Report and recommendations to the Governor from the Oklahoma delegation to the White House Conference on Balanced National Growth and Economic Development

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OKLAHO~ffiDELEGATION
Calvin hobson
Mayor
City of Lexington
117 S.E. 4th
Lexington, Oklahoma 73051
Robert V. Sellers
Chairman of the Board
Cities Service Company
Box 300
Tulsa, Oklahoma 74102
James C. Leake, President
Leake Industries, Incorporated
P.O. Box 1887
Muskogee, Oklahoma 74401
Jack Springer
Oklahoma Chamber of Commerce
4020 Lincoln Boulevard
Oklahoma City, Oklahoma 73105
Dr. Jim Plaxico
Department of Agricultural Economics
College of Agriculture
Oklahoma State University
Stillwater, Oklahoma 74074
Mr. Stanton L. Young
134 Robert S. Kerr Boulevard
Oklahoma City, Oklahoma 73102
Compiled by:
Economic Planning Section
Department of Economic & Community Affairs
5500 North Western
Oklahoma City, Oklahoma 73118
February 1978
The preparation of this report was financed in
part through a planning grant from the Economic
Development Administration, U.S. Department of
Commerce, under Grant No. 08-25-01686-01. The
material is the result of tax-supported -research
and as such is not copy-rightable, and may be
freely reprinted with the customary crediting
of the source~ The statement, findings, con-clusions,
recommendations, and other information
in this report are solely those of the authors
and do not necessarily reflect the views of the
Economic Development Administration, nor any
agency or official of Oklahoma State Government.
Table of Contents
Table of Contents 1
Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Delegate's Reflections on the Conference.... 4
Implications for Oklahoma 5
Specific Recommendations 5
Appendix A 9
Appendix B ....................•...•...••.. 12
Paqe 1
INTRODUCTION
During the February 8, 1978 meeting of the Minicabinet
for Economic Development, individual impressions of the White
House Conference on Balanced National Growth and Economic
Development were given by Messrs: Calvin Hobson, Jack Springer,
and Stanton Young.
Following the presentations and subsequent dialogue between
these gentlemen and the members of the Minicabipet, Governor
Boren requested that all of the Oklahoma delegation to the
conference meet and prepare a report with specific recommendations
that would strengthen the State's capability to face the challenge
of future economic growth and development.
This report was prepared in response to that request. It is
organized into three parts:
1. Delegate's Reflections on the Conference;
t. Implications for Oklahoma; and
3. Recommendations.
Delegate reflections on the conference emphasize: the
changing nature of Federal program direction, increased competition
among states in attracting and monitoring development, and of
Oklahoma's-eomplacency with respect to continued economic development.
The implications for Oklahoma section point out the need to
alert state leaders as to the sense of urgency in mobilizing to
anticipate these trends and capitalize on opportunities.
Highlights of the recommendations section are for the
Governor to:
Declare that Oklahoma must devise a long-range
development policy,
Create a Development Strategy Advisory Council
Involve the Congressional Delegation through ex offico
council membership,
Charge the Advisory Council to prepare a plan of action
by July 1, 1978,
Communicate as broadly as possible the urgent need for
a strategy and place recommendations before the citizenry
for public debate,
Strengthen the State's participation In Southern Growth
Policy Board.
Minutes of the delegate's post-conference meeting and a draft
executive order are contained in the appendices.
Page 3
DELEGATES' REFLECTIONS ON THE CONFERENCE
The Oklahoma Delegates to the White House Conference on
Balanced National Growth and Economic Development returned with
new perspectives on national conditions and initiatives that
will have a direct effect on Oklahoma's economy. Dramatic
shifts in the targeting of federal funding formulas will
increasingly favor the populous and well-organized North-eastern
and Midwestern States in the efforts toward revital-ization
of their declining industrial base.
The rapid growth of the so-called "Sunbelt" has left the
illusion that northern industries had been lured into the South
and West, complicating the problems of out-migration, poverty,
and unemployment in.the old cities. vfuile statistics prove
this to be incorrect, the myth remains. Development efforts
in the "Frostbelt" to relocate businesses and manufacturers
in the large v cities emphasize the active roles other states
have assumed in economic growth strategy. Yet, in Oklahoma
and other Sunbelt states, the economic progress of recent
years has lulled many citizens and decision makers into a
sense of complacency about continuing increases in income
and ernp Loyment; levels whether we plan for them or not.
