Rebane's Ruminations
June 2009
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George Rebane

[This article, sans photo, was submitted to The Union as my 20jun09 Other Voices column.  It was printed as shown here.]

SierraCollegeNC

Admittedly our hilltop Sierra College campus brings a number of benefits to Nevada County.  Among these are –

– Cash importer and local employer of teachers and staff;
– Provider of remedial education for our post-high school young;
– Vocational workforce (re)training;
– Fulfillment courses for all ages thereby increasing local quality of life;
– A convenient and accessible path to a four-year college;
– General contributor to the national pool of educated people.

These benefits are laudable and welcomed by the community.  But as often hailed, is the college also a source of a skilled workforce that attracts new businesses to the county?  Attracting new companies is a (the?) major driver of local economic development, and it is not clear exactly how much the college is doing in this arena.  In preparing for this piece I interviewed Messrs Aaron Klein, Sierra College Trustee, and Gil Matthew, CEO of our Economic Resource Council.  Both stated that there is no hard data on what kinds and how many skilled workers are produced by the college for local businesses.

This does not mean that our Sierra College campus contributes nothing to economic development.  Recognizing its role, Aaron Klein stated that “Sierra College is a foundational pillar of business development, but not its primary driver.”  Gil Matthew, himself a former SC student and founder of Benchmark Thermal, agrees.  Today Mr. Matthew is charged by the county’s political jurisdictions to develop and execute programs to attract new businesses.  He states unequivocally that Sierra College is part of a compelling trifecta – along with Sierra Nevada Memorial Hospital and the county’s air park – that makes our community a desirable place in which to locate and operate a business.

But when we consider the effectiveness of community colleges, we ultimately come to the high hard factors of workforce development that go beyond our county, factors which are also more critical than ever during these difficult times.  The American workforce of about 140 million is becoming ever more obsolete as accelerating technology moves first world jobs away from manufacturing and toward a knowledge economy.  The reasons for this are many and a subject of heated debate.  In the final analysis it comes down to our educational system that no longer produces workers skilled in wealth generation – as opposed to wealth management, distribution, and consumption.  Primarily it is jobs in technology based and supported knowledge industries that produce the wealth which then cascades over the remainder of our economy to enable the jobs and provide the quality of life we have come to expect.

As William McGurn (16jun09 Wall Street Journal) and others observe, it is clear that the overwhelming number of lost manufacturing jobs will not come back – ever.  Think tanks like Michigan Future have studied this problem extensively, and conclude that manufacturing will no longer support our 21st century middle class.  But where will these re/trained workers come from who can competitively sell their labor in knowledge industries like insurance, professional services, and healthcare?  Gil Matthew offers a hopeful view –

As technology continues to drive a faster and faster pace of change, the community college system has difficultly keeping up.  The transition time between when the community makes its needs known and curriculum can be instituted is perhaps longer than we could like, but in the case of Sierra College they have been very responsive given the hurdles they must overcome.

But peruse the curriculum of courses offered by our campus, and you quickly see that there are relatively few courses that will put the student on the path to a wealth creating career.  Admittedly, most students attending the college may not be able to benefit from such courses even if offered.  Nevertheless, the majority of courses seem to be designed to prepare students for careers that anticipate a free and copious flow of wealth from some other place.  These are careers in the lower level service industries, and those funded by the state and various non-profit institutions.

I believe that Sierra College should make every effort to redirect itself toward a curriculum that helps prepare its students for wealth creating careers.  Their new program in solar technology may well be one such positive direction, but only so long as government mandates, followed by government funds, continue.  Were I king, the college would offer a generous curriculum in the math, science, and technology gateway courses to private sector careers that do not depend on the constant largesse of political patronage.

George Rebane is a retired systems scientist and entrepreneur in Nevada County who regularly expands these and other themes on Rebane’s Ruminations (www.georgerebane.com).

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2 responses to “Sierra College – Quo Vadis?”

  1. George Rebane Avatar
    George Rebane

    [The following italicized comment to this post in the The Union is from Steve Frisch. My response on the newspaper’s website overruns its 950 character limit, and is posted here in its entirety.]
    George, is attracting NEW business really the major driver of rural economic development?
    It seems to me that most new employment is created by existing businesses expanding or creating new products and services through the application of innovation, especially in rural areas. As you have previously pointed out another tried and trued means of generating new wealth is leveraging the multiplier effect by recirculating dollars in the local economy more efficienctly. Another new trend, local niche manufacturing, is beginning to take root.
    I agree that if we can attract new business it is good, but wouldn’t a more balanced approach where we simultaneously attract new business, and build human skills to expand on existing assets, might be more appropriate to our area?
    How can Sierra College make our existing businesses stronger, more resilient to change, and prepare our residents to help them by driving expansion through innovation?

    Steve, good thoughts. By “rural economic development” I understand you to mean ‘economic development of rural areas’. (Discounting marijuana, agriculture in NC contributes less than 5% to our economy, however we all agree that the open lands and forests are a big tourist draw and enhance our quality of life.) Attracting new business has not been the recent “major driver” of our economy, but that is one of the assigned tasks of the ERC which receives the major part of its funding from the county. As I have argued before on Ruminations, I don’t think that NC is a competitive site for locating private sector, for-profit manufacturing companies, especially in this economical climate. But new federally mandated businesses supported by newly printed dollars making products, that consumers are forced to use, may be another story altogether. Planning for sustainable economic growth by attracting such businesses seems more than risky to me, as witnessed worldwide in other planned economies of a socialist hue.
    But ultimately, any regional economy like ours needs to import cash from the outside – we cannot sustain ourselves by selling services and homegrown vegetables to each other. Without cash from the outside, we become a poor community reduced to barter. Right now one of the major cash importers in NC (over $1 billion annually) are the retired residents. Of course, tourists also import cash (especially on this Sunday). It is this imported cash that then circulates in the county creating the ‘multiplier effect’ before it finally all leaks back out again. I may be overlooking something important, but the development of information generating businesses, that sell their information products to the outside world, should be the main focus for using public monies to attract new and/or grow existing businesses. Our local Sierra College campus should be dedicated to serving that end.

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  2. Mike Walker Avatar
    Mike Walker

    Your article on Sierra College was one of the better commentaries I’ve seen in The Union.
    Mike Walker
    Sunset Travel

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