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Economic contributions of the finance and insurance sector in Florida's high tech corridor

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Title:
Economic contributions of the finance and insurance sector in Florida's high tech corridor
Physical Description:
1 online resource (v, 60 p.) : ;
Language:
English
Creator:
University of South Florida -- Center for Economic Development Research
Publisher:
Center for Economic Development Research
Place of Publication:
Tampa, Fla
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Subjects / Keywords:
Financial institutions -- Florida   ( lcsh )
Insurance companies -- Florida   ( lcsh )
Economic conditions -- Florida   ( lcsh )
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bibliography   ( marcgt )
non-fiction   ( marcgt )

Notes

Abstract:
Commissioned by Innovative Insight, this report estimates the economic contributions of the finance and insurance sector to the economy in the 21 counties that make up the service areas of the University of South Florida and the University of Central Florida.
Bibliography:
Includes bibliographical references.
Statement of Responsibility:
an analysis performed by Center for Economic Development Research, College of Business Administration, University of South Florida.
General Note:
Title from PDF of cover (viewed Aug. 12, 2009).
General Note:
"December 2003."

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University of South Florida Library
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University of South Florida
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All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 002023614
oclc - 430180593
usfldc doi - C63-00023
usfldc handle - c63.23
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SFS0000299:00001


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Economic Contributions of the Finance and Insurance Sector in Florida’s High Tech Corridor and the Rest of Florida Prepared by CENTER FOR ECONOMIC DEVELOPMENT RESEARCH College of Business Administration 1101 Channelside Dr., 2nd Floor N., Tampa, Florida 33602 Office: (813) 905-5854 or Fax: (813) 905-5856 December, 2003

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ii Preface Innovation Insight, an economic development consulting firm located in Tampa Bay, commissioned the Center for Economic Development Research (CEDR), College of Business Administration, University of South Florida, to estimate the economic contributions of the finance and insurance sector of the economy within the Florida High Tech Corridor. The Florida High Tech Corridor includes the 21 counties that make up the service areas of the University of South Florida (USF) and the University of Central Florida (UCF). The areas extend from Flagler County on Florida’s east coast southward to Brevard County and westward through the Orlando metropolitan area to Tampa Bay on Florida’s west coast. Florida’s High Tech Corridor Council was created in 1996 and is co-chaired by USF’s President Judy Genshaft and UCF’s President John Hitt. The Council is comprised of the two universities and 20 high-tech companies that work with 11 local community colleges and 12 economic development organizations with a mission to attract, retain, and “grow” high-tech industries within Florida’s High Tech Corridor. See the Florida High Tech Corridor’s Internet site at http://www.floridahightech.com USF is a premier national research university that serves the metropolitan Tampa Bay region, Florida, and the Nation. CEDR, as a part of USF’s College of Business Administration, provides information and conducts research on local, statewide and national issues related to economic growth and development. CEDR’s activities are designed to further the objectives of USF and specifically the objectives of the College of Business Administration Robert Anderson, Dean, College of Business Administration (COBA), USF Dennis G. Colie, Director and Principal Investigator, CEDR, COBA, USF

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iii TABLE OF CONTENTS Executive Summary ……………………………………………………………….iv Section 1: Introduction …………………………………………………………….1 Section 2: Baseline Contributions of the Finance and Insurance Industries ………2 Section 2, Part A: Major Industry Group – Banking …………………………...…2 Section 2, Part B: Major Industry Group – Credit & Finance ………………….…8 Section 2, Part C: Major Industry Group – Insurance …………………………...14 Section 2, Part D: Summary – All Groups of the Finance and Insurance Sector ..20 Section 3: Total Economic Contributions of the Finance and Insurance Industries ……………………………………………………………..27 Section 3, Part A: Major Industry Group – Banking ……………………………27 Section 3, Part B: Major Industry Group – Credit & Finance …………………..35 Section 3, Part C: Major Industry Group – Insurance …………………………..43 Section 3, Part D: Summary – All Groups of the Finance and Insurance Sector .51 Appendix A: Regional Economic Development Policy Analysis-REMI Model .59

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iv Executive Summary The purpose of this research is to estimate the economic contributions of the Finance and Insurance sector of the economy within the Florida High Tech Corridor and the Rest of Florida. The Finance and Insurance (F & I) sector consists of three major industry groups: Banking, Credit & Finance, and Insurance. In 2003, in the High Tech Corridor there are about 175,800 jobs in the F & I sector, which represents 4.81% of total employment in the Corridor. In the Rest of Florida there are about 276,600 F & I jobs, or 4.97% of total employment. Between 2003 and 2007, in both the Corridor and the Rest of Florida, we expect the number of Banking jobs to slightly decrease, while we expect jobs in Credit & Finance and Insurance to increase. In 2003, output of the F & I sector within the Corridor approximates $27.5 billion, or 7.65% of the Corridor’s total economic activity. The Rest of Florida produces F & I output equal to about $44.6 billion, or 8.61% of total output. Although we expect Banking jobs to decline, we anticipate that Banking output will grow at an over 2% average annual rate throughout Florida. Declining employment and growing output is consistent with productivity gain in the Banking industries. Overall, we expect F & I output throughout Florida to grow by more than 3% per annum. Also in 2003, wages of the F & I sector within the Corridor are nearly $6.4 billion, or 6.25% of the total wage bill. In the Rest of Florida, F & I wages equal about $11.5 billion, or 7.45% of total wages paid. Between 2003 and 2007, we anticipate that total wages and salaries paid to0 workers in the F & I sector will increase by more than an average 4% per annum. We assess the economic contributions of the F & I sector of the economy using the traditional counter-factual approach. With this approach, we use the REMITM Policy Insight model to virtually remove the baseline output produced by the primary industries of the F & I sector. The model tabulates the direct effects of the removal of the baseline economic activities as well as the ripple, or secondary, effects throughout the economy. First, we virtually remove the output of the F & I sector within the High Tech Corridor, but allowing finance and insurance activities in the Rest of Florida. This first counter-factual analysis yields the economic contribution of the F & I sector to the High Tech Corridor. Second, we virtually remove the output of the F & I sector from both the Corridor and the Rest of Florida. Hypothetically, finance and insurance activities now only take place outside the state of Florida. This second counter-factual analysis yields the economic contribution of the F & I sector to the state of Florida. From the first analysis, we find that in 2003 the F & I sector contributes about 457,000 jobs, or 12.53% of total employment, to the High Tech Corridor’s economy. The largest contributions are in Hillsborough County and Pinellas County at 129,500 jobs and 106,600 jobs, respectively. Measured by output, the F & I sector contributes over

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v $57 billion, or about 15.85% of total output, to the Corridor’s economy. The largest contributions are in Hillsborough County at over $15.7 billion, or 21.06% of Hillsborough County’s total economic activity and in Pinellas County at over $13.9 billion, or 22.55% of Pinellas County’s total economic activity. And, as measured by wages, the F & I sector contributes over $14.9 billion, or about 14.70% of total wages and salaries, to the Corridor’s economy. The largest contribution is in Hillsborough County at over $4.5 billion, which is around 19.61% of the County’s total wage bill. The contribution in Pinellas County is over $3.4 billion, which is the highest percentage, 20.77%, of any Corridor county’s wage bills. From the second analysis, we find that in 2003 the F & I sector’s contribution to the state of Florida’s economy is approximately 1,228,000 jobs, over $158 billion of output, and wage and salary disbursements for workers totaling over $42.5 billion.

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1 Section 1: Introduction The purpose of this research is to estimate the economic contributions of the Finance and Insurance sector of the economy within the Florida High Tech Corridor and the Rest of Florida. We employ the REMITM Policy Insight model to perform the estimates. The by-county geographic coverage of the model allows us to examine the principal component counties of the Florida High Tech Corridor. The principal component counties are Brevard, Hernando, Hillsborough, Lake, Manatee, Orange, Osceola, Pasco, Pinellas, Polk, Sarasota, Seminole and Volusia counties. Florida’s counties other than the principal component counties are aggregated in the model as the Rest of Florida. The conceptual foundation of this analysis is the understanding that job creation in one industry begets additional jobs in related industries. In addition, further jobs are created to support an increased level of aggregate household income and spending resulting from the inter-industry job creation. This phenomenon of job creation, with concomitant increased levels of income and production, is called the multiplier or ripple effect. For this analysis, the economic effect of the Finance and Insurance sector, as it ripples through the economy, is estimated using the REMITM Policy Insight regional economic impact model. We describe the model in Appendix A When jobs are created in an industry, these jobs motivate the creation of additional jobs in related industries. For example, an increase in purchases (first round) of output from a manufacturing industry in a region may require that the manufacturing industry, in order to expand output, purchase (second round) factor inputs from other industries of the regional economy. In turn, these other industries may have to purchase (third round) inputs to deliver the supporting production of factors to the manufacturing industry. The rounds of spending will continue with each round becoming increasingly weaker in its impact because of leakage from the region attributable to imports, savings, and taxes. The first round is called the direct effect of the change in demand in an industry of the economy. The second and subsequent rounds are collectively referred to as the indirect effects of inter-industry purchases in response to the direct effect. Changes in spending by households as income increases due to changes in the level of production are also included in the indirect effects. The total effect is the sum of the direct and indirect effects. Because increased production is a desired outcome for an area’s economy, we call the total effect or impact an economic contribution to the region. We assess the economic contributions of the Finance and Insurance sector of the economy using the traditional counter-factual approach With this approach, we use the REMITM Policy Insight model to virtually remove the actual (or projected) output produced by the primary industries of the finance and insurance sector. The model tabulates the direct effects of the removal of the primary economic activities as well as the ripple, or secondary, effects throughout the economy.

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2 Section 2: Baseline Contributions of the Finance and Insurance Industries Using the REMITM model, we estimate the direct (baseline) economic contributions of the Finance and Insurance industries of the principal component counties within the Florida High Tech Corridor and the Rest of Florida. These direct economic contributions provide a baseline from which we can then assess the indirect effects and total economic contribution in the Corridor and for the Rest of Florida. The REMITM model’s results bridge to the major industry groups of the Standard Industrial Classification (SIC) system as follows.1 Finance industries are Banking, which is SIC 60, Depository Institutions, and Credit & Finance which includes SIC 61, Non-depository Institutions, SIC 62, Security and Commodity Brokers, Dealers, Exchanges and Services, and SIC 67, Holding and Other Investment Offices. The Insurance industries are Insurance which includes SIC 63, Insurance Carriers and SIC 64, Insurance Agents, Brokers and Service. We measure the baseline economic contributions of the Finance and Insurance industries by employment, output, and wage and salary disbursements.2 That is, the industries hire a number of workers (employment), who produce services of value (output).3 The value-added – less indirect business taxes from production is distributed among the workers and the owners of the capital that the workers use in the production process (wages and salaries). Section 2, Part A: Major Industry Group Banking Table 1.1 (next page) shows estimates of employment by location (place of work) in each principal component county within the High Tech Corridor and in the Rest of Florida from 2003 to 2007. Panel A provides estimates of total employment for each location. Panel B reflects employment in Banking and Panel C gives the percentage of total employment contributed by jobs in Banking for each location. From Table 1.1, Panel B we see that the counties with the greatest number of jobs in Banking are Hillsborough County and Orange County. In 2003, we estimate that the annual average employment in Banking is about 13,500 in Hillsborough County and 12,100 in Orange County. Also in 2003, there are about 57,600 jobs in Banking throughout the principal component counties of the High Tech Corridor. In comparison, the Banking jobs in the Corridor equal about 54% of the approximately 106,700 Banking jobs throughout the Rest of Florida. The model predicts that employment in Banking will slightly decline in all locations over the next four years. In 2007, total employment in Banking in the Corridor is expected to be approximately 55,500 jobs. 1 The Standard Industrial Classification (SIC) is a system developed by the U.S. government to classify industries. 2 Wage and salary disbursements are a Bureau of Economic Analysis (BEA) concept. Wage and salary disbursements are the monetary remuneration of employees, including compensation of corporate officers, commissions, tips, and receipts-in-kind that represent income to the recipient. 3 In this context, workers include both wage earning and salaried employees as well as sole proprietors under contract to a firm in one of the primary industries. Technically, output is equal to sales plus or minus an inventory adjustment.

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3 Employment (000s) Total L oca ti on 2003 2004 2005 2006 2007 Brevard255.668260.556267.308272.744278.331 Hernand o 46.38346.59347.39948.01748.702 Hillsborough762.371770.018785.187798.495812.520 Lake90.30991.16893.11894.71896.443 Manatee167.033170.040174.358178.103182.038 Orange776.479786.440802.295816.804831.912 Osceola68.28169.18370.65672.05073.493 Pasc o 101.610101.247102.395103.176104.105 Pinellas575.697578.450586.329592.047598.520 Pol k 244.566246.895251.982256.143260.442 Sarasota191.927193.565197.191199.746202.571 Seminole186.923187.900190.865193.775196.916 V o l us i a 186 609 188 191 191 951 194 954 198 161 Corridor3,653.8563,690.2463,761.0343,820.7723,884.154 Rest of Florida5,569.3285,619.0305,730.1805,824.0795,922.151 Banking Employment (000s) L oca ti on 2003 2004 2005 2006 2007 Brevard2.9002.8712.8942.8902.891 Hernand o 1.2701.2481.2551.2501.249 Hillsborough13.54113.17413.09012.93312.799 Lake1.3251.3041.3151.3141.316 Manatee2.1802.1602.1782.1782.180 Orange12.08311.86411.87211.81711.776 Osceola0.4900.4730.4670.4600.455 Pasc o 1.5541.5051.4961.4771.463 Pinellas9.4229.1919.1439.0298.932 Pol k 2.8322.7872.8022.7952.793 Sarasota4.9844.8904.8944.8534.822 Seminole2.2042.1312.1072.0802.059 V o l us i a 2 778 2 739 2 759 2 756 2 758 Corridor57.56356.33756.27255.83255.493 Rest of Florida106.665104.479104.536103.872103.370 Banking Employment (% of Total Employment per Location) L oca ti on 2003 2004 2005 2006 2007 Brevard1.13%1.10%1.08%1.06%1.04% Hernand o 2.74%2.68%2.65%2.60%2.56% Hillsborough1.78%1.71%1.67%1.62%1.58% Lake1.47%1.43%1.41%1.39%1.36% Manatee1.31%1.27%1.25%1.22%1.20% Orange1.56%1.51%1.48%1.45%1.42% Osceola0.72%0.68%0.66%0.64%0.62% Pasc o 1.53%1.49%1.46%1.43%1.41% Pinellas1.64%1.59%1.56%1.53%1.49% Pol k 1.16%1.13%1.11%1.09%1.07% Sarasota2.60%2.53%2.48%2.43%2.38% Seminole1.18%1.13%1.10%1.07%1.05% V o l us i a 1 49% 1 46% 1 44% 1 41% 1 39% Corridor1.58%1.53%1.50%1.46%1.43% Rest of Florida1.92%1.86%1.82%1.78%1.75% Panel C Panel B Table 1.1 Finance & Insurance REMI Baseline Major Industry Group: Banking Panel A EMPLOYMENT

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4 Table 1.1, Panel C indicates that the highest concentration of Banking jobs in the Corridor is in Hernando County, closely followed by Sarasota County. In 2003, about 2.74% of all jobs in Hernando County are in the Banking industry. However, we note that Hernando County has the smallest employment base, i.e. total employment, among the principal component counties of the High-Tech Corridor. Hence, the statistical anomaly is that while Hernando has the fewest Banking jobs among the counties, its percentage of Banking jobs to total employment is greatest. On the other hand, in 2003, Sarasota County, which has the sixth largest employment base among the principal component counties, has about 2.60% of all jobs in the Banking industry. In 2003, approximately 1.58% of employment throughout the principal component counties of the High Tech Corridor is in Banking compared to 1.92% for the Rest of Florida. By 2007, the model predicts that the percentage of employment in Banking within the Corridor will shrink to nearly 1.43%, while Banking jobs in the Rest of Florida will drop to 1.75% of total employment. Table 1.2 (next page) reports estimates of output in each principal component county within the High Tech Corridor and in the Rest of Florida from 2003 to 2007. Panel A provides estimates of total output for each location. Panel B reflects output by the Banking industry and Panel C gives the percentage of total output contributed by the Banking industry for each location. From Table 1.2, Panel B we see that the counties with the highest output in Banking are Hillsborough County and Orange County. In 2003, we estimate that the annual output for Banking is about $2.437 billion in Hillsborough County and $2.173 billion in Orange County. In 2003, the component principal counties of the High Tech Corridor will enjoy total output from the Banking industry of approximately $10.336 billion. In comparison, the Banking output in the Corridor equals about 54% of the approximate $19.201 billion of Banking output throughout the Rest of Florida. The model predicts that output from Banking will rise in all locations over the next four years. In 2007, total Corridor output in Banking is expected to be around $11.500 billion, up from $10.336 billion in 2003 (measured in constant 2002 dollars). Table 1.2, Panel C indicates that Hernando County and Sarasota County have higher percentages of Banking output to total output than the other principal component counties in the Corridor. In 2003, about 5.73% of Hernando County’s economic activity, measured by output, is in Banking However, Hernando County has the lowest level of total economic activity among the principal component counties. In 2003, about 4.85% of Sarasota County’s output is in Banking In 2003, approximately 2.87% of economic activity, measured by output, throughout the principal component counties of the High Tech Corridor come from the Banking industry. By 2007, the model predicts that the percentage of Banking output to total output will slightly decline to 2.75%, although as mentioned above, the dollar value of Banking output is expected to go up.

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5 Output (Bil 02 $ ) Total L oca ti on 2003 2004 2005 2006 2007 Brevard $ 26.867 $ 28.392 $ 29.634 $ 30.883 $ 32.155 Hernand o $ 3.929 $ 4.053 $ 4.182 $ 4.310 $ 4.444 Hillsborough $ 74.939 $ 77.886 $ 80.571 $ 83.415 $ 86.318 Lake $ 8.864 $ 9.199 $ 9.536 $ 9.876 $ 10.230 Manatee $ 16.214 $ 17.034 $ 17.746 $ 18.474 $ 19.220 Orange $ 73.662 $ 77.090 $ 80.121 $ 83.362 $ 86.675 Osceola $ 5.919 $ 6.171 $ 6.409 $ 6.658 $ 6.913 Pasc o $ 8.518 $ 8.742 $ 8.990 $ 9.238 $ 9.499 Pinellas $ 61.970 $ 64.662 $ 66.927 $ 69.235 $ 71.606 Pol k $ 23.838 $ 24.848 $ 25.804 $ 26.770 $ 27.749 Sarasota $ 18.342 $ 19.052 $ 19.725 $ 20.375 $ 21.049 Seminole $ 19.765 $ 20.604 $ 21.369 $ 22.207 $ 23.072 V o l us i a $16 963 $17 735 $18 469 $19 213 $19 979 Corridor $ 359.789 $ 375.469 $ 389.485 $ 404.015 $ 418.909 Rest of Florida $ 517.846 $ 538.591 $ 558.428 $ 578.818 $ 599.624 Output (Bil 02 $ ) Banking L oca ti on 2003 2004 2005 2006 2007 Brevard $ 0.519 $ 0.541 $ 0.559 $ 0.577 $ 0.597 Hernand o $ 0.225 $ 0.232 $ 0.239 $ 0.246 $ 0.253 Hillsborough $ 2.437 $ 2.496 $ 2.550 $ 2.607 $ 2.666 Lake $ 0.238 $ 0.247 $ 0.256 $ 0.264 $ 0.273 Manatee $ 0.385 $ 0.399 $ 0.413 $ 0.425 $ 0.438 Orange $ 2.173 $ 2.246 $ 2.310 $ 2.378 $ 2.446 Osceola $ 0.094 $ 0.097 $ 0.099 $ 0.103 $ 0.105 Pasc o $ 0.283 $ 0.290 $ 0.297 $ 0.304 $ 0.312 Pinellas $ 1.677 $ 1.718 $ 1.752 $ 1.787 $ 1.821 Pol k $ 0.506 $ 0.525 $ 0.542 $ 0.558 $ 0.575 Sarasota $ 0.890 $ 0.919 $ 0.944 $ 0.967 $ 0.991 Seminole $ 0.410 $ 0.422 $ 0.431 $ 0.442 $ 0.455 V o l us i a $0 498 $0 517 $0 534 $0 552 $0 569 Corridor $ 10.336 $ 10.649 $ 10.926 $ 11.210 $ 11.500 Rest of Florida $ 19.201 $ 19.804 $ 20.372 $ 20.948 $ 21.530 Banking Output (% of Total Output per Location) L oca ti on 2003 2004 2005 2006 2007 Brevard1.93%1.90%1.89%1.87%1.86% Hernand o 5.73%5.72%5.71%5.70%5.68% Hillsborough3.25%3.21%3.17%3.13%3.09% Lake2.68%2.68%2.68%2.67%2.67% Manatee2.38%2.34%2.33%2.30%2.28% Orange2.95%2.91%2.88%2.85%2.82% Osceola1.58%1.57%1.55%1.55%1.52% Pasc o 3.33%3.32%3.31%3.29%3.29% Pinellas2.71%2.66%2.62%2.58%2.54% Pol k 2.12%2.11%2.10%2.08%2.07% Sarasota4.85%4.82%4.79%4.75%4.71% Seminole2.08%2.05%2.02%1.99%1.97% V o l us i a 2 94% 2 91% 2 89% 2 87% 2 85% Corridor2.87%2.84%2.81%2.77%2.75% Rest of Florida3.71%3.68%3.65%3.62%3.59% Panel C Panel B Table 1.2 Finance & Insurance REMI Baseline Major Industry Group: Banking Panel A OUTPUT

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6 Table 1.3 (next page) shows estimates of wage and salary disbursements originating in the Banking industry by location from 2003 to 2007. Panel A shows total wage and salary disbursements for each location. Panel B reflects wage and salary disbursements by the Banking industry and Panel C gives the percentage of total wage and salary disbursements contributed by the Banking industry for each location. Not surprisingly, we note from Table 1.3, Panel B that the same two counties with the highest output in Banking are also the leaders in wage and salary disbursements. During 2003, we estimate the wage and salary disbursements for Hillsborough County and Orange County at $671 million and $572 million, respectively. During 2003, employees working in the Banking industry in the High Tech Corridor’s principal component counties will earn $2.323 billion in wages and salary. In comparison, the Banking wage and salary disbursements in the Corridor equal about 46% of the approximate $5.091 billion of wage and salary disbursements from Banking throughout the Rest of Florida. The model predicts that the wage and salary disbursements in all locations will increase over the next four years. In 2007, the total Corridor wage and salary disbursements from Banking is expected to be almost $2.6 billion. Table 1.3, Panel C indicates that Sarasota County and Hernando County have higher percentages of employee earnings from the Banking industry than other principal component counties in the High Tech Corridor. In 2003, about 3.50% of Sarasota County’s employees’ wages and salaries are earned in the Banking industry. Also in 2003, about 3.32% of Hernando County’s disbursements for wages and salaries come from Banking In 2003, approximately 2.28% of wage and salary disbursements throughout the principal component counties of the High Tech Corridor come from the Banking industry. By 2007, the model predicts that the percentage of the Banking industry’s wage and salary disbursements to total disbursements will fall slightly to 2.07%, although, as mentioned above, the dollar value of Banking’s wages and salaries paid out is expected to rise. In summary, the employment, output, and wage and salary data, which is exhibited in Tables 1.1 through 1.3 above, indicate that Banking is a growing industry throughout the High Tech Corridor. From 2003 to 2007 we expect output to increase by $1.33 billion or a little more than 11%, measured in constant 2002 dollars, and employees’ wages and salary payments to increase by $257 million or about 11%, measured in nominal dollars. However, we expect employment to fall from 57,600 in 2003 to 55,500 in 2007, or about a 3.5% loss of jobs in Banking The expected increase in output accompanied by an expected decrease in employment is consistent with a productivity gain in the Banking industry during the period 2003 to 2007. And, the expected increase in wage and salary disbursements coupled with fewer jobs is consistent with a rising average wage in the Banking industry during the period 2003 to 2007. Furthermore, we expect that economic activity of the Banking industry as a percentage of total economic activity generated by the principal component counties of the High Tech Corridor will gradually decrease between 2003 and 2007. This indicates that while the Banking industry’s output is growing within the Corridor, the overall economy will be growing even faster than the Banking industry.