Serious threats have been made on essential elements of Okla-homa's
economic competitive tools to attract business.
At the same time, the employment expansions needed to main-tain
current levels of employment and to absorb new workers
-have occurred in sectors other than the traditional energy
and agriculturally-based industries. Employment and income
loss~s in these two basic sectors have repercussions amounting
to structural changes in Oklahoma's economy.
IMPLICATIONS FOR OKLAHOMA
If Oklahomans are to anticipate these changes and cap-italize
on their opportunities, a strategy must be formulated
by public and private leaders and citizens to define our own
destiny through selective development. Several essential
components of a selective strategy already exist, but a
coordinated approach between the public and private sectors
is imperative. A "grass roots" approach could insure contin-uity
over the long term, regardless of elected partisan rep-resentatives.
Commitments from the Chief Executive, the
Oklahoma State Legislature, and other elected officials
would provide better understanding of the overall ~ffects
of governmental programs and regulations and a more rapid
response to economic problems. With the myriad of government
programs which address economic development, a central co-ordina"
tive agency could blend efforts into a set of policies.
The input this agency would receive from the broad base of
citizens involved would assist in identifying national
policies which might adversely affect Oklahoma. The Congres-sional
Delegation and the Southern Growth Policies Board
could then be contacted for their input and reaction. This
ongoing reciprocal communication would accelerate reaction
time and intensify the role of a Sunbelt's Congressional voting
block in Congress to protect Southern economic interests.
SPECIFIC RECOMMENDATIONS
The Oklahoma Delegation coromends Governor Boren for his
. .
past leadership towards developing and diversifying the state's
Pt=lGP c:;
economy. However, Oklahoma's efforts must be redoubled in
light of increased competition from other states and changing
federal requirements. Oklahoma can meet the difficult challenge
of strengthening the growth and development of our state.
Therefore, the Oklahoma Delegation to the White House Conference
on Balanced National Growth and Economic Development recommend
that the fOllowing nine actions be taken by the Governor:
1. Declare that Oklahoma must develop a long-range development
policy which includes a public investment strategy keyed
to enhancing the public-private partnership.
2. By executive order create a Development Strategy Advisory
Council with a membership encompassing the major economic
development interests and forces throughout the state.
The membership shouLd be carefully seLect ed to reflect a
rfalance between public and private sectors. The membership
should include representatives chosen at-large and by the
Governor. The delegates suggest that there be full re-presentation
from the Oklahoma State Legislature, local
governments, educational institutions, the business
community, the industrial, finance, and agricultural
sectors, the professions, organized labor, racial and
ethnic minorities, and environmental protection groups.
The delegates strongly urge that the Advisory Council
be chosen from community leaders, concerned and involved
with the development of our state, who can devote both
'time and influence into implementing the strategies
they will design.
To insure continuity and educate the citizens of the
state, the delegates suggest that several legislators
be designated as members of the Advisory Council and
that additional members be drawn from the three metro-politan
cities, the cities in the 25 - 100 thousand
population group, the non-metropolitan sub-state planning
districts, the Chambers of Commerce, and other groups
for broad representation. However, the total membership
of the Advisory Council should not exceed twenty-five
(25) members.
3-. Invite members of the Congressional Delegation or their
designees to participate as ex offico members of the
Advisory Council.
4. Set short and long term objectives in insuring Oklahoma's
orderly development. Because of the urgency of need, the
~dvisory Council should by July 1, 1978 design a plan of
action outlining preliminary recommendations and whatever
further efforts are necessary to establish an on-going
economic development strategy.
5. Designate the Department of Economic & Community Affairs
as the coordinative and staff agency for the Advisory
Council.
6. Implement recommendations of the Advisory Council by
Executive Order where appropriate.
7. Formulate legislative proposals in response to Advisory
Council recommendations where appropriate.
8. Develop an informational network to communicate the
,urgent need for a strategy and place the recommendations
before the citizenry for public debate.
9. Strengthen the State's participation in and communication
with the Southern Growth Policies Board; provide frequent
briefings to the public and the Legislature on findings
and recommendations of that body.
Paae 8
APPENDIX A
STATE OF OKLAHOMA
OFFICE OF TH E GOVERNOR
OKLAHOMA CITY
JAVID L. BOREN
GO\lE~NO~ Date
Draft Executive Order No.
