ADVOCATE Public Policy Agenda
2017-2018
Contents To Our Officials To the Community Advancement of Business Development Priorities Tax Policy and Investment Protecting our Federal and Civic Assets Business Cost and Competitive Issues Transportation and Infrastructure Changing Political Landscape Council and Staff
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Mission The Greater Cleveland Partnership (GCP), the primary advocate for metro Cleveland’s eight-county business community, is dedicated to connecting and focusing Greater Cleveland’s private-sector resources to build a stronger region. With more than 8,000 members of all business sizes—Fortune 500 corporations, middlemarket companies and small businesses—we’re one of the largest metropolitan chambers of commerce in the U.S.
To Our Officials At the start of 2016, the Greater Cleveland Partnership and the Council of Smaller Enterprises announced a restructuring that would bring both organizations more closely together, align priorities and establish us further as the leading business advocate for small, mid-market and large companies in Northeast Ohio. This realignment draws on our collective strength and proven track record of leading and accomplishing core public policy priorities on behalf of our membership. Today, with more than 8,000 members, we are positioned for further growth and greater success on issues at the local, state and federal level that matter most to those we represent. We will continue to serve in the important role of deepening our members’ understanding of significant public policy issues while providing a collective voice from the business community to our elected leaders on the highest priorities for the region. Cleveland’s renaissance is strong. From a tremendous Public Square makeover to a successful Republican National Convention that put our city and region in the international spotlight for good reason, to a renewal of the Cleveland Plan supporting our schools, we are realizing the gains of years of hard work to rebuild our community. Yet despite such amazing progress, we cannot be blind to the social and economic challenges that continue to strain our city – public safety, local governments struggling to address community needs due to declining revenue and untapped development potential along our lakefront and in key neighborhoods. They are acute reminders of the work that still needs to be done to strengthen the economic growth and vibrancy of Northeast Ohio. GCP’s core focus has and will continue to be strengthening our city and region’s position as a leader in job creation and economic growth in the state of Ohio. The following public policy agenda reflects the work we believe is important to achieve our core focus, while maintaining enough flexibility to respond quickly to a changing social, economic and political environment.
This agenda highlights our focus on competitive tax policy that boosts economic development in our state while forcing us to be critical about how we invest in the things we know are crucial to advance our region. This agenda highlights the need to go further on our work to protect our federal and civic assets and what we must do to advance key business development priorities that will strengthen the companies that are here and attract new ones. Infused throughout this agenda is our continued commitment to diversity and inclusion, as we know this makes our work more effective and creates greater opportunity for all. This agenda continues our focus on education reform and the success of the Cleveland Plan for Transforming Schools as one of our key workforce development strategies. Last but certainly not least, this agenda affirms our core work around business cost and competitiveness issues that we know are important for our small, mid-market and large companies to thrive. Advancing this agenda is not possible without the leadership and support of our members, partners and our public officials. We are all in on Northeast Ohio’s continued success and look forward to working with you to move this agenda forward. ***
DEBORAH Z. READ Chair
KEVIN K. JOHNSON Vice Chair
To the Community In the process of developing the Greater Cleveland Partnership’s Public Policy Agenda to guide us through 2017-2018, our community mourned the loss of a true Cleveland champion – the late Senator George Voinovich. Senator Voinovich held many important roles during his time in public office and guided numerous initiatives and projects that continue to shape our landscape today. A tireless champion for both our region and state, Senator Voinovich also understood the power and importance of dynamic and effective public-private partnerships. The Senator recognized that the most transformational efforts could not happen without these partnerships – efforts like changing the international perception of our city through hosting the Republican National Convention or the development of a plan to drastically improve the Cleveland Metropolitan School District. GCP plays an essential role in creating successful public-private partnerships to advance our region through our mission to mobilize private-sector leadership to improve the economic vitality of our region. Our advocacy priorities outline how we will seek to engage and activate civic leaders to work with the private sector toward a better future for our entire community. GCP leaders are currently engaged in a process to update the organization’s strategic plan. This process will culminate in the second quarter of 2017. Our public policy agenda will continue to evolve as our members wrestle with challenging questions. GCP must continue to lead and convene publicprivate partnerships to mobilize resources toward shared goals. Competition is a very real challenge as state and major urban cores find themselves often going after the same limited resources. Various industries may be pitted against one another to address these challenges.
This increased competition comes at a time when regions like ours need continued investment in areas like public transportation, education and infrastructure to capitalize on the momentum of the recent renaissance and continue to thrive. This work will also require us to think beyond traditional revenue sources. As we look for out-of-the-box thinking on how to support reinvestment, we must also consider the role of the business community in shaping priorities on how new revenues are used to strengthen our region. Beyond funding, we will be thoughtful and prompt in our consideration and position development in areas with shifting political or emerging policy implications. This includes our core priorities such as transportation, workforce, and education; and emerging issues like cyber security, housing, immigration and international trade. We welcome the opportunity to continue to support a spirit of collaboration and publicprivate partnership that has served our community and will continue to do so. ***
JOE ROMAN President and CEO
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Advancement of Business Development Priorities GCP’s business retention, attraction and growth strategy encompasses targeted work that will improve the economic vitality of our region. Supporting established companies and start-ups; a clear focus on diversity and inclusion to attract and grow the brightest companies and a skilled workforce; and a talent attraction strategy, of which education is the foundation, are key drivers of our work.