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7 Wage & Salary Disbursement (Bil nominal) Total L oca ti on 2003 2004 2005 2006 2007 Brevard $ 7.268 $ 7.711 $ 8.185 $ 8.661 $ 9.156 Hernand o $ 0.904 $ 0.940 $ 0.986 $ 1.033 $ 1.083 Hillsborough $ 23.437 $ 24.580 $ 25.895 $ 27.292 $ 28.762 Lake $ 1.893 $ 1.977 $ 2.080 $ 2.186 $ 2.298 Manatee $ 3.775 $ 3.987 $ 4.220 $ 4.462 $ 4.718 Orange $ 23.931 $ 25.179 $ 26.534 $ 27.982 $ 29.503 Osceola $ 1.560 $ 1.637 $ 1.725 $ 1.820 $ 1.920 Pasc o $ 2.152 $ 2.219 $ 2.312 $ 2.407 $ 2.508 Pinellas $ 16.484 $ 17.221 $ 18.043 $ 18.881 $ 19.767 Pol k $ 6.189 $ 6.495 $ 6.853 $ 7.220 $ 7.603 Sarasota $ 4.745 $ 4.962 $ 5.218 $ 5.471 $ 5.740 Seminole $ 5.105 $ 5.324 $ 5.583 $ 5.866 $ 6.168 V o l us i a $4 386 $4 594 $4 844 $5 101 $5 373 Corridor $ 101.829 $ 106.826 $ 112.478 $ 118.382 $ 124.599 Rest of Florida $ 154.825 $ 161.964 $ 170.525 $ 179.511 $ 188.938 Wage & Salary Disbursement (Bil nominal) Banking L oca ti on 2003 2004 2005 2006 2007 Brevard $ 0.078 $ 0.080 $ 0.084 $ 0.087 $ 0.090 Hernand o $ 0.030 $ 0.030 $ 0.031 $ 0.032 $ 0.033 Hillsborough $ 0.671 $ 0.681 $ 0.700 $ 0.718 $ 0.737 Lake $ 0.041 $ 0.042 $ 0.043 $ 0.045 $ 0.046 Manatee $ 0.057 $ 0.059 $ 0.062 $ 0.064 $ 0.066 Orange $ 0.572 $ 0.584 $ 0.603 $ 0.622 $ 0.642 Osceola $ 0.027 $ 0.027 $ 0.027 $ 0.028 $ 0.028 Pasc o $ 0.044 $ 0.044 $ 0.046 $ 0.046 $ 0.047 Pinellas $ 0.379 $ 0.385 $ 0.396 $ 0.405 $ 0.416 Pol k $ 0.087 $ 0.090 $ 0.093 $ 0.096 $ 0.100 Sarasota $ 0.166 $ 0.169 $ 0.175 $ 0.180 $ 0.185 Seminole $ 0.080 $ 0.081 $ 0.083 $ 0.084 $ 0.086 V o l us i a $0 091 $0 093 $0 097 $0 100 $0 104 Corridor $ 2.323 $ 2.365 $ 2.440 $ 2.507 $ 2.580 Rest of Florida $ 5.091 $ 5.189 $ 5.363 $ 5.524 $ 5.694 Banking Wage & Salary Disbursements (% of Total Disbursement per Location) L oca ti on 2003 2004 2005 2006 2007 Brevard1.07%1.04%1.03%1.00%0.98% Hernand o 3.32%3.19%3.14%3.10%3.05% Hillsborough2.86%2.77%2.70%2.63%2.56% Lake2.17%2.12%2.07%2.06%2.00% Manatee1.51%1.48%1.47%1.43%1.40% Orange2.39%2.32%2.27%2.22%2.18% Osceola1.73%1.65%1.57%1.54%1.46% Pasc o 2.04%1.98%1.99%1.91%1.87% Pinellas2.30%2.24%2.19%2.15%2.10% Pol k 1.41%1.39%1.36%1.33%1.32% Sarasota3.50%3.41%3.35%3.29%3.22% Seminole1.57%1.52%1.49%1.43%1.39% V o l us i a 2 07% 2 02% 2 00% 1 96% 1 94% Corridor2.28%2.21%2.17%2.12%2.07% Rest of Florida3.29%3.20%3.14%3.08%3.01% Panel C Panel B Table 1.3 Finance & Insurance REMI Baseline Major Industry Group: Banking Panel A WAGE & SALARY DISBURSEMENTS

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8 Section 2, Part B: Major Industry Group – Credit & Finance Table 2.1 (next page) shows estimates of employment by location (place of work) in each principal component county within the High Tech Corridor and in the Rest of Florida from 2003 to 2007. Panel A provides estimates of total employment for each location. Panel B reflects employment in Credit & Finance and Panel C gives the percentage of total employment contributed by jobs in Credit & Finance for each location. From Table 2.1, Panel B we see that the locations with the greatest number of jobs in Credit & Finance are Pinellas County and Hillsborough County. In 2003, we estimate that the annual average employment in Credit & Finance is about 16,100 in Pinellas County and 13,000 in Hillsborough County. Also in 2003, there are about 43,600 jobs in Credit & Finance throughout the principal component counties of the High Tech Corridor. In comparison, Credit & Finance jobs in the Corridor equal about 59% of the approximately 74,500 Credit & Finance jobs throughout the Rest of Florida. The model predicts that by 2007 employment in Credit & Finance will increase in all locations. In 2007, total employment in Credit & Finance in the Corridor is expected to be approximately 47,200 jobs. Table 2.1, Panel C indicates that the highest concentration of Credit & Finance jobs is in Pinellas County, followed by Hillsborough County. In 2003, about 2.80% of all jobs in Pinellas County and about 1.72% of all jobs in Hillsborough County are in the Credit & Finance industry. The model predicts that between 2003 and 2007, the percentage of jobs in Credit & Finance in Pinellas County will increase from 2.80% to 2.97%, while the increase in Hillsborough County will be from 1.72% to 1.76%. In 2003, the percentage of Credit & Finance jobs to total jobs throughout the principal component counties of the High Tech Corridor is approximately 1.19% and this percentage is expected to increase by only 0.02% over the next four years. In 2003, the percentage of Credit & Finance jobs to total jobs throughout the Rest of Florida is about 1.34% and is expected to rise to 1.40% by the year 2007.

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9 Employment (000s) Total L oca ti on 2003 2004 2005 2006 2007 Brevard255.668260.556267.308272.744278.331 Hernand o 46.38346.59347.39948.01748.702 Hillsborough762.371770.018785.187798.495812.520 Lake90.30991.16893.11894.71896.443 Manatee167.033170.040174.358178.103182.038 Orange776.479786.440802.295816.804831.912 Osceola68.28169.18370.65672.05073.493 Pasc o 101.610101.247102.395103.176104.105 Pinellas575.697578.450586.329592.047598.520 Pol k 244.566246.895251.982256.143260.442 Sarasota191.927193.565197.191199.746202.571 Seminole186.923187.900190.865193.775196.916 V o l us i a 186 609 188 191 191 951 194 954 198 161 Corridor3,653.8563,690.2463,761.0343,820.7723,884.154 Rest of Florida5,569.3285,619.0305,730.1805,824.0795,922.151 Credit & Finance Employment (000s) L oca ti on 2003 2004 2005 2006 2007 Brevard1.4481.4851.5191.5561.598 Hernand o 0.1050.1070.1100.1120.115 Hillsborough13.08013.36613.62613.93114.260 Lake0.1460.1470.1490.1510.155 Manatee0.6350.6470.6580.6730.689 Orange5.1665.1895.2135.2735.354 Osceola0.0770.0770.0780.0790.081 Pasc o 0.4120.4090.4090.4130.419 Pinellas16.10416.55616.94217.35117.772 Pol k 0.8280.8460.8640.8870.912 Sarasota2.6042.5982.5962.6052.625 Seminole1.8901.8791.8771.8951.926 V o l us i a 1 124 1 155 1 188 1 226 1 269 Corridor43.61944.46145.22946.15247.175 Rest of Florida74.53376.46978.37880.56282.948 Credit & Finance Employment (% of Total Employment per Location) L oca ti on 2003 2004 2005 2006 2007 Brevard0.57%0.57%0.57%0.57%0.57% Hernand o 0.23%0.23%0.23%0.23%0.24% Hillsborough1.72%1.74%1.74%1.74%1.76% Lake0.16%0.16%0.16%0.16%0.16% Manatee0.38%0.38%0.38%0.38%0.38% Orange0.67%0.66%0.65%0.65%0.64% Osceola0.11%0.11%0.11%0.11%0.11% Pasc o 0.41%0.40%0.40%0.40%0.40% Pinellas2.80%2.86%2.89%2.93%2.97% Pol k 0.34%0.34%0.34%0.35%0.35% Sarasota1.36%1.34%1.32%1.30%1.30% Seminole1.01%1.00%0.98%0.98%0.98% V o l us i a 0 60% 0 61% 0 62% 0 63% 0 64% Corridor1.19%1.20%1.20%1.21%1.21% Rest of Florida1.34%1.36%1.37%1.38%1.40% Panel C Panel B Table 2.1 Finance & Insurance REMI Baseline Major Industry Group: Credit & Finance Panel A EMPLOYMENT

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10 Table 2.2 (next page) reports estimates of output in each principal component county within the High Tech Corridor and in the Rest of Florida from 2003 to 2007. Panel A provides estimates of total output for each location. Panel B reflects output by the Credit & Finance industry and Panel C gives the percentage of total output contributed by the Credit & Finance industry for each location. From Table 2.2, Panel B we see that the locations with the highest output in Credit & Finance are Pinellas County and Hillsborough County. In 2003, we estimate that the annual output for Credit & Finance is about $3.035 billion in Pinellas County and $2.435 billion in Hillsborough County. In 2003, the component principal counties of the High Tech Corridor will enjoy total output from the Credit & Finance industry of approximately $8.205 billion. In comparison, the Credit & Finance output in the Corridor equals about 59% of the approximate $13.904 billion of Credit & Finance output throughout the Rest of Florida. The model predicts that output from Credit & Finance will rise in all locations over the next four years. In 2007, total Corridor output in Credit & Finance is expected to be around $9.989 billion, up from $8.205 billion in 2003 (measured in constant 2002 dollars). Table 2.2, Panel C indicates that Pinellas County and Hillsborough County have higher percentages of Credit & Finance output to total output than the other principal component counties in the Corridor. In 2003, about 4.90% of Pinellas County’s economic activity, measured by output, is in Credit & Finance The model predicts that in Pinellas County the economic activity of the Credit & Finance industry will grow to 5.29% of total output by 2007. In 2003, about 3.25% of Hillsborough County’s output is in Credit & Finance and this is expected to rise to 3.43% by 2007. In 2003, approximately 2.28% of economic activity, measured by output, throughout the principal component counties of the High Tech Corridor come from the Credit & Finance industry. By 2007, the model predicts that the percentage of Credit & Finance output to total output will slightly increase to 2.38%.

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11 Output (Bil 02 $ ) Total L oca ti on 2003 2004 2005 2006 2007 Brevard $ 26.867 $ 28.392 $ 29.634 $ 30.883 $ 32.155 Hernand o $ 3.929 $ 4.053 $ 4.182 $ 4.310 $ 4.444 Hillsborough $ 74.939 $ 77.886 $ 80.571 $ 83.415 $ 86.318 Lake $ 8.864 $ 9.199 $ 9.536 $ 9.876 $ 10.230 Manatee $ 16.214 $ 17.034 $ 17.746 $ 18.474 $ 19.220 Orange $ 73.662 $ 77.090 $ 80.121 $ 83.362 $ 86.675 Osceola $ 5.919 $ 6.171 $ 6.409 $ 6.658 $ 6.913 Pasc o $ 8.518 $ 8.742 $ 8.990 $ 9.238 $ 9.499 Pinellas $ 61.970 $ 64.662 $ 66.927 $ 69.235 $ 71.606 Pol k $ 23.838 $ 24.848 $ 25.804 $ 26.770 $ 27.749 Sarasota $ 18.342 $ 19.052 $ 19.725 $ 20.375 $ 21.049 Seminole $ 19.765 $ 20.604 $ 21.369 $ 22.207 $ 23.072 V o l us i a $16 963 $17 735 $18 469 $19 213 $19 979 Corridor $ 359.789 $ 375.469 $ 389.485 $ 404.015 $ 418.909 Rest of Florida $ 517.846 $ 538.591 $ 558.428 $ 578.818 $ 599.624 Output (Bil 02 $ ) Credit & Finance L oca ti on 2003 2004 2005 2006 2007 Brevard $ 0.275 $ 0.293 $ 0.311 $ 0.328 $ 0.346 Hernand o $ 0.021 $ 0.022 $ 0.023 $ 0.024 $ 0.025 Hillsborough $ 2.435 $ 2.567 $ 2.693 $ 2.824 $ 2.958 Lake $ 0.027 $ 0.030 $ 0.031 $ 0.032 $ 0.034 Manatee $ 0.120 $ 0.127 $ 0.133 $ 0.139 $ 0.147 Orange $ 0.976 $ 1.015 $ 1.052 $ 1.095 $ 1.141 Osceola $ 0.015 $ 0.015 $ 0.016 $ 0.016 $ 0.017 Pasc o $ 0.079 $ 0.081 $ 0.085 $ 0.087 $ 0.091 Pinellas $ 3.035 $ 3.230 $ 3.414 $ 3.598 $ 3.785 Pol k $ 0.155 $ 0.163 $ 0.173 $ 0.182 $ 0.192 Sarasota $ 0.503 $ 0.522 $ 0.542 $ 0.564 $ 0.586 Seminole $ 0.354 $ 0.363 $ 0.374 $ 0.386 $ 0.401 V o l us i a $0 209 $0 222 $0 235 $0 249 $0 264 Corridor $ 8.205 $ 8.650 $ 9.080 $ 9.525 $ 9.989 Rest of Florida $ 13.904 $ 14.725 $ 15.538 $ 16.385 $ 17.270 Credit & Finance Output (% of Total Output per Location) L oca ti on 2003 2004 2005 2006 2007 Brevard1.03%1.03%1.05%1.06%1.08% Hernand o 0.52%0.54%0.55%0.56%0.57% Hillsborough3.25%3.30%3.34%3.39%3.43% Lake0.31%0.32%0.32%0.32%0.34% Manatee0.74%0.74%0.75%0.75%0.77% Orange1.33%1.32%1.31%1.31%1.32% Osceola0.25%0.24%0.25%0.24%0.25% Pasc o 0.93%0.93%0.94%0.94%0.96% Pinellas4.90%5.00%5.10%5.20%5.29% Pol k 0.65%0.66%0.67%0.68%0.69% Sarasota2.74%2.74%2.75%2.77%2.79% Seminole1.79%1.76%1.75%1.74%1.74% V o l us i a 1 23% 1 25% 1 27% 1 30% 1 32% Corridor2.28%2.30%2.33%2.36%2.38% Rest of Florida2.68%2.73%2.78%2.83%2.88% Panel C Panel B Table 2.2 Finance & Insurance REMI Baseline Major Industry Group: Credit & Finance Panel A OUTPUT

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12 Table 2.3 (next page) shows estimates of wage and salary disbursements originating in the Credit & Finance industry by location from 2003 to 2007. Panel A shows total wage and salary disbursements for each location. Panel B reflects wage and salary disbursements by the Credit & Finance industry and Panel C gives the percentage of total wage and salary disbursements contributed by the Credit & Finance industry for each location. We note from Table 2.3, Panel B that the same two counties with the highest output in Credit & Finance are also the leaders in wage and salary disbursements. During 2003, we estimate the wage and salary disbursements for Pinellas County and Hillsborough County at $524 million and $396 million, respectively. During 2003, employees working in the Credit & Finance industry in the High Tech Corridor’s principal component counties will earn just over $1.4 billion in wages and salary. In comparison, the Credit & Finance wage and salary disbursements in the Corridor equal about 50% of the approximate $2.78 billion of wage and salary disbursements from Credit & Finance throughout the Rest of Florida. The model predicts that the wage and salary disbursements in all locations, except Osceola County and Hernando County, will increase over the next four years. In 2007, the total Corridor wage and salary disbursements from Credit & Finance is expected to be around $1.75 billion. Table 2.3, Panel C indicates that Pinellas County and Sarasota County have higher percentages of employee earnings in the Credit & Finance industry to total wage and salary disbursements than other principal component counties in the High Tech Corridor. In 2003, about 3.18% of Pinellas County’s employee’s wages and salaries are earned in the Credit & Finance industry. Also in 2003, about 2.07% of Sarasota County’s disbursements for wages and salaries come from Credit & Finance In 2003, approximately 1.38% of wage and salary disbursements throughout the principal component counties of the High Tech Corridor comes from the Credit & Finance industry. By 2007, the model predicts that the percentage of the Credit & Finance industry’s wage and salary disbursements to total disbursements will rise to 1.40%, and, as mentioned above, the dollar value of Credit & Finance’s wages and salaries paid out is also expected to rise. In summary, the employment, output, and wage and salary data, which is exhibited in Tables 2.1 through 2.3 above, indicate that Credit & Finance is a growing industry throughout the High Tech Corridor. From 2003 to 2007 we expect output to increase by just over $2 billion or about 22%, measured in constant 2002 dollars, and employees’ wages and salary payments to increase by $347 million or about 25%, measured in nominal dollars. Furthermore, we expect employment to rise from 43,600 in 2003 to 47,200 in 2007, or just over 8%. Additionally, we expect that economic activity of the Credit & Finance industry as a percentage of total economic activity generated by the principal component counties of the High Tech Corridor will gradually increase between 2003 and 2007. This indicates that the Credit & Finance industry’s output is growing faster than the overall economy of the High Tech Corridor.

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13 Wage & Salary Disbursement (Bil nominal) Total L oca ti on 2003 2004 2005 2006 2007 Brevard $ 7.268 $ 7.711 $ 8.185 $ 8.661 $ 9.156 Hernand o $ 0.904 $ 0.940 $ 0.986 $ 1.033 $ 1.083 Hillsborough $ 23.437 $ 24.580 $ 25.895 $ 27.292 $ 28.762 Lake $ 1.893 $ 1.977 $ 2.080 $ 2.186 $ 2.298 Manatee $ 3.775 $ 3.987 $ 4.220 $ 4.462 $ 4.718 Orange $ 23.931 $ 25.179 $ 26.534 $ 27.982 $ 29.503 Osceola $ 1.560 $ 1.637 $ 1.725 $ 1.820 $ 1.920 Pasc o $ 2.152 $ 2.219 $ 2.312 $ 2.407 $ 2.508 Pinellas $ 16.484 $ 17.221 $ 18.043 $ 18.881 $ 19.767 Pol k $ 6.189 $ 6.495 $ 6.853 $ 7.220 $ 7.603 Sarasota $ 4.745 $ 4.962 $ 5.218 $ 5.471 $ 5.740 Seminole $ 5.105 $ 5.324 $ 5.583 $ 5.866 $ 6.168 V o l us i a $4 386 $4 594 $4 844 $5 101 $5 373 Corridor $ 101.829 $ 106.826 $ 112.478 $ 118.382 $ 124.599 Rest of Florida $ 154.825 $ 161.964 $ 170.525 $ 179.511 $ 188.938 Wage & Salary Disbursement (Bil nominal) Credit & Finance L oca ti on 2003 2004 2005 2006 2007 Brevard $ 0.038 $ 0.041 $ 0.043 $ 0.046 $ 0.049 Hernand o $ 0.002 $ 0.002 $ 0.002 $ 0.002 $ 0.002 Hillsborough $ 0.396 $ 0.422 $ 0.445 $ 0.472 $ 0.501 Lake $ 0.005 $ 0.005 $ 0.005 $ 0.005 $ 0.006 Manatee $ 0.014 $ 0.015 $ 0.016 $ 0.017 $ 0.018 Orange $ 0.213 $ 0.223 $ 0.231 $ 0.242 $ 0.254 Osceola $ 0.003 $ 0.003 $ 0.003 $ 0.003 $ 0.003 Pasc o $ 0.010 $ 0.010 $ 0.010 $ 0.011 $ 0.011 Pinellas $ 0.524 $ 0.562 $ 0.594 $ 0.631 $ 0.670 Pol k $ 0.021 $ 0.022 $ 0.023 $ 0.025 $ 0.026 Sarasota $ 0.098 $ 0.102 $ 0.105 $ 0.109 $ 0.114 Seminole $ 0.054 $ 0.056 $ 0.058 $ 0.061 $ 0.064 V o l us i a $0 025 $0 026 $0 028 $0 030 $0 032 Corridor $ 1.403 $ 1.489 $ 1.563 $ 1.654 $ 1.750 Rest of Florida $ 2.780 $ 2.969 $ 3.143 $ 3.349 $ 3.571 Credit & Finance Wages & Salary (% of Total Disbursement per Location) L oca ti on 2003 2004 2005 2006 2007 Brevard0.52%0.53%0.53%0.53%0.54% Hernand o 0.22%0.21%0.20%0.19%0.18% Hillsborough1.69%1.72%1.72%1.73%1.74% Lake0.26%0.25%0.24%0.23%0.26% Manatee0.37%0.38%0.38%0.38%0.38% Orange0.89%0.89%0.87%0.86%0.86% Osceola0.19%0.18%0.17%0.16%0.16% Pasc o 0.46%0.45%0.43%0.46%0.44% Pinellas3.18%3.26%3.29%3.34%3.39% Pol k 0.34%0.34%0.34%0.35%0.34% Sarasota2.07%2.06%2.01%1.99%1.99% Seminole1.06%1.05%1.04%1.04%1.04% V o l us i a 0 57% 0 57% 0 58% 0 59% 0 60% Corridor1.38%1.39%1.39%1.40%1.40% Rest of Florida1.80%1.83%1.84%1.87%1.89% Panel C Panel B Table 2.3 Finance & Insurance REMI Baseline Major Industry Group: Credit & Finance Panel A WAGE & SALARY DISBURSEMENTS

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14 Section 2, Part C: Major Industry Group Insurance Table 3.1 (next page) shows estimates of employment by location (place of work) in each principal component county within the High Tech Corridor and in the Rest of Florida from 2003 to 2007. Panel A provides estimates of total employment for each location. Panel B reflects employment in Insurance and Panel C gives the percentage of total employment contributed by jobs in Insurance for each location. From Table 3.1, Panel B we see that the locations with the greatest number of jobs in Insurance are Hillsborough County and Pinellas County. In 2003, we estimate that the annual average employment in Insurance is about 23,800 in Hillsborough County and 13,400 in Pinellas County. Also in 2003, there are about 74,600 jobs in Insurance throughout the principal component counties of the High Tech Corridor. In comparison, Insurance jobs in the Corridor equal about 78% of the approximately 95,400 Insurance jobs throughout the Rest of Florida. The model predicts that Insurance employment will increase in all locations except Seminole County over the next four years. In 2007, total employment in Insurance in the Corridor is expected to be approximately 76,900 jobs. Table 3.1, Panel C indicates that the highest concentration of Insurance jobs is in Polk County, followed by Hillsborough County. In 2003, about 3.20% of all jobs in Polk County and about 3.13% of all jobs in Hillsborough County are in the Insurance industry. However, the model predicts that between 2003 and 2007, the percentage of jobs in Insurance in Hillsborough County will decrease from 3.13% to 2.98%, while the increase in Polk County will be from 3.20% to 3.25%. In 2003, the percentage of Insurance jobs to total jobs throughout the principal component counties of the High Tech Corridor is approximately 2.04%, but this percentage is expected to decline to 1.98% over the next four years. In 2003, the percentage of Insurance jobs to total jobs throughout the Rest of Florida is about 1.71% and is expected to fall to 1.65% by the year 2007.

