2019 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 1 PreK–12 Education Workforce Development Support Post-Secondary Education PAGE 2 Appointed Superintendent and Boards of Education Invest in Higher Education PAGE 3 Biosciences Medicaid Expansion PAGE 4 Infrastructure: Roads Enhance Alabama’s Economic Development Environment PAGE 5 Support Local Distillers, Brewers, & Wineries Stop Predatory Lending Exploration Park Broadband BACK Cybersecurity State Government Leaders
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 in this agenda will help ensure the continued growth of North Alabama and the Tennessee Valley region.
2019 STATE AGENDA
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 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. πTo increase funding for English Language learners in our K-12 schools by $9.5 million to address the essential and specific instructional needs of children. ■ 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 fully fund 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. 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. Additionally, align benefits for Tier II retirees to be competitive with neighboring states. We also support incentives for teachers to seek National Board Certifications. ■ Education Data System: Analyzing data and examining outcomes are vital to the success of education outcomes. The Chamber endorses the development of the Longitudinal Database System and Governor Ivey’s P20W Council to govern its utilization. ■ The Chamber supports funding for the Alabama Cyber Technology and Engineering magnet school, including capital funding to begin construction of the new facility.
Workforce Development Career Awareness Each Alabama student is to be given an interest/aptitude assessment in the 8th grade, where they are to choose one of the 16 industry clusters. At that time, a career plan is developed to guide them in a curricula plan that eventually would lead to applicable Career Technical Courses, which would begin a credentialing pathway. Beginning a pathway for nationally recognized credentials opens up a future for the STEM technical workers so needed in our growing workforce. These credentials are stackable and are followed in postsecondary and beyond to a lifelong learning process with off and on ramps. There have not been enough counselors to follow the 8th grade choice and keep students on a pathway, giving them the annual guidance to stay engaged. The Chamber recommends increased funding for Career Coaches, so that each school has a dedicated Career Coach in order to keep each student on a course and stay in school.
Support Post-Secondary Education Support increased funding in the Fiscal Year 2019-2020 Education Trust Fund Budget, including: ■ Provide increased funding to support the Alabama Industry-Recognized and Registered Apprenticeship Program (AIRRAP) Industry certifications for Manufacturing, Healthcare, Logistics, IT – Cyber, and Construction programs, etc. to meet the Alabama Workforce Council’s and Governor Ivey’s attainment goal of adding 500,000 new credentialed, high-skilled employees to Alabama’s workforce by 2025. ■ Provide increased funding for Industrial Maintenance / FAME (Federation for Advanced Manufacturing Education) apprenticeship programs. 1
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■ Provide one-time investments for advanced manufacturing equipment for both universities.
Invest in Higher Education
■ Provide increased funding to support dual enrollment programs for all the certification programs mentioned above.
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. Approximately 70 percent of the U.S. Army workforce on Redstone Arsenal has four-year or advanced degrees. More than 90 percent of 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 region’s growth. Continued support of The University of Alabama in Huntsville (UAH) and Alabama A&M University (AAMU) will ensure the quality of an advanced workforce at Redstone Arsenal, Cummings Research Park, and the region.
■ Provide increased funding for the operations and maintenance of the community and technical colleges, including funds for a Student Success Initiative. ■ Provide increased funding for postsecondary correctional education services, including new funds for a pilot program to provide adult education services and skills training for parolees. ■ Provide new funding for school safety and security per the recommendations of the Governor’s SAFE Council. ■ Provide funding for technology upgrades and maintenance from the Education Trust Fund Advancement and Technology Fund, including funds to complete the implementation of a single Enterprise Resource Planning (ERP) financial management system across all community and technical colleges and ACCS. ■ Support legislation that authorizes the Public School and College Authority to issue bonds for capital improvements at Alabama’s community and technical colleges. ■ Support the development of a statewide workforce development plan to efficiently organize all employment, education, training, and related programs and services available in the state to help job-seekers secure good jobs while providing business and industry with the skilled workers they need, particularly in the state’s rural areas.
