2018 STATE AGENDA
The Huntsville/Madison County Chamber is grateful to the members of the Madison County Legislative Delegation, Governor Ivey, and the other leaders in PAGE 3 Enhance Alabama’s Economic Development Incentives Support Workforce Development
continued support of this
PreK–12 Education
region. A healthy partnership
PAGE 4 Post-Secondary Invest in Higher Education Increase support for UAH Alabama A&M University PAGE 5 U.S. Cyber Camp Improve Local Infrastructure PAGE 6 Biosciences Support for local breweries, wineries, distilleries, and retailers PAGE 7 Stop Predatory Lending Exploration Park Telecommunications Infrastructure BACK State Government Leaders 2
State Government for their
with the State is critical to our region’s continued success. Your support of the items listed in this agenda will help ensure the continued growth of North Alabama and the Tennessee Valley region.
2018 STATE AGENDA
Enhance Alabama’s Economic Development Incentives The Alabama Legislature made great strides in the last few years to update the State’s economic development incentives. We would encourage the legislature to enact the following economic development incentive modifications to further enhance our State and regional economic development efforts: ■ Allow a waiver of the three year ad valorem tax lookback requirement for incentivized economic development projects ■ Provide research and development tax credits for work done in Alabama. Thirty-six states, including all those surrounding Alabama with an income tax, have such a credit. ■ Support Small Business Innovative Research (SBIR) and Small Business Technology Transfer (STTR) efforts by providing match funding for businesses that pursue phase one funding and/or phase two funding in partnership with Alabama universities. ■ Provide additional incentives for Alabama companies utilizing Alabama’s Water Ports and/or Airports
Support Workforce Development The most critical factor in economic development is the availability of a skilled and educated workforce. From PreK–12 and through post-secondary completion, rigorous academic standards combined with education and training programs that result in nationally recognized industry credentials are critical to our continued success. Our workforce development efforts require partnerships between industry, community, and education partners. Initiatives like K–12 Career Coaches, Career Assessments, and Regional Workforce Councils are important components to foster these partnerships that support our overall economic and workforce development strategy.
PreK–12 Education ■ The Chamber strongly supports the Alabama College and Career Ready Standards and Next Generation Science Standards. The Chamber supports an emphasis on clear, high goals that are both realistic and challenging for students, so that all Alabama students are college and/or career ready. The Chamber encourages any changes to these standards be for the sole purpose of increasing and not decreasing the rigor of Alabama’s PreK–12 education. With the adoption of the Every Student Succeeds Act (ESSA), the Chamber encourages the State Board of Education to develop an accountability plan with indicators that can provide
valid and reliable measurements of college and career readiness for all students. ■ The Chamber supports efforts that give school districts the flexibility and autonomy needed to meet the needs of their unique local student populations. We encourage legislation that provides special provisions for school systems under desegregation orders that are attempting to gain unitary status so that newly authorized charter school efforts cannot derail efforts to regain local control. ■ The Chamber opposes any actions that would diminish or reduce funding levels for public education in our state. The Chamber also encourages the legislature to work to protect current funding levels for public education and to identify additional revenue for the following enhancements: πTo enable our education system to fully implement Alabama Math, Science, and Technology Initiative (AMSTI) and Advanced Placement (AP) Classes. πTo fully fund transportation for students. In our county, school systems are only compensated for between 80-85 percent of their full transportation costs. πTo lower the divisors which would thereby reduce class size – especially in 4-6 th grades which have the highest divisors of any grade span. πTo increase Other Current Expenses (OCE) allocation, which would help school systems to cover basic expenses and allow our school systems to enhance opportunities for students. ■ Research shows that 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 expand state investments to cover all Pre-K Programs (both existing and new classrooms) so that all families who choose to enroll their children can do so, and that districts who created Pre-K classrooms before funding became available, are not excluded from grant support. ■ The Chamber supports measures which increase the attractiveness of the teaching career and maintain its competitiveness among high quality candidates, including a pay raise. Additionally, the Chamber supports creative solutions to address teaching sector needs such as signing bonuses for hard-to-fill positions and the continuing to seek opportunities to engage “adjunct teachers” who can bolster the regular profession with their subject matter expertise, especially in advance STEM areas. 3
2018 STATE AGENDA
