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Nevertheless, the useful rate of buildup of data in the proposed regional economic data bank and an earlier-rather-than-later conversion of the data to machine-readable form to avail the advantges of automtic retrieval and processing will substantially exceed the foreseeable annual operating budgets of RIDC. It is impossible, of course, to put an ultimate price tag on the establishment and operation of the data bank at this stage of its development. For example, in the building trades it is possible to develop a reasonably reliable estimate
a proposed building by starting with some such standard figure, say $14 per square foot, and add or detract a certain margin according to whether the design features seem more generous or more parsimonious than is customary for the standard. A more refined estimate would be derived from a specific bill of materials and their known costs as well as the estimated hours of different kinds of labor required, etc. In this instance, the concept of a regional economic data bank as herein proposed is sufficiently unique and experimental that experienced judgment or cost standards have not been developed. Nor is it possible to develop a bill of materials which would specify the number of punched cards, computer runs, user requests, or the total volume of stored information, frequency of updating, etc., at this point in time.
Furthermore, the undertaking is sufficiently complex and in need of evolutionary refinement over a period of several years, at the minimum, that a cost breakout could scarcely be made on a theoretical basis. Only working experience in actually establishing and developing the data bank would appear to provide a reliable estimate of financial requirements to achieve the fuller purposes and benefits envisioned in this proposal.
What is needed, therefore, is not so much a blank check as a limited commitment of "seed money," so to speak, in order to get the first generation data bank established and to design the initial input/output and forecast models to facilitate a limited computerization of the second generation data bank. When these phases have been completed, one would be in a much better position than at present to estimate the costs and benefits of rounding out the second generation data bank and launching the more fully automated third generation data bank.
It is RIDC's estimate that $250,000 seed money of this sort would approximately accomplish the limited measures outlined above in deciding how far and howfast to proceed with the third generation bank. This figure is comparable with similar amounts that have been suggested for data banks of several other cities.
It should be mentioned that some of the costs in establishing a data bank are non-recurring and the funds saved on this account in future years can be used to enlarge the seryices of the data bank, its degree of mechanization, etc.
VII.—THE SPECIAL ROLE OF UNIVERSITIES
While RIDC has committed itself to establishing a regional economic data bank, the latter's degree of success will importantly hinge on: (1) raising the investment seed money as set forth above, and (2) inducing universities to contribute sufficiently of their talents and resources in the community service venture circumscribed by the concept of a regional economic data bank. The partnership of RIDC and the universities of the Region in this matter is especially appropriate in that neither has any special axe to grind save that of promoting overall regional economic development according to high professional standards. Moreover, the efforts of regional political subdivisions to cooperate with each other in generating more fully integrated plans for regional development will be given maximum support by the quality of the regional economic data bank resulting from such a partnership.
Since the universities will scarcely be in a position to lend more than the part-time support of certain of its faculty members in contributing to the data bank, it is to be recognized that the full-time services of the RIDC staff in implementing the data bank would fulfill a role no less vital to its success than that provided by the universities. In other words, this plan envisions a partnership between the intellectual leadership of the Region's universities and the implementation leadership of RIDC.
It would seem, however, that the contributions of the Region's universities toward the objectives served by the proposed data bank could be more far reaching than the work of the university advisory/user committee (see above) as important as this work might be. A broader list might include:
1. To jointly sponsor and conduct symposia or workshops for the benefit of civic and industrial planners, analysts, etc., on a wide range of subjects
related to the Regional Economic Data Bank as outlined in this paper, including the invitation of professional leaders in this field from outside the Region.
2. To review plans and developmental studies of political subdivisions of the Region and to submit (perhaps on a confidential basis) recommendations for their improvement. Also, to submit suggestions as to how such plans might best be coordinated in achieving the fuller potential of the Region for economic development.
3. To perform research on methodologies related to the data bank and its application to community and industrial problems in general.
4. To encourage advanced or graduate students to prepare industry studies including the forecasting of trends related to their potential growth in the St. Louis Region as term papers or theses. Also, papers on other problems and objectives of the Regional Economic Data Bank.
5. To offer special courses or programs of instruction in fields of interest related to the data bank concept and the regional objectives it seeks to serve.
6. To make faculty appointments with a view to strengthening the competence of Regional universities in these fields. (The universities have already moved in this direction but more needs to be done). Also, to make professional lecturer appointments to tap the skills on a part-time basis of experts on economic, scientific, engineering, market research, planning, etc., now employed in the Region.
7. To encourage joint research and joint authorship of books and articles by faculty of several universities of the Region to promote cooperation and harmony of local universities in support of community service programs encompassed by the objectives of the Regional Economic Data Bank.
8. To join with RIDC and the St. Louis Research Council in sponsoring and/or conducting surveys to enlarge the usefulness of the data bank-for example, an annual inventory of skills employed by business firms of the Region and their anticipated skill requirements in the coming year by virtue of growth in sales, the impact of automation or technological change, etc.