WHEREriS, t:::eGovernor of the State of Ok Lah oma recognizes the
need =or executive leadership and i~itiative with resoect to
the e~onomic affairs of the statei and
w1{ERE1\S, to e..chieveeffective coordination and consistency in
state gover~rnent operations and planning, it is essential that
maximum benefit be realized from all public funds available,
i~cluding federal grants-in-aid e..ndother forms of federal
assistance; e.nd
ltTEERKIl.S, recent £edere.l program directions suggest that decision
makipg powers will be increasingly decentralized to the states,
requiring the Governor be in close liaison with Federal, State
and Local governments and the private sectori and
" hnEREJ.I_S,the economic c.evelopment stre..tegies of the immedie..te
future will reouire extensive coordine..tion e..ndcooperation
e..mongall government entities and the private sector, e.nd
HHEREAS, the establishment of a Development Stre.tegy Advisory
Council to assist the Office of the Governor, Ste..teof Oklahoma,
in the formulation of plans rele.ting to investment, general
economic policy, e.nd in other related matters, is necessary
to promote the economic well-being of the citizens of this state.
NOW, T~EREFORE, I, De..vidL. Boren, Governor of the State of
Oklahoma, by virtue of the authority vested in me by the
Constitution and le..wsof the State of Oklahoma, do hereby
create e.nd este.blish the Oklahome. Development Strategy
Advisory Council.
THE PURPOSE OF SAID DEVELOPHENT STR.J;.TEGY~J;.DVISORYCOUNCIL SF..?LL
BE TO OUTLINE RECOL'L.'·"1ENDJ.I_FTOIRONAS MECB...ANSIr.'TlO:
1. Coordinate public policies and investments among the
various state agenciesi
2. Increase private participation in for~ulating goals
e.nd strategies for Okle..homai
Draft Executive Order No.
Page -2-
Date
3. Layout alternative fra~eworks for implementihg a
development strategy (by Executive Order, when
possible) ;
4. Recommend changes in existing legislation which limits
economic development strategy implementation and
propose new legislation; and
5. Make other recommendations as they deem appropriate.
A preliminary report of the recommendations should be presented
to the Governor no later than July 1, 1978.
Members of the Oklahoma Development Strategy Advisory Council
shall serve at the pleasure of the Governor and without
compensation.
IN WITNESS WHEREOF, I hereunto set my hand and caused the
Seal of the State of Oklahoma to be affixed at Oklahoma City,
Oklahoma, this day of , 1978.
BY THE GOVERNOR OF THE
STATE OF OKLAHOMA
ATTEST:
SECRETARY OF STATE
APPENDIX B
Page 12
Minutes of Meeting
Oklahoma Celeqates to the Hhite ::ouse
Conference on BaLanced National GrOi'it:1
and Economic Developme~t
February 10, 1978
The meeting was convened by L. 6. Reece, at 9: 00 A. H., E'ebrt..lary 10, 1978,
in the Governor's Club, Lincoln Plaza, 4445 Lincoln Boulevard, Oklahoma City,
Oklahoma. Present were the following:
Calvin ~obson, Mayor, City of Lexington
J~~es Le~~e, President, Leake Industries Inc.
Jim Pl~xico, Professor, Agricultural Economics, OSU
Robert Sellers, Chairman of L~e Board, Cities Service
Jack Springer, Exec. V. P., Okla. Chambez of Commerce
Stanton Young, Hember, Oklahoma Transportation Commission
Delegates
Othe:?:s
Marilyn Edens, Congressman Edward's Office
Ron Ernest, Senator Bellmon's Office
Larkin Warner, Kerr Foundation
Jack Dreessen, Industrial Development
-D-e-p--t-.'Iof Economic and Cornmu:1i-tvAffairs
Phyllis Bolt Bannister
Pam Blackwell
Harley Lingerfelt
Dan Loague
L. D. Reece
Following introductions, Delegate react:..l.otnos the Hhite House Conference
were given in order that appropriate state strategies may be fo~ulated in
response to beth the conference and changing governmental program regulations
affecting Oklahoma.
Jack Springer briefly synopsized the delegates' presentation to the
C~vernor's minicabinet on Economic Development on February 8, 1978, stressing
the need for a st at.ewLde development strategy framed by a group representing
a multitude of groups within ~~e State. Cal Hobson asked what vehicle or
administrative mechanism could supervise the preparation of such a strategy.
There was general agreement that a public/private partnerShip was necessary
for a statewide strategy to succeed.
