Smart Government – Page 8

Raising The Bar: Treasurer Frerichs’ Responsible Investing Platform

Problem

Government investment officers face difficult choices. Not only do they seek investments that are safe and high-performing, but they seek – and their constituents demand – investments that are responsible. They seek investments that not only strengthen the economic well-being of their community, but they seek investments that reflect their community’s values, contribute to admirable ends, and advance the greater public interest.

The problem is that traditional investment strategies fail to incorporate these priorities, often described as environmental, social, and governance (ESG) factors. Traditional investing heavily relies on financial indicators, technical data, and short-term gains. While those factors are certainly necessary, government investment officers need a way to integrate additional factors into the investment process if they strive to fully execute their fiduciary duties. In other words, they need a new strategy, one that not only is good for business, but is also good for the community

Solution

Raising The Bar (RTB) represents the future of government investing. RTB is a highly replicable public investment strategy that empowers governments to maximize returns and reduce risk exposures all while focusing on corporate accountability, innovation, and the common good. The strategy also recognizes that sound environmental, social and governance policies are strongly related to safer, more innovative, better-performing companies.

Denver: An Entrepreneurial City

Problem

Governments today – at the federal, state, and local level – must accomplish more with fewer resources while ensuring taxpayer funds are wisely spent. Decision making and problem solving often rely on institutional inertia and a top-down managerial approach, making the entire organization less responsive to constituent demands. By contrast, startup businesses and entrepreneurs generally embrace innovative solutions that leverage unique insights into action, regardless of where those insights come from. In short, governments tend to operate as a hierarchy; entrepreneurs and startups tend to operate as a network. The challenge is how to apply an entrepreneurial mindset and skillset to the public sector to both spur innovation and manage resources, creating workable solutions to pressing problems.

Solution

The innovative Governmental Entrepreneurial Leadership Accelerator (GELA) fellowship explores a new model of governmental problem solving and leadership development, graduating 30 fellows in 2 years, building a new model of professional development and collaboration. GELA begins with a boot camp, which integrates a range of books and articles, guest speakers from the entrepreneurial community and hands-on exercises. This boot camp was followed by six weeks of work on difficult city problems, from bridging the digital divide to addressing overdoses from the opioid epidemic. During pitch night, fellows pitched their ideas to public sector leaders such as Mayor Hancock and Stephanie Copeland, a member of the governor’s cabinet.

Rural Economic Advancement of Colorado Towns – REACT

Problem

Small communities are impacted by job loss more significantly that urban areas because families often leave town in search of new jobs. This puts stress on schools, Main Street small businesses, and health care providers. Slowly, the town begins to struggle to even exist. Small towns also do not have the resources to search for and coordinate the many state and federal programs that may be able to help them solve the problem.

Solution

REACT is targeted at helping towns experiencing substantial job loss. REACT would coordinate non-monetary assistance and award grant money to assist rural communities with job creation or retention. This helps towns take advantage of existing state programs with the state’s help, rather than requiring new sources of funding for new projects that may still not reach towns in need.

Dump the Bad Banks

Problem

In 2015 five giant banks- including Wall Street behemoths JP Morgan Chase and Citicorp- pleaded guilty to criminal felony charges that they rigged the world’s foreign-currency market for their own profit. In 2016 Wells Fargo Bank admitted that thousands of its employees opened millions of fraudulent consumer accounts without authorization, harming people across our country. The actions of these banks pose risks to investors and the public and I question whether these banks can be trusted with County funds. It is absolutely critical that government entities only work with the most trustworthy institutions as we invest and protect the public’s tax dollars.

Solution

Santa Cruz County Supervisors modified the County’s investment policy to reflect that the County will not do new business with law-breaking financial institutions and directed the County to unwind existing relationships with the identified banks to the greatest extent feasible.

The Bronx Community Foundation

Problem

According to the census, The Bronx is the most diverse county in America. However, we have one of the poorest congressional districts, and no Community Foundation to help us direct resources to local organizations and programs to support community members, students, and entrepreneurs.

Solution

We are creating The Bronx Foundation, which allows us to direct resources to local organizations and focus on helping entrepreneurs and Bronxites create jobs, primarily through technology, music, food, health and the arts. Our 3 Es focus of Economic Development, Education & Equity guide us to partner with other local organizations to help students connect with skills and jobs for now and the future, encourage music and the arts, create an Entrepreneurial Accelerator, and continue to amplify existing entrepreneurship programs and workshops. Bringing together the core efforts of these groups, along with a systemic team approach, will allow us to attract additional philanthropic, corporate and entrepreneurial support while directing resources, initiatives and practical solutions to local organizations. Moreover, our collaboration with our four school districts, our three hospitals and five surrounding colleges and universities gives us direct partner organizations to take local efforts to scale.

Economic Development Zones

Problem

The current economic development incentives provided by the City of Birmingham are being utilized to revitalize downtown while making renting and home ownership less affordable for residents.

