2012

The Economic Impact of the Schuylkill River Development Corporation

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The Schuylkill River Development Corporation retained Econsult Solutions, Inc. to provide an estimate of the magnitude and composition of the economic and fiscal impacts associated with SRDC, and to provide an update to a 2005 report that measured the potential impacts of proposed projects at least partially funded by SRDC.

The SRDC is a non-profit organization which manages the planning and development along the banks of the Schuylkill River, along with the Department of Parks & Recreation, on behalf of the City of Philadelphia.

As of 2012, the Schuylkill River Development Corporation (SRDC) has completed numerous projects along the Schuylkill River including a 9/11 Memorial, bridge enhancements on Market Street and J.F.K. Boulevard, and a dock on Walnut Street. Currently, SRDC is constructing a boardwalk along the river, and is planning for future crossings and beautification projects to enhance the aesthetics of the Schuylkill River, for a total value of approximately $60,000,000. Specific economic and fiscal impacts of SRDC capital spending and resulting real estate investments include:

  1. For the City of Philadelphia, 319 jobs and $780,000 in city tax revenues
  2. For the Commonwealth of Pennsylvania, 1,022 jobs and $3,200,000 in tax revenues
  3. Serve as a catalyst for new commercial and residential development, partially responsible for an increase of over 150% in residential property value near the Schuylkill Banks since 2000.

 

Annual Philadelphia Disparity Study – 2011

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From 2006 to date, Econsult Solutions, Inc. (ESI) has been retained by the City of Philadelphia to conduct an annual disparity study (Milligan and Company partnered with ESI beginning with the FY 2008 study).  The study is designed to analyze the city of Philadelphia’s utilization of Minority Business Enterprises (MBEs), Women Business Enterprises (WBEs) and Disabled Business Enterprises (DSBEs) – collectively known as M/W/DSBEs – relative to the availability of such firms to compete for city business.

The studies help to determine the extent to which disparity exists, as well as provide critical data in the development and formulation of the finance director’s annual participation goals. It is an important component of safeguarding the public interest by identifying and rectifying instances of discrimination and proactively seeking ways to promote the inclusive participation of M/W/DSBEs in economic opportunities.

Disparity is measured as the ratio of M/W/DSBE utilization to M/W/DSBE availability, with “utilization” for each category and industry sector defined as the total dollar value of contracts awarded to for-profit M/W/DSBE prime contractors and sub-contractors certified by the city of Philadelphia’s Office of Economic Opportunity (OEO) divided by the dollar value of all city contracts awarded to for-profit prime contractors and sub-contractors, as recorded in OEO’s Annual Participation Report.

A disparity ratio greater than 1.0 represents over-utilization, whereas a disparity ratio less than 1.0 represents under-utilization.

Each year, ESI makes recommendations for future study methodology and scope, policy and programming, data collection and goal-setting. These recommendations have included streamlining of certification and contract processes, centralizing and automating processes via information technology systems and building redundancy into the process to avoid bottlenecks and provide necessary checks and balance.

The Economic Impacts Of The FAA Sequestration

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As a consequence of the Joint Select Committee on Deficit Reduction’s failure last year to come up with a deficit reduction plan in accordance with the Budget Control Act of 2011, sequestration of the federal budget was scheduled to begin with the FY 2013 budget and continue for eight years after that. Approximately one half – or $500 billion – would be cut from nondefense spending, including the Federal Aviation Administration (FAA).

Econsult Corporation was engaged by the Aerospace Industries Association (AIA) to conduct an analysis of the economic impact of sequestration to the civil aviation industry and to the national economy as a whole. Econsult estimated two scenarios of negative impacts generated from the sequestration, looking at employment, earnings, and lost tax revenue.