2020 State Agenda

2020 STATE AGENDA

The Huntsville/Madison County Chamber is grateful to the members of the Madison County Legislative Delegation, Governor Ivey, PAGE 1 PreK–12 Education Workforce Development PAGE 2 Workforce Recruitment Invest in Higher Education: Supporting the Region’s Advanced Workforce Biosciences PAGE 3 Medicaid Expansion Infrastructure: Roads PAGE 4

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

Enhance Alabama’s Economic Development Environment

listed in this agenda will help

Update Alabama Antiquated ABC Laws and Support Local Distillers, Brewers and Wineries

ensure the continued growth

Stop Predatory Lending Exploration Park PAGE 5 Broadband Expanding Alabama’s Excellence in Cybersecurity BACK State Government Leadership

of North Alabama and the Tennessee Valley region.

2020 STATE AGENDA

PreK-12 Education Huntsville/Madison County has seen a 47 percent increase in jobs, gross domestic product, and wages since 2001 and ranks as one of the nation's top metropolitan areas in employment in science, technology, engineering, and math. Developing tomorrow’s employees is of critical importance for our region’s continued growth, and the quality of public schools is one of the top criteria for relocation. However, Alabama’s performance on the National Assessment of Educational Progress has declined, highlighting persistent achievement gaps in all subjects. To ensure a sufficient workforce pipeline and to support the talent attraction efforts of the Chamber, we must have well-funded, high-performing schools that meet or exceed national benchmarks.

Alabama’s Foundation Program for school funding is based on enrollment from the start of the previous academic year. As our student enrollment grows because of economic development, our districts have to use local funds to accommodate new students each year. This increases student-teacher ratios and results in overcrowding while encumbering local funding. The Chamber recommends the issuance of capital bonds through the Public School and College Authority to enable districts to renovate and build to accommodate growth. The Chamber also supports including the State’s newest magnet school for cyber technology and engineering, be included in the proposed bond issue. The Chamber also recommends incorporating a trend analysis to predict student enrollment so that operational funds more closely match actual needs and allow local funds to be used on local programs.

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 recognizes that physical, emotional, and social health are critical to student achievement. In addition, school safety has become increasingly necessary. Programs to ensure health (including mental health) and safety should be fully funded by the State.

Legislation has been prepared that would set guidelines that would require all schools to begin the school year no earlier than the third week in August, which would conflict with the schedule already adopted by local schools for the ’20-’21 school year. The Chamber requests that the State refrain from mandatory start dates or allow districts to obtain waivers in favor of local autonomy.

The Chamber is concerned about the declining number of students enrolling and graduating from schools of education. This will only exacerbate the current shortage of qualified teachers, especially in the STEM fields which drive our economy. We support initiatives to increase the attractiveness of the teaching career and maintain its competitiveness among high quality

candidates. The Chamber supports creative solutions to address teaching sector needs such as signing bonuses for hard-to-fill positions and the use of "adjunct teachers" who can bolster the regular profession with their subject matter expertise, especially in STEM subjects. We also support incentives for teachers to seek National Board Certification (e.g., scholarships for certification and recognizing the certification in the salary matrix).

The Chamber supports the recently adopted math standards and appreciates the intent of the Literacy Act passed in the 2019 legislative session and the Digital Literacy and Computer Science Course of Study adopted by the State Board of Education in 2018.

We strongly support adequate funding for professional development and student support to ensure the success of these initiatives.

The Chamber endorses the recommendations developed by the Governor’s Advisory Council for Excellence in STEM and outlined in Alabama’s Roadmap to STEM Success. Further, we support the establishment of a STEM Council and STEM Council Operations Center to oversee the implementation of the Roadmap recommendations.

Workforce Development CAREER AWARENESS Over the past three years, more than 10,000 jobs have been announced by new and expanding industries in Huntsville/ Madison County. Based on a labor analysis conducted by Deloitte, existing industries will need to fill an additional 14,000 jobs over the next three years. The key to our success as a region will be making sure today’s high school students are aware of and prepared for these jobs. The Chamber’s ASmartPlace® career awareness campaign provides an online career exploration portal and a full curriculum for Career Prep teachers, and is available to school districts across north Alabama. The portal and curriculum are free to students, teachers, and job seekers because the Chamber provides for the access and staff who develop the programming. In FY2020, the legislature provided $200,000 to the Chamber to support the cost of this campaign.

We are requesting $400,000 in FY 2021 to continue to provide this service and expand its utilization across the State.

ALABAMA COMMUNITY COLLEGE SYSTEM The Alabama Community College System (ACCS) provides critical education and training, particularly for our advanced manufacturing sector. The Chamber supports additional funding for skills training and career technical education, including career coaches, dual enrollment, correctional education and training, and facilities, technology, and equipment investments.

The Chamber also supports the ACCS initiative to establish an Aviation College in the Huntsville area to support our large and growing aviation sector. Federal customers such as the U.S. Army Program Executive Office for Aviation, the U.S. 1

2020 STATE AGENDA

Army Aviation and Missile Command, the U.S. Army Combat Capabilities Development Command Aviation and Missile Center, and the Redstone Test Center, as well as a number of our 400 aerospace-related companies, have created a growing demand for skilled and certified aviation technicians.