Solution

This ordinance would ensure equitable distribution of economic development incentives within the City’s authority, to revitalize neighborhoods throughout the city. It would promote a sliding scale that rewards economic development projects in areas with high rates of poverty, specific to each neighborhood/community’s income levels.

Rural Infrastructure, Transportation and Innovation Act

Problem

Wisconsin’s construction industry supports 100,000 people in the state, with jobs located in urban and rural areas with public and private contract opportunities. Currently, a disparity exists between large and small construction companies being awarded public building contracts. Since 2015, Wisconsin’s five largest contractors were awarded 25% of the aggregate contracts, as large companies are often able to underbid smaller companies. Small businesses face hurdles when trying to increase their workforce, improve equipment and technology, and cut costs. Another issue facing Wisconsin is a workforce shortage of skilled workers who trained at certified apprenticeship programs, learning from experts in their field.

Solution

This proposal creates tax incentives for Wisconsin construction companies that invest in employee development, business growth, and process updates. Allowing small companies to compete and win contracts could create an influx of revenue in rural communities, while increasing family-supporting jobs, and potentially lowering costs to local governments. Incentivizing smaller companies to equip themselves to compete for larger public projects will increase market competition, while creating construction cost efficiencies; with these efficiencies Wisconsin will save tax dollars on necessary projects. Additionally, if a project is awarded to a general contractor in a rural area and they are able to hire more employees, the entire community will see microeconomic growth. To help communities across the state, we must invest in our small businesses so they are able to prosper equally.

Engage Norfolk

Problem

Following the Women’s March in DC in February 2017, many had come home with a strong desire to “do something” to make a difference — beyond a march or protest — but weren’t sure how. They wanted to connect with their elected officials; to learn how to run for office or support someone who was; and, to connect to groups who were making our community a better place. Organizations and leaders needed a way to reach those very people. Websites were helpful, but the ability to have personal interaction was invaluable.

Solution

Engage Norfolk was a civic one-stop-shop that allowed residents to transform their passions into action by connecting with local organizations at the CivicFAIR, meeting elected officials, and learning through Civic 101 Workshops. The event drew more than 1000 attendees and over 100 organizations, with volunteer speakers presenting half a dozen civic workshops on a variety of topics. Elected leaders from local, state and federal offices all came together to meet with their constituents in one place. Engage Norfolk also required minimal monetary investment (less than $1K) thanks to using low-cost online organization tools (Mail Chimp, Sign Up Genius, and Squarespace), and social media for publicity of the event. Due to the event’s success and popularity, we will be holding Engage 2.0 in 2018, and we expect even bigger crowds and participation.

Collective Impact on Homelessness

Problem

Salt Lake County has seen homelessness expand and, as the opioid epidemic has also grown, the area surrounding our main homeless shelter has been unsafe for the public and for those experiencing homelessness. There were no easy solutions to address the challenges that are complex and diverse. In order to effect the system it required stakeholders from the criminal justice, law enforcement, homeless services, nonprofit, faith, and philanthropic sectors to work in a more sophisticated and organized manner. There is no easy or quick fix and collaboration at the highest level is required to effectuate the changes needed.

Solution

Mayor McAdams convened Salt Lake County’s Collective Impact on Homelessness, a coalition of stakeholders from state, county and city government together with over 30 providers of homeless services to reform how services are delivered and better help those experiencing homelessness to overcome crisis and regain a greater degree of self-reliance. By working as a coalition, we have secured financial support from state leaders who are investing unprecedented funding in our efforts to realign the system (includes securing $30 million in state funds to reshape the emergency shelter system), and to provide treatment as well as other stabilizing resources to ensure that homelessness in Salt Lake County is rare, brief and non-recurring. Work has also involved two Pay for Success initiatives launched in early 2017 (Salt Lake County’s ‘Homes not Jail’ effort and REACH initiative to improve outcomes for individuals with moderate to severe substance use disorders), as well as getting to the final stages of negotiating an expansion of Medicaid.

Meaningful Infrastructure

Problem

Small industrial towns have seen manufacturing jobs leave and have lacked the ability to attract millennial workers to their communities who will pay into the tax system.

Solution

Our plan addresses the issues keeping millennials away from suburban communities, and provides the infrastructure necessary to provide jobs, without burdening taxpayers. Downingtown is turning a debilitated mill site into an Amtrak and regional rail station connected to NYC, Philadelphia, and DC which will be maintained in large part with private dollars that includes walking trail networks & public bridges. By revising zoning laws, we are able to have the train station built along with trails and bridges without tax incentives or investing any municipal money.

Raising The Bar: Treasurer Frerichs’ Responsible Investing Platform

Problem

Solution

Denver: An Entrepreneurial City

Problem

Solution

Rural Economic Advancement of Colorado Towns – REACT

Problem

Solution

Dump the Bad Banks

Problem

Solution

The Bronx Community Foundation

Problem

Solution

Economic Development Zones

Problem

Solution

Rural Infrastructure, Transportation and Innovation Act

Problem

Solution

Engage Norfolk

Problem

Solution

Collective Impact on Homelessness

Problem

Solution

Meaningful Infrastructure

Problem

Solution

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