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SANDAG to Unveil Strategic Job Plan

March 28, 2008
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By Dean Calbreath, The San Diego Union-Tribune

Mar. 28–Concerned about the growing gap between rich and poor in the county, the San Diego Association of Governments will unveil a strategic plan this morning to put emphasis on building the type of infrastructure and work force that would attract more upscale employers.

Advertisement The plan suggests that instead of putting their focus mostly on tourism-related projects, like the San Diego Convention Center, local municipalities should concentrate on improving the local energy, water, transportation and education systems, as well as putting more effort into developing affordable housing.

“In return for our investment in the entertainment and visitors industries, we’ve gotten stable but low-paying jobs,” said Marney Cox, SANDAG’s chief economist. “But in return for our stability, we have sacrificed a rise in our standard of living.”

The impetus for the strategic plan came from SANDAG data showing that 44 percent of the jobs created in San Diego County since 2000 were in the leisure and tourism industries, which are dominated by low-wage jobs that require a minimal amount of education.

The data show that between 1990 and 2004, San Diego County added eight times as many jobs in the lower-third of the pay scale, with annual wages averaging $24,500, than in the upper-third, where wages average $79,800.

That job-creation pattern has increased the gap between rich and poor.

About 55 percent of local workers now earn low-end wages, compared with 51 percent of workers in 2000.

The study says part of the blame goes to local municipalities, which have “a long track record of investing public resources in (industries) that offer low-wage jobs.” Instead, the report suggests, governments should concentrate on laying the groundwork for companies that would pay more.

Julie Meier Wright, who heads the San Diego Regional Economic Development Corp., said investing in public infrastructure and instituting more flexible policies in areas such as land use “will eventually bring more jobs to the region, helping to balance our local economy and spur the growth of our standard of living.”

The strategic plan, developed by civic officials throughout the county, includes a list of 27 proposals for improving the region’s ability to attract new businesses or help existing businesses grow.

Among the suggestions:

–Border. Cut down on the waiting times at the U.S.-Mexico border by creating a new port of entry at Otay Mesa. SANDAG estimates that San Diego County and Tijuana lose $5 billion a year in potential economic output because of border delays.

–Water. Ask federal and state officials to consider creating a competitive market for water that would provide reliable service without affecting water rights.

–Affordable housing. Streamline the home-building process so that housing developments can get approval within one year, instead of the current process, which can take up to seven years. This would create a more constant supply of homes instead of the peaks and valleys that occur in today’s market, Cox of SANDAG said.

Philip Monroe, a Coronado City Council member who helped draft the plan, said some proposals are guaranteed to generate controversy. The plan says nuclear energy and the Sunrise Powerlink project ? which has raised the ire of many environmental and community groups ? should be at least discussed as ways of alleviating the region’s growing need for energy.

“Economically, these ideas may make a lot of sense, but politically, they could make a big deal,” Monroe said.

The idea behind the proposal is that if the region builds a better infrastructure, high-paying businesses might be enticed to locate here.

As it is now, Cox said, the city is in danger of losing businesses because of infrastructure issues. Biotech businesses, for instance, are becoming increasingly leery about how long the area’s water supply will last.

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Copyright (c) 2008, The San Diego Union-Tribune

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