Stanton Younq asked what units now exist which address economic develop-ment
questions. Reece cited: State and local Chambe:?:sof Commerce, the
eleven suPstate planning districts, the tourism districts, efforts of the
Governor's Industrial Development team, Oklahoma Industrial Finance Authority,
Oklahoma Business Development Corporation, the three metropolitan planning
____________________ t
agencies, and labor organizations.
Larkin Warner injected a comment on the irnporta~ce of legislative
involvement from the earliest stages of this process. He saw growing support,
evidenced by members of the Special Committee on Legislative Organization and
Procedures in gro'Nth related issues. Additionally, the continuity that
legislative interest could lend to any initiative would carry the strategy
through changes in gubernatorial administrations.
SprL~ger felt the U. S. Congressional Delegation from Oklahoma should
be involved to provide a vital link into federal policies and programs.
Regional approaches to problem solving were discussed as outlined at
the conference by Robert Sellars, who saw a multi-state regional approach
through the Southern Growth Policies Board as an effective combined lobbying
and watchdog effort. He also predicted further planning re'sponsibilities
being placed in the substate planning districts. Closer coordination with the
Congressional delegation was seen as very necessary.
Jim Plaxico offered the argument that Oklahoma should retain its separate
identity in the pl~~ing process if we are to effectively compete for federal
funds. His tha~e workshop committee in Washington had reco~mended a Council
for BalancedGro~~ and Development to integrate the myriad of programs and
economic interests. He saw three essential functions for an agency formulating
a statewide growth strategy: planning, political action, and act as a conduit
for federal flli~ds. Sellars felt the Southern Growth Policies Board was the
best vehicle for the political action component. Plaxico suggested that the
Federal Regional Councils might be reconstituted to perform EDA Title V Commis-sion
functions and political advocacy. He added that the President's recom-mendations
and legislative proposals will be out in the fall of 1978. He
recommende~ that the state strategy recommendations be ready by June or July.
James Leake proposed that the C~vernor designate economic development as
the most essential goal for Oklahoma and appoint a Coromissioner of Economic
Development to coordinate the plethora of agencies, boards, and commissions
which currently address fragmented parts Df the overall economic development
of our state.
The following recommendations were formulated as part of a report to
the Governor from the delegates:
1. The C~vernor should establish by Executive order a Strike
Force for a Statewide Development Strategy composed of 15-25
members representing' both geographically and sectorally:
private sector businessmen, local officials, labor repre-sentatives,
educators, ma~ers of the Oklahoma Senate and
House of Representatives, the substate planning districts,
the Department of Industrial Development, the Chambers of
Commerce, financial institutions, the Oklahoma Congressional
delegation, and environmentalists. All of the White House
delegates, except Robert Sellars, would be willing to serve
at the Governor's will.
-2-
2. The Department of Economic and Cowmunity Affairs should
provide staff support to the Strike Force since it already
serves in a coordinative role among many of the groups
mentioned above. Additionallv, DECA continues to monitor
and respond to changes in federal regulations and f~~ding
formulas, advising the Governor of their projected effects
on Oklahoma.
3. Strike Force Members would-solicit a broad base of citizen
input to the strategy formulation process through a series
of informational meetings at the county or substate level.
summaries of these would help delinea':e the attitudes and
"will of the people."
4. The final Strike Force Report would outline recorrunendations
for a mechanism to (1) coordinate public policies and
investments among the various state agencies; (2) increase
private participation in formulating goals and strategies
for Okl~~omai (3) layout alternative frameworks for imple-menting
a development strategYi (4) recommend changes in
existing legislation which l~~ts economic development
strategy L~plernentation and propose new legislation; and
(5) make other recow~endations as they deem appropriate.
The report would be finalized no later than July I, 1978.
The delegates reiterated the economic threat from the populous northeast
and urged continued support for the Southern Growth Policies Board. !t was
also suggested that the Governor might take steps to insure the continuity
of the strategy development and implementation process by informing guberna-torial
can~idates of the state and federal circumstances which precipitate
"t-..n~eeed for a st:::-ateg~y11d the wozk aLzeady performed to that end.
The DEc..l\ staff will be in contact with the delegates on ~lednesday to
review the draft of their report to the Governor. The delegates were congratu-lated
on their diligent efforts at the White House conference on behalf of the
State of Oklahoma.
The meeting adjourned at 11:30 a.m.