Appointed Superintendent and Boards of Education Only 78 out of 15,000 U.S. Superintendents of Education are elected instead of being appointed by their elected School Boards. Thirty-seven of these elected superintendents are in Alabama. Only 22 Boards of Education are elected in Alabama. Examples of elected superintendents and elected school board members working at cross purposes are not hard to find. This presents a dysfunctional governance model to the detriment of the school system. The board must set the policy and have the authority to effectively manage the superintendent to carry out those policy decisions. The Chamber supports legislation that will require all K-12 superintendents to be appointed by the locally elected or appointed school board. Additionally, the Chamber supports local decision making about appointing or electing their boards of education. This allows for a broader selection process that is not restricted to a local constituency, and positions the appointed superintendent to work for and be responsible to the board. 2
Supporting the region’s advanced workforce
Increased Support of UAH: ■ Program support of Redstone Arsenal, Cummings Research Park ($5 million): 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 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 quality to increase UAH’s national standing to even a higher level and enable more selective enrollment. ■ IT infrastructure enhancement ($3 million): UAH requests the state of Alabama’s support to build and develop the IT infrastructure on campus. Development of the university’s IT and cybersecurity capabilities are a 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 advanced research capabilities and enhance to a greater degree the security posture of UAH, the U.S. Army, NASA’s Marshall Space Flight Center, and Cummings Research Park. AAMU Legislative Agenda Priorities for FY2019: ■ Accreditation and Intellectual Capital Support: In terms of faculty salaries, AAMU ranks last among the seven doctoral granting Alabama public universities, equating to an average 25 percent salary shortfall for full professors. AAMU STEM and business programs are particularly at risk as 33 percent of faculty are eligible to retire in five years. Salary deficiencies hamper the University’s ability to recruit and retain highly trained faculty and maintain and/or seek accreditation. AAMU seeks $5,000,000 in accreditation and intellectual capital support.
2019 STATE AGENDA
■ Artificial Intelligence, Cybersecurity, and Other STEM Enhancements: 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 Cybersecurity, an area that is projected to grow 28 percent from 2016 to 2026. Additional funding will support the enhancement of the program to better prepare students for careers at Redstone Arsenal, U.S. Army Materiel Command, Missile Defense Agency, NASA’s Marshall Space Flight Center, 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. AAMU seeks one-time support of $2,600,000 and $1,380,000 annually in artificial intelligence, Cybersecurity, and other STEM enhancements support.
produce advances in genetics, genomics, biotech education, medicine and agriculture. Additionally, there are more than 30 diverse biotech companies on campus, ranging from the entrepreneur-led to the globally recognized. Understanding the strength and significance of the state’s additional bioscience assets, north Alabama works with exceptional organizations across the state, increasing Alabama’s overall value within this field. The state of Alabama has led efforts to further enhance this field of great economic potential. The Chamber encourages state support for innovation within the biosciences. Continued focus and funding by the state will not only return economic benefits throughout the state but will advance medical research, drug discovery, agricultural improvements, job creation and entrepreneurship.
■ Construction and Deferred Maintenance Support: 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 has approximately $200M in deferred maintenance to be addressed. AAMU seeks $2,800,000 annually for three years in construction and deferred maintenance support.
Medicaid provides health insurance for low-income children, pregnant women, the elderly, and the disabled. Alabama has one of the most restrictive eligibility thresholds in the country, with zero non-disabled, childless adults enrolled in Alabama Medicaid. Adults in a family of three earning more than $312 per month cannot qualify. The health insurance provided by Alabama Medicaid covers a bare minimum of services. The cost per enrollee is the third lowest in the country and administrative costs are less than 3 percent. Alabama Medicaid is funded with approximately 30 percent state dollars and 70 percent federal matching dollars. Of that 30 percent, only 10 percent comes from the General Fund, with the remaining 20 percent coming from healthcare provider assessments and other funding sources. Alabama’s Medicaid budget has grown at a slower rate than the national rate of medical inflation. Funding challenges are not driven by out of control growth or cost – they are driven by the lack of growth in the General Fund. Rural hospitals in Alabama are experiencing a funding crisis. Unable to absorb the burden of uncompensated care in their communities, six hospitals have closed since 2011, and the median operating margin for rural hospitals is a negative 12 percent. These closures eliminate jobs and force patients to travel to urban areas for care. Hospital emergency departments function as the nation’s healthcare safety net – the provider of last resort for patients who cannot pay for their healthcare – and these closures consolidate uncompensated care. In order to remain viable, hospitals pass along the burden of this uncompensated care to commercially insured patients, raising healthcare costs for employers and individuals who purchase their own coverage. Medicaid expansion offers Alabama the opportunity to provide basic health insurance to more than 300,000 individuals, most of who are currently working but cannot afford insurance. The Federal government covers 90 percent of the cost of expansion, with the State’s share limited to 10 percent. This rep-
■ AAMU-Auburn Cooperative Extension: The Cooperative Extension program has been mired in inequitable funding despite the Knight-Sims consent decree. More equitable funding may be achieved if ACES is funded as a system rather than by individual earmarks to Auburn and AAMU.