9. To assist the political subdivisions of the Region in preparing proposals for enlarging the availability to the Region of the burgeoning federal programs for urban renewal, war-on-poverty, etc., and to advise on implementation of these programs so that standards of excellence can be achieved which will invite their renewal or enlargement. (The data bank could provide much useful information needed to support these proposals and programs.)
10. To sponsor Regional seminars and technicals conferences for the benefit of graduates and faculty in which outstanding professionals from private industry and public planning bodies can provide insight into their planning techniques and problems as well as needs for university support, etc.
11. To provide computer and library facilities to assist in the work of the Regional Economic Data Bank.
12. To encourage "spin off” applications of theoretical research for industries of especial promise to the Region's economic development.
13. To provide a clearing house for recommending advanced students, for summer or part-time employment with RIDC in special projects, surveys,
etc. Indeed, the range of useful university contributions to the RIDC data bank and the broader community programs for economic development it seeks to serve are limited only by the imagination. Perhaps no less important than these contributions are the reverse contributions to strengthening the Region's universities which will come about in relating academic programs to community service projects where high professional standards are required. Moreover, the inspiration to the community of the universities working closely together in such a manner should aid considerably in promoting regional cooperation between governmental units and business firms, social agencies, etc.
A recent editorial in the Wall Street Journal gives much deserved credit to "a marriage between the city's political and business leadership" for the renaissance manifested in downtown St. Louis in reversing the trend of decay and blighted hopes. However, concern was also expressed about the dangers of this effort losing its momentum by the sort of complacency that seized St. Louis after its famous triumph in organizing the World's Fair of 1904. Herein, it would
1 Robert L. Bartley, “Business Helps St. Louis Fight Decay," The Wall Street Journal, May, 26, 1966.
seem, lies a great opportunity for the universities of the Region to keep the momentum of a “new Spirit of St. Louis” going forward by broadening its regional outlook and purpose.
To accomplish this the universities will need to harness and strengthen the vast body of professional and intellectually oriented talents of the Region through the sorts of programs and activities suggested above. In sum, the proposed Regional Economic Data Bank should be as good an excuse as any to get on with the job.
A PRELIMINARY LIST OF DATA SOURCES FOR A REGIONAL
ECONOMIC DATA BANK?
(A) FEDERAL PUBLICATIONS AND RECORDS 1. County Business Patterns, U.S. Dept. of Commerce, 1946 through 1964 to observe trends in each SIC category with respect to number and size of firms, number of employees and size of payroll (on magnetic tape).
2. Location of Manufacturing Plants, U.S. Dept. of Commerce, 1954 & 1958 to observe trends in locational shifts of industry by each SIC category as noted above.
3. Census of Manufacturing, U.S. Dept. of Commerce, 1954, 1958 & 1963 to observe trends in gross sales and receipts and value added by each SIC category as noted above (on magnetic tape).
4. Census of Local Governments, U.S. Dept. of Commerce for 1957 & 1962, to observe trends in local government revenue, expenditures and employment.
5. U.S. Civil Service Commission, unpublished records to observe trends in federal employment within each federal department in the area.
6. U.S. Government agency records, unpublished, to determine revenue and expenditures for each federal department in the area.
7. Statistics of Income, IRS, 1959, 1960, 1961, 1962 & 1963, for gross personal income by source and federal income tax paid.
8. Consumer Expenditures and Income, Bureau of Labor Statistics, 1950 & 1960, to determine trends in household income and expenditures by amount and type.
9. List of all corporations, partnerships and sole proprietors doing business in and filing income tax returns from the area, for base year, compiled from public records available in the IRS District Office which provide name and address of firm and its employer identification number.
10. Special sample study performed by IRS utilizing federal tax returns filed by the above firms to identify gross sales or receipts and costs of doing business in each SIC category in the study area, without violating the disclosure regulations.
11. Special tabulations of agricultural activity and employment by volume and type-1959 Census of Agriculture, for all census tracts and/or county census divisions in the study area.
12. U.S. Census of Population & Housing, 1960, cross-classified tract data (on magnetic tape) for SMSA (including place of residence versus place of work).
13. Annual Summary of Housing Authorized in Individual Permit-Issuing Places, Bureau of the Census, to determine trends in amount, type and location of residential construction.
14. Special sample study of commodity shipments by origin, destination, tonnage and SIC category to and from the study area—from carload waybill statistics kept by the ICC.
15. Annual Survey of Manufacturers, Bureau of the Census, to determined capital investment per worker.
16. 1940, 1950 & 1960 Census of Population data on County of employment by SIC category.
17. Census of Agriculture, Bureau of the Census, 1949, 1954, 1959 & 1964, to determine trends in agricultural activity in the SMSA.
18. Census of Business, Bureau of the Census, 1954, 1958 & 1963, to determine trends in retail and wholesale trade and selected services.
* Prepared by D. Reid Ross and Leroy J. Grossman of RIDC.
(B) STATE PUBLICATIONS AND RECORDS 1. State sales tax records by county—to identify trends in volume of retail sales in the study area by SIC category-State Revenue Department.
2. State income tax records to identify trends in personal income and its sources and in gross sales or receipts of firms by SIC categories in the study area-State Revenue Office.