Ohio’s Third Frontier Ohio is at a critical moment in supporting its growing innovation economy. State leaders must begin efforts to support the continuation of the Ohio Third Frontier Program to ensure we do not lose momentum in making the state a place where entrepreneurs can grow, create jobs and thrive. The Third Frontier Program was created in 2002 by Governor Bob Taft to help spur the next wave of economic growth in Ohio. This $2.1 billion ballot initiative passed in 2002, and again in 2010 with support from GCP’s leadership and member companies. The ongoing investments and efforts made by the state and private sector has allowed the Ohio Third Frontier to become one of the largest and most successful economic development programs in the state’s history. The program has a 10:1 return on investment and has brought hundreds of millions of dollars into Northeast Ohio to grow our entrepreneurial ecosystem. Studies demonstrate that it is achieving its core mission of supporting technologybased economic development in Ohio by expanding access to early stage capital, supporting entrepreneurs, enhancing research and development collaborations between industry and higher education and developing industry clusters. Since late 2014, spending on the program has slowed and been refocused almost exclusively on support for early stage capital. Roughly 15 percent of the funding approved in 2010 is left to spend. An effort must be made to evaluate current spending strategies and develop a plan for reauthorization of this critical program.
JobsOhio In the five years of its existence, JobsOhio – the statewide nonprofit economic development organization – has been a major contributor to Ohio’s rebound. As we look to the next five years of this organization, GCP will work closely with state leadership to further JobsOhio’s success, particularly in business retention and expansion, and leverage greater support for the Northeast Ohio region that constitutes more than 40 percent of the economic output in the state.
Immigration Reform Comprehensive immigration reform at the federal level remains an important issue for us to engage on as a core part of our business development, talent attraction and inclusion priorities. GCP continues to support its 2013 board-passed resolution which promotes principles of comprehensive immigration reform including: comprehensive visa reform, legal entry for a broad range of workers both skilled and unskilled, establishment of a balanced and workable employment verification system, and strengthening programs that offer English language and civic education classes. GCP will partner with local and national leaders, including Global Cleveland, on reform efforts that create new opportunities to bring highly skilled talent to Northeast Ohio to fill critical workforce needs and further enhance our growing entrepreneurial ecosystem in the region.
ADVANCEMENT OF BUSINESS DEVELOPMENT PRIORITIES
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Diversity and Inclusion GCP’s focus on business development in the
2016 also brought challenges to our diversity
region cannot truly be successful without the
and inclusion efforts. Due to changes in the
development and implementation of clear
program that increased the required scope
diversity and inclusion strategies that advance
without additional financial support, GCP did
productivity, innovation and economic
not receive a renewed five-year federal grant
growth. We must use a two-pronged
from the Minority Business Development
approach – advocating against regressive
Agency to help build capacity and improve
policies that are harmful to our inclusion
access to capital for minority businesses
efforts and creating new opportunities to
across the state. We will need to work with
advance this work.
congressional leaders on new federal grant opportunities and explore potential state
In partnership with the Commission on
solutions to support this work in Northeast
Economic Inclusion, a program of GCP, we
Ohio.
will continue to work with leading community partners to pursue creative funding solutions
The City of Cleveland and GCP members
to support minority business development
also faced a significant setback with
efforts while heightening the influence of key
the passage of House Bill 180 that
players in this field to better inform public
prohibits local governments from using
policy and regulations, particularly at the
local hiring requirements on publicly
local and state level. In 2016, GCP and the
funded construction projects. Cleveland’s
Commission successfully advocated for the
ordinance required 20 percent local hiring
passage of inclusion legislation at the county-
on construction projects where city funding
level that will expand contracting opportunities
is more than $100,000. Within the last
for small, minority-and women-owned
three years, this has resulted in $34 million
businesses seeking to work with Cuyahoga
in real wages for Clevelanders that were
County. The Commission will continue to
hired onto construction projects. It was
serve in an advisory role for the county on the
also the foundation of the Memorandum
implementation of this legislation.
of Understanding regarding community benefit agreements that GCP worked closely with city and local leaders to develop. These voluntary agreements, modeled on the local hiring ordinance, ensure an inclusive workforce, apprentice opportunities, minority contracting and local hiring. A state lawsuit reconciling the inconsistent state and local law is currently pending. Regardless of the outcome, finding creative legislative solutions to continue the momentum of this work will be critical.
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ADVANCEMENT OF BUSINESS DEVELOPMENT PRIORITIES
Education and Workforce Attracting and retaining the best talent
Our greatest workforce development effort
in Northeast Ohio is a key priority for the
will be a continued focus on the successful
business community. GCP is working
transformation of the Cleveland Metropolitan
with key partners in the private and public
School District (CMSD). GCP played a lead
sectors on employer-driven short- and
advocacy role in the creation of the Cleveland
long-term strategies to develop and attract
Plan for Transforming Schools in 2012 and
a highly skilled workforce that supports the
supported subsequent local levies in 2012,
economic development goals of our region.
2014 and 2016 to finance the plan. In the
Our efforts include working with Cuyahoga
four years since the Cleveland Plan was
County on industry sector partnerships to build
created, CMSD is realizing positive results –
a talent pipeline for high-demand jobs; pre-
the graduation rate is up, reading and math
apprenticeship training for adults and high school
scores are improving, the college remediation
students looking to enter the construction trades;
rate is going down and student enrollment
and pathway initiatives like True2U, Academies
is growing in the district which includes high
of Cleveland and GCP Internship Central, to
performing charter schools – for the first time
connect middle and high school students to
in decades.
career exploration opportunities. GCP was successful in 2016 in championing With the recent reform of the Workforce
state charter reform efforts that included
Opportunities Act (now the Workforce
a provision to bolster the authority of the
Innovation and Opportunity Act (WIOA) of
Cleveland Transformation Alliance, a public-
2014), the federal government has created
private partnership we helped create as
strategic goals and metrics for its largest funding
a part of the Cleveland Plan, to ensure
streams and policies that guide job training and
accountability for all public schools in the
workforce development efforts in the nation.