Post-Secondary Salary Study: The Chamber recommends that a salary study be commissioned to examine all salary levels within the Alabama Community College System. It is imperative that we are able to recruit and retain the best talent on a regional and national basis in order to build the best workforce in the nation. Dual Credit Funding: The Chamber supports increasing the funding for dual credit scholarships in career/technical fields. This program has been very successful across the State of Alabama. However, due to its success, colleges have to cut back on their offerings due to funding not keeping up with demand. Calhoun Community College has seen its dual credit funding drop by 45 percent in the past two years. While the College continues to provide more dual credit training than any other institution of higher education in Alabama, its ability to offer multiple courses to some students is limited because of funding cuts. Capital Projects Funding: The Alabama Community College System has dire needs statewide to address facility issues. Calhoun Community College faces $41 million dollars in deferred maintenance expenses over the next decade. The Chamber recommends near term investments that will directly support/address workforce needs of aerospace and other industries in North Alabama: ■ $3 million dollars for Machine Tool/Welding programs – consolidate Machine Tool Program in ATC Building on Decatur Campus, which opens space for renovation to grow the size of our current welding program by another 50 percent to approx. 180 students annually. ■ $3.5 million dollars for state-of-the-art equipment to bring career technical programs up to date. Critical funding on this list is a 3D metal printer, an aerospace autoclave, injection molding equipment, and a precision measurement lab. J.F. Drake State Community and Technical College requests the following support: ■ Capital funding for an Advanced Technology Center, as well as funding for campus-wide renovations ■ Scholarship funding for students, especially those enrolled in developmental courses ■ Funding for textbooks and lab kits
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 advanced workforce development. Nearly 70 percent of the U.S. Army workforce on Redstone Arsenal has four-year or advanced degrees. More 4
than 90 percent of the workers at NASA’s Marshall Space Flight Center and the companies in Cummings Research Park have four-year or advanced degrees. Research universities are crucial to the economic development and success of the Huntsville-Madison County community. Continued support of the University of Alabama in Huntsville (UAH) and Alabama A&M University will ensure the quality of the workforce at Redstone Arsenal, Cummings Research Park, and the region.
Increase support for UAH UAH plays a critical role in supporting the educational and research requirements of Redstone Arsenal’s federal missions as well as the corporate presence in Cummings Research Park, the second largest university-related research park in the nation. The important national and international role that Redstone Arsenal plays in defense of our nation and space exploration encourages the state of Alabama to provide strong financial support to UAH. The funding will further enhance programs and faculty to increase UAH’s national standing to an even higher level and enable more selective enrollment. UAH requests the state of Alabama’s support to build and enhance the IT infrastructure on the campus. Development of the university’s IT and cybersecurity capabilities are the top priority. Huntsville is one of the most targeted cities in the nation for cybersecurity attacks, according to the Defense Security Service. Improved big data and IT infrastructure would provide advance research capabilities and security posture of UAH, the U.S. Army, Marshall Space Flight Center, and Cummings Research Park.
Alabama A&M University (AAMU) Accreditation and Intellectual Capital Support ($5,000,000) AAMU ranks last among the seven doctoral-granting Alabama public universities in faculty salaries, equating to an average 25 percent salary shortfall for full professors. Our STEM and business programs are particularly at risk as 33 percent of faculty are eligible to retire in five years. The national average salaries in those areas far exceed what we are currently able to pay new faculty, which exposes our ability to offer high quality programs and poses an accreditation risk as well. This has already directly impacted our ability to attain accreditation for our business programs. This investment would also boost state income taxes and buyer purchasing power in the State. Artificial Intelligence, Cybersecurity, and Other STEM Enhancements ($2,600,000 initial, then $1,380,000 annually) AAMU is the #1 producer of minority STEM majors in the State. Program costs are 40 percent higher than non-STEM programs. AAMU offers a concentration in Cyber Security, an area that is projected to grow 28 percent from 2016 to 2026.
2018 STATE AGENDA
This funding will support the enhancement of this program to better prepare students for careers at Redstone Arsenal and other industry and government jobs. Funding will also provide for lab updates needed to maintain program accreditation and advance research on topics such as robotics and use of artificial intelligence, and host STEM camps for middle and high school students. Construction/Retrofit of ROTC and Education Facilities ($2,800,000 annually for three years) AAMU’s ROTC program has served students from AAMU, UAH, and Athens State for several decades. The program has commissioned more than 900 officers who contribute to the defense of the nation, but the current building is totally inadequate in meeting the needs of the program. Additionally, the University is a top producer of teachers in the State and is the only training center for professionals in Communicative Sciences Disorders. Both facilities are in aging buildings that are no longer optimum learning and training spaces. Enhancements are needed with HVAC systems, roofs, equipment upgrades, and other building functions that have deprived students from having an adequate learning environment.