Biosciences Built on the foundation of outstanding academic institutions, biotech businesses, research institutes and workforce development organizations, north Alabama has established an international presence within the biosciences. Driving innovation and economic impact, many entities contribute to the continuing growth and success of this sector. Among these are the HudsonAlpha Institute for Biotechnology, University of Alabama in Huntsville, Eurofins, Alabama A&M University, Nektar, CFD Research, Calhoun Community College, Discovery Life Sciences, Oakwood University, and Aviagen. These organizations contribute millions to the state’s economy and employ thousands of Alabamians. North Alabama is home to Cummings Research Park (CRP), the second largest research park in the U.S. CRP is home to the HudsonAlpha Institute for Biotechnology, which has created an ecosystem co-locating nonprofit scientific researchers with entrepreneurs and educators. The relationships formed on the HudsonAlpha campus encourage collaborations that
Medicaid Expansion
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resents a $28 billion boost for Alabama’s economy and is estimated to create 30,000 jobs statewide. The economic stimulus from the new Federal spending more than covers the State’s 10 percent share of the cost. The newly covered population can receive care in a lower cost environment (a doctor’s office as opposed to an emergency department) and the burden of shifting uncompensated care to the commercially insured population declines. Many patients with mental health and substance abuse issues would be able to receive care before landing in an emergency department. States that have already expanded have generated a significant body of research demonstrating the positive impact on health outcomes (lower infant mortality, better cancer diagnosis) and the positive impact on the economy (more jobs, fewer hospital closures).
Infrastructure: Roads 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 Alabama’s statewide bridge and road program known as ATRIP. The prospect of future rounds of Base Realignment and Closure 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. The following projects are regionally significant and represent opportunities for continued economic vitality of the region, especially along the I-565 corridor. ■ I-565 to I-65 – The community’s top road priority is the addition of lanes along I-565 from SR 255 to I-65 to ease a high level of traffic congestion from increased passenger and cargo traffic moving along this important economic corridor. Increased traffic has created additional congestion on two other key east-west corridors: Madison Boulevard and Huntsville Browns Ferry Road. All three of these roads currently provide east-west travel to/from Huntsville and Redstone Arsenal, and will provide ingress and egress for the future Mazda-Toyota facility in western Huntsville. ■ 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. ■ I-565 & 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. 4
■ Madison Boulevard – Widen Madison Blvd from four to six lanes from County Line Road east to Madison/Huntsville City limit, including drainage and landscape improvements and adding sidewalk. ■ Huntsville–Browns Ferry Road – Widen Huntsville-Browns Ferry Rd from two to four lanes from Mooresville Road to County Line Road, including sidewalk/multiuse path on at least one side. ■ 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 route with average daily traffic volumes ranging from 32,000 to 45,000 vehicles per day. ■ Research Park Boulevard from I-565 to North of U.S. 72 – Provide funding to begin the design and construction. ■ Arsenal Eastern Connector – Provide support and funding for implementing a final Corridor Study and Preliminary Engineering. ■ Eastern Bypass – Provide funding to complete the Eastern Bypass from U.S. 431 to U.S. 72 including the construction of bridges. ■ 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. Blvd. / Northern Bypass – Interchange at Memorial Parkway and extending the Northern Bypass from U.S. 231 to U.S. 72: Requesting 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.
Enhance Alabama’s Economic Development Environment 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: ■ Enact ethics legislation clarifying that economic development site location consultants are not required to register as lobbyists. Site location consultants who help industry
2019 STATE AGENDA
find suitable locations for their businesses are not lobbyists and treating them as such will have a very adverse impact on the State’s economic development efforts. ■ 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 efforts by providing match funding for businesses that pursue phase one funding and/or phase two funding in partnership with Alabama universities.
Support Local Distillers, Brewers, & Wineries Remove the Tax Penalty on Brewery and Distillery Tasting Rooms Alabama praises itself as a business-friendly environment with low, easy-to-understand taxes. However, the state’s excise taxes on beer and liquor sold at tasting rooms are complicated, arbitrarily assessed, and unnecessarily high. The Chamber supports a simple, flat $4 per liter tasting room tax on spirits and to remove the 50 percent penalty for beer sold at the tasting room. Reform the Alabama Brewpub Act and Allow Brewpubs to Grow Current Alabama law prevents brewpub licensees from thriving by limiting production to 10,000 barrels a year, restricting their ability to sell cans and bottles, and preventing other craft breweries from opening brewpub locations. The Chamber supports increasing the production limit for brewpubs and allowing them to package their products. The Chamber further supports allowing other brewing companies to own brewpub locations. Allow Brewery and Distillery Owners to Participate in Nonprofits Alabama ABC officials have interpreted existing three-tier statutes to prevent brewery and distillery owners from participating in nonprofits that also host licensed special events. The Chamber supports a clear exemption for nonprofit organizations from the definition of “financial interest” for three-tier purposes. Allow for Multiple Locations for Brewing and Distilling Companies Many Alabama breweries and distilleries are looking to expand to additional locations. Federal law allows for multiple locations, including the ability to serve beer at each location and transfer beer between locations. Existing Alabama law makes multiple locations difficult and inefficient. The Chamber supports allowing multiple-location breweries and distilleries and to allow transfers between locations in compliance with federal law. Allow Off-Site Tasting Rooms for All Manufacturers Current Alabama law allows wineries to have an off-site tast-
ing room separate from the primary winery location. It further allows an association of wineries to operate an association tasting room. The Chamber supports allowing all manufacturers, including breweries and distilleries, to have an off-site tasting room. The Chamber further supports allowing brewery and distillery associations to have an association tasting room to match the privileges allowed for a winery association.
