2015 State Agenda

The Chamber of Commerce of Huntsville/Madison County We’re grateful to the members of the Madison County Legislative Delegation, Governor Bentley and the other leaders in State Government for their continued support of this region. A healthy partnership with the State is critical to our region’s continued success. Your support of the items listed below will help ensure the continued growth of North Alabama and the Tennessee Valley region.

Update Alabama’s Economic Development Incentives Alabama’s economic development incentives have fallen behind as other states have enhanced their offerings to industry. We would encourage the legislature to enact an Economic Development Incentive Package that focuses on improvements, while at the same time providing adequate accountability to ensure that incentives are appropriate and provide a suitable return on investment. The following items should be included in an economic development incentive package: u Phase out the non-competitive statutory capital credit u Create a new jobs credit of up to 3% of previous year’s wages for 10 years and a new

investment credit of up to 1.5% of capital investment per year for 10 years

u Make credits available only for NEW JOBS and NEW INVESTMENT u Create a pay-as-you-go system where the state receives new revenues BEFORE

incentives are paid

u Increase incentives for new projects that locate in RURAL areas u Provide additional incentives for new wages paid to VETERANS u Offer incentives for those who invest in SMALL BUSINESSES and start-up companies u Allow for the extension of non-educational tax abatements for up to 20 years u Provide research and development credits for work done with Alabama-based research

centers

u Develop new incentives for EXISTING businesses to upgrade Alabama-based facilities

for continued operations and sustainability within their communities.

Pre-K-12 Education The quality of public education in the State of Alabama is critical to economic development success. Businesses locate, stay and expand where they are able to find educated workers and where their employees can access quality education for their children. Alabama is competing with the rest of the nation and the world for aerospace, automotive, biotech, information technology and other high-growth industries. Alabama’s graduates must be able to perform as well as or better than those in other states and countries. The best way to ensure their success is to teach to high standards that are in alignment with other states and evaluate our students against those standards. To these ends, the Chamber strongly supports the Alabama College and Career Ready Standards which align with the Common Core State Standards and adoption of Next Generation Science Standards for Alabama.

While public education is not mandatory until age 7 in Alabama, research shows that the return on investment in pre-K programs is much higher than even elementary and secondary education, especially for at-risk children. Children that attend high quality pre-K are more likely to enter kindergarten ready to learn, read at grade level by third grade, graduate from high school, enter college, and have higher earnings. The Chamber encourages state lawmakers to increase state investments in “First Class” by $13.2 million as recommended by the Alabama School Readiness Alliance Pre-K Task Force. This would bring total First Class Pre-K investments to $51.7 million for FY16.

Alabama is poised to authorize charter schools. As the State considers this step, the Chamber requests that the legislation include these four critical components: u Give school districts the same flexibility and autonomy that enable charter schools to

be successful. Although passage of the Alabama Accountability Act promised flexibility for local school districts, critical waivers have been denied. u Avoid negative financial impact on public school systems that are constrained by fund-

ing formulas, personnel policies, long-term capital commitments and the requirement to educate all students.

u Make special provisions for school systems under desegregation orders that are attempt-

ing to gain unitary status. A charter school could derail efforts to regain local control.

u Do not undermine the authority of locally elected boards of education or the State

Board of Education.

The State of Alabama has launched education initiatives that have proven to be very successful in significantly raising student achievement. The Alabama Math, Science and Technology Initiative (AMSTI) and the A+ College Ready Advanced Placement (AP) program have been recognized nationally for their effectiveness, but the funding is not available to implement and sustain them across the state. The Chamber encourages the legislature to work to protect current funding levels for public education and identify additional revenue to enable our education system to fully implement AMSTI and AP.

Support Workforce Development The most critical factor in economic development is the availability of a skilled and educated workforce. As the State makes difficult decisions about funding, it is important to remember that education and training generate significant return on investment. Programs such as Career Coaches and dual enrollment are important tactics in our overall economic and workforce development strategy. Their impact and reach are directly related to funding levels. The Chamber supports the Alabama Workforce Council’s request for an additional $2.5 million for career coach salaries plus $10,000/per career coach for printed materials, collateral and other job-related activities. The Chamber also supports the Alabama Community College System’s request to double the 2014-15 appropriation for dual enrollment from $5 million to $10 million.