U.S. Cyber Camp The most critical National Strategic Defense Systems are designed/developed at Redstone Arsenal and require a rapid, integrated, agile framework, and processes to mitigate and prevent the substantial increase in known/unknown cyberattacks against critical National/State/Public infrastructure, industry, education, and financial resources. This sophisticated cyber threat requires multi-faceted cyber experts who understand system and network administration and analysis, intelligence analysis, proficiency in programming, and the ability to think outside the box. Demand for these cybersecurity workers is far outstripping the available workforce. Alabama has an opportunity to capitalize on our unique relationship between the U.S. Space & Rocket Center (USSRC) Space Camp model and local cybersecurity capabilities to create a world renowned Cyber Camp that promotes cyber and STEM education necessary to fill the cyber-workforce needs of the future. USSRC has completed two camps with several additional camps scheduled for Alabama students exclusively in CY 18. Capital funds of $10 million committed by Governor Ivey in July 2017 will assist in providing the facilities for the U.S. Cyber Camp, and with operations support from State funding, the initiative will expand and be available to all Alabama, regional, and national students in a year-round camp with national recognition. The Camp promotes much needed diversity in cyber students, who, through hands-on application of cyber skills, will join those already interested in or pursuing cyber career opportunities in industry or government. Additional resources (funding, personnel, equipment, facili-
ties, etc.) beyond the initial investment are required to fully execute the program and leverage lessons learned to develop and promote a nationally available program that supports workforce requirements. The Chamber requests State support, agency endorsements, and STEM-Outreach funding to further develop U.S. Cyber Camp and its mission of encouraging interest in advanced STEM education opportunities and cyber skills that increase our future workforce.
Improve Local Infrastructure Our community has made tremendous progress funding infrastructure projects utilizing innovative 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 as well as the ATRIP road program. The prospect of future rounds of Base Realignment and Closure (BRAC) make infrastructure improvements a top priority for the region. Robust transportation networks that can efficiently move commuters, freight, and services are vital for continued growth of the Tennessee Valley, inclusive of Redstone Arsenal, and is a top priority for the elected leaders of North Alabama. We understand an infrastructure bill could be introduced in 2018 by Congress. The following projects are ready for immediate development should such as package gain approval. Support for the following projects will go a long way toward maintaining North Alabama’s economic vitality: ■ I-565 to I-65 – Add additional lanes along I-565 from SR 255 to I-65 to ease traffic congestion from increased passenger and cargo traffic moving along this important economic corridor. ■ I-565 / Research Park Boulevard Interchange Modification – Fund these needed interchange modifications to support exponential growth in traffic at Redstone Arsenal and the adjacent Redstone Gateway development. ■ Improvements to I-565 Interchange with Highway 231 – This interchange is increasingly becoming more congested and dangerous. ■ U.S. Highway 72 West from Providence Main to County Line Road – This project improves overall traffic flow and provides critical capacity and safety improvements along this urban principal east-west arterial with average daily traffic volumes ranging from 32,000 to 45,000 vehicles per day. ■ I-565 and Madison Boulevard (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 Cummings Research Park commuters. 5
2018 STATE AGENDA
■ Research Park Boulevard from I-565 to North of U.S. 72 – Provide funding to begin the design and construction of additional lanes to State Road 255 to support the recent exponential growth in traffic at Redstone Arsenal and Cummings Research Park. ■ Arsenal Eastern Connector – Provide support and funding for implementing a final Corridor Study and Preliminary Engineering. ■ U.S. 72 East / ARC Corridor V from Shields Road 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. ■ Martin Luther King Jr. Boulevard / 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. ■ Memorial Parkway at Mastin Lake Road – This project completes the next phase of non-stop traffic along U.S. 231. Completing this project will allow non-stop traffic flow from Mastin Lake Drive in north Huntsville to Weatherly Road in south Huntsville.
