Economic Development and the Cayuga Lake Watershed: A Perspective From Tompkins County Area Development

Martha Armstrong
Vice President of TCAD

Protecting the natural environment is important to the quality of life in the Cayuga Lake Watershed. Quality of life is a key selling point for attracting and expanding businesses. Economic opportunity attracts more people thereby increasing local population. Responding to increasing demand for water resources, while protecting them at the same time, is important for the continued economic vitality.

Economic development in Tompkins County Economic development usually focuses on business sectors that sell their goods and services outside the county, thereby bringing sales income back into the county. That income, in turn, supports local sectors like retail, car repair and other services where money is exchanged between local people and local businesses. The sectors that bring the most income into Tompkins County are education (i.e. Cornell and Ithaca College), manufacturing, and high-tech. Agriculture, tourism, utilities, and mining also bring income into the county.

How does the watershed affect the economy?

During the 1990’s, the “New Economy” – information driven, highly flexible, and highly competitive – took off. Much of upstate New York has lagged behind the nation in developing modern hightech businesses and in attracting people who possess specialized skills and experience for the new business environment. Tompkins County has done better than many upstate communities largely because it is a college community with a major research university. High-tech businesses, modern manufacturing plants, and academic institutions, however, all need to attract specialized workers required by the new economy. This is a challenge in a region that is perceived as being older and in decline. A key ingredient to attracting these workers is to emphasize quality of life. People who are looking for a good place to raise a family or who value access to nature are attracted to the Finger Lakes. The gorges and Cayuga Lake are strong selling points.

How does the economy affect the watershed?

There are only two businesses in Tompkins County who use water for industrial purposes requiring pre-treatment before entering the sewage system. The main way the economy affects the watershed is by increasing its population. Population growth and decline tend to follow employment trends; people move toward economic opportunity. Most counties in upstate New York lost population during the 1990’s as their economies entered cycles of decline. As a growing employment center, Tompkins County saw modest growth during the 1990’s.

There are approximately 120,000 people living in the watershed, and Tompkins County accounts for about 75% of that population. Seneca and Cayuga counties have the next largest populations living in the watershed. Tioga, Schuyler, and Cortland counties all have fairly few residents in the Cayuga watershed. Tompkins County grew by nearly 2,500 people in the 1990’s. At the same time, Cayuga and Seneca counties experienced small declines of about 350 people each. In addition, 1990 saw over 11,000 people commute into Tompkins County for work. (2000 figures are not yet available but they are expected to show an increase in commuter traffic.)

Modest population growth is expected to continue for the foreseeable future. This will place an increased demand on water resources for domestic and recreational uses. Responding to this demand while protecting these valuable resources is important for the continued economic vitality of Tompkins County.

Tompkins County Area Development (TCAD) is a not-forprofit membership organization that provides economic development services for Tompkins County. This article does not discuss the Tourism and Agriculture sectors of the economy. These are addressed in other watershed publications.