola News Journal and under his leadership as execu- 11. Kim Thomas is a freelance designer, editor and writer. tive editor the staff won numerous state and national awards, A former deputy managing editor of the Pensacola News 03. Rick Harper is the Institute’s director. He will be responsi- including finalist for the Pulitzer Prize in 2002 and 2004. Journal, she designed the Pensacola Metro Report. ble for the dashboard indicators and other data series that will He later became president and publisher of the Asheville describe our community and track its performance. He also 12. Joe Vinson is the editor of the Studer Institute’s website. Citizen-Times in North Carolina. serves as University of West Florida’s assistant vice president Joe worked at the Appleyard Agency, creating TV commer- for economic development and director of the university’s NOT SHOWN cials and ad campaigns. He founded the local history wiki Office of Economic Development and Engagement. Lisa Long works with the Studer Institute to develop part- Pensapedia and has blogged about local government and nerships and sponsorships for its website, reports, workshop, uses her television production and film- other issues at Pensacola Digest. 04. Claire Campbell lecture series and documentaries. She also is the advertising making experience to produce video content for the Institute. She 13. Will Rabb is a freelance writer who worked for the Mobile director for blab TV. She worked at Cox Media as a media spent the past decade working in film and TV in New York City. Press Register and the Pensacola News Journal. He contribut- consultant and local sales manager. 05. Drea Ruiz de Gamboa is the office manager for the ed to the report with a series of stories that compared Mobile Charlotte Crane is the former Pensacola News Journal Studer Institute. and Pensacola’s economy and school systems. business editor and writer for the Florida Trend magazine. 06. Travis Peterson, who moved to Pensacola in 2000, is the 14. Ron Stallcup is in charge of production of the Studer Insti- She proofed the Pensacola Metro Report. owner of Impact campaigns, a public relations company. He tute reports and graphics. He worked as graphics editor at the Carl Wernicke is senior writer and communications manager helps promote the Institute’s workshops and programs. Pensacola News Journal. He has produced a Hurricane Guide for the Institute for Human and Machine Cognition and for- in one form or another for more than 20 years. 07. Phyllis Pooley is the Institute’s “information and data mer opinion page editor of the Pensacola News Journal. guru.” She worked at UWF Haas Center and now uses her 15. Mollye Barrows Vigodsky is an investigative reporter and He proofed the Pensacola Metro Report.

This publication is copyrighted by the Studer Institute, 41 N. Jefferson St., Suite 111, Pensacola, FL 32502. Send any questions or suggestions to [email protected] August 2014 || The Studer Institute || 63 FROM OUR FOUNDER What’s Next As Rick Harper notes in his column on page 62, education emerges in this report as our community’s top priority. We’re committed to making We are fortunate to have a strong school system in Santa Rosa. Of the 67 school districts in Florida, Santa Rosa’s FCAT scores ranked in the top five. Although lives better for people here Escambia has made progress, the district understands it must do better. With 64 percent of its students on a free or reduced-price meal plan, and 43 percent being raised Quint Studer and in a single-parent household, Escambia struggles with We start by showing how his wife, Rishy, are issues many top-scoring school districts don’t face. our community is doing the founders of the Studer Institute, The Institute is working with Samuel Mathews, associate a non-profit professor emeritus at the University of West Florida By Quint Studer organization School of Psychological and Behavioral Sciences, to host [email protected] committed a series of community meetings this fall to explore those Photo by Michael Spooneybarger to improving issues. The Institute also plans to host talks about the new our community’s Florida Standards test, which this year replaces the FCAT. he Studer Institute exists for one quality of life. The Institute’s next major report will focus on education reason: To improve the quality of life and will appear in January. Tfor people. To do this, we will measure performance in key areas; shine a light on people, organi- run organizations to set goals and monitor How you can get involved zations and methods that work so others may performance. They provide a way to show If you want to help the community, consider becoming learn from them; recognize areas and people success, recognize good work and point out a mentor. To become a mentor, contact: performing well; identify areas that are falling areas of concern. ECARE short; and seek accountability of those who Selecting the right goals is crucial. Escambia County, Patty Vaillant, 433-6893, make public promises. There are no more important goals in the [email protected] A common saying is, “What gets mea- world than those that most impact our com- sured, gets focused on.” What better to focus munity’s quality of life. Youth Motivator Program on than those measures important to a good Of course, measures are only as good Escambia County, Sally Bergosh, 469-5676, quality of life. Let’s look at a few examples of as those collecting the data. This is why the [email protected] how measures — or dashboards — are used. Studer Institute is the right organization to Take Stock in Children Imagine that you are driving down the operate the Quality of Life Dashboard. We Escambia County, Sally Lee, 469-5458, road and the dashboard on the car goes out. are a not-for-profit. We are independent. [email protected] Does this create anxiety? Could it create There will be no spinning of data. We will safety issues? The answers, of course, are seek out and report the data, utilizing the Take Stock in Children yes. The metrics on a dashboard help us best sources available. Santa Rosa County, Angi Brown, 712-2264, operate a vehicle in a safe manner, warn us Those who want the best quality of life [email protected] about potential dangers (oil, water, battery) will like the dashboard. Even if it points out and remind us to buckle up. areas that need improvement, we cannot be What fills a dashboard? Key measure- afraid to hold up the mirror, take account- About us ments. ability and work hard to make things better. The Studer Institute is dedicated to helping people The first thing that takes place when we Until I moved here, I had never heard understand their community. We sponsor research and see a doctor is measurement. From updated the statement: “I don’t have a dog in this the development of insurance information to weight, blood pres- hunt.” I came to learn it was used either to benchmarks that allow sure and cholesterol, these vital measures note an objective viewpoint or to say it does cities and counties to help us know if we need to make lifestyle not matter to me. evaluate the health of changes. They also help medical profession- At the Studer Institute, we do have a dog their local economy, als give us feedback on what is good and in this hunt. I hope we all do. That hunt is to government and qual- suggestions for treating the ills we face. do all we can to attain and sustain the highest ity of life. Our goal is Today, dashboards are used in all well- quality of life for people. to create a nonpartisan process that allows cit- izens to identify the critical issues a community needs View the Pensacola Metro Dashboard on page 60 to address to move forward.

64 || The Studer Institute || August 2014