Biosciences Alabama has a strong and growing global presence in the biosciences. The Huntsville/Madison County area contributes greatly to the state’s overall economic and scientific success in this area. Anchored by the HudsonAlpha Institute for Biotechnology – and outstanding companies such Eurofins, Aviagen, and Nektar – North Alabama continues to drive innovation in the biosciences. Within Cummings Research Park (CRP), the second largest research park in the U.S. and fourth largest in the world, resides the 152-acre CRP Biotech Campus. Home to the HudsonAlpha Institute for Biotechnology as well as dozens of life science companies employing hundreds of Alabamians, HudsonAlpha and the companies residing on the CRP Biotech campus have generated more than $1.85 billion in economic impact over the past 10 years. The biosciences in North Alabama are also driven by the state’s four- and two-year colleges and universities such as the University of Alabama in Huntsville, Alabama A&M University, Oakwood University, and Calhoun Community College. The state’s efforts in championing collaboration between North Alabama’s outstanding educational institutions, life sciences research institutes, and the biosciences industry will further advance innovation and deliver economic impact. Funding through the executive and legislative branches of government has provided needed infrastructure for growth, 6
targeted educational and job training programs, and life-improving research initiatives in health and agriculture. However, continued state support is essential for accelerating the bioscience impact in Alabama. The Huntsville/Madison County Chamber encourages state support for bioscience innovation in Huntsville/Madison County. This support will build upon the successes to date and further advance genomic research and medicine, drug discovery, crop improvements, workforce development, economic development, entrepreneurship, and job creation.
Support for local breweries, wineries, distilleries, and retailers The Alabama Legislature has made tremendous strides allowing Alabamians to engage in the business of brewing beer, making wine, and distilling liquor. These changes have encouraged local business people to start an entirely new Alabama industry, bringing hundreds of jobs and great acclaim to the State. Unfortunately, Alabama is the fourth highest taxed state in the entire U.S. – making manufacturers of distilled spirits pay over 32 percent of the bottle price in Alcohol and Beverage Control (ABC) taxes. This onerous tax structure is stifling growth for this new and exciting business. While Alabama is surrounded by states with much more favorable state tax structures for spirits (MS, GA, TN, and FL pay $7.98, $3.79, $4.46, and $6.50/bottle, respectively, Alabama pays $18.25/bottle – almost 2-3 times more than our neighboring states). Alabama can go a long way in encouraging the state’s distilled spirits businesses to grow, hire people, and invest in capital equipment improvements by bringing down the cost per bottle in ABC state taxes. We request that Alabama adopt a $4.00/bottle or less state excise tax which would make the state much more competitive. The lowest state alcohol excise taxes belong to Wyoming ($0.95/ gallon) and New Hampshire ($0.30/gallon at retail). The ABC Board has imposed several onerous requirements for these small businesses which have hindered their ability to grow and thrive. ■ The ABC is inconsistently taxing beer served in brewery tasting rooms, often charging 50 percent more than is required by licensed wholesalers. Under Alabama law, manufacturers are supposed to pay the same tax “imposed on wholesalers at the times and places set forth therein.” Instead, the ABC imposes a tax of more than $12.00 on half barrel kegs when sold in brewery tasting rooms, instead of the $8.30 tax it imposes on wholesalers for the same volume of the same product. ■ The ABC’s interpretation of the location of manufacture is inconsistent with federal regulations. It appears the ABC intends to pursue a policy that will prevent alcoholic beverages properly transferred in bond from being sold in a manufacturer’s tasting room. The ABC’s
2018 STATE AGENDA
developing interpretation of the location of manufacture is causing confusion across multiple classes of alcoholic beverages and will restrict a multi-facility business from operating efficiently. ■ The ABC Board is also requiring burdensome reporting requirements on manufacturer and wholesale licensees, such as requiring a signed invoice for small samples provided by sales representatives to retail staff. These sales representatives may visit a dozen retail accounts a day to encourage them to purchase and sell their products. Requiring a zero-dollar invoice, signed by the retailer, is an unreasonable burden to business. These sales calls may result in a single beer being sampled by the retail staff. ■ The ABC has interpreted certain tax requirements to require a $7.20 tax on cases of beer used for tastings. This prohibitively-high tax is not imposed by the legislature, which clearly imposes a $1.20 tax on a case of beer. It is instead due to an over-reaching interpretation of existing statutes and regulations. We would request the ABC Board to follow the letter and legislative intent of these statutes. If the ABC Board is unable or unwilling to make this requested change, we would encourage the Alabama legislature to rewrite the statutes to provide the appropriate statutory guidance. ■ The ABC’s monthly reporting requirements for manufacturers consist of up to 55 pages of information. This puts an enormous burden on small businesses and is not necessary for the ABC to properly regulate these small businesses. Breweries are required to keep detailed information and to turn that information over to ABC officials on demand. Requiring a monthly compilation of this data is an unreasonable burden. We would request that the ABC Board relax these regulations. If the ABC Board is unable or unwilling to make these requested changes, we would encourage the Alabama Legislature rewrite the statues to provide the appropriate statutory guidance, and impose a much more reasonable state tax on liquor.