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15 Employment (000s) Total L oca ti on 2003 2004 2005 2006 2007 Brevard255.668260.556267.308272.744278.331 Hernand o 46.38346.59347.39948.01748.702 Hillsborough762.371770.018785.187798.495812.520 Lake90.30991.16893.11894.71896.443 Manatee167.033170.040174.358178.103182.038 Orange776.479786.440802.295816.804831.912 Osceola68.28169.18370.65672.05073.493 Pasc o 101.610101.247102.395103.176104.105 Pinellas575.697578.450586.329592.047598.520 Pol k 244.566246.895251.982256.143260.442 Sarasota191.927193.565197.191199.746202.571 Seminole186.923187.900190.865193.775196.916 V o l us i a 186 609 188 191 191 951 194 954 198 161 Corridor3,653.8563,690.2463,761.0343,820.7723,884.154 Rest of Florida5,569.3285,619.0305,730.1805,824.0795,922.151 Insurance Employment (000s) L oca ti on 2003 2004 2005 2006 2007 Brevard2.8642.8732.9172.9372.957 Hernand o 1.0761.0941.1261.1491.170 Hillsborough23.83923.80024.06024.14124.222 Lake0.3720.3750.3830.3880.393 Manatee1.5881.6261.6801.7181.752 Orange11.14011.13011.26711.33211.399 Osceola0.1600.1600.1620.1630.164 Pasc o 2.0362.0892.1652.2212.273 Pinellas13.44013.43413.59213.63813.680 Pol k 7.8167.9508.1708.3188.459 Sarasota4.6924.7054.7764.8084.838 Seminole3.8243.7613.7603.7463.738 V o l us i a 1 777 1 799 1 841 1 868 1 893 Corridor74.62474.79675.89976.42776.938 Rest of Florida95.37095.36096.65097.23897.861 Insurance Employment (% of Total Employment per Location) L oca ti on 2003 2004 2005 2006 2007 Brevard1.12%1.10%1.09%1.08%1.06% Hernand o 2.32%2.35%2.38%2.39%2.40% Hillsborough3.13%3.09%3.06%3.02%2.98% Lake0.41%0.41%0.41%0.41%0.41% Manatee0.95%0.96%0.96%0.96%0.96% Orange1.43%1.42%1.40%1.39%1.37% Osceola0.23%0.23%0.23%0.23%0.22% Pasc o 2.00%2.06%2.11%2.15%2.18% Pinellas2.33%2.32%2.32%2.30%2.29% Pol k 3.20%3.22%3.24%3.25%3.25% Sarasota2.44%2.43%2.42%2.41%2.39% Seminole2.05%2.00%1.97%1.93%1.90% V o l us i a 0 95% 0 96% 0 96% 0 96% 0 96% Corridor2.04%2.03%2.02%2.00%1.98% Rest of Florida1.71%1.70%1.69%1.67%1.65% Panel C Panel B Table 3.1 Finance & Insurance REMI Baseline Major Industry Group: Insurance Panel A EMPLOYMENT

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16 Table 3.2 (next page) reports estimates of output in each principal component county and the Rest of Florida from 2003 to 2007. Panel A provides estimates of total output for each location. Panel B reflects output by the Insurance industry and Panel C gives the percentage of total output contributed by the Insurance industry for each location. From Table 3.2, Panel B we see that the locations with the highest output in Insurance are Hillsborough County and Pinellas County. In 2003, we estimate that the annual output for Insurance is about $2.868 billion in Hillsborough County and $1.613 billion in Pinellas County. In 2003, the component principal counties of the High Tech Corridor will enjoy total output from the Insurance industry of approximately $8.979 billion. In comparison, Insurance output in the Corridor equals about 78% of the approximate $11.474 billion of Insurance output throughout the Rest of Florida. The model predicts that output from Insurance will rise in all locations over the next four years. In 2007, total Corridor output in Insurance is expected to be around $9.772 billion, up from $8.979 billion in 2003 (measured in constant 2002 dollars). Table 3.2, Panel C indicates that Polk County and Hillsborough County have higher percentages of Insurance output to total output than the other principal component counties in the Corridor. In 2003, about 3.92% of Polk County’s economic activity and 3.83% of Hillsborough County’s economic activity, measured by output, are in Insurance However, the model predicts that in Polk County the economic activity of the Insurance industry will decline from 3.92% of total activity in 2003 to 3.81% by 2007. Likewise in 2003, the model predicts that in Hillsborough County the economic activity of the Insurance industry will decline from 3.83% of total activity to 3.55% by 2007. In 2003, approximately 2.50% of economic activity, measured by output, throughout the principal component counties of the High Tech Corridor comes from the Insurance industry. By 2007, the model predicts that the percentage of Insurance output to total output will fall to 2.33%.

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17 Output (Bil 02 $ ) Total L oca ti on 2003 2004 2005 2006 2007 Brevard $ 26.867 $ 28.392 $ 29.634 $ 30.883 $ 32.155 Hernand o $ 3.929 $ 4.053 $ 4.182 $ 4.310 $ 4.444 Hillsborough $ 74.939 $ 77.886 $ 80.571 $ 83.415 $ 86.318 Lake $ 8.864 $ 9.199 $ 9.536 $ 9.876 $ 10.230 Manatee $ 16.214 $ 17.034 $ 17.746 $ 18.474 $ 19.220 Orange $ 73.662 $ 77.090 $ 80.121 $ 83.362 $ 86.675 Osceola $ 5.919 $ 6.171 $ 6.409 $ 6.658 $ 6.913 Pasc o $ 8.518 $ 8.742 $ 8.990 $ 9.238 $ 9.499 Pinellas $ 61.970 $ 64.662 $ 66.927 $ 69.235 $ 71.606 Pol k $ 23.838 $ 24.848 $ 25.804 $ 26.770 $ 27.749 Sarasota $ 18.342 $ 19.052 $ 19.725 $ 20.375 $ 21.049 Seminole $ 19.765 $ 20.604 $ 21.369 $ 22.207 $ 23.072 V o l us i a $16 963 $17 735 $18 469 $19 213 $19 979 Corridor $ 359.789 $ 375.469 $ 389.485 $ 404.015 $ 418.909 Rest of Florida $ 517.846 $ 538.591 $ 558.428 $ 578.818 $ 599.624 Output (Bil 02 $ ) Insurance L oca ti on 2003 2004 2005 2006 2007 Brevard $ 0.344 $ 0.354 $ 0.361 $ 0.369 $ 0.376 Hernand o $ 0.127 $ 0.131 $ 0.136 $ 0.139 $ 0.144 Hillsborough $ 2.868 $ 2.934 $ 2.981 $ 3.026 $ 3.067 Lake $ 0.045 $ 0.047 $ 0.048 $ 0.049 $ 0.050 Manatee $ 0.187 $ 0.197 $ 0.203 $ 0.210 $ 0.217 Orange $ 1.349 $ 1.384 $ 1.411 $ 1.438 $ 1.464 Osceola $ 0.019 $ 0.021 $ 0.021 $ 0.022 $ 0.022 Pasc o $ 0.242 $ 0.255 $ 0.265 $ 0.274 $ 0.283 Pinellas $ 1.613 $ 1.653 $ 1.681 $ 1.708 $ 1.732 Pol k $ 0.934 $ 0.973 $ 1.002 $ 1.031 $ 1.057 Sarasota $ 0.564 $ 0.581 $ 0.593 $ 0.606 $ 0.617 Seminole $ 0.473 $ 0.481 $ 0.487 $ 0.494 $ 0.502 V o l us i a $0 214 $0 222 $0 229 $0 234 $0 240 Corridor $ 8.979 $ 9.232 $ 9.419 $ 9.600 $ 9.772 Rest of Florida $ 11.474 $ 11.762 $ 11.985 $ 12.203 $ 12.413 Insurance Output (% of Total Output per Location) L oca ti on 2003 2004 2005 2006 2007 Brevard1.28%1.25%1.22%1.20%1.17% Hernand o 3.23%3.24%3.25%3.24%3.24% Hillsborough3.83%3.77%3.70%3.63%3.55% Lake0.50%0.51%0.50%0.50%0.49% Manatee1.16%1.15%1.15%1.14%1.13% Orange1.83%1.80%1.76%1.72%1.69% Osceola0.33%0.33%0.32%0.33%0.31% Pasc o 2.84%2.92%2.95%2.97%2.98% Pinellas2.60%2.56%2.51%2.47%2.42% Pol k 3.92%3.91%3.88%3.85%3.81% Sarasota3.07%3.05%3.01%2.97%2.93% Seminole2.39%2.34%2.28%2.22%2.17% V o l us i a 1 26% 1 25% 1 24% 1 22% 1 20% Corridor2.50%2.46%2.42%2.38%2.33% Rest of Florida2.22%2.18%2.15%2.11%2.07% Panel C Panel B Table 3.2 Finance & Insurance REMI Baseline Major Industry Group: Insurance Panel A OUTPUT

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18 Table 3.3 (next page) shows estimates of wage and salary disbursements originating in the Insurance industry by location from 2003 to 2007. Panel A shows total wage and salary disbursements for each location. Panel B reflects wage and salary disbursements by the Insurance industry and Panel C gives the percentage of total wage and salary disbursements contributed by the Insurance industry for each location. We note from Table 3.3, Panel B that two counties with the highest wage and salary disbursements from the Insurance industry are Hillsborough County and Orange County. During 2003, we estimate the wage and salary disbursements for Hillsborough County and Orange County at $951 million and $501 million, respectively. Pinellas County closely follows with $488 million in estimated wage and salary disbursements during 2003. Also during 2003, employees working in the Insurance industry in the High Tech Corridor’s principal component counties will earn, in total, about $2.64 billion in wages and salary. In comparison, the Insurance wage and salary disbursements in the Corridor equal about 72% of the approximate $3.66 billion of wage and salary disbursements from the Insurance industry throughout the Rest of Florida. The model predicts that the wage and salary disbursements in all locations will increase over the next four years. In 2007, the total Corridor wage and salary disbursements from Insurance is expected to be just over $3.12 billion. Table 3.3, Panel C indicates that Hillsborough County and Polk County have higher percentages of employee earnings in the Insurance industry to total wage and salary disbursements than other principal component counties in the High Tech Corridor. In 2003, about 4.06% of Hillsborough County’s employee’s wages and salaries and about 3.12% of Polk County’s employee’s wages and salaries are earned in the Insurance industry. In 2003, approximately 2.59% of wage and salary disbursements throughout the principal component counties of the High Tech Corridor come from the Insurance industry. By 2007, the model predicts that the percentage of the Insurance industry’s wage and salary disbursements to total disbursements will slightly decrease to 2.51%, although, as mentioned above, the dollar value of Insurance’s wages and salaries paid out is expected to rise. In summary, the employment, output, and wage and salary data, which is exhibited in Tables 3.1 through 3.3 above, indicate that Insurance is a growing industry throughout the High Tech Corridor. From 2003 to 2007 we expect output to increase by $793 million or about 8.8%, measured in constant 2002 dollars, and employees’ wage and salary payments to increase by $492 million or about 18.7%, measured in nominal dollars. Furthermore, we expect employment to rise from 74,600 in 2003 to 76,900 in 2007, or about 3%. However, we expect that economic activity of the Insurance industry as a percentage of total economic activity generated by the principal component counties of the High Tech Corridor will gradually decrease between 2003 and 2007. This indicates that the Insurance industry’s output is growing slower than the overall economy of the High Tech Corridor.

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19 Wage & Salary Disbursement (Bil nominal) Total L oca ti on 2003 2004 2005 2006 2007 Brevard $ 7.268 $ 7.711 $ 8.185 $ 8.661 $ 9.156 Hernand o $ 0.904 $ 0.940 $ 0.986 $ 1.033 $ 1.083 Hillsborough $ 23.437 $ 24.580 $ 25.895 $ 27.292 $ 28.762 Lake $ 1.893 $ 1.977 $ 2.080 $ 2.186 $ 2.298 Manatee $ 3.775 $ 3.987 $ 4.220 $ 4.462 $ 4.718 Orange $ 23.931 $ 25.179 $ 26.534 $ 27.982 $ 29.503 Osceola $ 1.560 $ 1.637 $ 1.725 $ 1.820 $ 1.920 Pasc o $ 2.152 $ 2.219 $ 2.312 $ 2.407 $ 2.508 Pinellas $ 16.484 $ 17.221 $ 18.043 $ 18.881 $ 19.767 Pol k $ 6.189 $ 6.495 $ 6.853 $ 7.220 $ 7.603 Sarasota $ 4.745 $ 4.962 $ 5.218 $ 5.471 $ 5.740 Seminole $ 5.105 $ 5.324 $ 5.583 $ 5.866 $ 6.168 V o l us i a $4 386 $4 594 $4 844 $5 101 $5 373 Corridor $ 101.829 $ 106.826 $ 112.478 $ 118.382 $ 124.599 Rest of Florida $ 154.825 $ 161.964 $ 170.525 $ 179.511 $ 188.938 Wage & Salary Disbursement (Bil nominal) Insurance L oca ti on 2003 2004 2005 2006 2007 Brevard $ 0.075 $ 0.078 $ 0.082 $ 0.086 $ 0.090 Hernand o $ 0.015 $ 0.015 $ 0.016 $ 0.017 $ 0.018 Hillsborough $ 0.951 $ 0.990 $ 1.035 $ 1.078 $ 1.122 Lake $ 0.009 $ 0.010 $ 0.010 $ 0.011 $ 0.011 Manatee $ 0.033 $ 0.035 $ 0.038 $ 0.040 $ 0.042 Orange $ 0.501 $ 0.520 $ 0.544 $ 0.567 $ 0.590 Osceola $ 0.006 $ 0.006 $ 0.006 $ 0.007 $ 0.007 Pasc o $ 0.029 $ 0.031 $ 0.033 $ 0.035 $ 0.037 Pinellas $ 0.488 $ 0.508 $ 0.531 $ 0.553 $ 0.575 Pol k $ 0.193 $ 0.204 $ 0.217 $ 0.229 $ 0.242 Sarasota $ 0.142 $ 0.149 $ 0.156 $ 0.163 $ 0.170 Seminole $ 0.143 $ 0.147 $ 0.151 $ 0.156 $ 0.161 V o l us i a $0 051 $0 053 $0 057 $0 060 $0 063 Corridor $ 2.636 $ 2.746 $ 2.876 $ 3.002 $ 3.128 Rest of Florida $ 3.663 $ 3.812 $ 3.991 $ 4.161 $ 4.338 Insurance Wage & Salary (% of Total Disbursement per Location) L oca ti on 2003 2004 2005 2006 2007 Brevard1.03%1.01%1.00%0.99%0.98% Hernand o 1.66%1.60%1.62%1.65%1.66% Hillsborough4.06%4.03%4.00%3.95%3.90% Lake0.48%0.51%0.48%0.50%0.48% Manatee0.87%0.88%0.90%0.90%0.89% Orange2.09%2.07%2.05%2.03%2.00% Osceola0.38%0.37%0.35%0.38%0.36% Pasc o 1.35%1.40%1.43%1.45%1.48% Pinellas2.96%2.95%2.94%2.93%2.91% Pol k 3.12%3.14%3.17%3.17%3.18% Sarasota2.99%3.00%2.99%2.98%2.96% Seminole2.80%2.76%2.70%2.66%2.61% V o l us i a 1 16% 1 15% 1 18% 1 18% 1 17% Corridor2.59%2.57%2.56%2.54%2.51% Rest of Florida2.37%2.35%2.34%2.32%2.30% Panel C Panel B Table 3.3 Finance & Insurance REMI Baseline Major Industry Group: Insurance Panel A WAGE & SALARY DISBURSEMENTS

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20 Section 2, Part D: Summary – All Groups of the Finance and Insurance Sector Tables 4.1 through 4.3 summarize the baseline economic contribution of the Finance and Insurance sector of the economy to the Florida High Tech Corridor and to the Rest of Florida. We use three measurements of the baseline economic contribution. The measurements are employment, output and wage & salary disbursements. We also report three major industry groups of the Finance and Insurance sector. The major industry groups are Banking, Credit & Finance, and Insurance. Table 4.1 (next page) summarizes employment. Table 4.1, Panel A reports estimates of employment in the three major industry groups of the Finance and Insurance sector for the High Tech Corridor from 2003 to 2007 as well as the average annual rate of growth of jobs over the time span. We also sum the estimates of the three major industry groups to report totals for the Finance and Insurance sector of the High Tech Corridor. The Insurance industry has the most jobs and the Credit & Finance industry has the least jobs in the Finance and Insurance sector. The model predicts that this relationship will continue throughout the period 2003 to 2007, although the expected average annual growth rate of jobs in Credit & Finance 1.98%, is nearly three times the growth rate of jobs in Insurance 0.77%. Notably, the model predicts that the number of Banking jobs in the Corridor will decline, on average, 0.91% per year though 2007. However, we anticipate the average annual growth rate of overall employment in the Finance and Insurance sector will be approximately 0.54%. Table 4.1, Panel B reports employment by major industry group and the Finance and Insurance sector as a percentage of total employment in the Corridor. We expect the percentage of industry employment to total employment to drop between 2003 and 2007 for the Banking and for the Insurance industries. For the Credit & Finance industry, we expect a small increase in the percentage, indicating the Credit & Finance employment will be growing at a very slightly higher rate as total employment in the Corridor. Overall, we anticipate the percentage of the Finance and Insurance sector’s employment to total employment will decrease from 4.81% in 2003 to 4.62% in 2007. Table 4.1, Panel C reports estimates of employment in the three major industry groups of the Finance and Insurance sector for the Rest of Florida from 2003 to 2007 as well as the average annual rate of growth of jobs over the time span. We also sum the estimates of the three major industry groups to report totals for the Finance and Insurance sector of the Rest of Florida. While in the Corridor, the Insurance industry provides the most jobs, in the Rest of Florida the Banking industry has the most jobs among the industries of the Finance and Insurance sector. The model predicts that Banking jobs in the Rest of Florida will decline at an average annual rate of 0.78% through the year 2007. Furthermore, like the Corridor, the Credit & Finance industry has the least number of jobs among the industries of the Finance and Insurance sector in the Rest of Florida. Overall, we anticipate the Finance and Insurance sector’s employment to grow at an average annual rate of 0.68% between 2003 and 2007.