city. A key priority in 2017 will be working
Because of WIOA, states, counties and regions
with the City of Cleveland, CMSD and
will all be required to align their public funding
other key leaders to determine if we will
and policies for workforce development to
collectively pursue reauthorization of the
ensure tax payer dollars are effectively being
Transformation Alliance authority in state law.
spent to fill gaps in the labor market through
GCP will also monitor and engage in public
training, education and better identification
policy development that directly impacts the
of future talent needs. GCP worked with its
momentum of the Cleveland Plan.
leaders to provide public comment on Ohio’s proposed WIOA plan and now serves in a
Beyond K-12 education, GCP will continue
leadership role with Cuyahoga County’s local
to support Pre4CLE, which is an outgrowth
workforce investment board to inform the
of the Cleveland Plan and aims to increase
development of the county/regional plan.
the number of high-quality early learning
When our organizational strategy on workforce
slots available for three and four-year old
development is completed in 2017, we will
children in the City of Cleveland. GCP will also
further hone the local, state and federal public
examine opportunities to more effectively
policy priorities that will help advance this work.
advocate for policies that connect students to meaningful internships, apprenticeships and career exploration. ***
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Tax Policy and Investment A thoughtful, balanced and competitive tax environment is critical to the success of business and community. Tax policy that allows and incentivizes businesses to grow, expand and thrive is a key ingredient for economic growth and the focal point for how we approach tax policy and reform. Likewise, we also strive to strike a balance on how we leverage tax revenue to ensure that we are investing in strategic priorities that will continue to advance the vibrancy and competitiveness of our city, region and state. The guiding public policy tax tenets our membership calls for places a priority on ambitious aspirations, takes competing interests into account and strives for consistency with the make-up of all our members. GCP’s tax policy priorities align with the real-time feedback we receive on tax measures from the Northeast Ohio business community today and are flexible enough to adapt to future considerations.
Federal Tax Reform
State Tax Reform
With a new federal administration and
Our state tax structure has changed over the
Congress, tax reform and addressing the
last several years, in part due to the leadership
growing federal debt will be critical to helping
of GCP advocacy efforts, and it is moving in a
American businesses create jobs and compete
positive direction for the business community.
in a global marketplace. GCP will continue to
Still, key decisions will be made over the
represent our members’ interests throughout
course of the next several years that will
the debate and work with partners to advocate
indicate whether Ohio’s path forward remains
for comprehensive federal tax and entitlement
on solid footing for employers.
program reform. Several tax policy issues will be addressed in Any reforms made must be all-inclusive and
the upcoming state budget that will require
not disproportionally single out or induce
GCP engagement and advocacy efforts. A
harm on any one segment of the business
federal requirement that will no longer allow
community. A modernized tax system should
Ohio to levy a sales tax on Medicaid managed
level the playing field for Ohio’s businesses
care organizations will result in lost sales tax
and enable them to better invest, expand,
revenue that will impact GCP priorities and
and hire. Corporate tax reform is essential to
services – such as public transportation – that
allowing for growth. It is equally important
our state and the region rely on. A balanced
to recognize most small businesses are
approach will be needed to ensure that local
organized as pass-through entities – they file
priorities are not negatively impacted in order
taxes through the individual income tax code
to resolve this budget issue.
instead of the corporate income tax code. A tax overhaul and a long-term federal tax plan
The reductions to Ohio’s personal income tax
that results in parity for all business sizes and
have encouraged investments – especially
that incentivizes investment and employment
in small businesses – that are important to
must be realized.
further improvements in Ohio’s economic condition and growth. GCP continues to support greater government efficiency to allow for personal income tax reductions versus shifting the burden from one group of businesses to another. GCP is also concerned with increases to Ohio’s sales tax and opposes an expansion of the sales tax base, as it would have an adverse effect on the strides made to-date. Permanently preserving Ohio’s small business tax deduction on the first $250,000 in business income, maintaining or lowering the current commercial activity tax (CAT) rate, and maintaining or increasing today’s CAT exemption level remain important priorities for our members.
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TAX POLICY AND INVESTMENT
Local Tax Environment GCP is committed to supporting a local tax environment balanced between competitiveness and supporting critical community needs that lead to further economic growth. Most notably, to ensure the City of Cleveland remains structurally balanced and improves services desperately in need of additional resources, GCP carefully analyzed, endorsed and led fundraising efforts for a 0.5 percent income tax increase in Cleveland in 2016. This increase, the first in more than 30 years, will ensure Cleveland remains fiscally sound while improving services desperately in need of additional resources – especially for public safety and the encouragement of business development and growth. Looking to the future, we expect our members will play a pivotal role and continue to offer guidance on local tax levies, including the Cleveland Public Library, Cuyahoga County Port Authority and Cuyahoga County Health and Human Services. ***
Protecting our Federal and Civic Assets
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The Great Lakes One of the world’s greatest natural resources
A challenge facing the Great Lakes region
sits in our backyard – Lake Erie and the rest
will continue to be requests from other
of the Great Lakes. The Great Lakes account
communities to divert water in response to
for 90percent of the nation’s fresh surface
water issues they face, which affects the
water, with more than 30 million Americans
Great Lakes Compact. GCP played an active
relying upon it as a source of fresh drinking
role in the creation of the Compact. In an
water. The Great Lakes are a major economic
unprecedented move in 2016, the council of
force, with the existence of more than 1.5
governors from the Great Lakes region that
million jobs due to activities in the Great
provides oversight of the Compact voted
Lakes region. Lake Erie alone has an annual
to allow the City of Waukesha, Wisconsin,
$10.7 billion economic impact and accounts
a community just outside of the Great
for 30 percent of the tourism dollars that
Lakes Water Basin, to divert water from it
come to Ohio. Protecting the Great Lakes
due to their water quality challenges. The
is critical for ongoing job creation and
council put in place critical requirements
economic development. Efforts to enhance
on Waukesha’s request to ensure the
the quality of the Great Lakes as well as
ongoing protection of the Great Lakes St.