Stop Predatory Lending The Chamber supports meaningful reform of Alabama laws regulating predatory lending practices that include (but are not limited to) payday and title loans. Predatory lenders in Alabama are legally allowed to charge extremely high interest rates and fees on short-term, small dollar loans, creating a cycle of debt that hurts Alabama families and drives more citizens into a downward spiral of poverty. We advocate for fair and equitable access to credit for Alabamians, and we strongly support legislation to curb predatory practices that cause economic hardship for working families and drain resources from communities.
Exploration Park The Chamber requests that the State of Alabama endorse and support the on-going public/public partnership initiative between Redstone Arsenal and the U.S. Space & Rocket Center (USSRC) to develop Exploration Park, currently an area of undeveloped land directly adjacent to USSRC. The project’s primary mission is to further enhance the morale, welfare, and recreation of Team Redstone’s workforce, and to development additional public quality of life enhancement for the community and growth of USSRC educational programs. Exploration Park will provide a signature quality of life feature and create a magnet for a talented workforce to continue Team Redstone’s critical contributions to our Nation’s national defense and exceptionalism in technology and engineering.
Telecommunications Infrastructure Broadband is an essential component of our infrastructure and critical to growing and diversifying our economy. The Huntsville/Madison County Chamber 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. Alabama is currently ranked 41st in the nation for broadband connectivity. The average speed statewide is 27.5 Megabits per second (Mbps), barely reaching the 25 Mbps threshold considered adequate in 2015 by the Federal Communications Commission (FCC). Over one-fourth of Alabama’s population is considered underserved, and fewer than 20 percent of Alabamians have access to broadband through fiber optics. Rural communities continue to face challenges of obtaining adequate and affordable service; however, areas just outside Alabama’s metro areas often lack access to adequate speeds as well. Broadband is a key driver for economic development and is increasingly critical to our State for education, healthcare, government services, public safety, innovation, and much more. In an effort to speed deployment of adequate and affordable broadband to all underserved communities across our State; affect policies; promote funding programs and public-private partnerships; and impact access, adoption, and utilization efforts to better serve all Alabamians, we recommend the re-establishment of the Alabama State Broadband Development Office. This statewide effort can be accomplished by Executive Order.
7
Governor Kay Ivey (R) 334-242-7100 governor.alabama.gov
ALABAMA S E N AT E
ALABAMA HOUSE O F R E P R E S E N TAT I V E S
Tim Melson (R)
Mac McCutcheon (R) – Speaker of the House
District 1 (Lauderdale, Limestone, Madison) 256-539-5441 ■ 334-242-7888 (Montgomery) tmelson672@aol.com
District 25 (Jackson, Madison) 256-655-3764 ■ 334-242-7672 (Montgomery) c.mac.mccutcheon@gmail.com
Bill Holtzclaw (R)
District 53 (Madison) 256-539-5441 ■ 334-242-7600 (Montgomery) anthonydanielsdistrict53@gmail.com
District 2 (Limestone, Madison) 256-651-5921 ■ 334-242-7854 (Montgomery) bill.holtzclaw@alsenate.gov
Arthur Orr (R) District 3 (Limestone, Madison, Morgan) 256-260-2147 ■ 334-242-7891 (Montgomery) senator@arthurorr.com
Paul Sanford (R) District 7 (Madison) 256-539-5441 ■ 334-242-7867 (Montgomery) paulsanford67@gmail.com
Steve Livingston (R) District 8 (DeKalb, Jackson, Madison) 256-609-6341 Cell ■ 334-242-7858 (Montgomery) senatorstevelivingston@gmail.com
Clay Scofield (R) District 9 (Blount, Madison, Marshall) 256-582-0619 ■ 334-242-7876 (Montgomery) clayscofield@mclo.org
Anthony Daniels (D) – Minority Leader
Phil Williams (R) District 6 (Madison) 256-694-8834 ■ 334-242-7704 (Montgomery) philhouse44@gmail.com
Mike Ball (R) District 10 (Madison) 256-565-6225 Cell ■ 334-242-7683 (Montgomery) mikeball@knology.net
Laura Hall (D) District 19 (Madison) 256-656-2301 Cell ■ 334-242-7688 (Montgomery) annihall19@gmail.com
Howard Sanderford (R) District 20 (Madison) 256-533-1989 ■ 334-242-4368 (Montgomery) hs1989@aol.com
Ritchie Whorton (R) District 22 (Jackson, Madison) 256-679-6490 Cell ■ 334-242-7600 (Montgomery) ritchiewhorton@gmail.com
For more about the Huntsville/Madison County Chamber, visit us online at hsvchamber.org.