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21 Finance & Insurance Employment (000s) A vg. Annual M a j or I n d us t ry G roup 2003 2004 2005 2006 2007 G row th R a t e 03 07 Banking57.56356.33756.27255.83255.493-0.91% Credit & Finance43.61944.46145.22946.15247.1751.98% I nsurance 74 624 74 796 75 899 76 427 76 938 0 77% Total Finance & Insurance175.806175.594177.400178.411179.6060.54% Finance & Insurance Employment (% of Total Employment) M a j or I n d us t ry G roup 2003 2004 2005 2006 2007 Banking1.58%1.53%1.50%1.46%1.43% Credit & Finance1.19%1.20%1.20%1.21%1.21% I nsurance 2 04% 2 03% 2 02% 2 00% 1 98% Total Finance & Insurance4.81%4.76%4.72%4.67%4.62% Finance & Insurance Employment (000s) A vg. Annual M a j or I n d us t ry G roup 2003 2004 2005 2006 2007 G row th R a t e 03 07 Banking106.665104.479104.536103.872103.370-0.78% Credit & Finance74.53376.46978.37880.56282.9482.71% I nsurance 95 370 95 360 96 650 97 238 97 861 0 65% Total Finance & Insurance276.568276.308279.564281.672284.1790.68% Finance & Insurance Employment (% of Total Employment) M a j or I n d us t ry G roup 2003 2004 2005 2006 2007 Banking1.92%1.86%1.82%1.78%1.75% Credit & Finance1.34%1.36%1.37%1.38%1.40% I nsurance 1 71% 1 70% 1 69% 1 67% 1 65% Total Finance & Insurance4.97%4.92%4.88%4.84%4.80% Table 4.1 Finance & Insurance REMI Baseline Principal Component Counties Florida High Tech Corridor Rest of Florida Panel C Panel D EMPLOYMENT Panel A Panel B

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22 Table 4.1, Panel D reports employment by major industry group and the Finance and Insurance sector as a percentage of total employment in the Rest of Florida. Like in the High Tech Corridor, we expect the percentage of industry employment to total employment to drop between 2003 and 2007 for the Banking and for the Insurance industries. For the Credit & Finance industry, we expect a small increase in the percentage, indicating the Credit & Finance employment will be growing at a slightly higher rate as total employment in the Rest of Florida. Overall, we anticipate the percentage of the Finance and Insurance sector’s employment to total employment will decrease from 4.97% in 2003 to 4.80% in 2007. Table 4.2 (next page) summarizes output. Table 4.2, Panel A reports estimates of output in the three major industry groups of the Finance and Insurance sector for the High Tech Corridor from 2003 to 2007 as well as the average annual rate of growth of output over the time span. We also sum the estimates of the three industry groups to report totals for the Finance and Insurance sector of the High Tech Corridor. The Banking industry has the highest output among the three major industry groups of the Finance and Insurance sector. In 2003, output of the Insurance industry exceeds output of the Credit & Finance industry by almost $774 million. However, by 2007 we expect that output of the Credit & Finance industry will surpass that of the Insurance industry. We estimate that between 2003 and 2007 the average annual growth rate of output in Credit & Finance will be 5.04%, but only 2.14% in the Insurance industry. We expect the average annual growth rate of output in the Finance and Insurance sector will be approximately 3.24%. Table 4.2, Panel B reports output by major industry group and the Finance and Insurance sector as a percentage of total output in the Corridor. We expect the percentage of industry output to total output (measured in constant 2002 dollars) to drop between 2003 and 2007 for the Banking industry and for the Insurance industry. For the Credit & Finance industry we expect the percentage to rise a little, indicating Credit & Finance output will be growing at a slightly higher rate than total output in Florida’s High Tech Corridor. Overall, we anticipate the percentage of the Finance and Insurance sector output to slightly decrease from 7.65% in 2003 to 7.46% in 2007. Table 4.2, Panel C reports estimates of output in the three major industry groups of the Finance and Insurance sector for the Rest of Florida from 2003 to 2007 as well as the average annual rate of growth of output over the time span. We also sum the estimates of the three major industry groups to report totals for the Finance and Insurance sector of the Rest of Florida. Like the Corridor, the Banking industry in the Rest of Florida has the highest output among the three major industry groups of the Finance and insurance sector. In the Rest of Florida, we expect output in the Banking industry to grow at an average annual rate of 2.90%, but output in the Credit & Finance industry will grow at a faster rate of 5.57%. Consequently, the gap between the Banking industry’s higher level of output and the Credit & Finance industry’s output will

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23 Finance & Insurance Output (Bil. 02 $ ) A vg. Annual M a j or I n d us t ry G roup 2003 2004 2005 2006 2007 G row th R a t e 03 07 Banking $ 10.336 $ 10.649 $ 10.926 $ 11.210 $ 11.5002.70% Credit & Finance $ 8.205 $ 8.650 $ 9.080 $ 9.525 $ 9.9895.04% I nsurance $8 979 $9 232 $9 419 $9 600 $9 772 2 14% Total Finance & Insurance $ 27.520 $ 28.531 $ 29.425 $ 30.335 $ 31.2613.24% Finance & Insurance Output (% of Total Output) M a j or I n d us t ry G roup 2003 2004 2005 2006 2007 Banking2.87%2.84%2.81%2.77%2.75% Credit & Finance2.28%2.30%2.33%2.36%2.38% I nsurance 2 50% 2 46% 2 42% 2 38% 2 33% Total Finance & Insurance7.65%7.60%7.55%7.51%7.46% Finance & Insurance Output (Bil. 02 $ ) A vg. Annual M a j or I n d us t ry G roup 2003 2004 2005 2006 2007 G row th R a t e 03 07 Banking $ 19.201 $ 19.804 $ 20.372 $ 20.948 $ 21.5302.90% Credit & Finance $ 13.904 $ 14.725 $ 15.538 $ 16.385 $ 17.2705.57% I nsurance $11 474 $11 762 $11 985 $12 203 $12 413 1 99% Total Finance & Insurance $ 44.578 $ 46.291 $ 47.896 $ 49.537 $ 51.2143.53% Finance & Insurance Output (% of Total Output) M a j or I n d us t ry G roup 2003 2004 2005 2006 2007 Banking3.71%3.68%3.65%3.62%3.59% Credit & Finance2.68%2.73%2.78%2.83%2.88% I nsurance 2 22% 2 18% 2 15% 2 11% 2 07% Total Finance & Insurance8.61%8.59%8.58%8.56%8.54% Table 4.2 Finance & Insurance REMI Baseline Principal Component Counties Florida High Tech Corridor Rest of Florida Panel C Panel D OUTPUT Panel A Panel B

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24 shrink from $5.3 billion in 2003 to $4.3 billion in 2007. Overall, we anticipate the average annual rate of the Rest of Florida’s Finance and Insurance sector will be approximately 3.53%. Table 4.2, Panel D reports output by major industry group and the Finance and Insurance sector as a percentage of total output in the Rest of Florida. Like in the High Tech Corridor, we expect the percentage of industry output to total output to drop between 2003 and 2007 for the Banking and for the Insurance industries. For the Credit & Finance industry, we expect a small increase in the percentage, indicating the Credit & Finance output will be growing at a slightly higher rate than total output in the Rest of Florida. Overall, we anticipate the percentage of the Finance and Insurance sector’s output to total output will decrease from 8.61% in 2003 to 8.54% in 2007. Table 4.3 (next page) summarizes wage and salary disbursements. Table 4.3, Panel A reports estimates of wage and salary disbursements in the three major groups of the Finance and Insurance sector for the High Tech Corridor from 2003 to 2007 as well as average annual rate of growth of wage and salary disbursements over the time span. We also sum estimates of the three major groups to report totals for the Finance and Insurance sector of the High Tech Corridor. The Insurance industry has the highest amount of wage and salary disbursements among the three major industry groups of the Finance and Insurance sector – in 2003, estimated at $2.636 billion. The Credit & Finance industry has the lowest amount of wage and salary disbursements, which we estimate at $1.403 billion in 2003. We expect that the Credit & Finance industry’s disbursements will grow more rapidly, 5.66% on average per annum, than the other industries of the sector. We also expect the average annual growth rate of wage and salary disbursements, measured in nominal dollars, in the Finance and Insurance sector to be approximately 4.05%. Table 4.3, Panel B reports wage and salary disbursements by major industry group and the Finance and Insurance sector as a percentage of total wage and salary disbursements in the Corridor. We expect the percentage of industry wage and salary disbursements to total wage and salary disbursements, measured in nominal dollars, to drop between 2003 and 2007 for the Banking and Insurance industries. For the Credit & Finance industry we expect the percentage to increase very slightly, indicating Credit & Finance wages and salaries will be growing at about the same rate as total wage and salary disbursements in Florida’s High tech Corridor. Overall, we anticipate the percentage of the Finance and Insurance sector’s wage and salary disbursements to decrease from 6.25% in 2003 to 5.99% in 2007. Table 4.3, Panel C reports estimates of wage and salary disbursements in the three major industry groups of the Finance and Insurance sector for the Rest of Florida from 2003 to 2007 as well as the average annual rate of growth of the disbursements over the time span. We also sum the estimates of the three major industry groups to report totals for the Finance and Insurance sector of the Rest of Florida.

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25 Finance & Insurance Wage & Salary Disbursements (Bil. nominal) A vg. Annual M a j or I n d us t ry G roup 2003 2004 2005 2006 2007 G row th R a t e 03 07 Banking $ 2.323 $ 2.365 $ 2.440 $ 2.507 $ 2.5802.60% Credit & Finance $ 1.403 $ 1.489 $ 1.563 $ 1.654 $ 1.7505.66% I nsurance $2 636 $2 746 $2 876 $3 002 $3 128 4 37% Total Finance & Insurance $ 6.362 $ 6.600 $ 6.879 $ 7.163 $ 7.4584.05% Finance & Insurance Wage & Salary Disbursements (% of Total Wage & Salary Disbursements) M a j or I n d us t ry G roup 2003 2004 2005 2006 2007 Banking2.28%2.21%2.17%2.12%2.07% Credit & Finance1.38%1.39%1.39%1.40%1.40% I nsurance 2 59% 2 57% 2 56% 2 54% 2 51% Total Finance & Insurance6.25%6.18%6.12%6.05%5.99% Finance & Insurance Wage & Salary Disbursements (Bil. nominal) A vg. Annual M a j or I n d us t ry G roup 2003 2004 2005 2006 2007 G row th R a t e 03 07 Banking $ 5.091 $ 5.189 $ 5.363 $ 5.524 $ 5.6942.84% Credit & Finance $ 2.780 $ 2.969 $ 3.143 $ 3.349 $ 3.5716.46% I nsurance $3 663 $3 812 $3 991 $4 161 $4 338 4 32% Total Finance & Insurance $ 11.534 $ 11.970 $ 12.497 $ 13.034 $ 13.6034.21% Finance & Insurance Wage & Salary Disbursements (% of Total Wage & Salary Disbursements) M a j or I n d us t ry G roup 2003 2004 2005 2006 2007 Banking3.29%3.20%3.14%3.08%3.01% Credit & Finance1.80%1.83%1.84%1.87%1.89% I nsurance 2 37% 2 35% 2 34% 2 32% 2 30% Total Finance & Insurance7.45%7.39%7.33%7.26%7.20% Table 4.3 Finance & Insurance REMI Baseline Principal Component Counties Florida High Tech Corridor Rest of Florida Panel C Panel D WAGE & SALARY DISBURSEMENTS Panel A Panel B

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26 Unlike the Corridor in which the Insurance industry had the highest amount of wage and salary disbursements of the Finance and Insurance sector, in the Rest of Florida the Banking industry enjoys the highest amount of disbursements. In 2003, we estimate that the Banking industry’s disbursements will be $5.091 billion. However, like the Corridor, we expect the Credit & Finance industry to enjoy the highest average annual growth rate for wage and salary disbursements. While the forecast rate for the Credit & Finance industry’s disbursements is 5.66% per annum, the forecast rate for the Rest of Florida is 6.46% per annum. Table 4.3, Panel D reports wage and salary disbursements by major industry group and the Finance and Insurance sector as a percentage of total disbursements in the Rest of Florida. Like in the High Tech Corridor, we expect the percentage of industry disbursements to total disbursements to fall between 2003 and 2007 for the Banking industry and for the Insurance industry. For the Credit & Finance industry, we expect a 0.09% increase over the four year span, indicating the Credit & Finance industry will be growing at a slightly faster pace than total disbursements in the Rest of Florida. Overall, we anticipate the percentage of the Finance and Insurance sector’s wage and salary disbursements to total disbursements will decrease from 7.45% in 2003 to 7.20% in 2007. Finance and Insurance is a growth sector of the Florida High Tech Corridor’s economy as well as the economy of the Rest of Florida. We base this conclusion on a study of the REMI model baseline for the principal component counties of the Corridor and the Rest of Florida from 2003 to 2007. During this period, we expect employment, output, and wage and salary disbursements to increase. (See Table 4.1, 4.2 and 4.3.) Our forecast average annual growth rates in the Corridor are: employment = 0.54%, output = 3.24%, disbursements = 4.05%. Output rising faster than employment is indicative of productivity gains within the industries of the Finance and Insurance sector. Consistent with the indication of productivity gains, we note that our forecast for employment in the Corridor’s Banking industry is an average 0.91% decline, while the Banking industry’s output and wage and salary disbursements continue to rise. Our forecast average annual growth rates in the Rest of Florida are: employment = 0.68%, output = 3.53%, disbursements = 4.21%. Like in the Corridor, our forecast for employment change in the Rest of Florida is negative. We anticipate an average annual decline of employment in Banking of 0.78% from 2003 to 2007.

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27 Section 3: Total Economic Contributions of the Finance and Insurance Industries We assess the economic contribution of the Finance and Insurance sector using the traditional counter-factual approach. With this approach, we use the REMI model to virtually remove the baseline output produced by the major industry groups of Finance and Insurance in the principal component counties of the Florida High Tech Corridor. (See Tables 1.2, 2.2 and 3.2 for the major industry groups’ outputs.) The model tabulates the direct effects of the removal of the primary economic activities as well as the ripple, or secondary, effects throughout the regional economy. We provide three measurements of the economic contributions of the Finance and Insurance sector: 1) employment, 2) output, and 3) wage and salary disbursements. Section 3, Part A: Major Industry Group – Banking Table 5.1 (next page) reports the Banking industry’s contribution measured by employment. Panel A shows total employment for each location before the hypothetical removal of the Banking industry’s output from the economy of the Florida High Tech Corridor. Panel B shows total employment for each location after the hypothetical removal of the Banking industry’s output from the economy of the Florida High Tech Corridor. Panels C and D show the difference in employment before removal and after removal of the Banking industry’s output. In Panel C we express the difference in thousands of jobs that would be lost. In Panel D we express the difference as the percentage of jobs lost from the total employment base after the hypothetical removal of the Banking industry’s output from the Corridor’s economy. As expressed in Panels C or D of Table 5.1, the difference in employment measures the economic contribution of the Banking industry in the High Tech Corridor. In 2003, the Banking industry contributes nearly 193,000 jobs, or about 5.28% of total employment, to the High Tech Corridor’s economy. The largest contribution is in Hillsborough County at almost 48,000 jobs or 6.28% of total employment. In Sarasota County, the Banking industry contributes just fewer than 14,500 jobs, but these jobs represent 7.51% the highest percentage in the Corridor of total employment. Note that because we removed all banking production from the principal component counties of the High Tech Corridor, the model also predicts that the Rest of Florida will provide some of the needed banking activities for the Corridor. So the Rest of Florida would gain over 104,000 jobs performing and supporting banking functions.

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28 Employment before Removal of Banking (000s) Total L ocat i on 2003 2004 200 5 2006 200 7 Brevard255.668260.556267.308272.744278.331 Hernando46.38346.59347.39948.01748.702 Hillsbor ough762.371770.018785.187798.495812.520 Lake90.30991.16893.11894.71896.443 Manatee167.033170.040174.358178.103182.038 Orange776.479786.440802.295816.804831.912 Osceola68.28169.18370.65672.05073.493 Pasco101.610101.247102.395103.176104.105 Pinellas575.697578.450586.329592.047598.520 Polk244.566246.895251.982256.143260.442 Sarasota191.927193.565197.191199.746202.571 Seminole186.923187.900190.865193.775196.916 V o l us i a 186 609 188 191 191 9 5 1 194 9 5 4 198 161 Corrido r 3,653.8563,690.2463,761.0343,820.7723,884.154 Rest of Florida5,569.3285,619.0305,730.1805,824.0795,922.151 Employment after Removal of Banking (000s) Total L ocat i on 2003 2004 200 5 2006 200 7 Brevard246.843251.840258.658264.253269.999 Hernando43.78844.04944.86745.51646.227 Hillsbor ough714.507723.866740.071754.661769.871 Lake87.27388.21590.19291.83093.581 Manatee161.093164.256168.655172.520176.558 Orange735.857747.260764.059779.659795.750 Osceola66.60267.56869.07570.50471.975 Pasco96.87496.66797.88498.75399.756 Pinellas538.087542.627551.771558.926566.691 Polk236.396238.957244.146248.460252.894 Sarasota177.508179.594183.489186.395189.522 Seminole176.955178.415181.708184.962188.414 V o l us i a 1 7 9 0 7 6 180 .777 184 .55 9 18 7. 63 7 190 904 Corrido r 3,460.8593,504.0913,579.1343,644.0763,712.142 Rest of Florida5,674.0105,721.2635,831.3415,923.5116,020.044 Difference in Employment after Removal of Banking (000s) Total L ocat i on 2003 2004 200 5 2006 200 7 Brevard-8.825-8.716-8.650-8.491-8.332 Hernando-2.595-2.544-2.532-2.501-2.475 Hillsbor ough-47.864-46.152-45.116-43.834-42.649 Lake-3.036-2.953-2.926-2.888-2.862 Manatee-5.940-5.784-5.703-5.583-5.480 Orange-40.622-39.180-38.236-37.145-36.162 Osceola-1.679-1.615-1.581-1.546-1.518 Pasco-4.736-4.580-4.511-4.423-4.349 Pinellas-37.610-35.823-34.558-33.121-31.829 Polk-8.170-7.938-7.836-7.683-7.548 Sarasota-14.419-13.971-13.702-13.351-13.049 Seminole-9.968-9.485-9.157-8.813-8.502 V o l us i a-7.5 33 -7. 414 -7. 392 -7. 31 7-7. 2 57 Corrido r -192.997-186.155-181.900-176.696-172.012 Rest of Florida104.682102.233101.16199.43297.893 Difference in Employment after Removal of Banking (% change) Total L ocat i on 2003 2004 200 5 2006 200 7 Brevard-3.45%-3.35%-3.24%-3.11%-2.99% Hernando-5.59%-5.46%-5.34%-5.21%-5.08% Hillsbor ough-6.28%-5.99%-5.75%-5.49%-5.25% Lake-3.36%-3.24%-3.14%-3.05%-2.97% Manatee-3.56%-3.40%-3.27%-3.13%-3.01% Orange-5.23%-4.98%-4.77%-4.55%-4.35% Osceola-2.46%-2.33%-2.24%-2.15%-2.07% Pasco-4.66%-4.52%-4.41%-4.29%-4.18% Pinellas-6.53%-6.19%-5.89%-5.59%-5.32% Polk-3.34%-3.22%-3.11%-3.00%-2.90% Sarasota-7.51%-7.22%-6.95%-6.68%-6.44% Seminole-5.33%-5.05%-4.80%-4.55%-4.32% V o l us i a4 04% 3 94% 3 8 5 % 3 .75 % 3 66% Corrido r -5.28%-5.04%-4.84%-4.62%-4.43% Rest of Florida1.88%1.82%1.77%1.71%1.65% Table 5.1 Finance & Insurance REMI Counterfactual Removal of Output Major Industry Group: Banking EMPLOYMENT Panel A Panel B Panel C Panel D

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29 Table 5.2 (next page) reports the Banking industry’s contribution measured by output. Panel A shows total output for each location before the hypothetical removal of the Banking industry’s output from the economy of the Florida High Tech Corridor. Panel B shows total output for each location after the hypothetical removal of the Banking industry’s output from the economy of the Florida High Tech Corridor. Panels C and D show the difference in output before removal and after removal of the Banking industry’s output. In Panel C we express the difference in output that would be lost. In Panel D we express the difference as the percentage of output lost from the total output after the hypothetical removal of the Banking industry’s output from the Corridor’s economy. As expressed in Panels C or D of Table 5.2, the difference in output measures the economic contribution of the Banking industry in the High Tech Corridor. In 2003, the Banking industry contributes over $25 billion, or about 6.98% of total output, to the High Tech Corridor’s economy. The largest contribution is in Hillsborough County at over $6 billion, or 8.14% of the County’s total economic activity. In Sarasota County, the Banking industry contributes just over $1.8 billion in output, but this output represents 10.05% the highest percentage in the Corridor – of total output. Again, because we removed all banking production from the principal component counties of the High Tech Corridor, the model predicts that the Rest of Florida will provide some of the needed banking activities for the Corridor. Thus, the Rest of Florida gains over $13 billion in output for banking and supporting industries.

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30 Output before Removal of Banking (Bil 02$) Total L ocat i on 2003 2004 200 5 2006 200 7 Brevard$26.867$28.392$29.634$30.883$32.155 Hernando$3.929$4.053$4.182$4.310$4.444 Hillsbor ough$74.939$77.886$80.571$83.415$86.318 Lake$8.864$9.199$9.536$9.876$10.230 Manatee$16.214$17.034$17.746$18.474$19.220 Orange$73.662$77.090$80.121$83.362$86.675 Osceola$5.919$6.171$6.409$6.658$6.913 Pasco$8.518$8.742$8.990$9.238$9.499 Pinellas$61.970$64.662$66.927$69.235$71.606 Polk$23.838$24.848$25.804$26.770$27.749 Sarasota$18.342$19.052$19.725$20.375$21.049 Seminole$19.765$20.604$21.369$22.207$23.072 V o l us i a $16 963 $1 7.7 3 5 $18 469 $19 213 $19 9 7 9 Corrido r $359.789$375.469$389.485$404.015$418.909 Rest of Florida$517.846$538.591$558.428$578.818$599.624 Output after Removal of Banking (Bil 02$) Total L ocat i on 2003 2004 200 5 2006 200 7 Brevard$25.690$27.195$28.427$29.673$30.942 Hernando$3.581$3.701$3.826$3.949$4.077 Hillsbor ough$68.837$71.795$74.488$77.353$80.275 Lake$8.448$8.779$9.109$9.443$9.790 Manatee$15.405$16.213$16.916$17.638$18.379 Orange$68.420$71.823$74.843$78.077$81.386 Osceola$5.708$5.962$6.198$6.448$6.700 Pasco$7.930$8.153$8.397$8.641$8.897 Pinellas$56.920$59.646$61.958$64.332$66.767 Polk$22.762$23.764$24.708$25.667$26.638 Sarasota$16.499$17.198$17.862$18.508$19.177 Seminole$18.502$19.349$20.121$20.967$21.840 V o l us i a $1 5. 9 7 4 $16 .7 2 7 $1 7. 442 $18 1 7 0 $18 918 Corrido r $334.676$350.305$364.294$378.866$393.789 Rest of Florida$530.948$551.777$571.705$592.150$613.022 Difference in Output after Removal of Banking (Bil 02$) Total L ocat i on 2003 2004 200 5 2006 200 7 Brevard-$1.177-$1.197-$1.207-$1.209-$1.213 Hernando-$0.347-$0.352-$0.357-$0.361-$0.367 Hillsbor ough-$6.102-$6.091-$6.083-$6.063-$6.042 Lake-$0.416-$0.421-$0.427-$0.433-$0.440 Manatee-$0.809-$0.821-$0.830-$0.836-$0.841 Orange-$5.242-$5.267-$5.279-$5.284-$5.289 Osceola-$0.210-$0.209-$0.211-$0.210-$0.213 Pasco-$0.588-$0.589-$0.593-$0.597-$0.601 Pinellas-$5.050-$5.016-$4.969-$4.902-$4.838 Polk-$1.076-$1.085-$1.096-$1.103-$1.111 Sarasota-$1.844-$1.854-$1.863-$1.867-$1.872 Seminole-$1.263-$1.255-$1.248-$1.240-$1.232 V o l us i a$0 989 $1 008 $1 028 $1 044 $1 061 Corrido r -$25.113-$25.164-$25.191-$25.149-$25.121 Rest of Florida$13.103$13.186$13.276$13.332$13.398 Difference in Output after Removal of Banking (% change) Total L ocat i on 2003 2004 200 5 2006 200 7 Brevard-4.38%-4.22%-4.07%-3.92%-3.77% Hernando-8.84%-8.69%-8.53%-8.38%-8.26% Hillsbor ough-8.14%-7.82%-7.55%-7.27%-7.00% Lake-4.69%-4.57%-4.48%-4.39%-4.30% Manatee-4.99%-4.82%-4.68%-4.52%-4.38% Orange-7.12%-6.83%-6.59%-6.34%-6.10% Osceola-3.55%-3.39%-3.30%-3.16%-3.08% Pasco-6.90%-6.73%-6.60%-6.46%-6.33% Pinellas-8.15%-7.76%-7.42%-7.08%-6.76% Polk-4.51%-4.37%-4.25%-4.12%-4.00% Sarasota-10.05%-9.73%-9.45%-9.16%-8.89% Seminole-6.39%-6.09%-5.84%-5.58%-5.34% V o l us i a-5. 83% -5. 68% -5.5 6% -5. 43% -5. 31% Corrido r -6.98%-6.70%-6.47%-6.22%-6.00% Rest of Florida2.53%2.45%2.38%2.30%2.23% Table 5.2 Finance & Insurance REMI Counterfactual Removal of Output Major Industry Group: Banking OUTPUT Panel A Panel B Panel C Panel D

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31 Table 5.3 (next page) reports the Banking industry’s contribution measured by wage and salary disbursements. Panel A shows total wage and salary disbursements for each location before the hypothetical removal of the Banking industry’s output from the economy of the Florida High Tech Corridor. Panel B shows total wage and salary disbursements for each location after the hypothetical removal of the Banking industry’s output from the economy of the Florida High tech Corridor. Panels C and D show the difference in wage and salary disbursements before removal and after removal of the Banking industry’s output. In Panel C we express the difference in wage and salary disbursements, which would be lost from the economy. In Panel D we express the difference as the percentage of wage and salary disbursements lost from total wage and salary disbursements after the hypothetical removal of the Banking Industry’s output from the Corridor’s economy. As expressed in Panels C or D of Table 5.3, the difference in wage and salary disbursements measures the economic contribution of the Banking industry in the High Tech Corridor. In 2003, the Banking industry contributes just under $6.5 billion, or about 6.36% of total wages and salary, to the High Tech Corridor’s economy. The largest contribution is in Hillsborough County at over $1.7 billion, or over 7.6% of the County’s total wage bill. The Banking industry also contributes to over 8.8% the highest percentage among the principal component counties of then Corridor of Sarasota County’s total wage bill. Because we virtually removed all banking production from the principal component counties of the High Tech Corridor, the model predicts that the Rest of Florida will provide some of the needed banking activities in the Corridor. Thus, the Rest of Florida gains about $3.7 billion of wage and salary disbursements.

