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Economic Indicators: An Update for the 7 Rivers Region
Who Pays?
Table 6: Expenditure per Person Expenditures in ($)
Food and Beverages 77.99Overnight Accommodations (Hotel or Motel)
27.27
Souvenirs 10.11Local Restaurants 23.93Music 1.20Other events in La Crosse 7.91Retail Stores 9.59Public Transportation 1.47Local Grocery Store 25.20Gasoline 17.87Total: 202.54
Table 8: Economic Impact
Impact Type Employment Labor Income
Output
Direct Effect 170 $3,362,305 $10,227,194
Indirect Effect 21.7 $755,134 $ 2,520,367
Induced Effect 19.8 $658,563 $ 2,252,625
Total Effect 211.5 $4,776,001
$15,000,186
Who Pays?
Proposed Overtime Pay Rules Expand coverage of FLSA to salaried
employees making $455 and $970 week ($23,660 to $50,440 per year)
Expands group who received premium pay (time and a half) for hours in excess of 40 in a week.
Two Competing Outcomes
No Effect Reduced OT
Outcome A: No Effect Firm Reduces Straight Time Wages
Example: BEFORE: 50 hours per/week at $800 weekly salary. About
$40,000 per year. Effective hourly rate: $16/hr.
AFTER: 40 hours plus 10 hours at time and a half. The hourly wage rate is lowered to $14.55 at 50 hours per week with overtime pay means $800 per week.
“Employment Contract Model” or sometimes “Fixed
Job Model”.
Outcome B: Compensation Rises Straight Time pay is not adjusted, but
hours are.
“Labor Demand Model” or “Fixed Pay Model”
Outcome B: Compensation Rises Labor Demand bites.
Labor Demand
Wages
Hours of Labor
Data: National 130 million people employed 16+ About 41% or 53 million salaried. Of salaried workers who about 17.6
million (33.6% of salaried workers) make between $455 and $970 week.
About 3.0 million of those or (5.7% all salaried) currently work more than 40 hours.
Data: La Crosse WI-MN MSA 73,490 people employed 16+ Of those workers about 35,275 make
between $455 and $970 week. If 41% of those are salaried, then14,463
are subject to new rules. About 17% currently work more than 40
hours. So about 2,386 will be bound by the rule.
Empirical Evidence
Trejo (2003) Outcome A. Despite changes to who is covered, no
effect to number of OT hours. Hamermesh and Trejo (2000) Outcome
B. Finds large reduction in overtime hours
among California males. Trejo (1991) Outcome A.
Finds mixed results.
Consensus Straight time wages are not fully
adjusted. There is some reduction in overtime
hours. Larger reductions where min wage binds Smaller reductions where non wage
comp is relatively large.
Who Pays?
H I G H E REDUCATION
$0.00
$5.00
$10.00
$15.00
$20.00
$25.00
$30.00
$35.00
$40.00Real Hourly Wages by Education (2012)
Advanced Degree
College
SomeCollegeH.S.Less thanH.S.
30%
40%
50%
60%
70%
80%
90%College Wage Premium
1975
1980
1985
1990
1995
2000
2004
2005
2008
2009
2010
2011
2012
2013
2014
0
2
4
6
8
10
12
14Unemployment Rate By Education
High School
College
1947
1951
1955
1961
1966
1970
1974
1978
1982
1986
1990
1994
1998
2002
2006
2010
2014
2018
2022
0
5000000
10000000
15000000
20000000
25000000
30000000
Total fall enrollment in degree-grant-ing postsecondary institutions
Forecast
0
10
20
30
40
50
60
70Percent Female Fall Enrollment
Forecast
Public
Private Nonprofit
Private For-Profit
0 10 20 30 40 50 60 70 80 90
My education from [University Name] was worth the cost.
Percent Who Agree
Strongly Agree
Agree
Disagree
Strongly Disagree
0 10 20 30 40 50 60 70 80 90 100
The current state of financial aid is a problem for enrollment.
Strongly Agree
Agree
Disagree
Strongly Disagree
0 10 20 30 40 50 60 70 80 90 100
The current way that colleges and universities are doing business is sus-
tainable for the long-term future.
Fundraising!
Fundraising!
Friendraising
Endowments 2014
School EndowmentHarvard $ 36,000 MillionYale $ 24,000 MillionU of Minnesota $ 3,200 MillionUW - Madison $ 2,300 MillionUW – La Crosse $ 24 MillionNorth Iowa Area Community College
$ 19 Million
Strongly Agree
Agree
Disagree
Strongly Disagree
0 10 20 30 40 50 60 70 80 90 100
Changes in technology will greatly change the way in-stitutions offer/run their classes in the future.
MOOCs
Thanks.
Brent P. Smith, J.D.University of Wisconsin Board of Regents, 2004-2013
Laura Milner Dean of the College of Business Administration
Tim Kotnour President and CEO of State Bank Financial
Mike Burns Publisher of the La Crosse Tribune and River Valley Media Group
New Leadership
As the publishing business continues to experience rapid transformation, how do you plan to lead your organization through these challenges and how can the higher education institutions in our community help?
Mike Burns
As an important community bank headquartered in a town with a lot students, How can the higher education institutions help with the talent pipeline, and how can you play a role in talent attraction?
Tim Kotnour
Laura Milner
Your national accrediting agency is making a big push to see colleges of business engage and have an impact on the community. How do you see your role in that and how do you hope to work with the Tribune and State Bank?
