2012 state agenda

The Chamber of Commerce of Huntsville/Madison County While natural resources made much of Alabama’s economic growth possible in the previous millennia, technological resources will fuel our growth in this century. To produce economic benefit, technological resources must be developed, just as our natural resources have been nurtured, mined and cultivated.

The Huntsville metro area is rich in technological resources that, properly nurtured and developed, will position this region for growth in the years to come. Other areas of the State are likewise well positioned to capitalize on innovation that can lead to economic growth.

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State investments in STEM education, entrepreneurial development, research and development will be critical.

Direct investments in technology institutions such the HudsonAlpha Institute for Biotechnology, the NASA Space Science and Technology Center (NSSTC), BIZTech, UAHuntsville and Alabama A&M, will also help this region capitalize on its technological potential.

Support Technology Focused Economic Development Efforts North Alabama’s aerospace and defense technology sector is beginning to feel the impact of federal budget uncertainty and impending cuts. To preserve the highly skilled and educated workforce and avoid further economic recession, we must create new opportunities with emerging technologies in commercial markets.

Significant growth opportunities exist in North Alabama in the fields of cyber security, energy, robotics, small satellites, telecommunications, modeling and simulation, and biotechnology.

The region was awarded a second year of funding through the Small Business Administration to foster job creation, small business growth and commercialization in Advanced Defense Technology, and opportunities and assets have been identified that could establish North Alabama as the leader in innovation in these technologies. Mayor Battle, the Huntsville/Madison County Chamber of Commerce and the Tennessee Valley Corridor have established initiatives in support of this goal and are working together to accomplish the objectives. It is vitally important that the State Legislature partner on these initiatives for the long term health of the economy in Northern Alabama. To this end, we are holding a Technology Summit focusing on commercialization of the wealth of technologies within our aerospace and defense organizations, and invite the Governor and the Legislature to partner with us. u We appreciate the Legislature’s creation of the Innovation Fund in 2011, and we ask that

guidelines for investment be established to ensure that the Fund generates new jobs in the technology sector. We also encourage the Legislature to identify a sustainable source of revenue for the Innovation Fund that would enable it to grow annually. u The Chamber supports a Research and Development Tax Credit. Thirty-six states,

including all those surrounding Alabama with an income tax, have such a credit. We encourage the local delegation to take a leadership role on this issue. u The Chamber supports passage of the proposed Alabama Jobs Creation and Re-

tention Act with the complementary constitutional amendment language that will allow this type of incentive legislation to pass. The Alabama Jobs Creation and Retention Act will include a Withholding Incentive that will allow approved companies to retain a percentage of state income taxes withheld from eligible employees. This incentive and others included in the bill will make Alabama more competitive in business and industrial recruitment efforts.

Education / Workforce Development Pre-K-12 Education Programs – u While public education is not mandatory until age seven in Alabama, research shows that

the return on investment in pre-K programs is much higher than even elementary and sec-

ondary education, especially for at-risk children. Improved societal outcomes directly related to quality pre-K include higher education levels, homeownership and salaries at a ratio of 10:1 over the cost to provide the program. The Chamber joins the Business Council of Alabama and national organizations such as the U.S. Chamber of Commerce’s Institute for a Competitive Workforce, the Manufacturing Institute, and the Society for Human Resource Management in advocating for policies that maximize this return. State investments should be made to increase access to public pre-K and to raise the quality of existing programs. u Alabama is poised to authorize charter schools during the 2012 legislative year. As the state

makes this step, it will be important to give school districts the same flexibilities that enable charter schools to be successful without negatively impacting the public schools that must educate all students. Passage of Students First was the first step in giving school systems the personnel flexibilities to maximize student achievement. Additional flexibilities are requested to allow public schools the same elements of success that charter schools enjoy.

For instance, we support providing block funding to systems to allow discretion over certain categories of funding. We also support giving a superintendent the authority to close a failing school – one that has been in “improvement” status for three or more years – and to require those teachers to reapply for their positions. We ask that the legislature be very cautious about opening individual charter schools within public school districts because of the inequities in management that will exist and the requirement placed on the public schools to educate all students. If individual charter schools are authorized, we ask that they be chartered and managed by the state, using state funds, rather than impacting the local systems. While competition can be a great motivator for success, the rules among schools – charter and public – should be the same.

Alabama Math, Science and Technology Initiative (AMSTI) budget request for 2013 is $37 million. At the previous level of $27 million, AMSTI was just able to sustain itself – to train newly hired teachers and teachers changing grade levels at existing AMSTI schools.

Except under very special circumstances, no new schools have been added and no AMSTI Summer Institutes have been held since 2009. The National Assessment of Educational Progress report released last year said that Alabama was one of only nine states in the country to show significant improvement since 2009 in 4th grade math. Of these nine states, Alabama showed the second-highest gain. This success is especially remarkable because AMSTI is in less than 50% of Alabama schools. AMSTI was originally slated for statewide implementation by 2012.

The Alabama Reading Initiative has been successfully implemented across the state, allowing some of its funding to be applied to AMSTI. The Chamber recommends increasing the AMSTI budget to $50 million for the next three years, so that AMSTI could be expanded to all Alabama schools.