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32 Wage & Salary Disbursement before Removal of Banking (Bil nominal) Total L ocat i on 2003 2004 200 5 2006 200 7 Brevard$7.268$7.711$8.185$8.661$9.156 Hernando$0.904$0.940$0.986$1.033$1.083 Hillsbor ough$23.437$24.580$25.895$27.292$28.762 Lake$1.893$1.977$2.080$2.186$2.298 Manatee$3.775$3.987$4.220$4.462$4.718 Orange$23.931$25.179$26.534$27.982$29.503 Osceola$1.560$1.637$1.725$1.820$1.920 Pasco$2.152$2.219$2.312$2.407$2.508 Pinellas$16.484$17.221$18.043$18.881$19.767 Polk$6.189$6.495$6.853$7.220$7.603 Sarasota$4.745$4.962$5.218$5.471$5.740 Seminole$5.105$5.324$5.583$5.866$6.168 V o l us i a $4 386 $4 .5 94 $4 844 $ 5. 101 $ 5. 3 7 3 Corrido r $101.829$106.826$112.478$118.382$124.599 Rest of Florida$154.825$161.964$170.525$179.511$188.938 Wage & Salary Disbursement after Removal of Banking (Bil nominal) Total L ocat i on 2003 2004 200 5 2006 200 7 Brevard$7.011$7.432$7.888$8.353$8.840 Hernando$0.848$0.880$0.923$0.967$1.014 Hillsbor ough$21.644$22.703$23.949$25.303$26.744 Lake$1.813$1.892$1.991$2.094$2.203 Manatee$3.620$3.823$4.048$4.285$4.537 Orange$22.379$23.552$24.848$26.256$27.747 Osceola$1.504$1.578$1.662$1.756$1.854 Pasco$2.040$2.100$2.188$2.279$2.377 Pinellas$15.244$15.934$16.724$17.550$18.434 Polk$5.953$6.244$6.589$6.947$7.323 Sarasota$4.326$4.524$4.763$5.006$5.266 Seminole$4.795$5.003$5.254$5.535$5.834 V o l us i a $4 1 77 $4 3 7 0 $4 60 7 $4 8 5 4 $ 5. 116 Corrido r $95.354$100.035$105.434$111.185$117.289 Rest of Florida$158.526$165.881$174.629$183.748$193.282 Difference in Disbursements after Removal of Banking (Bil nominal) Total L ocat i on 2003 2004 200 5 2006 200 7 Brevard-$0.257-$0.279-$0.297-$0.308-$0.316 Hernando-$0.056-$0.060-$0.063-$0.066-$0.069 Hillsbor ough-$1.793-$1.877-$1.946-$1.989-$2.018 Lake-$0.080-$0.085-$0.089-$0.092-$0.095 Manatee-$0.155-$0.164-$0.172-$0.177-$0.181 Orange-$1.552-$1.627-$1.686-$1.726-$1.756 Osceola-$0.056-$0.059-$0.063-$0.064-$0.066 Pasco-$0.112-$0.119-$0.124-$0.128-$0.131 Pinellas-$1.240-$1.287-$1.319-$1.331-$1.333 Polk-$0.236-$0.251-$0.264-$0.273-$0.280 Sarasota-$0.419-$0.438-$0.455-$0.465-$0.474 Seminole-$0.310-$0.321-$0.329-$0.331-$0.334 V o l us i a$0 209 $0 224 $0 23 7$0 24 7$0 2 57 Corrido r -$6.475-$6.791-$7.044-$7.197-$7.310 Rest of Florida$3.701$3.917$4.104$4.237$4.344 Difference in Disbursements after Removal of Banking (% change) Total L ocat i on 2003 2004 200 5 2006 200 7 Brevard-3.54%-3.62%-3.63%-3.56%-3.45% Hernando-6.19%-6.38%-6.39%-6.39%-6.37% Hillsbor ough-7.65%-7.64%-7.51%-7.29%-7.02% Lake-4.23%-4.30%-4.28%-4.21%-4.13% Manatee-4.11%-4.11%-4.08%-3.97%-3.84% Orange-6.49%-6.46%-6.35%-6.17%-5.95% Osceola-3.59%-3.60%-3.65%-3.52%-3.44% Pasco-5.20%-5.36%-5.36%-5.32%-5.22% Pinellas-7.52%-7.47%-7.31%-7.05%-6.74% Polk-3.81%-3.86%-3.85%-3.78%-3.68% Sarasota-8.83%-8.83%-8.72%-8.50%-8.26% Seminole-6.07%-6.03%-5.89%-5.64%-5.42% V o l us i a4 .77 % 4 88% 4 89% 4 84% 4 .7 8% Corrido r -6.36%-6.36%-6.26%-6.08%-5.87% Rest of Florida2.39%2.42%2.41%2.36%2.30% Table 5.3 Finance & Insurance REMI Counterfactual Removal of Output Major Industry Group: Banking WAGE & SALARY DISBURSEMENTS Panel A Panel B Panel C Panel D

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33 Tables 5.4, 5.5, and 5.6 (next page) report the Banking industry’s economic contribution, which we measure by employment, output, and wages in each table, respectively, for the High Tech Corridor and the Rest of Florida. The findings that we previously reported in Tables 5.1 through 5.3 were motivated by the virtual removal of the Banking industry’s baseline output from the principal component counties of the High Tech Corridor. However, we allowed the model to produce banking activities in the Rest of Florida. For the findings we report here, we virtually remove the Banking industry’s output from the Rest of Florida as well as from the Corridor. Panels A of Tables 5.4 through 5.6 show employment, output, and wage and salary disbursements, respectively, before removal of the Banking industry’s output from the economy. Panels B of Tables 5.4 through 5.6 show employment, output, and wage and salary disbursements, respectively, after removal of the Banking industry’s output from the economy. In Panels C of Tables 5.4 through 5.6, we express the difference before and after removal measured by employment, output, and wage and salary disbursements, respectively. The differences in employment, output, and wage and salary disbursements measure the economic contribution of the Banking industry to the state of Florida. In Panels C of Tables 5.4 through 5.6 we report that in 2003 the Banking industry contributes approximately 624,000 jobs, over $79 billion of output, and wage and salary disbursements to workers totaling over $21 billion.

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34 Employment before Removal of Banking (000s) Total L ocat i on 2003 2004 200 5 2006 200 7 Corrido r 3653.8563690.2463761.0343820.7723884.154 R est o f Fl or id a55 69 328 5 619 030 57 30 180 5 824 0 7 9 5 922 1 5 1 Florida9223.1849309.2769491.2149644.8519806.305 Employment after Removal of Banking (000s) Total L ocat i on 2003 2004 200 5 2006 200 7 Corrido r 3415.2863459.4533534.5973600.0453668.608 R est o f Fl or id a5 183 .5 49 5 238 810 5 349 68 75 44 5. 689 55 4 5. 420 Florida8598.8358698.2638884.2849045.7349214.028 Difference in Employment after Removal of Banking (000s) Total L ocat i on 2003 2004 200 5 2006 200 7 Corrido r -238.570-230.793-226.437-220.727-215.546 R est o f Fl or id a38 5.77 9 380 220 380 493 3 7 8 390 3 7 6 .7 31 Florida-624.349-611.013-606.930-599.117-592.277 Output before Removal of Banking (Bil 02$) Total L ocat i on 2003 2004 200 5 2006 200 7 Corrido r $359.789$375.469$389.485$404.015$418.909 R est o f Fl or id a $ 5 1 7. 846 $ 5 38 .5 91 $ 55 8 428 $ 57 8 818 $ 5 99 624 Florida$877.635$914.060$947.913$982.833$1,018.533 Output after Removal of Banking (Bil 02$) Total L ocat i on 2003 2004 200 5 2006 200 7 Corrido r $287.929$301.532$313.682$326.384$339.405 R est o f Fl or id a $410 618 $428 123 $444 .7 32 $461 940 $4 7 9 .5 09 Florida$698.547$729.655$758.414$788.324$818.914 Difference in Output after Removal of Banking (Bil 02$) Total L ocat i on 2003 2004 200 5 2006 200 7 Corrido r -$71.860-$73.937-$75.803-$77.631-$79.504 R est o f Fl or id a$10 7. 228 $110 468 $113 696 $116 8 7 8 $120 11 5 Florida-$179.088-$184.405-$189.499-$194.509-$199.619 Wage & Salary Disbursement before Removal of Banking (Bil nominal) Total L ocat i on 2003 2004 200 5 2006 200 7 Corrido r $101.829$106.826$112.478$118.382$124.599 R est o f Fl or id a $1 5 4 82 5 $161 964 $1 7 0 .5 2 5 $1 7 9 .5 11 $188 938 Florida$256.654$268.790$283.003$297.893$313.537 Wage & Salary Disbursement after Removal of Banking (Bil nominal) Total L ocat i on 2003 2004 200 5 2006 200 7 Corrido r $93.972$98.560$103.874$109.562$115.623 R est o f Fl or id a $141 .5 01 $14 7.7 69 $1 55.5 12 $163 8 5 3 $1 7 2 .7 21 Florida$235.473$246.329$259.386$273.415$288.344 Difference in Disbursements after Removal of Banking (Bil nominal) Total L ocat i on 2003 2004 200 5 2006 200 7 Corrido r -$7.857-$8.266-$8.604-$8.820-$8.976 R est o f Fl or id a$13 324 $14 19 5$1 5. 013 $1 5. 6 5 8 $16 21 7 Florida-$21.181-$22.461-$23.617-$24.478-$25.193 Panel A Panel B Panel C Table 5.4 Finance & Insurance REMI Counterfactual Removal of Output Major Industry Group: Banking EMPLOYMENT Table 5.5 Finance & Insurance REMI Counterfactual Removal of Output Major Industry Group: Banking OUTPUT Panel A Panel B Panel C Table 5.6 Finance & Insurance REMI Counterfactual Removal of Output Major Industry Group: Banking WAGE & SALARY DISBURSEMENTS Panel A Panel B Panel C

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35 Section 3, Part B: Major Industry Group – Credit & Finance Table 6.1 (next page) reports the Credit & Finance industry’s contribution measured by employment. Panel A shows total employment for each location before the hypothetical removal of the Credit & Finance industry’s output from the economy of the Florida High Tech Corridor. Panel B shows total employment for each location after the hypothetical removal of the Credit & Finance industry’s output from the economy of the Florida High Tech Corridor. Panels C and D show the difference in employment before removal and after removal of the Credit & Finance industry’s output. In Panel C we express the difference in thousands of jobs that would be lost. In Panel D we express the difference as the percentage of jobs lost from the total employment base after the hypothetical removal of the Credit & Finance industry’s output from the Corridor’s economy. As expressed in Panels C or D of Table 6.1, the difference in employment measures the economic contribution of the Credit & Finance industry in the High Tech Corridor. In 2003, the Credit & Finance industry contributes nearly 119,500 jobs, or about 3.27% of total employment, to the High Tech Corridor’s economy. The largest contribution is in Pinellas County at nearly 42,000 jobs or 7.29% of total employment. Because we removed all credit and finance production from the principal component counties of the High Tech Corridor, the model also predicts that the Rest of Florida will provide some of the needed credit and finance activities for the Corridor. So the Rest of Florida would gain over 15,000 jobs performing and supporting credit and finance functions.

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36 Employment before Removal of Credit & Finance (000s) Total L oca ti on 2003 2004 2005 2006 2007 Brevard255.668260.556267.308272.744278.331 Hernando46.38346.59347.39948.01748.702 Hillsbor ough762.371770.018785.187798.495812.520 Lake90.30991.16893.11894.71896.443 Manatee167.033170.040174.358178.103182.038 Orange776.479786.440802.295816.804831.912 Osceola68.28169.18370.65672.05073.493 Pasco101.610101.247102.395103.176104.105 Pinellas575.697578.450586.329592.047598.520 Polk244.566246.895251.982256.143260.442 Sarasota191.927193.565197.191199.746202.571 Seminole186.923187.900190.865193.775196.916 V o l us i a 186 609 188 191 191 951 194 954 198 161 Corrido r 3,653.8563,690.2463,761.0343,820.7723,884.154 Rest of Florida5,569.3285,619.0305,730.1805,824.0795,922.151 Employment after Removal of Credit & Finance (000s) Total L oca ti on 2003 2004 2005 2006 2007 Brevard251.959256.817263.555268.986274.564 Hernando45.82146.02946.83347.44848.129 Hillsbor ough727.794735.446750.659764.062778.185 Lake89.70290.57792.53494.13595.859 Manatee164.875167.920172.261176.024179.969 Orange760.596770.885787.008801.740817.024 Osceola67.76168.67670.15771.55673.002 Pasco99.46599.106100.250101.024101.943 Pinellas533.704536.510544.525550.420557.046 Polk241.722244.073249.163253.326257.623 Sarasota185.367187.134190.863193.496196.368 Seminole181.730182.868185.958188.959192.167 V o l us i a 183 942 185 507 189 242 192 215 195 384 Corrido r 3,534.4383,571.5483,643.0083,703.3913,767.263 Rest of Florida5,584.8595,635.1115,746.5695,840.7715,939.158 Difference in Employment after Removal of Credit & Finance (000s) Total L oca ti on 2003 2004 2005 2006 2007 Brevard-3.709-3.739-3.753-3.758-3.767 Hernando-0.562-0.564-0.566-0.569-0.573 Hillsbor ough-34.577-34.572-34.528-34.433-34.335 Lake-0.607-0.591-0.584-0.583-0.584 Manatee-2.158-2.120-2.097-2.079-2.069 Orange-15.883-15.555-15.287-15.064-14.888 Osceola-0.520-0.507-0.499-0.494-0.491 Pasco-2.145-2.141-2.145-2.152-2.162 Pinellas-41.993-41.940-41.804-41.627-41.474 Polk-2.844-2.822-2.819-2.817-2.819 Sarasota-6.560-6.431-6.328-6.250-6.203 Seminole-5.193-5.032-4.907-4.816-4.749 V o l us i a2 667 2 684 2 709 2 739 2 777 Corrido r -119.418-118.698-118.026-117.381-116.891 Rest of Florida15.53116.08116.38916.69217.007 Difference in Employment after Removal of Credit & Finance (% change) Total L oca ti on 2003 2004 2005 2006 2007 Brevard-1.45%-1.44%-1.40%-1.38%-1.35% Hernando-1.21%-1.21%-1.19%-1.18%-1.18% Hillsbor ough-4.54%-4.49%-4.40%-4.31%-4.23% Lake-0.67%-0.65%-0.63%-0.62%-0.61% Manatee-1.29%-1.25%-1.20%-1.17%-1.14% Orange-2.05%-1.98%-1.91%-1.84%-1.79% Osceola-0.76%-0.73%-0.71%-0.69%-0.67% Pasco-2.11%-2.11%-2.09%-2.09%-2.08% Pinellas-7.29%-7.25%-7.13%-7.03%-6.93% Polk-1.16%-1.14%-1.12%-1.10%-1.08% Sarasota-3.42%-3.32%-3.21%-3.13%-3.06% Seminole-2.78%-2.68%-2.57%-2.49%-2.41% V o l us i a1 43% 1 43% 1 41% 1 40% 1 40% Corrido r -3.27%-3.22%-3.14%-3.07%-3.01% Rest of Florida0.28%0.29%0.29%0.29%0.29% Panel A Panel B Panel C Panel D Table 6.1 Finance & Insurance REMI Counterfactual Removal of Output Major Industry Group: Credit & Finance EMPLOYMENT

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37 Table 6.2 (next page) reports the Credit & Finance industry’s contribution measured by output. Panel A shows total output for each location before the hypothetical removal of the Credit & Finance industry’s output from the economy of the Florida High Tech Corridor. Panel B shows total output for each location after the hypothetical removal of the Credit & Finance industry’s output from the economy of the Florida High Tech Corridor. Panels C and D show the difference in output before removal and after removal of the Credit & Finance industry’s output. In Panel C we express the difference in output that would be lost. In Panel D we express the difference as the percentage of output lost from the total output after the hypothetical removal of the Credit & Finance industry’s output from the Corridor’s economy. As expressed in Panels C or D of Table 6.2, the difference in output measures the economic contribution of the Credit & Finance industry in the High Tech Corridor. In 2003, the Credit & Finance industry contributes over $16 billion, or about 4.58% of total output, to the High Tech Corridor’s economy. The largest contribution is in Pinellas County at nearly $6 billion, or 9.64% of the County’s total economic activity. Again, because we removed all credit and finance production from the principal component counties of the High Tech Corridor, the model predicts that the Rest of Florida will provide some of the needed credit and finance activities for the Corridor. Thus, the Rest of Florida gains slightly over $2 billion in output for credit and finance and supporting industries.

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38 Output before Removal of Credit & Finance (Bil 02 $ ) Total L oca ti on 2003 2004 2005 2006 2007 Brevard $ 26.867 $ 28.392 $ 29.634 $ 30.883 $ 32.155 Hernando $ 3.929 $ 4.053 $ 4.182 $ 4.310 $ 4.444 Hillsbor ough $ 74.939 $ 77.886 $ 80.571 $ 83.415 $ 86.318 Lake $ 8.864 $ 9.199 $ 9.536 $ 9.876 $ 10.230 Manatee $ 16.214 $ 17.034 $ 17.746 $ 18.474 $ 19.220 Orange $ 73.662 $ 77.090 $ 80.121 $ 83.362 $ 86.675 Osceola $ 5.919 $ 6.171 $ 6.409 $ 6.658 $ 6.913 Pasco $ 8.518 $ 8.742 $ 8.990 $ 9.238 $ 9.499 Pinellas $ 61.970 $ 64.662 $ 66.927 $ 69.235 $ 71.606 Polk $ 23.838 $ 24.848 $ 25.804 $ 26.770 $ 27.749 Sarasota $ 18.342 $ 19.052 $ 19.725 $ 20.375 $ 21.049 Seminole $ 19.765 $ 20.604 $ 21.369 $ 22.207 $ 23.072 V o l us i a $16 963 $17 735 $18 469 $19 213 $19 979 Corrido r $ 359.789 $ 375.469 $ 389.485 $ 404.015 $ 418.909 Rest of Florida $ 517.846 $ 538.591 $ 558.428 $ 578.818 $ 599.624 Output after Removal of Credit & Finance (Bil 02 $ ) Total L oca ti on 2003 2004 2005 2006 2007 Brevard $ 26.333 $ 27.838 $ 29.064 $ 30.296 $ 31.551 Hernando $ 3.866 $ 3.988 $ 4.116 $ 4.242 $ 4.373 Hillsbor ough $ 70.220 $ 73.008 $ 75.560 $ 78.275 $ 81.053 Lake $ 8.783 $ 9.117 $ 9.452 $ 9.790 $ 10.141 Manatee $ 15.904 $ 16.715 $ 17.419 $ 18.138 $ 18.876 Orange $ 71.530 $ 74.919 $ 77.921 $ 81.125 $ 84.401 Osceola $ 5.859 $ 6.112 $ 6.348 $ 6.598 $ 6.853 Pasco $ 8.274 $ 8.492 $ 8.734 $ 8.976 $ 9.231 Pinellas $ 55.994 $ 58.451 $ 60.534 $ 62.667 $ 64.870 Polk $ 23.455 $ 24.453 $ 25.398 $ 26.353 $ 27.321 Sarasota $ 17.440 $ 18.133 $ 18.790 $ 19.420 $ 20.073 Seminole $ 19.048 $ 19.880 $ 20.639 $ 21.467 $ 22.321 V o l us i a $16 589 $17 347 $18 065 $18 793 $19 541 Corrido r $ 343.296 $ 358.452 $ 372.040 $ 386.139 $ 400.605 Rest of Florida $ 519.965 $ 540.841 $ 560.785 $ 581.282 $ 602.197 Difference in Output after Removal of Credit & Finance (Bil 02 $ ) Total L oca ti on 2003 2004 2005 2006 2007 Brevard$ 0.534$ 0.554$ 0.570$ 0.586$ 0.604 Hernando$ 0.063$ 0.065$ 0.066$ 0.069$ 0.071 Hillsbor ough$ 4.718$ 4.878$ 5.011$ 5.140$ 5.265 Lake$ 0.081$ 0.082$ 0.085$ 0.086$ 0.089 Manatee$ 0.310$ 0.319$ 0.327$ 0.336$ 0.344 Orange$ 2.132$ 2.171$ 2.200$ 2.237$ 2.275 Osceola$ 0.059$ 0.059$ 0.061$ 0.061$ 0.061 Pasco$ 0.243$ 0.250$ 0.256$ 0.262$ 0.267 Pinellas$ 5.976$ 6.210$ 6.393$ 6.568$ 6.736 Polk$ 0.383$ 0.395$ 0.406$ 0.417$ 0.429 Sarasota$ 0.902$ 0.919$ 0.935$ 0.954$ 0.976 Seminole$ 0.718$ 0.725$ 0.730$ 0.740$ 0.751 V o l us i a$0 374 $0 389 $0 405 $0 421 $0 438 Corrido r $ 16.493$ 17.018$ 17.445$ 17.876$ 18.305 Rest of Florida $ 2.119 $ 2.251 $ 2.357 $ 2.464 $ 2.573 Difference in Output after Removal of Credit & Finance (% change) Total L oca ti on 2003 2004 2005 2006 2007 Brevard-1.99%-1.95%-1.92%-1.90%-1.88% Hernando-1.60%-1.61%-1.59%-1.59%-1.59% Hillsbor ough-6.30%-6.26%-6.22%-6.16%-6.10% Lake-0.92%-0.89%-0.89%-0.87%-0.87% Manatee-1.91%-1.87%-1.84%-1.82%-1.79% Orange-2.89%-2.82%-2.75%-2.68%-2.62% Osceola-1.00%-0.96%-0.95%-0.91%-0.88% Pasco-2.86%-2.86%-2.85%-2.83%-2.82% Pinellas-9.64%-9.60%-9.55%-9.49%-9.41% Polk-1.61%-1.59%-1.57%-1.56%-1.54% Sarasota-4.92%-4.82%-4.74%-4.68%-4.64% Seminole-3.63%-3.52%-3.42%-3.33%-3.25% V o l us i a2 20% 2 19% 2 19% 2 19% 2 19% Corrido r -4.58%-4.53%-4.48%-4.42%-4.37% Rest of Florida0.41%0.42%0.42%0.43%0.43% Table 6.2 Finance & Insurance REMI Counterfactual Removal of Output Major Industry Group: Credit & Finance OUTPUT Panel A Panel B Panel C Panel D

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39 Table 6.3 (next page) reports the Credit & Finance industry’s contribution measured by wage and salary disbursements. Panel A shows total wage and salary disbursements for each location before the hypothetical removal of the Credit & Finance industry’s output from the economy of the Florida High Tech Corridor. Panel B shows total wage and salary disbursements for each location after the hypothetical removal of the Credit & Finance industry’s output from the economy of the Florida High tech Corridor. Panels C and D show the difference in wage and salary disbursements before removal and after removal of the Credit & Finance industry’s output. In Panel C we express the difference in wage and salary disbursements, which would be lost from the economy. In Panel D we express the difference as the percentage of wage and salary disbursements lost from total wage and salary disbursements after the hypothetical removal of the Credit & Finance Industry’s output from the Corridor’s economy. As expressed in Panels C or D of Table 6.3, the difference in wage and salary disbursements measures the economic contribution of the Credit & Finance industry in the High Tech Corridor. In 2003, the Credit & Finance industry contributes over $3.7 billion, or about 3.72% of total wages and salaries, to the High Tech Corridor’s economy. The largest contribution is in Pinellas County at over $1.3 billion, or about 8.0% of the County’s total wage bill. Because we virtually removed all credit and finance production from the principal component counties of the High Tech Corridor, the model predicts that the Rest of Florida will provide some of the needed credit and finance activities in the Corridor. Thus, the Rest of Florida gains about $522 million of wage and salary disbursements.