maximize its economic impact will continue
Lawrence River Basin while responding to
to be priorities for GCP.
an important community need. With the potential for future requests from straddling
As a founding member of the Great Lakes
communities to the Great Lakes and River
Metro Chambers Coalition, we will continue
Basin, GCP will actively engage on those
to support multi-state advocacy efforts
that could impact Northeast Ohio.
including full funding for the Great Lakes Navigation System, as created in the Water Resources Reform and Development Act (WRRDA). We will ensure that the Harbor Maintenance Trust Fund dollars are appropriated as required by WRRDA and at the levels directed in the legislation. We will also work to maintain the maximum amount of funding possible as authorized for the Great Lakes Restoration Initiative, with a minimum amount of $300 million annually to fund the five-lake basin.
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PROTECTING OUR FEDERAL AND CIVIC ASSETS
Lake Erie is the smallest of the five Great Lakes and the shallowest, making it susceptible to rapid changes in its ecosystem that impact water quality. This has particularly been a challenge in Lake Erie’s Western Basin where there have been major issues with dangerous algal blooms created by agricultural runoff and other nonpoint and point source pollutants. Ohio enacted Senate Bill 1 in 2015 that aimed to create the necessary reforms to manure and fertilizer disposal on farms, water testing and phosphorus monitoring, and the disposal of dredged material in order to improve water quality in the Western Basin. As these reforms continue to be implemented, GCP will monitor these efforts and engage on any future needed legislative change that will strengthen efforts to protect the quality of Lake Erie. The Cuyahoga River is an important channel for international businesses that ship goods in and out of Cleveland. For years, GCP has worked closely with the ClevelandCuyahoga Port Authority to successfully advocate against efforts by the Army Corps of Engineers to delay dredging of the river and attempts to dump dredge materials into Lake Erie. This work will continue in order to protect the quality and economic impact of the Cuyahoga River.
NASA The National Aeronautics and Space
GCP continues to be the leading
Administration (NASA) Glenn Research
community advocate for NASA Glenn. We
Center, which includes Lewis Field and
have been successful in diverting major
Plum Brook Station, is a valuable asset
federal budget cuts to our regional center
to our region. With more than 3,000
and educating our congressional leaders
civil service and contract employees
on the critical impact of the center on
and an overall economic impact that
Northeast Ohio’s economy. However, as
surpasses $1 billion, NASA Glenn attracts
NASA’s mission changes and congressional
highly skilled talent and research and
priorities shift, the impact of NASA Glenn
development activities that drive the future
on the region and state is continuously at
of aeronautics and space exploration.
risk. Our mission will be to work with key community stakeholders at the local, state and federal level to determine how our region can maximize the economic impact of this federal asset. We will continue to support NASA Glenn in the federal budget and aim to move beyond a reactive position of defending the center’s budget to a more proactive position of pursuing creative opportunities to advance its strategic priorities. When NASA Glenn’s value is combined with Defense Finance and Accounting Services (DFAS) Cleveland and the other federal assets in our region, the overall economic impact totals $2.3 billion. Protecting these assets from a future Base Realignment and Closure process and/or future Department of Defense budget cuts is critically important. GCP will work closely with congressional and state leaders as well as leadership from our federal installations to create a preparedness plan to advocate for the needs of our region. GCP will work with the Ohio Federal Facilities Commission, the Ohio Aerospace and Technology Committee, the Ohio Aerospace and Aviation Council and other key stakeholders as partners on this effort.
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PROTECTING OUR FEDERAL AND CIVIC ASSETS
Leveraging Our Civic Assets One of the many valuable outcomes of
Consistent and quality air service remain a
the 2016 Republican National Convention
priority for the region. GCP will continue
is the transformation of Cleveland’s image
to work with the City of Cleveland and
and its many civic assets. GCP was the lead
Cuyahoga County on needed physical
champion to secure the funding needed to
improvements at Hopkins International,
complete the $50 million transformation
Burke and the county airports. We will
of Public Square – a renowned community
also continue efforts with city leadership
gathering space that attracts visitors from
to create attractive business conditions to
all over the region. As GCP looks to the next
draw new carriers to the region and address
two years, our focus will be on accelerating
local and federal policies that have an
the next phase of transformational projects
impact on the cost of doing business.
(such as continued development of the waterfront, expanded sites in downtown
GCP played a pivotal role in securing the
Cleveland and targeted neighborhood
more than $330 million investment needed
development) that will enhance the vitality
to accelerate the Opportunity Corridor,
of our community while continuing support
a transformational project aimed at
for investments we have already made.
enhancing the economic potential of some
This could include deeper engagement in
of the most distressed neighborhoods on
the MetroHealth transformation plan and
Cleveland’s eastside. We will continue to
related development opportunities along
engage with city and state leaders to ensure
the West 25th Street Corridor.
the successful completion of this project.
GCP was successful in advocacy efforts on the state’s 2016 capital bill that brought more than $23 million to Cuyahoga County for core community projects, more than half of which were for projects that GCP directly championed. There is an appropriate role for state support on economic impact projects of significant magnitude. Another capital bill is expected in 2017/2018 and GCP will advocate for greater investment for transformational projects in our community.