3. State revenue and expenditure records to identify trends in volume of taxes collected & expenditures made in the study area-State Auditor's Office.
4. State records that would reveal the number of State employees working in the study area-State Civil Service or Department records.
5. State employment records to identify trends in the number of firms and employment in each SIC category in the study area-State Division of Employment Security and Division of Industrial Inspection.
6. Annual financial reports of local governments including school districts to identify trends in revenue and expenditures by source and type for all local governments in the study area—State Auditor's Office and/or State Dept. of Education.
7. Various other pertinent records and reports collected or prepared by the State Division of Commerce & Industrial Development and State Planning Commission.
8. Records on volume and type of agriculture activity and employment in the study area-State Department of Agrieulture.
9. Records of automobile registration in the study area-Dept. of Motor Ve. hicle Registration, to determine trends in ownership as well as distribution of ownership throughout the study area.
10. Statistics compiled by the Division of Industrial Inspection on value of. manufactured goods and costs of production.
(C) LOCAL GOVERNMENT PUBLICATIONS AND RECORDS 1. City earnings tax records to identify trends in total payroll in the study area by SIO category, including the number of county residents who work in the city and city residents who work in the county.
2. Building permit records and/or property assessment records to identify total floor space utilized during the base year and trends in volume and distribution of new residential, commercial and industrial floor space in the study area by SIC category-Department of Public Works, Tax Assessor's Office, and Data Processing Division.
3. Local government business licenses or merchants and manufacturer's tax records—to identify trends in business volume, amount of floor space used, num. ber of employees, and to classify firms by SIC category in the study area, 4. Bank debits from either local or state records
to identify trends in the volume of bank debits, number and type of accounts and bank loans for business expansion purposes in the study area (by SIC category, if possible).
5. Pertinent data or reports collected by Local Planning Commissions, Urban Renewal Agencies, School Boards and Police Departments.
(D) NEW DATA FROM PRIMARY SOURCES 1. Business classification questionnaire sent to the IRS list referred to above, which consists of all firms doing business in the study area, to obtain sufficient information to assign at least a three digit SIC code, the number of employees during the base year and total annual sales or receipts.
2. Questionnaire to all non-profit organizations and local governments in the study area, including school districts, to determine number of employees, capital improvement plans, what commodities they purchased outside of the area, and the dollar amounts of these purchases.
3. Manufacturers questionnaire to all manufacturers in the study area to assess all locational considerations for all SIC categories in the study area, plant expansion plans and commodities purchased and sold outside the area by type and dollar amount.
4. Agricultural questionnaire to all farmers in the study area asking them what purchases they make and what income they earn from outside the study
5. Questionnaire to local lending institutions to determine interest earned from local loans by SIC category.
6. Questionnaire to railroads asking them to report the number of railroad cars they moved in and out of the study area during base year by SIC category.
7. Home interview survey as part of the 0-D portion of the transportation study to determine what household purchases are made outside the study area, by SIC category and amount and source of income earned outside the study
UBLISHED DATA 1. Local Chamber of Commerce; Dun & Bradstreet; Standard & Poors; local utility company records and other publications that would reveal SIC classifications for any local firms, dollar volume of business, number of employees, floor space, shifts in location, etc.
2. Records of professional and all trade associations that would reveal dollar volume of business, total number of employees and trends for their business, service or profession.
3. Marketing studies done by private firms for their own internal use. 4. Various published surveys of household expenditures. 5. McGraw-Hill survey of capital expenditure forecasts by industrial category. 6. Federal Reserve District publications.
UNITED STATES SENATE,
COMMITTEE ON THE JUDICIARY,
February 13, 1967.
DEAR MR. Ross : Thank you for your recent letter commenting on your proposed Regional Data Bank which will be established for the St. Louis region. Have read with great interest your letter and accompanying statement and would certainly be interested in assisting you in any possible way.
Your letter suggests that you have given considerable thought to problems of privacy as they relate to the establishment of any data bank. As you know, the Subcommittee on Administrative Practice and Procedure intends to hold hearings on this very topic beginning on March 14th, 1967. I understand from Mr. Benny L. Kass, Assistant Counsel to the Subcommittee, that you are available to appear before the Subcommittee on March 14th. Accordingly, you are cordially invited to attend and testify before the Subcommittee on that date.
The hearing will begin at 10:00 a.m. Will inform you of the exact location as
EDWARD V. LONG,
. Senator Long. Our next and last witness is Professor Arthur R. Miller of the School of Law of the University of Michigan.
Professor Miller, we are happy to have you here this morning. My counsel just told me you wanted to summarize your statement. When I saw the 32-page statement, I was hoping that you would because our time is running very short. We are grateful to have you here.
For the record, will you state your name and address and official position at the University of Michigan.
STATEMENT OF ARTHUR R. MILLER, PROFESSOR OF LAW,
UNIVERSITY OF MICHIGAN
Mr. MILLER. My name is Arthur R. Miller. I am a professor of law at the University of Michigan School of Law in Ann Arbor, Mich. I am also a research associate at the University of Michigan