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40 Wage & Salary Disbursement before Removal of Credit & Finance (Bil nominal) Total L oca ti on 2003 2004 2005 2006 2007 Brevard $ 7.268 $ 7.711 $ 8.185 $ 8.661 $ 9.156 Hernando $ 0.904 $ 0.940 $ 0.986 $ 1.033 $ 1.083 Hillsbor ough $ 23.437 $ 24.580 $ 25.895 $ 27.292 $ 28.762 Lake $ 1.893 $ 1.977 $ 2.080 $ 2.186 $ 2.298 Manatee $ 3.775 $ 3.987 $ 4.220 $ 4.462 $ 4.718 Orange $ 23.931 $ 25.179 $ 26.534 $ 27.982 $ 29.503 Osceola $ 1.560 $ 1.637 $ 1.725 $ 1.820 $ 1.920 Pasco $ 2.152 $ 2.219 $ 2.312 $ 2.407 $ 2.508 Pinellas $ 16.484 $ 17.221 $ 18.043 $ 18.881 $ 19.767 Polk $ 6.189 $ 6.495 $ 6.853 $ 7.220 $ 7.603 Sarasota $ 4.745 $ 4.962 $ 5.218 $ 5.471 $ 5.740 Seminole $ 5.105 $ 5.324 $ 5.583 $ 5.866 $ 6.168 V o l us i a $4 386 $4 594 $4 844 $5 101 $5 373 Corrido r $ 101.829 $ 106.826 $ 112.478 $ 118.382 $ 124.599 Rest of Florida $ 154.825 $ 161.964 $ 170.525 $ 179.511 $ 188.938 Wage & Salary Disbursement after Removal of Credit & Finance (Bil nominal) Total L oca ti on 2003 2004 2005 2006 2007 Brevard $ 7.160 $ 7.591 $ 8.056 $ 8.524 $ 9.012 Hernando $ 0.892 $ 0.927 $ 0.972 $ 1.018 $ 1.067 Hillsbor ough $ 22.304 $ 23.339 $ 24.572 $ 25.898 $ 27.308 Lake $ 1.878 $ 1.960 $ 2.062 $ 2.167 $ 2.279 Manatee $ 3.720 $ 3.928 $ 4.157 $ 4.397 $ 4.650 Orange $ 23.346 $ 24.554 $ 25.880 $ 27.303 $ 28.801 Osceola $ 1.546 $ 1.622 $ 1.708 $ 1.802 $ 1.902 Pasco $ 2.104 $ 2.165 $ 2.255 $ 2.346 $ 2.445 Pinellas $ 15.162 $ 15.782 $ 16.519 $ 17.282 $ 18.102 Polk $ 6.111 $ 6.410 $ 6.762 $ 7.124 $ 7.503 Sarasota $ 4.541 $ 4.746 $ 4.993 $ 5.238 $ 5.499 Seminole $ 4.952 $ 5.162 $ 5.415 $ 5.693 $ 5.989 V o l us i a $4 321 $4 522 $4 766 $5 017 $5 284 Corrido r $ 98.037 $ 102.708 $ 108.117 $ 113.809 $ 119.841 Rest of Florida $ 155.347 $ 162.551 $ 171.161 $ 180.194 $ 189.666 Difference in Disbursements after Removal of Credit & Finance (Bil nominal) Total L oca ti on 2003 2004 2005 2006 2007 Brevard$ 0.108$ 0.120$ 0.129$ 0.137$ 0.144 Hernando$ 0.012$ 0.013$ 0.014$ 0.015$ 0.016 Hillsbor ough$ 1.133$ 1.241$ 1.323$ 1.394$ 1.454 Lake$ 0.015$ 0.017$ 0.018$ 0.019$ 0.019 Manatee$ 0.055$ 0.059$ 0.063$ 0.065$ 0.068 Orange$ 0.585$ 0.625$ 0.654$ 0.679$ 0.702 Osceola$ 0.014$ 0.015$ 0.017$ 0.018$ 0.018 Pasco$ 0.048$ 0.054$ 0.057$ 0.061$ 0.063 Pinellas$ 1.322$ 1.439$ 1.524$ 1.599$ 1.665 Polk$ 0.078$ 0.085$ 0.091$ 0.096$ 0.100 Sarasota$ 0.204$ 0.216$ 0.225$ 0.233$ 0.241 Seminole$ 0.153$ 0.162$ 0.168$ 0.173$ 0.179 V o l us i a$0 065 $0 072 $0 078 $0 084 $0 089 Corrido r $ 3.792$ 4.118$ 4.361$ 4.573$ 4.758 Rest of Florida $ 0.522 $ 0.587 $ 0.636 $ 0.683 $ 0.728 Difference in Disbursements after Removal of Credit & Finance (% change) Total L oca ti on 2003 2004 2005 2006 2007 Brevard-1.49%-1.56%-1.58%-1.58%-1.57% Hernando-1.33%-1.38%-1.42%-1.45%-1.48% Hillsbor ough-4.83%-5.05%-5.11%-5.11%-5.06% Lake-0.79%-0.86%-0.87%-0.87%-0.83% Manatee-1.46%-1.48%-1.49%-1.46%-1.44% Orange-2.44%-2.48%-2.46%-2.43%-2.38% Osceola-0.90%-0.92%-0.99%-0.99%-0.94% Pasco-2.23%-2.43%-2.47%-2.53%-2.51% Pinellas-8.02%-8.36%-8.45%-8.47%-8.42% Polk-1.26%-1.31%-1.33%-1.33%-1.32% Sarasota-4.30%-4.35%-4.31%-4.26%-4.20% Seminole-3.00%-3.04%-3.01%-2.95%-2.90% V o l us i a1 48% 1 57% 1 61% 1 65% 1 66% Corrido r -3.72%-3.85%-3.88%-3.86%-3.82% Rest of Florida0.34%0.36%0.37%0.38%0.39% Table 6.3 Finance & Insurance REMI Counterfactual Removal of Output Major Industry Group: Credit & Finance WAGE & SALARY DISBURSEMENTS Panel A Panel B Panel C Panel D

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41 Tables 6.4, 6.5, and 6.6 (next page) report the Credit & Finance industry’s economic contribution, which we measure by employment, output, and wages in each table, respectively, for the High Tech Corridor and the Rest of Florida. The findings that we previously reported in Tables 6.1 through 6.3 were motivated by the virtual removal of the Credit & Finance industry’s baseline output from the principal component counties of the High Tech Corridor. However, we allowed the model to produce credit and finance activities in the Rest of Florida. For the findings we report here, we virtually remove the Credit & Finance industry’s output from the Rest of Florida as well as from the Corridor. Panels A of Tables 6.4 through 6.6 show employment, output, and wage and salary disbursements, respectively, before removal of the Credit & Finance industry’s output from the economy. Panels B of Tables 6.4 through 6.6 show employment, output, and wage and salary disbursements, respectively, after removal of the Credit & Finance industry’s output from the economy. In Panels C of Tables 6.4 through 6.6, we express the difference before and after removal measured by employment, output, and wage and salary disbursements, respectively. The differences in employment, output, and wage and salary disbursements measure the economic contribution of the Credit & Finance industry to the state of Florida. In Panels C of Tables 6.4 through 6.6 we report that in 2003 the Credit & Finance industry contributes approximately 349,000 jobs, over $46 billion of output, and wage and salary disbursements to workers totaling over $11 billion.

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42 Employment before Removal of Credit & Finance (000s) Total L oca ti on 2003 2004 2005 2006 2007 Corrido r 3653.8563690.2463761.0343820.7723884.154 R es t o f Fl or id a 5569 328 5619 030 5730 180 5824 079 5922 151 Florida9223.1849309.2769491.2149644.8519806.305 Employment after Removal of Credit & Finance (000s) Total L oca ti on 2003 2004 2005 2006 2007 Corrido r 3512.9983549.4633620.0823679.7453742.94 R es t o f Fl or id a 5361 258 5406 457 5512 801 5601 779 5694 671 Florida8874.2568955.9209132.8839281.5249437.611 Difference in Employment after Removal of Credit & Finance (000s) Total L oca ti on 2003 2004 2005 2006 2007 Corrido r -140.858-140.783-140.952-141.027-141.214 R es t o f Fl or id a208 070 212 573 217 379 222 300 227 480 Florida-348.928-353.356-358.331-363.327-368.694 Output before Removal of Credit and Finance (Bil 02 $ ) Total L oca ti on 2003 2004 2005 2006 2007 Corrido r $ 359.789 $ 375.469 $ 389.485 $ 404.015 $ 418.909 R es t o f Fl or id a $517 846 $538 591 $558 428 $578 818 $599 624 Florida $ 877.635 $ 914.060 $ 947.913 $ 982.833 $ 1,018.533 Output after Removal of Credit & Finance (Bil 02 $ ) Total L oca ti on 2003 2004 2005 2006 2007 Corrido r $ 340.770 $ 355.751 $ 369.173 $ 383.117 $ 397.433 R es t o f Fl or id a $490 153 $509 530 $528 077 $547 129 $566 562 Florida $ 830.923 $ 865.281 $ 897.250 $ 930.246 $ 963.995 Difference in Output after Removal of Credit & Finance (Bil 02 $ ) Total L oca ti on 2003 2004 2005 2006 2007 Corrido r $ 19.019$ 19.719$ 20.312$ 20.898$ 21.477 R es t o f Fl or id a$27 692 $29 061 $30 351 $31 688 $33 062 Florida$ 46.711$ 48.779$ 50.663$ 52.587$ 54.539 Wage & Salary Disbursement before Removal of Credit & Finance (Bil nominal) Total L oca ti on 2003 2004 2005 2006 2007 Corrido r $ 101.829 $ 106.826 $ 112.478 $ 118.382 $ 124.599 R es t o f Fl or id a $154 825 $161 964 $170 525 $179 511 $188 938 Florida $ 256.654 $ 268.790 $ 283.003 $ 297.893 $ 313.537 Wage & Salary Disbursement after Removal of Credit & Finance (Bil nominal) Total L oca ti on 2003 2004 2005 2006 2007 Corrido r $ 97.392 $ 101.986 $ 107.325 $ 112.955 $ 118.927 R es t o f Fl or id a $148 021 $154 410 $162 330 $170 699 $179 532 Florida $ 245.413 $ 256.396 $ 269.655 $ 283.654 $ 298.459 Difference in Disbursements after Removal of Credit & Finance (Bil nominal) Total L oca ti on 2003 2004 2005 2006 2007 Corrido r $ 4.437$ 4.840$ 5.153$ 5.427$ 5.672 R es t o f Fl or id a$6 804 $7 554 $8 195 $8 812 $9 406 Florida$ 11.241$ 12.394$ 13.348$ 14.239$ 15.078 Table 6.5 Finance & Insurance REMI Counterfactual Removal of Output Finance & Insurance REMI Counterfactual Removal of Output Major Industry Group: Credit & Finance EMPLOYMENT Panel A Panel C Panel C Table 6.6 Finance & Insurance REMI Counterfactual Removal of Output Major Industry Group: Credit & Finance Table 6.4 WAGE & SALARY DISBURSEMENTS Panel A Panel B Major Industry Group: Credit & Finance OUTPUT Panel A Panel B Panel B Panel C

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43 Section 3, Part C: Major Industry Group Insurance Table 7.1 (next page) reports the Insurance industry’s contribution measured by employment. Panel A shows total employment for each location before the hypothetical removal of the Insurance industry’s output from the economy of the Florida High Tech Corridor. Panel B shows total employment for each location after the hypothetical removal of the Insurance industry’s output from the economy of the Florida High Tech Corridor. Panels C and D show the difference in employment before removal and after removal of the Insurance industry’s output. In Panel C we express the difference in thousands of jobs that would be lost. In Panel D we express the difference as the percentage of jobs lost from the total employment base after the hypothetical removal of the Insurance industry’s output from the Corridor’s economy. As expressed in Panels C or D of Table 7.1, the difference in employment measures the economic contribution of the Insurance industry in the High Tech Corridor. In 2003, the Insurance industry contributes nearly 179,000 jobs, or about 4.89% of total employment, to the High Tech Corridor’s economy. The largest contribution is in Hillsborough County at just over 61,000 jobs or 8.03% of total employment. Because we removed all insurance industry production from the principal component counties of the High Tech Corridor, the model also predicts that the Rest of Florida will provide some of the needed insurance activities for the Corridor. So the Rest of Florida would gain over 24,000 jobs performing and supporting insurance industry functions.

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44 Employment before Removal of Insurance (000s) Total L oca ti on 2003 2004 2005 2006 2007 Brevard255.668260.556267.308272.744278.331 Hernando46.38346.59347.39948.01748.702 Hillsbor ough762.371770.018785.187798.495812.520 Lake90.30991.16893.11894.71896.443 Manatee167.033170.040174.358178.103182.038 Orange776.479786.440802.295816.804831.912 Osceola68.28169.18370.65672.05073.493 Pasco101.610101.247102.395103.176104.105 Pinellas575.697578.450586.329592.047598.520 Polk244.566246.895251.982256.143260.442 Sarasota191.927193.565197.191199.746202.571 Seminole186.923187.900190.865193.775196.916 V o l us i a 186 609 188 191 191 951 194 954 198 161 Corrido r 3,653.8563,690.2463,761.0343,820.7723,884.154 Rest of Florida5,569.3285,619.0305,730.1805,824.0795,922.151 Employment after Removal of Insurance (000s) Total L oca ti on 2003 2004 2005 2006 2007 Brevard248.516253.473260.255265.798271.502 Hernando44.28744.49445.28145.89846.585 Hillsbor ough701.135709.871725.478739.704754.640 Lake89.08189.97491.93293.54395.276 Manatee162.910165.971170.290174.071178.041 Orange744.233755.064771.354786.483802.160 Osceola67.32868.26169.74871.15972.617 Pasco96.45396.09597.19997.97798.913 Pinellas534.328538.267546.857553.594561.039 Polk247.780250.248255.422259.623263.946 Sarasota180.731182.568186.271188.972191.933 Seminole176.298177.659180.836183.994187.359 V o l us i a 182 007 183 613 187 345 190 359 193 579 Corrido r 3,475.0873,515.5583,588.2683,651.1753,717.590 Rest of Florida5,593.5995,643.4895,754.7925,848.6095,946.588 Difference in Employment after Removal of Insurance (000s) Total L oca ti on 2003 2004 2005 2006 2007 Brevard-7.152-7.083-7.053-6.946-6.829 Hernando-2.096-2.099-2.118-2.119-2.117 Hillsbor ough-61.236-60.147-59.709-58.791-57.880 Lake-1.228-1.194-1.186-1.175-1.167 Manatee-4.123-4.069-4.068-4.032-3.997 Orange-32.246-31.376-30.941-30.321-29.752 Osceola-0.953-0.922-0.908-0.891-0.876 Pasco-5.157-5.152-5.196-5.199-5.192 Pinellas-41.369-40.183-39.472-38.453-37.481 Polk3.2143.3533.4403.4803.504 Sarasota-11.196-10.997-10.920-10.774-10.638 Seminole-10.625-10.241-10.029-9.781-9.557 V o l us i a4 602 4 578 4 606 4 595 4 582 Corrido r -178.769-174.688-172.766-169.597-166.564 Rest of Florida24.27124.45924.61224.53024.437 Difference in Employment after Removal of Insurance (% change) Total L oca ti on 2003 2004 2005 2006 2007 Brevard-2.80%-2.72%-2.64%-2.55%-2.45% Hernando-4.52%-4.50%-4.47%-4.41%-4.35% Hillsbor ough-8.03%-7.81%-7.60%-7.36%-7.12% Lake-1.36%-1.31%-1.27%-1.24%-1.21% Manatee-2.47%-2.39%-2.33%-2.26%-2.20% Orange-4.15%-3.99%-3.86%-3.71%-3.58% Osceola-1.40%-1.33%-1.29%-1.24%-1.19% Pasco-5.08%-5.09%-5.07%-5.04%-4.99% Pinellas-7.19%-6.95%-6.73%-6.49%-6.26% Polk1.31%1.36%1.37%1.36%1.35% Sarasota-5.83%-5.68%-5.54%-5.39%-5.25% Seminole-5.68%-5.45%-5.25%-5.05%-4.85% V o l us i a2 47% 2 43% 2 40% 2 36% 2 31% Corrido r -4.89%-4.73%-4.59%-4.44%-4.29% Rest of Florida0.44%0.44%0.43%0.42%0.41% Panel A Panel B Panel C Panel D Table 7.1 Finance & Insurance REMI Counterfactual Removal of Output Major Industry Group: Insurance EMPLOYMENT

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45 Table 7.2 (next page) reports the Insurance industry’s contribution measured by output. Panel A shows total output for each location before the hypothetical removal of the Insurance industry’s output from the economy of the Florida High Tech Corridor. Panel B shows total output for each location after the hypothetical removal of the Insurance industry’s output from the economy of the Florida High Tech Corridor. Panels C and D show the difference in output before removal and after removal of the Insurance industry’s output. In Panel C we express the difference in output that would be lost. In Panel D we express the difference as the percentage of output lost from the total output after the hypothetical removal of the Insurance industry’s output from the Corridor’s economy. As expressed in Panels C or D of Table 7.2, the difference in output measures the economic contribution of the Insurance industry in the High Tech Corridor. In 2003, the Insurance industry contributes over $20 billion, or about 5.66% of total output, to the High Tech Corridor’s economy. The largest contribution is in Hillsborough County at nearly $7 billion, or 9.15% of the County’s total economic activity. Again, because we removed all insurance industry production from the principal component counties of the High Tech Corridor, the model predicts that the Rest of Florida will provide some of the needed insurance activities for the Corridor. Thus, the Rest of Florida gains slightly over $2.5 billion in output in insurance and supporting industries.

