NIPC BULLETIN
DECEMBER 1999
NIPC
Reaffirms Its Forecasts for 2020
Planning is about the future. The governments and
citizens of northeastern Illinois are engaged in an extensive
discussion on how we can continue to grow while assuring a high
quality of life to all our residents. This discussion must be grounded
in realistic assumptions about our probable future growth and our
range of choice concerning it. The forecasting function, which NIPC
performs for the region, is thus central to any consideration of our
preferred future. NIPC has reaffirmed its forecast that the six-county
area will be home to 9 million people and the place of employment for
5.3 million workers in 2020.
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The Northeastern Illinois Planning Commission
(NIPC) will continue to plan on the basis of its forecast that
the six-county area will be home to 9 million people and the
place of employment for 5.3 million workers in 2020. On
December 16, the Commission received a report from its
Planning Committee on the status of the
forecasts. The committee's assessment, based on information
from the NIPC staff and its Forecast Technical Advisory
Committee, was that data on population and employment change
since 1990 support the growth rates assumed in the forecasts.
The committee agreed that the staff should now proceed to
develop updated county and municipal forecasts based on those
regional totals. These will be used in planning for future
transportation, water supply, and other needed facilities and
services.
In March 1994, the Commission concluded that
the region would grow by 1.7 million people, or 25 percent,
and by 1.5 million jobs, or 37 percent, from 1990 to 2020.
These forecasts were subsequently broken down to the county
and municipal levels and were endorsed by the Commission. They
formed the demographic basis for the Regional Transportation
Plan adopted in November 1997. They are also being used by the
Illinois Department of Natural Resources in determining the
future allocation of Lake Michigan water.
Planning is about the future. The forecasting
function, which NIPC performs for the region, is central to
any consideration of the region's future. The governments and
citizens of northeastern Illinois are engaged in an extensive
discussion on how we can continue to grow while assuring a
high quality of life to all our citizens. This discussion must
be grounded in realistic assumptions about how the region is
likely to grow and what our probable range of choice about
that growth is. |
Our future opportunities and challenges will
differ greatly if we assume that our population will grow
slowly, as it did between 1970 and 1990, or more rapidly, as
it has since 1990. They will also vary in response to
decisions on such matters as preservation of open space and
the location of aviation capacity, since these will shape
where people choose to live and work. Such policy choices must
be accounted for in the allocation of the forecasts across the
region.
The intent of NIPC's forecasting is to
determine what is most likely to happen in the region. It does
this by combining demographic and employment analysis,
evaluation of policy alternatives, and consultation with local
officials about their plans and expectations. Development of
the 1994 regional totals began with an analysis of national
economic trends and of various estimates of northeastern
Illinois' likely share of future national employment growth.
Based on this analysis, a forecast of future total employment
was prepared. Information on labor force participation was
then combined with analyses of birth and death rates and
migration patterns to arrive at a forecast of future total
population.
These regional totals were then allocated to
smaller areas. The allocation was developed using information
from the most recent census, NIPC's Regional Development
Database, and other information on actual growth since the
last forecast. Computer modeling of the relationship between
land use and transportation was also used. In a departure from
prior forecast cycles, alternative sets of small-area
forecasts were prepared to reflect different sets of policy
assumptions about future surface transportation capacity and
the location of future airport capacity. Preliminary municipal
forecasts were discussed with elected and appointed officials
of 207 of the region's 270 cities and villages. The purpose of
these consultations was to assure that their plans and growth
expectations were reflected in the forecasts. |
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Because the major issue of future aviation
facilities had not been resolved, two sets of county and
municipal forecasts were endorsed. One assumed that the region
would continue to be served by O'Hare and Midway, while the
other assumed the addition of a south suburban airport.
When the forecasts were released in 1994,
there was doubt expressed in some quarters about their
validity. The region's population had grown by only four
percent between 1970 and 1990, leading some to conclude that
the new figures were unreasonably high. The Commission,
however, was confident in its conclusion based on its
methodology and on its success since 1980 in producing
forecasts which have tracked the region's actual growth
closely. Population and employment estimates available in 1998
tended to confirm the higher rate of growth. |
Subsequent information has
supported this conclusion and led to the decision to reaffirm
the regional totals. The Forecast Technical Advisory Committee
reviewed recent employment estimates and forecasts prepared by
a number of different agencies and organizations. Their
consensus was that these other sources supported NIPC's job
forecasts. This finding, in turn, provided support for the
population forecasts, as did Census Bureau estimates that the
region had grown by 505,503 people or seven percent between
1990 and 1998. The advisory committee did recommend that the
forecasts of several categories of employment be revised.
Their conclusion was that retail employment would grow more
slowly than NIPC had forecast, while employment in the
finance, insurance, real estate, and services (FIRES) sector would grow
at a faster pace. |
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The Census Bureau's 1998 estimates also
confirmed NIPC's forecast that population growth would occur
in all parts of the region. The Bureau found that between 1990
and 1998, McHenry County grew by 31.5 percent, gaining 57,704
people. Will County, which NIPC projects to be the
fastest-growing county in the next twenty years, gained 28.5
percent. Other county increases were Kane, 23.2 percent; Lake,
17.2 percent; DuPage, 12.6 percent ; and Cook, 1.7 percent.
Chicago grew by 18,353 or just under one percent, reversing a
long-term pattern of population loss. While 60 suburbs lost
population between 1990 and 1998, this was considerably fewer
than the ninety which had declined in the previous decade.
The next step in the current forecast cycle
will be to review the municipal forecasts and identify those
communities where an adjustment of the 1997 forecasts may be
warranted. This will involve an assessment of population and
job growth, annexations, and land use changes since 1990. It
will also involve a reassessment of travel costs and of land
holding capacity. It is likely that a small number of
municipalities will require revisions. As in the past, NIPC
will send proposed forecast revisions to these communities and
offer an opportunity to discuss them prior to final NIPC
action. The Commission expects to complete the forecast
revisions and transmit them to the Chicago Area Transportation
Study (CATS) in May 2000. |
In the current cycle, the Commission is not
revisiting its forecasts of the future population's age, race,
and Spanish origin. The Commission forecast in 1997 that
two-thirds of population growth from 1990 to 2020 will be
Hispanic. The six-county area's Hispanic population in 2020
will approach two million, making us one of the major
multinational metropolitan areas in the country. The remaining
one-third of the region's new residents will be largely
non-Hispanic African-American. The population of Asian origin
will also grow substantially in percentage terms, although its
absolute number will remain relatively small. These changes
have potentially major implications for residential patterns
and public service demands. These components of the forecasts
will be reexamined after data from the 2000 census become
available.
Another significant characteristic of the
future population will be its age. In 1990, the baby boom
generation ranged in age from 26 to 44 and formed the core of
the labor force. As this group ages, the proportion of the
region's population over 45 will increase significantly. At
the same time, the school-age population will grow steadily
due to overall population growth, the higher birth rates of a
growing minority population, and the number of the baby
boomers' grandchildren. These shifts in the age structure will
have major implications for education and other public
services and for the types of residential choices demanded by
the market. One function of the Commission's forecasts is to
enable local governments and service providers to anticipate
these demands and begin to prepare for them. |
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