Essential Development Tools Having the tools – New Market Tax
At the state level, GCP secured a needed
Credits, Historic Preservation Tax Credits,
reform to Ohio’s New Market Tax Credit
and other public financing – to advance
program to remove a restrictive real estate
transformational physical development in
provision. With this provision now gone, the
the city of Cleveland is critical. Challenges
state program will be in greater alignment
to public-sector programs threaten our
with the federal and allow mixed-use
ability to invest in projects that will advance
development projects – a growing trend
the city. GCP and Cleveland Development
in development happening in Cleveland’s
Advisors (CDA), a real estate and business
major business and technology corridors –
development finance affiliate of GCP, will
to be eligible for the program.
continue active involvement in several key programs to ensure they are strengthened.
The U.S. Congress must reconsider
GCP will explore opportunities to create
their role in directing federal spending.
new tools and leverage opportunities for
Congressional earmarks earned an
transformational physical development.
unfair representation thanks to a handful of abuses that overshadowed the vast
At the federal level in 2015, GCP partnered
majority of successful and meritorious
with organizations from across the country
projects nationwide. Instead of going
to secure successful passage of a five-year
away completely, Congress merely
extension of the federal New Market Tax
empowered federal agencies to advance
Credit (NMTC) program, a financing option
specific initiatives in their place, with
that has been instrumental for development
far less Congressional oversight. The
in low-income communities. In late 2016,
result: more gridlock in Congress and
CDA received a $60 million federal tax credit
less transparency on spending and
award, the largest in Cleveland to-date, to
process. In limited number and managed
spur economic growth in our region. The
appropriately, earmarks can improve the
prior NMTC allocations to CDA ($155 million)
function of Congress while investing in key
have spurred more than $796 million in
local initiatives. Cleveland has countless
investment in Cleveland and nearly 5,000
examples where federal spending has
permanent jobs. Long-term, GCP will seek
advanced our economy thanks to the
permanency for the program in the tax code.
tireless efforts of our elected officials.
During the 2016-17 state budget process,
At the local level, GCP works closely with
GCP joined other partners to divert efforts
Cuyahoga County leadership to advance
to suspend the Historic Preservation Tax
economic development priorities in the
Credit and convert it into a grant program.
county. GCP strongly advocated that the
The economic impact associated with the
county casino tax revenues be restricted for
tax credit is proven and well documented.
core development projects in downtown
The program has aided in the transformation
Cleveland for a period of time – a necessary
of abandoned, vacant buildings in downtown
move to seed investment that would be
Cleveland into vibrant properties such as
catalytic for future development. Now that
The 9, The Residences at 1717, The
the County is realizing the positive impact
Residences at Hanna and The Residences
of these investments and the downtown-
at 668. This tax credit also supports
only restriction has expired, GCP will
many neighborhood projects such as the
work closely with County Council to
Saint Luke’s Manor in Buckeye, Fairmont
ensure that casino revenue funds will
Creamery in Tremont, Capitol Theatre in
be used for targeted, transformational
Detroit-Shoreway and Tudor Arms in Fairfax.
economic development projects versus
Together, these projects represent more
thinly spreading this funding across 59
than $375 million of capital investment that
communities with no focus on long-term
currently supports over 1,100 permanent
economic impact for the region. ***
jobs. GCP will continue to work with partners to protect the Historic Preservation Tax Credit in future state budgets. In addition, neighborhood stabilization is important for challenged communities in our region. This may prompt involvement with Ohio’s Housing Trust Fund. As a partner in the Cleveland International Fund (CiF), GCP has a vested interest in the success of this economic development organization. Licensed by the U.S. Government, CiF utilizes the EB-5 program to invest in catalytic development projects in the commercial development, mixeduse construction and health care sectors. CiF has invested more than $200 million in Northeast Ohio projects, including the Flats East Bank, Uptown and The 9. GCP was successful in securing reauthorization of this program in 2015 and again in 2016. We will work with the Trump Administration and congressional leaders on its continuation. PROTECTING OUR FEDERAL AND CIVIC ASSETS
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Business Cost and Competitiveness Issues Since our country’s inception, competition has been an essential element and its value cannot be understated in today’s marketplace. The actual effect public policies have on the business community and the public’s interest must be weighed regularly and GCP remains committed to the following priorities on key issues and initiatives that will play a role in whether Northeast Ohio businesses can achieve and sustain success.
Energy Congress could be poised to lay the
At the state level, GCP will participate and
groundwork to reconcile legislation that
represent the business community’s interests
addresses America’s energy infrastructure.
throughout comprehensive, long-term
On the horizon, the U.S. Environmental
state energy planning and policymaking
Protection Agency’s (EPA) Clean Power
that is expected to occur over the course
Plan may require states to meet carbon
of the next two years. We support energy
emission targets for the power sector.
infrastructure investments that increase
These factors, and more, could impact
accessibility, safety and allow for economic
energy costs for business owners and
development, leading to diverse sources and
the reliable transmission of power that is
affordable energy and rate setting.
essential to the fair treatment of businesses. GCP also encourages state leaders to GCP will continue to monitor and engage
implement policies that provide incentives for
with our partners on changes in federal
utilities to offer businesses opportunities that
energy policies that impact cost and the
leverage energy efficiency programming to
opportunity for businesses, specifically the
foster growth. We also recognize and know it is
Clean Power Plan implementation. GCP will
equally important that utilities are provided the
educate federal elected officials and agency
level of elasticity needed to meet demanding
workers on the needs of our members and
state mandated energy benchmarks.
the challenges facing businesses when it comes to freeing up access to capital and
Nimble, long-term planning for all parties will
complying with federal energy regulations.
be essential to eliminate potentially surprising risks and minimize costs that could be passed on to the consumer, brought on by steep deadlines related to rules or regulations. GCP will continue to protect the business community’s interests through engagement in Public Utilities Commission of Ohio (PUCO) regulatory proceedings that affect commercial and business customers. Our goal, in part, is to help connect employers with resources to better understand PUCO proceedings, new initiatives and their impact on Ohio’s job creators. Energy policy is complex and GCP is forming an energy task force to work directly with our members on these issues. We strive to achieve a balanced energy environment in Ohio that benefits consumers and employers of all sizes and industries.