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46 Output before Removal of Insurance (Bil 02 $ ) Total L oca ti on 2003 2004 2005 2006 2007 Brevard $ 26.867 $ 28.392 $ 29.634 $ 30.883 $ 32.155 Hernando $ 3.929 $ 4.053 $ 4.182 $ 4.310 $ 4.444 Hillsbor ough $ 74.939 $ 77.886 $ 80.571 $ 83.415 $ 86.318 Lake $ 8.864 $ 9.199 $ 9.536 $ 9.876 $ 10.230 Manatee $ 16.214 $ 17.034 $ 17.746 $ 18.474 $ 19.220 Orange $ 73.662 $ 77.090 $ 80.121 $ 83.362 $ 86.675 Osceola $ 5.919 $ 6.171 $ 6.409 $ 6.658 $ 6.913 Pasco $ 8.518 $ 8.742 $ 8.990 $ 9.238 $ 9.499 Pinellas $ 61.970 $ 64.662 $ 66.927 $ 69.235 $ 71.606 Polk $ 23.838 $ 24.848 $ 25.804 $ 26.770 $ 27.749 Sarasota $ 18.342 $ 19.052 $ 19.725 $ 20.375 $ 21.049 Seminole $ 19.765 $ 20.604 $ 21.369 $ 22.207 $ 23.072 V o l us i a $16 963 $17 735 $18 469 $19 213 $19 979 Corrido r $ 359.789 $ 375.469 $ 389.485 $ 404.015 $ 418.909 Rest of Florida $ 517.846 $ 538.591 $ 558.428 $ 578.818 $ 599.624 Output after Removal of Insurance (Bil 02 $ ) Total L oca ti on 2003 2004 2005 2006 2007 Brevard $ 26.037 $ 27.553 $ 28.794 $ 30.047 $ 31.326 Hernando $ 3.706 $ 3.825 $ 3.950 $ 4.075 $ 4.206 Hillsbor ough $ 68.083 $ 70.997 $ 73.666 $ 76.524 $ 79.451 Lake $ 8.723 $ 9.059 $ 9.393 $ 9.733 $ 10.086 Manatee $ 15.719 $ 16.529 $ 17.234 $ 17.956 $ 18.699 Orange $ 70.038 $ 73.461 $ 76.489 $ 79.737 $ 83.064 Osceola $ 5.820 $ 6.075 $ 6.312 $ 6.563 $ 6.818 Pasco $ 7.975 $ 8.186 $ 8.422 $ 8.661 $ 8.915 Pinellas $ 57.051 $ 59.734 $ 62.010 $ 64.360 $ 66.781 Polk $ 24.159 $ 25.185 $ 26.146 $ 27.116 $ 28.098 Sarasota $ 17.111 $ 17.811 $ 18.476 $ 19.123 $ 19.794 Seminole $ 18.551 $ 19.395 $ 20.163 $ 21.008 $ 21.880 V o l us i a $16 452 $17 214 $17 939 $18 677 $19 437 Corrido r $ 339.426 $ 355.024 $ 368.994 $ 383.580 $ 398.556 Rest of Florida $ 520.347 $ 541.158 $ 561.030 $ 581.441 $ 602.265 Difference in Output after Removal of Insurance (Bil 02 $ ) Total L oca ti on 2003 2004 2005 2006 2007 Brevard$ 0.830$ 0.839$ 0.840$ 0.836$ 0.829 Hernando$ 0.223$ 0.229$ 0.232$ 0.235$ 0.238 Hillsbor ough$ 6.856$ 6.889$ 6.905$ 6.891$ 6.866 Lake$ 0.142$ 0.141$ 0.143$ 0.143$ 0.144 Manatee$ 0.495$ 0.504$ 0.512$ 0.518$ 0.521 Orange$ 3.623$ 3.629$ 3.633$ 3.625$ 3.611 Osceola$ 0.098$ 0.096$ 0.097$ 0.095$ 0.095 Pasco$ 0.543$ 0.556$ 0.568$ 0.577$ 0.584 Pinellas$ 4.918$ 4.928$ 4.917$ 4.875$ 4.825 Polk $ 0.321 $ 0.336 $ 0.342 $ 0.346 $ 0.349 Sarasota$ 1.231$ 1.241$ 1.249$ 1.252$ 1.255 Seminole$ 1.214$ 1.209$ 1.206$ 1.199$ 1.192 V o l us i a$0 511 $0 521 $0 530 $0 536 $0 542 Corrido r $ 20.363$ 20.445$ 20.491$ 20.435$ 20.353 Rest of Florida $ 2.501 $ 2.567 $ 2.602 $ 2.623 $ 2.640 Difference in Output after Removal of Insurance (% change) Total L oca ti on 2003 2004 2005 2006 2007 Brevard-3.09%-2.96%-2.83%-2.71%-2.58% Hernando-5.67%-5.64%-5.55%-5.46%-5.35% Hillsbor ough-9.15%-8.85%-8.57%-8.26%-7.95% Lake-1.60%-1.53%-1.50%-1.45%-1.41% Manatee-3.05%-2.96%-2.89%-2.80%-2.71% Orange-4.92%-4.71%-4.53%-4.35%-4.17% Osceola-1.66%-1.56%-1.52%-1.42%-1.37% Pasco-6.37%-6.35%-6.32%-6.25%-6.15% Pinellas-7.94%-7.62%-7.35%-7.04%-6.74% Polk1.35%1.35%1.32%1.29%1.26% Sarasota-6.71%-6.52%-6.33%-6.14%-5.96% Seminole-6.14%-5.87%-5.64%-5.40%-5.17% V o l us i a3 01% 2 94% 2 87% 2 79% 2 71% Corrido r -5.66%-5.45%-5.26%-5.06%-4.86% Rest of Florida0.48%0.48%0.47%0.45%0.44% Panel A Panel B Panel C Panel D Table 7.2 Finance & Insurance REMI Counterfactual Removal of Output Major Industry Group: Insurance OUTPUT

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47 Table 7.3 (next page) reports the Insurance industry’s contribution measured by wage and salary disbursements. Panel A shows total wage and salary disbursements for each location before the hypothetical removal of the Insurance industry’s output from the economy of the Florida High Tech Corridor. Panel B shows total wage and salary disbursements for each location after the hypothetical removal of the Insurance industry’s output from the economy of the Florida High Tech Corridor. Panels C and D show the difference in wage and salary disbursements before removal and after removal of the Insurance industry’s output. In Panel C we express the difference in wage and salary disbursements, which would be lost from the economy. In Panel D we express the difference as the percentage of wage and salary disbursements lost from total wage and salary disbursements after the hypothetical removal of the Insurance industry’s output from the Corridor’s economy. As expressed in Panels C or D of Table 7.3, the difference in wage and salary disbursements measures the economic contribution of the Insurance industry in the High Tech Corridor. In 2003, the Insurance industry contributes over $5.9 billion, or about 5.87% of total wages and salaries, to the High Tech Corridor’s economy. The largest contribution is in Hillsborough County at over $2.1 billion, or about 9.4% of the County’s total wage bill. Because we virtually removed all insurance production from the principal component counties of the High Tech Corridor, the model predicts that the Rest of Florida will provide some of the needed insurance activities in the Corridor. Thus, the Rest of Florida gains about $821 million of wage and salary disbursements related to insurance and supporting industries.

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48 Wage & Salary Disbursement before Removal of Insurance (Bil nominal) Total L oca ti on 2003 2004 2005 2006 2007 Brevard $ 7.268 $ 7.711 $ 8.185 $ 8.661 $ 9.156 Hernando $ 0.904 $ 0.940 $ 0.986 $ 1.033 $ 1.083 Hillsbor ough $ 23.437 $ 24.580 $ 25.895 $ 27.292 $ 28.762 Lake $ 1.893 $ 1.977 $ 2.080 $ 2.186 $ 2.298 Manatee $ 3.775 $ 3.987 $ 4.220 $ 4.462 $ 4.718 Orange $ 23.931 $ 25.179 $ 26.534 $ 27.982 $ 29.503 Osceola $ 1.560 $ 1.637 $ 1.725 $ 1.820 $ 1.920 Pasco $ 2.152 $ 2.219 $ 2.312 $ 2.407 $ 2.508 Pinellas $ 16.484 $ 17.221 $ 18.043 $ 18.881 $ 19.767 Polk $ 6.189 $ 6.495 $ 6.853 $ 7.220 $ 7.603 Sarasota $ 4.745 $ 4.962 $ 5.218 $ 5.471 $ 5.740 Seminole $ 5.105 $ 5.324 $ 5.583 $ 5.866 $ 6.168 V o l us i a $4 386 $4 594 $4 844 $5 101 $5 373 Corrido r $ 101.829 $ 106.826 $ 112.478 $ 118.382 $ 124.599 Rest of Florida $ 154.825 $ 161.964 $ 170.525 $ 179.511 $ 188.938 Wage & Salary Disbursement after Removal of Insurance (Bil nominal) Total L oca ti on 2003 2004 2005 2006 2007 Brevard $ 7.062 $ 7.487 $ 7.946 $ 8.412 $ 8.900 Hernando $ 0.867 $ 0.900 $ 0.942 $ 0.986 $ 1.034 Hillsbor ough $ 21.242 $ 22.236 $ 23.426 $ 24.732 $ 26.131 Lake $ 1.864 $ 1.944 $ 2.046 $ 2.150 $ 2.261 Manatee $ 3.673 $ 3.877 $ 4.103 $ 4.340 $ 4.592 Orange $ 22.701 $ 23.877 $ 25.171 $ 26.576 $ 28.063 Osceola $ 1.534 $ 1.608 $ 1.693 $ 1.787 $ 1.886 Pasco $ 2.053 $ 2.108 $ 2.193 $ 2.281 $ 2.376 Pinellas $ 15.138 $ 15.796 $ 16.557 $ 17.357 $ 18.219 Polk $ 6.268 $ 6.584 $ 6.950 $ 7.324 $ 7.714 Sarasota $ 4.426 $ 4.623 $ 4.861 $ 5.102 $ 5.360 Seminole $ 4.762 $ 4.967 $ 5.214 $ 5.489 $ 5.783 V o l us i a $4 263 $4 460 $4 700 $4 949 $5 214 Corrido r $ 95.853 $ 100.467 $ 105.802 $ 111.485 $ 117.533 Rest of Florida $ 155.646 $ 162.860 $ 171.481 $ 180.514 $ 189.981 Difference in Disbursements after Removal of Insurance (Bil nominal) Total L oca ti on 2003 2004 2005 2006 2007 Brevard$ 0.206$ 0.224$ 0.239$ 0.249$ 0.256 Hernando$ 0.037$ 0.040$ 0.044$ 0.047$ 0.049 Hillsbor ough$ 2.195$ 2.344$ 2.469$ 2.560$ 2.631 Lake$ 0.029$ 0.033$ 0.034$ 0.036$ 0.037 Manatee$ 0.102$ 0.110$ 0.117$ 0.122$ 0.126 Orange$ 1.230$ 1.302$ 1.363$ 1.406$ 1.440 Osceola$ 0.026$ 0.029$ 0.032$ 0.033$ 0.034 Pasco$ 0.099$ 0.111$ 0.119$ 0.126$ 0.132 Pinellas$ 1.346$ 1.425$ 1.486$ 1.524$ 1.548 Polk $ 0.079 $ 0.089 $ 0.097 $ 0.104 $ 0.111 Sarasota$ 0.319$ 0.339$ 0.357$ 0.369$ 0.380 Seminole$ 0.343$ 0.357$ 0.369$ 0.377$ 0.385 V o l us i a$0 123 $0 134 $0 144 $0 152 $0 159 Corrido r $ 5.976$ 6.359$ 6.676$ 6.897$ 7.066 Rest of Florida $ 0.821 $ 0.896 $ 0.956 $ 1.003 $ 1.043 Difference in Disbursements after Removal of Insurance (% change) Total L oca ti on 2003 2004 2005 2006 2007 Brevard-2.83%-2.90%-2.92%-2.87%-2.80% Hernando-4.09%-4.26%-4.46%-4.55%-4.52% Hillsbor ough-9.37%-9.54%-9.53%-9.38%-9.15% Lake-1.53%-1.67%-1.63%-1.65%-1.61% Manatee-2.70%-2.76%-2.77%-2.73%-2.67% Orange-5.14%-5.17%-5.14%-5.02%-4.88% Osceola-1.67%-1.77%-1.86%-1.81%-1.77% Pasco-4.60%-5.00%-5.15%-5.23%-5.26% Pinellas-8.17%-8.27%-8.24%-8.07%-7.83% Polk1.28%1.37%1.42%1.44%1.46% Sarasota-6.72%-6.83%-6.84%-6.74%-6.62% Seminole-6.72%-6.71%-6.61%-6.43%-6.24% V o l us i a2 80% 2 92% 2 97% 2 98% 2 96% Corrido r -5.87%-5.95%-5.94%-5.83%-5.67% Rest of Florida0.53%0.55%0.56%0.56%0.55% Panel A Panel B Panel C Panel D Table 7.3 Finance & Insurance REMI Counterfactual Removal of Output Major Industry Group: Insurance WAGE & SALARY DISBURSEMENTS

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49 Tables 7.4, 7.5, and 7.6 (next page) report the Insurance industry’s economic contribution, which we measure by employment, output, and wages in each table, respectively, for the High Tech Corridor and the Rest of Florida. The findings that we previously reported in Tables 7.1 through 7.3 were motivated by the virtual removal of the Insurance industry’s baseline output from the principal component counties of the High Tech Corridor. However, we allowed the model to produce insurance activities in the Rest of Florida. For the findings we report here, we virtually remove the Insurance industry’s output from the Rest of Florida as well as from the Corridor. Panels A of Tables 7.4 through 7.6 show employment, output, and wage and salary disbursements, respectively, before removal of the Insurance industry’s output from the economy. Panels B of Tables 7.4 through 7.6 show employment, output, and wage and salary disbursements, respectively, after removal of the Insurance industry’s output from the economy. In Panels C of Tables 7.4 through 7.6, we express the difference before and after removal measured by employment, output, and wage and salary disbursements, respectively. The differences in employment, output, and wage and salary disbursements measure the economic contribution of the Insurance industry to the state of Florida. In Panels C of Tables 7.4 through 7.6 we report that in 2003 the Insurance industry contributes approximately 462,500 jobs, over $52 billion of output, and wage and salary disbursements to workers totaling over $15 billion.

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50 Employment before Removal of Insurance (000s) Total L oca ti on 2003 2004 2005 2006 2007 Corrido r 3653.8563690.2463761.0343820.7723884.154 R es t o f Fl or id a 5569 328 5619 030 5730 180 5824 079 5922 151 Florida9223.1849309.2769491.2149644.8519806.305 Employment after Removal of Insurance (000s) Total L oca ti on 2003 2004 2005 2006 2007 Corrido r 3459.3423500.1033572.6853635.6233702.089 R es t o f Fl or id a 5301 287 5352 340 5461 599 5555 562 5653 654 Florida8760.6298852.4439034.2849191.1859355.743 Difference in Employment after Removal of Insurance (000s) Total L oca ti on 2003 2004 2005 2006 2007 Corrido r -194.514-190.143-188.349-185.149-182.065 R es t o f Fl or id a268 041 266 690 268 581 268 517 268 497 Florida-462.555-456.833-456.930-453.666-450.562 Output before Removal of Insurance (Bil 02 $ ) Total L oca ti on 2003 2004 2005 2006 2007 Corrido r $ 359.789 $ 375.469 $ 389.485 $ 404.015 $ 418.909 R es t o f Fl or id a $517 846 $538 591 $558 428 $578 818 $599 624 Florida $ 877.635 $ 914.060 $ 947.913 $ 982.833 $ 1,018.533 Output after Removal of Insurance (Bil 02 $ ) Total L oca ti on 2003 2004 2005 2006 2007 Corrido r $ 337.422 $ 352.966 $ 366.864 $ 381.397 $ 396.332 R es t o f Fl or id a $488 182 $508 455 $527 827 $547 868 $568 355 Florida $ 825.604 $ 861.421 $ 894.691 $ 929.265 $ 964.687 Difference in Output after Removal of Insurance (Bil 02 $ ) Total L oca ti on 2003 2004 2005 2006 2007 Corrido r $ 22.367$ 22.503$ 22.621$ 22.618$ 22.577 R es t o f Fl or id a$29 664 $30 136 $30 601 $30 950 $31 269 Florida$ 52.031$ 52.639$ 53.222$ 53.568$ 53.846 Wage & Salary Disbursement before Removal of Insurance (Bil nominal) Total L oca ti on 2003 2004 2005 2006 2007 Corrido r $ 101.829 $ 106.826 $ 112.478 $ 118.382 $ 124.599 R es t o f Fl or id a $154 825 $161 964 $170 525 $179 511 $188 938 Florida $ 256.654 $ 268.790 $ 283.003 $ 297.893 $ 313.537 Wage & Salary Disbursement after Removal of Insurance (Bil nominal) Total L oca ti on 2003 2004 2005 2006 2007 Corrido r $ 95.348 $ 99.926 $ 105.224 $ 110.881 $ 116.908 R es t o f Fl or id a $145 978 $152 406 $160 325 $168 794 $177 771 Florida $ 241.326 $ 252.332 $ 265.549 $ 279.675 $ 294.679 Difference in Disbursements after Removal of Insurance (Bil nominal) Total L oca ti on 2003 2004 2005 2006 2007 Corrido r $ 6.481$ 6.900$ 7.254$ 7.501$ 7.691 R es t o f Fl or id a$8 847 $9 558 $10 200 $10 717 $11 167 Florida$ 15.328$ 16.458$ 17.454$ 18.218$ 18.858 Panel C Major Industry Group: Insurance WAGE & SALARY DISBURSEMENTS Panel A Panel B Panel B Panel C Table 7.6 Finance & Insurance REMI Counterfactual Removal of Output Finance & Insurance REMI Counterfactual Removal of Output Major Industry Group: Insurance OUTPUT Panel A Panel A Panel B Panel C Table 7.5 Table 7.4 Finance & Insurance REMI Counterfactual Removal of Output Major Industry Group: Insurance EMPLOYMENT

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51 Section 3, Part D: Summary – All Groups of the Finance and Insurance Sector Previously in this section of our report, we individually estimated the economic contributions of each of the major industry groups of the Finance and Insurance sector of the economy. Next, we assess the economic contribution of the entire Finance and Insurance sector by virtually removing the baseline output of each major industry group at the same time, rather than individually. (See Tables 1.2, 2.2, and 3.2 for the major industry groups’ baseline outputs in Banking, Credit & Finance and Insurance respectively.) The model tabulates the direct effects of the removal of the primary economic activities of the three major industry groups as well as the ripple, or secondary, effects throughout the regional economy. The total contribution is the sum of the direct and secondary effects. In this case, the total contribution of the Finance and Insurance sector is not necessarily the sum of the total contributions of the major industry groups when measured individually. This is because the model takes into account the transactions across industries in the economy. Table 8.1 (next page) reports the Finance and Insurance sector’s contribution measured by employment. Panel A shows total employment for each location before the hypothetical removal of the Finance and Insurance sector’s output from the economy of the Florida High Tech Corridor. Panel B shows total employment for each location after the hypothetical removal of the Finance and Insurance sector’s output from the economy of the Florida High Tech Corridor. Panels C and D show the difference in employment before removal and after removal of the Finance and Insurance sector’s output. In Panel C we express the difference in thousands of jobs that would be lost. In Panel D we express the difference as the percentage of jobs lost from the total employment base after the hypothetical removal of the Finance and Insurance sector’s output from the Corridor’s economy. As expressed in Panels C or D of Table 8.1, the difference in employment measures the economic contribution of the Finance and Insurance sector in the High Tech Corridor. In 2003, the Finance and Insurance sector contributes about 457,900 jobs, or 12.53% of total employment, to the High Tech Corridor’s economy. The largest contributions are in Hillsborough County and Pinellas County at 129,500 jobs and 106,600 jobs, respectively. Because we removed all finance and insurance production from the principal component counties of the High Tech Corridor, the model also predicts that the Rest of Florida will provide some of the needed finance and insurance activities for the Corridor. So the Rest of Florida would gain over 130,000 jobs performing and supporting finance and insurance functions.

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52 Employment before Removal of All (000s) Total L oca ti on 2003 2004 2005 2006 2007 Brevard255.668260.556267.308272.744278.331 Hernando46.38346.59347.39948.01748.702 Hillsbor ough762.371770.018785.187798.495812.520 Lake90.30991.16893.11894.71896.443 Manatee167.033170.040174.358178.103182.038 Orange776.479786.440802.295816.804831.912 Osceola68.28169.18370.65672.05073.493 Pasco101.610101.247102.395103.176104.105 Pinellas575.697578.450586.329592.047598.520 Polk244.566246.895251.982256.143260.442 Sarasota191.927193.565197.191199.746202.571 Seminole186.923187.900190.865193.775196.916 V o l us i a 186 609 188 191 191 951 194 954 198 161 Corrido r 3,653.8563,690.2463,761.0343,820.7723,884.154 Rest of Florida5,569.3285,619.0305,730.1805,824.0795,922.151 Employment after Removal of All (000s) Total L oca ti on 2003 2004 2005 2006 2007 Brevard236.909241.787248.520254.123259.898 Hernando41.40341.61742.38943.01043.699 Hillsbor ough632.904641.193656.431670.681685.753 Lake85.61986.55688.51990.14991.891 Manatee155.534158.640162.981166.829170.856 Orange693.926705.318722.076737.872754.197 Osceola65.25266.21167.71269.14170.613 Pasco90.47990.12291.20291.98092.915 Pinellas469.080472.818481.444488.537496.378 Polk227.037229.277234.189238.331242.637 Sarasota162.239164.289168.118171.027174.155 Seminole163.058164.657168.040171.428175.012 V o l us i a 172 564 174 154 177 820 180 822 184 022 Corrido r 3,196.0043,236.6393,309.4413,373.9303,442.026 Rest of Florida5,699.5065,747.4795,858.2645,951.0076,048.137 Difference in Employment after Removal of All (000s) Total L oca ti on 2003 2004 2005 2006 2007 Brevard-18.759-18.769-18.788-18.621-18.433 Hernando-4.980-4.976-5.010-5.007-5.003 Hillsbor ough-129.467-128.825-128.756-127.814-126.767 Lake-4.690-4.612-4.599-4.569-4.552 Manatee-11.499-11.400-11.377-11.274-11.182 Orange-82.553-81.122-80.219-78.932-77.715 Osceola-3.029-2.972-2.944-2.909-2.880 Pasco-11.131-11.125-11.193-11.196-11.190 Pinellas-106.617-105.632-104.885-103.510-102.142 Polk-17.529-17.618-17.793-17.812-17.805 Sarasota-29.688-29.276-29.073-28.719-28.416 Seminole-23.865-23.243-22.825-22.347-21.904 V o l us i a14 045 14 037 14 131 14 132 14 139 Corrido r -457.852-453.607-451.593-446.842-442.128 Rest of Florida130.178128.449128.084126.928125.986 Difference in Employment after Removal of All (% change) Total L oca ti on 2003 2004 2005 2006 2007 Brevard-7.34%-7.20%-7.03%-6.83%-6.62% Hernando-10.74%-10.68%-10.57%-10.43%-10.27% Hillsbor ough-16.98%-16.73%-16.40%-16.01%-15.60% Lake-5.19%-5.06%-4.94%-4.82%-4.72% Manatee-6.88%-6.70%-6.53%-6.33%-6.14% Orange-10.63%-10.32%-10.00%-9.66%-9.34% Osceola-4.44%-4.30%-4.17%-4.04%-3.92% Pasco-10.95%-10.99%-10.93%-10.85%-10.75% Pinellas-18.52%-18.26%-17.89%-17.48%-17.07% Polk-7.17%-7.14%-7.06%-6.95%-6.84% Sarasota-15.47%-15.12%-14.74%-14.38%-14.03% Seminole-12.77%-12.37%-11.96%-11.53%-11.12% V o l us i a7 53% 7 46% 7 36% 7 25% 7 14% Corrido r -12.53%-12.29%-12.01%-11.70%-11.38% Rest of Florida2.34%2.29%2.24%2.18%2.13% Panel A Panel B Panel C Panel D Table 8.1 Finance & Insurance REMI Counterfactual Removal of Output Major Industry Groups: All: Banking, Credit & Finance, Insurance EMPLOYMENT

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53 Table 8.2 (next page) reports the Finance and Insurance sector’s contribution measured by output. Panel A shows total output for each location before the hypothetical removal of the Finance and Insurance sector’s output from the economy of the Florida High Tech Corridor. Panel B shows total output for each location after the hypothetical removal of the Finance and Insurance sector’s output from the economy of the Florida High Tech Corridor. Panels C and D show the difference in output before removal and after removal of the Finance and Insurance sector’s output. In Panel C we express the difference in output that would be lost. In Panel D we express the difference as the percentage of output lost from the total output after the hypothetical removal of the Finance and Insurance sector’s output from the Corridor’s economy. As expressed in Panels C or D of Table 8.2, the difference in output measures the economic contribution of the Finance and Insurance sector in the High Tech Corridor. In 2003, the Finance and Insurance sector contributes over $57 billion, or about 15.85% of total output, to the High Tech Corridor’s economy. The largest contributions are in Hillsborough County at over $15.7 billion, or 21.06% of Hillsborough County’s total economic activity and in Pinellas County at over $13.9 billion, or 22.55% of Pinellas County’s total economic activity. Again, because we removed all finance and insurance production from the principal component counties of the High Tech Corridor, the model predicts that the Rest of Florida will provide some of the needed insurance activities for the Corridor. Thus, the Rest of Florida gains slightly over $15.8 billion in output in finance and insurance and supporting industries.