The Chamber supports initiatives to better prepare our workforce, including a small tax credit for an employer-based apprenticeship program under the direction of Alabama Industrial Development Training (AIDT) and small scholarships for early graduating students to attend Alabama’s community and technical Colleges. AIDT continues to be one of the best investments the State makes in its economic development efforts and preparing its citizens for the jobs of today.

Invest in Higher Education Huntsville and Madison County’s workforce is a critical national asset, and the success of our knowledge-based economy is highly dependent on workers who have at least a four-year degree, and often advanced degrees. The quality of the workforce at Redstone Arsenal, Cummings Research Park and the region’s economy is inextricably tied to local research universities.

Increase support for UAH For the second year in a row, UAH was ranked number one in the nation for return on investment based on tuition compared to 20-year earnings after graduation. UAH also ranked in the top ten nationally for being “underrated” based on the high earnings of its graduates compared to the school’s reputation. The 2015 U. S. News & World Report ranks UAH the 101st best public university in the nation out of 2,500 four-year public institutions in the U.S. The 2014 rankings of engineering schools show UAH tied with eight schools at 102 of 140. While its graduates do well professionally, UAH needs to enhance its programs

and faculty in order to increase its national standing and enable more selective enrollment.

The Chamber of Commerce of Huntsville/Madison County recognizes that The University of Alabama in Huntsville must have increased resources to play an increasingly crucial role for this community and Alabama’s future economic, technological and workforce development. Support for programs in Aerospace & Systems Engineering; Biotechnology; Cybersecurity & Big Data; Earth, Atmospheric and Space Science; and Gaming & Entertainment Arts are crucial to the community’s continued development.

Support Alabama A&M STEM programs Alabama A&M University ranks in the top 20 on US News and World Report’s list of Historically Black Colleges and Universities and is one of only two public universities to make the list. Additional State support to help A&M deliver strong Science, Technology, Engineering and Math (STEM) curriculum and support for expanding programs and facilities at Alabama A & M University is greatly needed. Expanding STEM programs and facilities at Alabama A & M University will help produce the workforce our community requires.

Improve Local Infrastructure Our community has recently made tremendous progress funding infrastructure projects utilizing partnerships with the State, specifically, the 2014 agreement with the State of Alabama and the City of Huntsville to match funding to initiate $250 million road construction projects and the ATRIP road projects announced by Governor Bentley. The prospect of future rounds of Base Realignment and Closure however, make infrastructure improvements a continuing top priority for the community. The economic success of our region is reliant upon effective transportation networks that can efficiently move commuters, freight, and services that are vital for continued growth and development of the Tennessee Valley, inclusive of Redstone Arsenal. The Chairman of the Madison County Commission and the Mayors of Huntsville and Madison and Redstone Arsenal leadership have jointly endorsed the following key projects as the top road priorities for the region: u I-565/Research Park Blvd Interchange Modification at Gate 9: Funding these

needed interchange modifications to support exponential growth in traffic at Redstone Arsenal and the adjacent Redstone Gateway development.

u I-565 and Madison Blvd (Exit 13) Interchange Modification for Resolute Way access

at Redstone Arsenal: Improvements through the commercial corridor to address major traffic issues on a route critical to Redstone Arsenal and Research Park commuters.

u Research Park Blvd from I-565 to North of US 72: Provide funding to begin the design

and construction of additional lanes to State Rd 255 to support the recent exponential growth in traffic at Redstone Arsenal and Cummings Research Park.

u Arsenal Eastern Connector: Provide support and funding for implementing a final

Corridor Study and Preliminary Engineering.

u US 231 North and South Overpasses and Corridor Improvements: Funding for the

construction of the scheduled improvements at Memorial Parkway. Funding is also requested for the preliminary engineering, right of way acquisition, and construction of the planned capacity projects required for access management at Memorial Parkway and Mountain Gap Rd and Winchester Rd.

u US 72 East/ARC Corridor V from Shields Rd eastward to the county line: Funding

be allocated and appropriated through any remaining ARC dedicated monies and any eligible MAP-21 funds as soon as possible to improve this much needed corridor.

u Martin Luther King Jr. Blvd/Northern Bypass: Interchange at Memorial Parkway and

extending the Northern Bypass from U.S. 231 to U.S. 72. Request support and funding for this project to provide more capacity and accessibility as a result of regional workforce traffic demand.

u Highway 53:

Request to keep this project on schedule to begin construction of the next segment to Harvest Rd in 2015 and continue to build on progress made for this important corridor.

u Winchester Road from Naugher Road to New Market Road:

construct improvements on the next phase of Winchester Rd.