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BUSINESS COST AND COMPETITIVENESS ISSUES
Healthcare GCP will continue to advocate for controlled
GCP has effectively led efforts to advance
federal and state health care costs to
the number of health care options employers
mitigate a negative impact on businesses
have at their disposal (e.g. multiple employer
and economic development. GCP was
welfare arrangements or MEWAs) to offer
supportive of Medicaid expansion in Ohio
health care coverage to their employees
and remains supportive of its continuation.
and these efforts will continue. A thoughtful
We favor modernizing Medicaid by extending
approach is necessary when proposed health
coverage to more low-income Ohioans to
care policies call for additional required
help those in need and deter unfair cost-
coverage that impact our members’ ability to
shifting to others. GCP will also monitor
offer health care benefits to their employees.
possible future Medicaid reform proposals
GCP will continue to oppose excessive
that may have an unintended, adverse
mandates that drive up the cost of care and
impact on our world class healthcare
limit an employer’s ability to offer coverage to
industry and the patients that rely on our
their employees.
hospitals for care as well as the overall Northeast Ohio business community and the impact on their healthcare costs. In addition, we support initiatives that provide incentives for providers to do more to keep patients well and hold down the total cost of care. We are committed to participating, as needed, throughout the rollout and implementation of Ohio’s Comprehensive Primary Care Program. As in years past, we will always look to achieve greater transparency related to the prices employers and their employees pay for care, therapies and medications and how they correlate to the quality of the product offered and received.
Human Resources & Labor
Workers’ Compensation
GCP is working closely with key partners around the
GCP applauds the Ohio Bureau of Workers’
state to lead advocacy efforts for unemployment
Compensation (BWC) for listening to our
compensation reform. We are focused on
members’ concerns surrounding agency
strategic advocacy efforts that will improve Ohio’s
policy and criteria that determine successor
unemployment compensation system to ensure the
liability cases to ensure entrepreneurs are not
unemployed receive the support needed to re-enter
penalized in the form of increased workers’
the workforce, and that the fund is solvent enough
compensation rates, outstanding balances,
to decrease the need for increased unemployment
or uncovered claims costs for assuming
compensation costs on businesses in the event of a
space that was previously inhabited by a
future economic downturn.
separate business. Future discussions around mitigating the impact of experience transfers
GCP will continue advocacy efforts with our members
when the new criteria are not met and the
to ensure that certain human resources and labor
experience does transfer should continue and
issues are approached in a thoughtful way that does
GCP will be at the forefront of that work.
not create undue burden on businesses. GCP is not philosophically opposed to discussions on issues like
GCP recommends internal and external
paid sick leave or minimum wage. However, only
Industrial Commission processes that offer
several states in the nation currently have paid sick time
Ohioans more transparency, particularly
laws on the books and our members are not in favor of
related to the hearing decisions of contested
encouraging Ohio to follow a mandated path. We also
workers’ compensation claims, the treatment
know minimum wage and other similar issues should
of employers and fraudulent claimants.
not be addressed or targeted at the local level which is why our members believe the signature thresholds that
GCP will work to expand and improve safety
are currently in place for petitioners to place an issue
education and training program assistance
on a ballot require examination to avoid costly changes
meant to reduce workers’ compensation
to a municipal ordinance or charter. Discussions
costs for employers while helping injured
surrounding the proper minimum wage level is more
workers return to their jobs faster through
appropriately debated at the state or federal level
BWC’s transitional work program.
of government to ensure a level playing field for all and guard against unintended consequences for our
Our support of voluntary performance based
businesses, workforce, and local communities.
incentive programming that ensures the BWC’s group retrospective rating program is a balanced, fair, and viable option for business owners to utilize going forward is a priority. The impact on employers must be represented and considered with any changes made to the retrospective program to guard against unforeseen or adverse effects.
Rules & Regulations In 2016, the U.S. Department of Labor (DOL)
GCP will continue necessary advocacy
issued an overtime exemption rule, which
efforts on the implementation of medical
would have raised the minimum salary
marijuana in the State of Ohio. Given the
threshold required to qualify for the Fair
complexities and validity of medical research
Labor Standards Act’s (FLSA’s) “white collar”
on the benefits of medicinal marijuana,
exemption. Later that year, a federal judge
GCP did not take a formal position on the
issued a delay or a preliminary injunction
medical marijuana legislation that is now
against the DOL overtime rule which was
Ohio law. Instead, we worked with key state
set to go into effect December 1, 2016.
partners to successfully secure employer
Therefore, the implementation deadline was
rights provisions in the legislation to ensure
not enforced and there was no need for
employers were not prohibited from
employers to comply.
establishing and enforcing a drug testing policy, drug-free workplace policy, or zero-
Many of our member companies were
tolerance drug policy. A Medical Marijuana
and still are deeply concerned about the
Advisory Committee was formed to provide
prospects of the DOL rule going into effect,
guidance on the implementation of the law.
as it would have automatically doubled the
A GCP/COSE member was appointed by the
threshold under which employees must
Governor to serve on the committee in order
be paid overtime, impacting employers
to represent employers’ views as regulatory
directly and quickly. If and when new rules
proceedings take place. The committee may
on overtime pay take effect, GCP will serve
also develop and submit recommendations to
as a resource for the employers that will be
agencies related to Ohio’s Medical Marijuana
impacted the most.