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54 Output before Removal of All (Bil 02 $ ) Total L oca ti on 2003 2004 2005 2006 2007 Brevard $ 26.867 $ 28.392 $ 29.634 $ 30.883 $ 32.155 Hernando $ 3.929 $ 4.053 $ 4.182 $ 4.310 $ 4.444 Hillsbor ough $ 74.939 $ 77.886 $ 80.571 $ 83.415 $ 86.318 Lake $ 8.864 $ 9.199 $ 9.536 $ 9.876 $ 10.230 Manatee $ 16.214 $ 17.034 $ 17.746 $ 18.474 $ 19.220 Orange $ 73.662 $ 77.090 $ 80.121 $ 83.362 $ 86.675 Osceola $ 5.919 $ 6.171 $ 6.409 $ 6.658 $ 6.913 Pasco $ 8.518 $ 8.742 $ 8.990 $ 9.238 $ 9.499 Pinellas $ 61.970 $ 64.662 $ 66.927 $ 69.235 $ 71.606 Polk $ 23.838 $ 24.848 $ 25.804 $ 26.770 $ 27.749 Sarasota $ 18.342 $ 19.052 $ 19.725 $ 20.375 $ 21.049 Seminole $ 19.765 $ 20.604 $ 21.369 $ 22.207 $ 23.072 V o l us i a $16 963 $17 735 $18 469 $19 213 $19 979 Corrido r $ 359.789 $ 375.469 $ 389.485 $ 404.015 $ 418.909 Rest of Florida $ 517.846 $ 538.591 $ 558.428 $ 578.818 $ 599.624 Output after Removal of All (Bil 02 $ ) Total L oca ti on 2003 2004 2005 2006 2007 Brevard $ 24.455 $ 25.915 $ 27.119 $ 28.343 $ 29.593 Hernando $ 3.326 $ 3.436 $ 3.553 $ 3.669 $ 3.791 Hillsbor ough $ 59.154 $ 61.746 $ 64.167 $ 66.797 $ 69.515 Lake $ 8.248 $ 8.572 $ 8.896 $ 9.225 $ 9.568 Manatee $ 14.702 $ 15.478 $ 16.157 $ 16.859 $ 17.581 Orange $ 63.488 $ 66.740 $ 69.657 $ 72.803 $ 76.036 Osceola $ 5.564 $ 5.815 $ 6.049 $ 6.296 $ 6.547 Pasco $ 7.245 $ 7.437 $ 7.655 $ 7.879 $ 8.116 Pinellas $ 47.995 $ 50.312 $ 52.328 $ 54.451 $ 56.664 Polk $ 21.867 $ 22.820 $ 23.733 $ 24.668 $ 25.623 Sarasota $ 14.693 $ 15.335 $ 15.955 $ 16.560 $ 17.189 Seminole $ 16.822 $ 17.632 $ 18.380 $ 19.203 $ 20.055 V o l us i a $15 192 $15 909 $16 593 $17 294 $18 018 Corrido r $ 302.751 $ 317.145 $ 330.240 $ 344.047 $ 358.296 Rest of Florida $ 533.661 $ 554.633 $ 574.692 $ 595.267 $ 616.273 Difference in Output after Removal of All (Bil 02 $ ) Total L oca ti on 2003 2004 2005 2006 2007 Brevard$ 2.412$ 2.477$ 2.516$ 2.540$ 2.562 Hernando$ 0.602$ 0.617$ 0.630$ 0.641$ 0.653 Hillsbor ough$ 15.784$ 16.141$ 16.405$ 16.619$ 16.803 Lake$ 0.616$ 0.628$ 0.640$ 0.650$ 0.662 Manatee$ 1.512$ 1.556$ 1.589$ 1.615$ 1.639 Orange$ 10.174$ 10.350$ 10.464$ 10.558$ 10.639 Osceola$ 0.354$ 0.357$ 0.360$ 0.362$ 0.366 Pasco$ 1.273$ 1.305$ 1.335$ 1.359$ 1.383 Pinellas$ 13.975$ 14.350$ 14.599$ 14.784$ 14.942 Polk$ 1.971$ 2.029$ 2.071$ 2.102$ 2.126 Sarasota$ 3.650$ 3.717$ 3.771$ 3.814$ 3.860 Seminole$ 2.943$ 2.972$ 2.989$ 3.004$ 3.018 V o l us i a$1 771 $1 827 $1 876 $1 919 $1 961 Corrido r $ 57.038$ 58.325$ 59.245$ 59.968$ 60.613 Rest of Florida $ 15.815 $ 16.043 $ 16.264 $ 16.449 $ 16.648 Difference in Output after Removal of All (% change) Total L oca ti on 2003 2004 2005 2006 2007 Brevard-8.98%-8.72%-8.49%-8.22%-7.97% Hernando-15.33%-15.23%-15.06%-14.88%-14.69% Hillsbor ough-21.06%-20.72%-20.36%-19.92%-19.47% Lake-6.95%-6.82%-6.71%-6.59%-6.47% Manatee-9.33%-9.13%-8.95%-8.74%-8.53% Orange-13.81%-13.43%-13.06%-12.67%-12.27% Osceola-5.99%-5.78%-5.62%-5.44%-5.29% Pasco-14.95%-14.93%-14.85%-14.71%-14.56% Pinellas-22.55%-22.19%-21.81%-21.35%-20.87% Polk-8.27%-8.17%-8.03%-7.85%-7.66% Sarasota-19.90%-19.51%-19.12%-18.72%-18.34% Seminole-14.89%-14.42%-13.99%-13.53%-13.08% V o l us i a10 44% 10 30% 10 16% 9 99% 9 82% Corrido r -15.85%-15.53%-15.21%-14.84%-14.47% Rest of Florida3.05%2.98%2.91%2.84%2.78% Panel A Panel B Panel C Panel D Table 8.2 Finance & Insurance REMI Counterfactual Removal of Output Major Industry Groups: All: Banking, Credit & Finance, Insurance OUTPUT

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55 Table 8.3 (next page) reports the Finance and Insurance sector’s contribution measured by wage and salary disbursements. Panel A shows total wage and salary disbursements for each location before the hypothetical removal of the Finance and Insurance sector’s output from the economy of the Florida High Tech Corridor. Panel B shows total wage and salary disbursements for each location after the hypothetical removal of the Finance and Insurance sector’s output from the economy of the Florida High tech Corridor. Panels C and D show the difference in wage and salary disbursements before removal and after removal of the Finance and Insurance sector’s output. In Panel C we express the difference in wage and salary disbursements, which would be lost from the economy. In Panel D we express the difference as the percentage of wage and salary disbursements lost from total wage and salary disbursements after the hypothetical removal of the Finance and Insurance sector’s output from the Corridor’s economy. As expressed in Panels C or D of Table 8.3, the difference in wage and salary disbursements measures the economic contribution of the Finance and Insurance sector in the High Tech Corridor. In 2003, the Finance and Insurance sector contributes over $14.9 billion, or about 14.70% of total wages and salaries, to the High Tech Corridor’s economy. The largest contribution is in Hillsborough County at over $4.5 billion, which is around 19.61% of the County’s total wage bill. The contribution in Pinellas County is over $3.4 billion, which is the highest percentage, 20.77%, of any principal component county’s wage bill. Because we virtually removed all finance and insurance production from the principal component counties of the High Tech Corridor, the model predicts that the Rest of Florida will provide some of the needed finance and insurance activities in the Corridor. Thus, the Rest of Florida gains about $4.5 billion of wage and salary disbursements related to finance, insurance, and supporting industries.

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56 Wage & Salary Disbursement before Removal of All (Bil nominal) Total L oca ti on 2003 2004 2005 2006 2007 Brevard $ 7.268 $ 7.711 $ 8.185 $ 8.661 $ 9.156 Hernando $ 0.904 $ 0.940 $ 0.986 $ 1.033 $ 1.083 Hillsbor ough $ 23.437 $ 24.580 $ 25.895 $ 27.292 $ 28.762 Lake $ 1.893 $ 1.977 $ 2.080 $ 2.186 $ 2.298 Manatee $ 3.775 $ 3.987 $ 4.220 $ 4.462 $ 4.718 Orange $ 23.931 $ 25.179 $ 26.534 $ 27.982 $ 29.503 Osceola $ 1.560 $ 1.637 $ 1.725 $ 1.820 $ 1.920 Pasco $ 2.152 $ 2.219 $ 2.312 $ 2.407 $ 2.508 Pinellas $ 16.484 $ 17.221 $ 18.043 $ 18.881 $ 19.767 Polk $ 6.189 $ 6.495 $ 6.853 $ 7.220 $ 7.603 Sarasota $ 4.745 $ 4.962 $ 5.218 $ 5.471 $ 5.740 Seminole $ 5.105 $ 5.324 $ 5.583 $ 5.866 $ 6.168 V o l us i a $4 386 $4 594 $4 844 $5 101 $5 373 Corrido r $ 101.829 $ 106.826 $ 112.478 $ 118.382 $ 124.599 Rest of Florida $ 154.825 $ 161.964 $ 170.525 $ 179.511 $ 188.938 Wage & Salary Disbursement after Removal of All (Bil nominal) Total L oca ti on 2003 2004 2005 2006 2007 Brevard $ 6.725 $ 7.114 $ 7.547 $ 7.992 $ 8.463 Hernando $ 0.806 $ 0.833 $ 0.871 $ 0.911 $ 0.955 Hillsbor ough $ 18.841 $ 19.632 $ 20.654 $ 21.818 $ 23.095 Lake $ 1.773 $ 1.847 $ 1.943 $ 2.043 $ 2.150 Manatee $ 3.484 $ 3.672 $ 3.885 $ 4.113 $ 4.358 Orange $ 20.813 $ 21.858 $ 23.052 $ 24.374 $ 25.794 Osceola $ 1.467 $ 1.536 $ 1.617 $ 1.707 $ 1.804 Pasco $ 1.914 $ 1.957 $ 2.031 $ 2.111 $ 2.200 Pinellas $ 13.061 $ 13.547 $ 14.176 $ 14.867 $ 15.634 Polk $ 5.727 $ 5.984 $ 6.301 $ 6.637 $ 6.993 Sarasota $ 3.882 $ 4.046 $ 4.257 $ 4.475 $ 4.713 Seminole $ 4.361 $ 4.541 $ 4.770 $ 5.031 $ 5.314 V o l us i a $4 010 $4 184 $4 405 $4 638 $4 888 Corrido r $ 86.864 $ 90.751 $ 95.509 $ 100.717 $ 106.361 Rest of Florida $ 159.366 $ 166.822 $ 175.658 $ 184.858 $ 194.469 Difference in Disbursements after Removal of All (Bil nominal) Total L oca ti on 2003 2004 2005 2006 2007 Brevard$ 0.543$ 0.597$ 0.638$ 0.669$ 0.693 Hernando$ 0.098$ 0.107$ 0.115$ 0.122$ 0.128 Hillsbor ough$ 4.596$ 4.948$ 5.241$ 5.474$ 5.667 Lake$ 0.120$ 0.130$ 0.137$ 0.143$ 0.148 Manatee$ 0.291$ 0.315$ 0.335$ 0.349$ 0.360 Orange$ 3.118$ 3.321$ 3.482$ 3.608$ 3.709 Osceola$ 0.093$ 0.101$ 0.108$ 0.113$ 0.116 Pasco$ 0.238$ 0.262$ 0.281$ 0.296$ 0.308 Pinellas$ 3.423$ 3.674$ 3.867$ 4.014$ 4.133 Polk$ 0.462$ 0.511$ 0.552$ 0.583$ 0.610 Sarasota$ 0.863$ 0.916$ 0.961$ 0.996$ 1.027 Seminole$ 0.744$ 0.783$ 0.813$ 0.835$ 0.854 V o l us i a$0 376 $0 410 $0 439 $0 463 $0 485 Corrido r $ 14.965$ 16.075$ 16.969$ 17.665$ 18.238 Rest of Florida $ 4.541 $ 4.858 $ 5.133 $ 5.347 $ 5.531 Difference in Disbursements after Removal of All (% change) Total L oca ti on 2003 2004 2005 2006 2007 Brevard-7.47%-7.74%-7.79%-7.72%-7.57% Hernando-10.84%-11.38%-11.66%-11.81%-11.82% Hillsbor ough-19.61%-20.13%-20.24%-20.06%-19.70% Lake-6.34%-6.58%-6.59%-6.54%-6.44% Manatee-7.71%-7.90%-7.94%-7.82%-7.63% Orange-13.03%-13.19%-13.12%-12.89%-12.57% Osceola-5.96%-6.17%-6.26%-6.21%-6.04% Pasco-11.06%-11.81%-12.15%-12.30%-12.28% Pinellas-20.77%-21.33%-21.43%-21.26%-20.91% Polk-7.46%-7.87%-8.05%-8.07%-8.02% Sarasota-18.19%-18.46%-18.42%-18.21%-17.89% Seminole-14.57%-14.71%-14.56%-14.23%-13.85% V o l us i a8 57% 8 92% 9 06% 9 08% 9 03% Corrido r -14.70%-15.05%-15.09%-14.92%-14.64% Rest of Florida2.93%3.00%3.01%2.98%2.93% Panel A Panel B Panel C Panel D Table 8.3 Finance & Insurance REMI Counterfactual Removal of Output Major Industry Groups: All: Banking, Credit & Finance, Insurance WAGE & SALARY DISBURSEMENTS

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57 Tables 8.4, 8.5, and 8.6 (next page) report the Finance and Insurance sector’s economic contribution, which we measure by employment, output, and wages in each table, respectively, for the High Tech Corridor and the Rest of Florida. The findings that we previously reported in Tables 8.1 through 8.3 were motivated by the virtual removal of the Finance and Insurance sector’s baseline output from the principal component counties of the High Tech Corridor. However, we allowed the model to produce finance and insurance activities in the Rest of Florida. For the findings we report here, we virtually remove the Finance and Insurance sector’s output from the Rest of Florida as well as from the Corridor. Panels A of Tables 8.4 through 8.6 show employment, output, and wage and salary disbursements, respectively, before removal of the Finance and Insurance sector’s output from the economy. Panels B of Tables 8.4 through 8.6 show employment, output, and wage and salary disbursements, respectively, after removal of the Finance and Insurance sector’s output from the economy. In Panels C of Tables 8.4 through 8.6, we express the difference before and after removal measured by employment, output, and wage and salary disbursements, respectively. The differences in employment, output, and wage and salary disbursements measure the economic contribution of the Finance and Insurance sector to the state of Florida. In Panels C of Tables 8.4 through 8.6 we report that in 2003 the Finance and Insurance sector contributes approximately 1,288,000 jobs, over $158 billion of output, and wage and salary disbursements to workers totaling over $42.5 billion.

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58 Employment before Removal of All (000s) Total L oca ti on 2003 2004 2005 2006 2007 Corrido r 3653.8563690.2463761.0343820.7723884.154 R es t o f Fl or id a 5569 328 5619 030 5730 180 5824 079 5922 151 Florida9223.1849309.2769491.2149644.8519806.305 Employment after Removal of All (000s) Total L oca ti on 2003 2004 2005 2006 2007 Corrido r 3136.3593175.8913247.0663310.5423377.811 R es t o f Fl or id a 4798 763 4845 155 4946 378 5034 577 5126 798 Florida7935.1228021.0468193.4448345.1198504.609 Difference in Employment after Removal of All (000s) Total L oca ti on 2003 2004 2005 2006 2007 Corrido r -517.497-514.355-513.968-510.230-506.343 R es t o f Fl or id a770 565 773 875 783 802 789 502 795 353 Florida-1288.062-1288.230-1297.770-1299.732-1301.696 Output before Removal of All (Bil 02 $ ) Total L oca ti on 2003 2004 2005 2006 2007 Corrido r $ 359.789 $ 375.469 $ 389.485 $ 404.015 $ 418.909 R es t o f Fl or id a $517 846 $538 591 $558 428 $578 818 $599 624 Florida $ 877.635 $ 914.060 $ 947.913 $ 982.833 $ 1,018.533 Output after Removal of All (Bil 02 $ ) Total L oca ti on 2003 2004 2005 2006 2007 Corrido r 295.72866309.7457152322.4962861336.0264078350.0400339 R es t o f Fl or id a 423 5372735 441 48866 458 6776412 476 610739 494 9907641 Florida $ 719.266 $ 751.234 $ 781.174 $ 812.637 $ 845.031 Difference in Output after Removal of All (Bil 02 $ ) Total L oca ti on 2003 2004 2005 2006 2007 Corrido r $ 64.060$ 65.723$ 66.989$ 67.989$ 68.869 R es t o f Fl or id a$94 309 $97 102 $99 750 $102 207 $104 634 Florida$ 158.369$ 162.826$ 166.739$ 170.196$ 173.503 Wage & Salary Disbursement before Removal of All (Bil nominal) Total L oca ti on 2003 2004 2005 2006 2007 Corrido r $ 101.829 $ 106.826 $ 112.478 $ 118.382 $ 124.599 R es t o f Fl or id a $154 825 $161 964 $170 525 $179 511 $188 938 Florida $ 256.654 $ 268.790 $ 283.003 $ 297.893 $ 313.537 Wage & Salary Disbursement after Removal of All (Bil nominal) Total L oca ti on 2003 2004 2005 2006 2007 Corrido r $ 85.076 $ 88.783 $ 93.373 $ 98.443 $ 103.968 R es t o f Fl or id a $128 987 $133 956 $140 543 $147 817 $155 683 Florida $ 214.063 $ 222.739 $ 233.916 $ 246.260 $ 259.651 Difference in Disbursements after Removal of All (Bil nominal) Total L oca ti on 2003 2004 2005 2006 2007 Corrido r $ 16.753$ 18.043$ 19.105$ 19.939$ 20.631 R es t o f Fl or id a$25 838 $28 008 $29 982 $31 694 $33 255 Florida$ 42.591$ 46.051$ 49.087$ 51.633$ 53.886 Panel C Major Industry Groups: All: Banking, Credit & Finance, Insurance WAGE & SALARY DISBURSEMENTS Panel A Panel B Panel B Panel C Table 8.6 Finance & Insurance REMI Counterfactual Removal of Output Finance & Insurance REMI Counterfactual Removal of Output Major Industry Groups: All: Banking, Credit & Finance, Insurance OUTPUT Panel A Panel A Panel B Panel C Table 8.5 Table 8.4 Finance & Insurance REMI Counterfactual Removal of Output Major Industry Groups: All: Banking, Credit & Finance, Insurance EMPLOYMENT

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59 Appendix A Regional Economic Development Policy Analysis The Center for Economic Development Research (CEDR), College of Business Administration, University of South Florida (USF), uses the REMI Policy InsightTM model to estimate economic and demographic effects that policy initiatives or external events may cause on a regional economy. Data the last available historical year is 2000 for each of USF’s seven county economic development region, Hernando, Hillsborough, Manatee, Pasco, Pinellas, Polk and Sarasota; as well as the counties of Brevard, Lake, Orange, Osceola, Seminole and Volusia; and a consolidation of the remaining 54 Florida counties are available. The REMI software is managed by CEDR and available to the USF community for research and teaching purposes. The following article briefly explains the policy insight model. Founded in 1980, Regional Economic Models, Inc. (REMI) constructs models that reveal the economic and demographic effects that policy initiatives or external events may cause on a local economy. REMITM Policy Insight model users include national, regional, state, and city governments, as well as universities, nonprofit organizations, public utilities and private consulting firms. REMITM users in Florida include the State of Florida (Legislature, Governor’s Office, Agency for Workforce Innovation), Tampa Bay Regional Planning Council, the University of South Florida, Florida State University, City of Jacksonville, Florida’s Space Coast Economic Development Commission, and the Northeast Florida Regional Planning Council. REMITM is a dynamic model that predicts how changes in an economy will occur on a year-by-year basis. The model is sensitive to a wide range of policy and project alternatives as well as interactions between regional economies and the national economy. The model uses data from the Bureau of Economic Analysis, the Bureau of Labor Statistics, the Department of Energy, the Census Bureau and other public sources. The model’s dynamic property means that it forecasts not only what will happen but also when it will happen. This results in long-term predictions that have general equilibrium properties. This means that the long-term properties of general equilibrium models are preserved without sacrificing the accuracy of event timing predictions and without simply taking elasticity estimates from secondary sources. REMITM is a structural model, meaning that it clearly includes cause and effect relationships. The model shares two key underlying assumptions with mainstream economic theory: households maximize utility and producers maximize profits. Because these assumptions make sense to most people, the model can be understood by intelligent lay people as well as trained economists. In the model, businesses produce goods to sell to other firms, consumers, investors, governments and purchasers outside of the region. The output is produced using labor, capital, fuel and intermediate inputs. The demand for labor, capital and fuel per unit of output depends on their relative costs, because an increase in the price of any one of these inputs leads to substitution away from that input to other inputs. The supply of labor in the model depends on the number of people in the

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60 population and the proportion of those people who participate in the labor force. Economic migration affects the population size. People will move into an area if the real after-tax wage rates or the likelihood of being employed increases in a region. Supply and demand for labor in the model determines the wage rates. These wage rates, along with other prices and productivity, determine the cost of doing business for every industry in the model. An increase in the cost of doing business causes either an increase in price or a cut in profits depending on the market for the product. In either case, an increase in cost would decrease the share of the local and US market supplied by local firms. This market share combined with the demand described above determines the amount of local output. There are also many other feedback loops in the model such as the feedback from changes in wages and employment to income and consumption, the feedback of economic expansion to investment, and the feedback of population to government spending. The model brings together the fundamental economic elements mentioned in the previous two paragraphs to determine a baseline forecast for each year The model includes all the inter-industry relationships that are in an input-output model, like IMPLAN ProfessionalTM and goes beyond the input-output model by including added relationships with population, labor supply, wages, prices, profits, and market shares. A feature, which distinguishes the REMITM model from other economic simulation models, is the way REMITM handles the labor market. In the basic REMITM model, the general equilibrium demand for labor slopes downward and the general equilibrium supply of labor slopes upward. The wage responds to derived labor demand and there is an inverse relationship between the wage and market share. Thus, as the demand for labor rises, the wage rises and market share falls. Also, migration responds directly (positively) to a change in the wage, thereby increasing the labor supply. In contrast with REMITM, a basic input-output model suppresses the labor intensity response to wage rates, market shares responses to regional competitiveness, and migration response to real after-tax wage rates and relative employment rates. The result is a horizontal labor supply curve and a vertical labor demand curve. Employment is a fixed proportion of output. Thus, a basic inputoutput model is linear with respect to a change in output or employment. Labor is immobile, i.e. migration is not an alternative to unemployment. Following from labor immobility, an implied assumption is that there are unemployed workers in the region if the number of jobs is to increase. Labor immobility is the assumption of Type I (without household sector) and Type II (with household sector) inputoutput models. Prepared by: Dennis G. Colie, Ph.D. Economist E-mail: DCOLIE@coba.usf.edu


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