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Workforce Development – Post-secondary education and training covers a wide range of workforce development programs, from high school dual enrollment to incumbent worker training. Programs managed by the Department of Postsecondary Education reduce the high school dropout rate, increase

the number of adults with GEDs, assist students and adults in making career decisions that support our economic growth, and raise the overall quality and preparedness of our workforce. The Chamber supports the Department’s request for an additional $10 million to fund the priorities identified by the 10 regional Workforce Development Councils across the state. These funds are directed to the programs, industries and occupations that the business community in each region identifies as high growth, high demand and high wage. We encourage the Legislature to find additional revenue sources to fund this request without reducing other items in the education budget.

Infrastructure/Roads Developing road infrastructure is a core requirement to support current and future growth in the region. State funding is essential for the following road projects which are currently included in the State’s transportation plan and which have been jointly endorsed by the cities of Huntsville and Madison, Madison County and Redstone Arsenal leadership: u Interchange at I-565 and County Line Road u Improvements to ARC Corridor V

Higher Education –

u I-565 interchange improvements at Greenbrier Road

u Support for Research Universities

u Memorial Parkway overpasses and service roads from north of Whitesburg to south of

Vibrant research universities play an essential role in economic development as the first link in the value chain of prosperity. Governor Bentley and the Alabama legislature took tremendous strides last year in advancing Alabama’s economy toward a knowledge economy and the potential growth of 21st century jobs through the establishment of the Alabama Innovation Fund.

The Chamber believes the Alabama Legislature should expand opportunities for the state’s research universities by increasing funding to the Education Trust Fund budget. u Severe weather research

Alabama was hit hard by two major weather events in 2011. UAHuntsville is home to the state’s leading-edge severe weather research, the Office of the Alabama State Climatologist, and boasts an atmospheric sciences department ranking in the Top 10 in the United States as measured by the Chronicle of Higher Education. The development of a coordinated effort to improve our understanding of severe weather and how to better respond before, during and after major weather events would benefit all Alabamians.

Consistent funding of severe weather research and the Office of the Alabama State Climatologist is a priority for UAHuntsville and the Chamber of Commerce of Huntsville/Madison County. u Address retirees’ salary cap

Current caps on income earned by retired state employees are forcing retirees who continue to work to take jobs as non-resident employees of out-of-state universities. UAHuntsville, as well as other research universities across Alabama, is affected by this arbitrary $22,500 income cap. By exempting federal research dollars from the income restriction - to enable retired faculty to continue to pull NSF grants, NASA grants, or DOD contract work – Alabama universities could retain the best of our research faculty and staff and continue to build Alabama with someone else’s money.

The Chamber supports amending existing language to allow retired university faculty to earn a salary beyond the cap if their income is derived from non-Alabama sources, such as federal, commercial grants or state agencies that are not RSA entities. u Overcoming the Challenges Associated with the World Population in 2050

The global population is rapidly increasing and is projected to grow to nine billion by 2050, (from approximately seven billion today). Population increases will increase demand for food, food preservation and safety, as well as increased housing, and other human amenities needs. Alabama A&M University, a land grant institution in the State of Alabama, is currently positioned, though awareness, and adequate human and intellectual capital and its research achievements and scope, to lead the State in its contribution towards overcoming these global challenges.

Additional resources and political support are requested, in conjunction with state partnerships (academic and non-academic), to help lead the local, state and national efforts in mitigating or overcoming these global issues.

Golf Road and from Sparkman Drive to Mastin Lake Road u Blake Bottom Road overpass at Research Park Boulevard u Improvements to Old Madison Pike, Church Street, Winchester Road, Alabama Highway 53,

Zierdt Road, and Hobbs Island Road

The Chamber encourages the State to fund the following projects: u Preliminary engineering design for Highway 72 West from Providence Main to

County Line Road u Research Park Boulevard from I-565 to Highway 72 West u Winchester Road from Bell Factory Road to New Market Road u US 72 East (ARC Corridor V) overpass at Ryland Pike u Memorial Parkway overpass at Mountain Gap Road u Memorial Parkway overpass at Winchester Road u Construction for the Northern Bypass Phase 2 from Pulaski Pike to

US 431/Memorial Parkway.

Home Rule The Chamber supports the Madison County Commission request for the legislature to propose a constitutional amendment which would allow Madison County residents to vote to give them “Home Rule” powers, with or without taxing powers.

The population of unincorporated areas of Madison County is more than 100,000 – an increase of 46 percent in 20 years. If this population was an incorporated area, it would be Alabama’s fifth largest city. Home rule would allow the County to respond quickly to protect the business and property interests of those living outside the incorporated areas of Madison County.

Telecommunications Infrastructure Communications infrastructure is the central nervous system of our economy, connecting our businesses to their customers throughout the world. Wired and wireless broadband networks are essential components in growing and diversifying our economic base. The Chamber supports policies that promote greater access to affordable broadband for all our citizens and businesses, spur private sector investment in broadband infrastructure, promote innovation, competition and choice, foster public-private partnerships, create jobs and recognize the competitive nature of today’s telecommunications market. We also advocate policies that avoid excessive government intervention, including unnecessary regulation of the Internet, which will inevitably drive up costs for businesses and residents.

Immigration There are common issues of concern to the business community that we would encourage the legislature to address to ensure that Alabama’s immigration laws do not impose unnecessary burdens on, or penalize Alabama employers and citizens.

For more about the Chamber of Commerce of Huntsville/Madison County, visit us online at www.HuntsvilleAlabamaUSA.com