Control Program. ***
GCP will continue to support Ohio’s Common Sense Initiative (CSI) – which requires state agencies, when developing or reviewing their business regulations, to seek input from the business community early in the process and to balance the goals of the regulation with the costs for businesses to comply. This balance is critically important for our members, particularly small businesses. We have been successful helping our small business members secure appointments to the CSI Small Business Advisory Council to ensure they can provide key input on the state’s efforts. We will continue to seek out opportunities to ensure our members are engaged and involved on regulatory issues that could have a significant impact on their cost of doing business. BUSINESS COST AND COMPETITIVENESS ISSUES
29
Transportation and Infrastructure
30
Funding for Roads, Bridges and Public Transportation A safe and reliable transportation system is critical to our continued growth as a region. The ease of access to jobs, transport of goods, and connection to amenities are essential ingredients to the strength and vitality of a place. Yet we face a national challenge in making the needed investments in aging infrastructure and public transportation to grow to the next level. That must change and we must work towards a common goal – growing the economic competitiveness of Ohio – to find viable solutions.
32
TRANSPORTATION AND INFRASTRUCTURE
GCP joined organizations from across the country to secure successful passage of the federal Surface Transportation Authorization bill in 2015 that will provide funding for the next five years for infrastructure projects. However, finding alternative and/or new funding streams to make up for the shortfall that currently exists in the law is needed. Congress and the Administration must act to explore all options to ensure we can effectively respond to the needs within the nation’s transportation and infrastructure system. At the state level, Ohio ranks in the bottom 10 percent of states for its funding for public transit at 63 cents state share for every dollar spent. Creative solutions are needed to better support this system. GCP, working with other business partners, will engage in policy discussions with local, state and federal leaders to develop a public transportation policy that focuses on connecting individuals with jobs. A long-term comprehensive approach should include a focus on economic trends, technological advancements, and the geography of where jobs are located. ***
A Changing Political Landscape The success of this public policy agenda depends on our ability to forge strong partnerships with government at all levels and for elected officials to work together in areas of shared interest. We also need broad and strong coalitions to influence government decisions in Columbus and Washington, D.C. GCP and COSE have played an active role in convening and, in some cases, leading coalitions at the local, state and national level. That work will continue over the next two years of this agenda as we work with current and future political leaders, on behalf of our members, to build their understanding of our core issues and advance good public policy.
34
National Small Business Association
Ohio Metro Chambers Coalition
The National Small Business Association
GCP actively participates in the Ohio Metro
(NSBA) is a non-partisan organization
Chambers Coalition, comprised of the Ohio
that advocates on behalf of America’s
Chamber of Commerce and the seven other
entrepreneurs with membership from every
major metropolitan chambers from across the
state and every industry in the country.
state. The coalition jointly advocates at the
COSE, a core member of NSBA, utilizes
Ohio Statehouse on issues of common interest
the Washington Presentation to meet with
including budget, education, Medicaid, tax and
members of Congress and their staff to
transportation policy issues. Last session, the
educate elected officials on the public
coalition actively worked together on multiple
policy issues that are of most importance to
issues that had significant impact for the
the small business community.
business community including: •
S haping the state’s tax reform plan to reflect what small, mid-market, and large companies considered to be top priorities for business growth;
•
D efeating Issue 3, a flawed ballot initiative that would have made Ohio the first state in the country to approve medical and recreational marijuana use at the same time, while simultaneously supporting Issue 2 to heighten the threshold for statewide ballot initiatives;
•
S upporting Issue 1, which reformed the way state districts are drawn to make them more competitive;
•
E nsuring key employer protections were included in Ohio’s medical marijuana legislation passed by the General Assembly in 2016; and
•
Working with state leaders to retire Ohio’s federal unemployment compensation debt – a penalty that was costing Ohio companies $126 more per employee than what they would pay at the regular rate – and finding a long-term solvency solution for the state unemployment compensation fund.
Working with this coalition will remain important on issues that we will be faced with in the next state budget cycle and legislative session. 36
A CHANGING POLITICAL LANDSCAPE
Great Lakes Metro Chambers Coalition
Political Action Committee
GCP co-founded the Great Lakes Metro
The Greater Cleveland Partnership
Chambers Coalition to leverage the economic
Political Action Committee (GCP PAC) is
force of the 12 states and two Canadian provinces
a nonpartisan, member-driven endeavor
that comprise the Great Lakes region. This
committed to advancing the business
group of more than 30 chambers of commerce
community’s interests by building and
collectively advocate a public policy agenda to:
reinforcing relationships and supporting candidates and current elected officials at
• • •
• •
P reserve and enhance the quality of our
the state and local levels of government.
Great Lakes.