Provide funding to

u Jeff Road: Fund the widening of this important corridor from Douglas Rd to Alabama

Highway 53. Madison County is widening Jeff Rd from U.S. Highway 72 to Douglas Rd and additional funding is needed to complete this corridor to Highway 53 in a timely manner.

Prepare Alabama for the next round of BRAC We appreciate our Delegation’s support for the work of the Military Stability Foundation. We request continuing support for efforts to create a “military friendly” environment for the service members and civilians supporting the military. The state should pass legislation that would help veterans, service members, and military families currently living in the State and civilians and military transitioning to Alabama from other States. Reciprocal teacher certification with other states would help military spouses transferring into Alabama to find work as teachers.

Biosciences Alabama has an outstanding opportunity to have an increased global reach in the Biosciences.

Through the work of the Alabama Department of Commerce and economic development teams in the north Alabama region, the state is strengthening its presence in bioscience recruitment.

Additionally, investments in the state’s college and university system and in scientific research institutes, such as the HudsonAlpha Institute for Biotechnology, will continue to produce advancements in technologies, therapeutics and diagnostics in human health and agriculture.

These advancements pay dividends to the state of Alabama in terms of economic impact, job growth and reputation as a state for innovation. The chamber supports targeted funding for scientific innovation at the state’s colleges, universities and research institutes. The chamber also supports increased focus on economic development within the growing bioscience sector.

Health Care We congratulate the legislature for passing reforms of Alabama’s Medicaid program to control costs and ensure long-term sustainability by improving efficiency, addressing fraud and abuse, and ensuring access to quality health care for the citizens of Alabama. Expanding Medicaid coverage would help to prevent the burden of the uninsured being shifted to the rest of the citizens of Alabama.

Limited Production Breweries License The Alabama Legislature has opened the door for tremendous growth in the craft beer industry, and craft beer is proving to have a positive economic impact on the State. Currently, craft breweries can sell through a taproom in their brewery for on-site consumption. However, laws that prohibit the sale of craft beer by breweries for off-site consumption and prohibit the sale of food at breweries are limiting the growth of existing breweries and creating obstacles for new breweries seeking to locate in the State. The Chamber requests that the Legislature enact a change in state law that would create a limited production brewers license that would allow the sale of craft beer at breweries for off-site consumption and allow the operation of a licensed restaurant on its premises.

Marketplace Fairness Act for Internet Sales The cities in our region work hard to attract, retain and grow retail business. We view these efforts as one the core elements of economic development that have breathed new life into our commercial corridors. The Marketplace Fairness Act would not impose any new taxes. It would simply create a level playing field for all retailers. In addition to its impact on local brick and mortar retailers, the lack of sales tax fairness impacts state and local governments and, of course, the retailers in our region. A University of Tennessee study estimates that the inability to collect sales taxes from remote retailers resulted in $152 million in lost revenue in Alabama in 2011, a number that has surely grown. The sales tax currently owed but not collected could be spent to bolster public services, spur local economic development and create new jobs in our community. Sales tax fairness will create a level playing field for Huntsville retailers, protect our tax base and bolster our economic development efforts. We urge the legislature to support the Marketplace Fairness Act to create a level playing field for online and brick and mortar retailers.

Telecommunications Infrastructure Broadband is an essential component of our infrastructure and critical to growing and diversifying our economy. The Huntsville/Madison County Chamber of Commerce supports policies that promote greater access to affordable wired and wireless broadband for all our citizens and businesses; encourages new investment and technology development and deployment across our community; and, promotes greater competition and choices for businesses and consumers.

We oppose public policy that leads to excessive government intervention and regulation of the Internet, which will inevitably discourage investment and drive up costs for business and consumers.

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