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Todd Lang  

Todd Lang

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July 1, 2008 7:42 AM

Promises, Promises: The Latest Trend in Economic Development
July 1, 2008

What’s the value of a promise?  In some economic development circles it’s good for $250 million.

A trend around the country is Promise programs, scholarship funds that front the college tuition bill for every student in a community.  Kalamazoo kicked this off in 2005 when a masked group of donors pooled their funds to send students to Michigan colleges.  Since then, other communities like El Dorado, Arkansas, Pittsburgh, Pennsylvania, Denver, Colorado and Newton, Iowa are following suit. 

Last week 80 communities gathered in Kalamazoo for PromiseNet, a conference for existing and prospective Promise communities to share best practices.  Promise programs have been cited as leading to economic development turnaround, attracting developers and increasing college enrollment.  El Dorado notes that home sales are up 10% since their program began in ’07, bucking state-wide and national trends.

It’s no question that these promises are incredible gifts.  Still, it’s worth remembering that a Promise is a tool for economic development, not a silver bullet.  I recently traveled with Ron Kitchens, CEO of Kalamazoo’s Southwest Michigan First, and Ron’s quick to point out to other Promise communities, “You bought a scholarship program, not a factory.” 

But Promise communities want their investment to move the meter, and rightly so.  What’s your opinion?  How will Promise programs impact communities?  Are you living in a Promise community and seeing results?  What’s working and what’s not working.  And just what do you think the legacy of these programs will be?


Posted by tlang at 07:42 AM      Email This      Comments (134)      Trackback (0)
    
Related topics:  Economic Development

 
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