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 to develop Exploration Park, currently an area of undeveloped land directly adjacent to the U. S. Space & Rocket Center. The project’s primary mission is to further enhance the morale, welfare and recreation of Team Redstone’s work force, 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.
Broadband Broadband, both wired and wireless, is an important component of our infrastructure and critical to growing and diversifying our economy. The Huntsville/Madison County Chamber supports policies that promote enhanced access to affordable broadband for all our citizens and businesses; educate on the benefits of broadband to our daily lives; encourage new investment, jobs, and technology development and deployment across our community; and, promote increased competition and options for consumers and businesses. As the greater Huntsville area works to provide gigabit broadband speeds to residents and businesses, we encourage public/private partnerships to execute the most cost-effective deployment options possible. To accomplish these broadband goals, the Huntsville/Madison County Chamber supports streamlining and standardizing the permitting process to public Rights of Way and establishing reasonable permit fees for localities allowing them to recover 5
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fair and reasonable costs incurred and recognizing local government’s responsibilities to serve as trustees of public property, safety and well-being.
Cybersecurity Expanding Alabama’s Excellence in Cybersecurity The unmatched capabilities found at Redstone Arsenal are among the most advanced in the country and require rapid integration of defense techniques to prevent critical missions from being disrupted. Now with a larger FBI presence, Redstone Arsenal tenants have greater visibility of cyberattacks and the potential impacts to our National/State/Public infrastructure, industry, and education. A multi-faceted approach is required that leverages existing efforts from our colleges and universities, the Alabama School for Cyber Technology & Engineering, U.S. Cyber Camp, and Cyber Huntsville which have all developed programs that promote STEM education. The Alabama School for Cyber Technology and Engineering will have a facility that will build a pipeline of skilled personnel through advanced curriculum developed in jointly with MDA, FBI, SMDC, and AMRDEC. U.S. Cyber Camp promotes diversity through hands-on application of cyber and engineering skills and will join those already interested in or pursuing cyber career opportunities in industry or government. These efforts will provide a workforce development model to be shared with the nation.
Requested Actions: ■ Provide continued funding to The Alabama School for Cyber and Engineering for facilities, statewide curriculum development, personnel and outreach to public school systems statewide. ■ Provide additional funding for expansion of Cyber Camp. {Expansion in terms of new facilities, possible new Camps (Advanced and Beginner- and Adult Camp and nationwide outreach). ■ Fund Cyber Huntsville initiatives supporting public schools: Statewide Cyber Curriculum, Teacher Training/Retention; Remote Learning from the Cyber School to the rest of the state; more student involvement starting at the Middle School level. ■ Fund outreach to disadvantaged/underserved communities and returning/disabled Veterans to increase our Cyber talent pool. ■ Fund statewide Law Enforcement participation in RCFL. ■ Increase STEM-Outreach funding to build an advanced cyber range and develop curriculum for cyber simulations to provide an enhanced Cyber workforce for Redstone Tenants as a model to expand to all USGA. The curriculum will be taught through US Cyber Camp and the Alabama School for Cyber Technology and Engineering.
Governor Kay Ivey (R) 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), District 1 Tom Butler (R), District 2 Arthur Orr (R), District 3 Sam Givhan (R), District 7 Steve Livingston (R), District 8 Clay Scofield (R), District 9
Mac McCutcheon (R), District 25 SPEAKER OF THE HOUSE
Anthony Daniels (D), District 53 MINORITY LEADER
Andy Whitt (R), District 6 Mike Ball (R), District 10 Laura Hall (D), District 19 Howard Sanderford (R), District 20 Rex Reynolds (R), District 21 Ritchie Whorton (R), District 22
For more about the Chamber, visit us online at hsvchamber.org.