By participating in the political process,
A dopt immigration policies that encourage
we provide our members with a unique
high-skill immigrants to locate to our region.
opportunity to advocate for an environment
E ncourage development of natural gas,
that encourages economic growth and
nuclear energy and clean coal technology
prosperity. The GCP PAC represents a strong,
that are essential to manufacturing.
unified voice for businesses of all sizes and
I mprove border crossing on the U.S. and
industries in our region and aids businesses in
Canadian borders.
educating key decision makers on issues that
A ddress transportation infrastructure issues.
are important to them. The GCP PAC received increased contributions from members in 2016;
Greater Cleveland Civic Connection The Greater Cleveland Civic Connection serves as a forum for public and private sector leadership – GCP, Cuyahoga County, the City of Cleveland, Cleveland-Cuyahoga Port Authority, Greater Cleveland Regional Transit Authority, and the Northeast Ohio Regional Sewer District – to engage and collaborate on issues of critical importance to the economic climate of Northeast Ohio. For more than 30 years this partnership has promoted billions of dollars of key infrastructure investment in the region and has evolved to include a refined focus on municipal engagement, business interaction and public outreach.
we look to continue this growth trajectory over the next two years. ***
GCP Council and Staff GCP Government Affairs Council DEBORAH Z. READ, CHAIR Thompson Hine 216.566.5778 deborah.read@thompsonhine.com
PAUL J. CHAFFEE Software Answers 440.526.0095 ChaffeeP@Software-Answers.com
ALEX JOHNSON Cuyahoga Community College 216.987.4850 Alex.Johnson@tri-c.edu
KEVIN JOHNSON, VICE CHAIR Glenwood Management Company 216.268.1700 Kevin.Johnson@CaringConcierge.com
KEN COLEMAN Fairport Asset Management 216.431.3833 Kenneth.Coleman@fairportasset.com
ARIANE KIRKPARTICK The AKA Team 216.751.2000 ariane@akateam.com
KRISTEN BAIRD ADAMS PNC 216.222.8202 kristen.adams@pnc.com
PAUL J. DOLAN Cleveland Indians 216.420.4368 Pdolan@indians.com
ROBERT J. KLONK Oswald Companies 216.367.4946 rklonk@oswaldcompanies.com
KEITH A. ASHMUS Frantz Ward LLP 216.515.1609 kashmus@frantzward.com
JUSTIN EVANS Giant Eagle, Inc. 412.963.5983 Justin.Evans@gianteagle.com
DEBBIE KUHN Girltrunks 330.405.4918 debbie@mygirltrunks.com
JOEL BAILEY FirstEnergy Service Company 330.384.3738 BaileyJ@fes.com
JOSE FELICIANO Hispanic Roundtable of Cleveland 216.861.7827 JFeliciano@bakerlaw.com
DARYL LAISURE ZIN Technologies 440.625.2300 laisured@zin-tech.com
AKRAM BOUTROS MetroHealth Medical Center 216.778.5700 ABoutros@metrohealth.org
EVALYN GATES Cleveland Museum of Natural History 216.231.2001 egates@cmnh.org
LISA LOGAN Logan Clutch 440.808.4258 loganl@loganclutch.com
MICHAEL CANTOR Allegro Realty Advisors 216.965.0629 MCantor@allegrorealty.com
JAY GERSHEN Northeast Ohio Medical University (NEOMED) 330.325.6263 President@neomed.edu
DAN MCMULLEN Calfee, Halter & Griswold, LLP 216.622.8656 dmcmullen@calfee.com
MICHAEL CANTY Alloy Bellows & Precision Welding 440.684.3000 x 109 m.canty@alloybellows.com
DAVE HARMAN Ferriot, Inc. 216.215.4476 dharman@ferriot.com TOBY HEINTZELMAN Driftwood Restaurants 440.834.1800 thz7331@yahoo.com
38
GEORGE K. MEHOK Safeguard Properties, LLC 800.852.8306 x1795 george.mehok@safeguardproperties.com DUFFEY MILKIE Cedar Fair 410.609.5770 DMilkie@cedarfair.com
Greater Cleveland Partnership Staff RANDY MYEROFF Cohen & Company 216.774.1102 RMyeroff@cohencpa.com
RUSS SCHABEL Philpott Solutions Group 330.225.3344 rschabel@philpottrubber.com
JOSEPH D. ROMAN President and CEO 216.592.2341 jroman@gcpartnership.com
JOHN NEWLIN Quality Services 440.327.1936 jjn@qualitysprinklingsystems.com
MIKE STANEK Hunt Imaging, LLC 440.826.0433 x224 MStanek@huntimaging.com
MARTY MCGANN Senior Vice President, Government Advocacy 216.592.2244 mmcgann@gcpartnership.com
STEPHEN NORTON STERIS Corporation 440.392.7482 Stephen.Norton@steris.com
PAUL STRACK Michael Baker, Jr. Inc 216.776.6610 PStrack@mbakercorp.com
TIM OPSITNICK Jurinnov Ltd. 216.664.0900 or 440.724.1019 tmo@JURINNOV.com
STEVE STRNISHA Cleveland International Fund 216.245.0808 Strnisha@clevelandinternationalfund.com
LARRY OSCAR Hahn Loeser 216.274.2229 LEOscar@hahnlaw.com
TARAS (TERRY) SZMALAGA JR. Eaton Corporation 440.523.4502 TarasGSzmagala@eaton.com
RICHARD (DICK) PACE Cumberland Development 216.378.0654 RPace@cumberland-development.com
ERIC TOLBERT Eric Tolbert & Associates 216.373.7526 eric.x.tolbert@ampf.com
KYLE ROSE PolyOne Corporation 440.930.3162 Kyle.Rose@polyone.com
JEFF WALTERS CBIZ MHM, LLC 216.525.1085 JWalters@cbiz.com
DEBORAH RUTLEDGE The Rutledge Group 216.561.4444 x203 Deborah.Rutledge@rutledgegrp.com
STACY WARD-BRAXTON The Significance Group 216.526.7220 stacy@thesignificancegroup.com
SANTE GHETTI Vice President, Government Advocacy 216.592.2392 sghetti@gcpartnership.com ALESHA WASHINGTON Vice President, Government Advocacy 216.592.2225 awashington@gcpartnership.com
1240 Huron Road East • Cleveland, OH 44115 216.592.2370 • gcpartnership.com/advocacy