Workforce Recruitment In order to successfully fill the 14,000 direct jobs and 11,000 indirect jobs identified in the labor analysis (referenced previously), Deloitte estimates that we must recruit an additional 50,000 people to the region. To do this, the Chamber requests an increase in the existing ADECA grant supporting the Tennessee Valley BRAC Committee (now the Redstone Regional Alliance) from $50,000 to $120,000 to focus on FBI relocations and transitioning military.

SUPPORT APPOINTED SUPERINTENDENT AND BOARDS OF EDUCATION Only 78 out of 15,000 Superintendents of Education are elected to their position. All 14,900+ other school systems select their Superintendents by appointment by their School Boards.

Nearly half – 37 of these 78 elected superintendents – are in Alabama. Only 22 local 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.

Electing both School Boards and Superintendents present 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.

Invest in Higher Education: Supporting the Region’s Advanced Workforce 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. 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.

UAH PROGRAM SUPPORT OF REDSTONE ARSENAL, CUMMINGS RESEARCH PARK ($3 MILLION) 2

Numerous federal agencies are responsible for pumping billions of dollars in research contracts and grants through Redstone Arsenal. While UAH is able to secure a share of those funds, it raises the question: What kind of strategic investments could generate additional research expenditures for the university and for the State of Alabama? We should expend revenues to expand and enhance our capabilities through the use of effective university tools, and to create or grow critical mass in specific areas of importance to the future mission needs of Redstone Arsenal. In addition to offering innovative research to those federal agencies to overcome technological challenges, such an investment would provide additional benefits to the future Redstone workforce as a result of UAH students gaining experience with the federal agencies at Redstone Arsenal. This is crucial for Huntsville’s advanced workforce retention for Redstone’s aging workforce, particularly engineers.

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 FY2020 The current Alabama Commission on Higher Education (ACHE) recommendation for funding AAMU in FY2020 totals a 5 percent increase – the lowest percentage increase among the State’s 4 year institutions – despite a 20 percent growth in enrollment since 2012. AAMU currently expends as much as 15 percent of its appropriations on capital projects and deferred maintenance (which totals approximately $200M). These monies would be better spent on faculty recruitment and salaries and enhancing student experience. AAMU is requesting that its capital and deferred maintenance expenditures be offset by a concomitant increase in appropriations.

AAMU-AUBURN COOPERATIVE EXTENSION The Cooperative Extension program has been mired in inequitable funding despite the Knight-Sims consent decree. Extension at AAMU has not had an appropriations increase in the last six fiscal years. An increase of at least 10 percent is called for to begin addressing the inequities and to allow the Alabama Cooperative Extension System (ACES) to continue delivering services to the citizens of Alabama.

Biosciences The United States is the global leader in research, basic discov-

2020 STATE AGENDA

ery, applied research, and commercialization. North Alabama plays a critical role in progressing and strengthening this leadership position. Through the work of talented men and women that call north Alabama home, this region develops significant and innovative advancements each year.

The Chamber is grateful to the leaders of the State for the commitment to the growth of the biosciences industry. Through investments in research, healthcare, entrepreneurship, infrastructure, economic development, and education, people throughout the Tennessee Valley contribute to breakthroughs in diagnostics, therapeutics, medical devices, crop improvement, plant breeding, and energy and environmental solutions. These advancements positively impact countless lives in Alabama and beyond.

The companies, colleges, universities, and institutes driving the biosciences include the HudsonAlpha Institute for Biotechnology, UAH, AAMU, Aviagen, Discovery Life Sciences, Oakwood University, CFD Research, Eurofins, Calhoun Community College, Nektar, and dozens of small biotech companies. In addition to the scientific breakthroughs generated by those working in bioscience fields in the Tennessee Valley, a growing workforce and substantial economic impact to the State are other compelling reasons for sustained support. North Alabama will continue to play a critical role and shape the biosciences in the new decade.

The Chamber endorses the continued support by the State of Alabama to the biosciences industry. Further investments in bio-related entrepreneurship, genomic research, leading technologies, and education will provide foundational support for tangible improvements in precision medicine, advanced avenues for therapeutics, and revolutionary discoveries in agriculture technology.

Medicaid Expansion 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 represents 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 Huntsville and Madison County are growing rapidly. Robust transportation networks that can efficiently move commuters, freight, and services are vital to support this continued growth of the Tennessee Valley. 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 these roads currently provide east-west travel to/from Huntsville and Redstone Arsenal, which has a daily inflow/outflow in excess of 44,000 employees. It will also provide ingress and egress for the future Mazda-Toyota campus in western Huntsville, which, at current count, will house 6,000 direct employees and hundreds of freight trucks daily. While funding has been identified to restripe/widen this corridor from County Line Road to I-65, there will still be a critical two-mile, four-lane section between County Line Road and Wall Triana Hwy. that needs to be widened. The expansion project announced last year is greatly appreciated. The region encourages extension all the way to Decatur.

■ 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.

■ Improvements to I-565 Interchange with Hwy. 231 – This interchange is increasingly becoming more congested and dangerous. Nearly 110,000 motorists daily travel through the interchange that was designed for nearly half that number. The improvements should include adding lanes to this portion of I-565 and providing additional capacity to directional ramps leading into Huntsville. A project of the magnitude is expected to cost $300 million but would ease congestion, shorten commute times, and reduce wrecks.

■ U.S. Hwy. 72 West from Providence Main to County Line Road – This widening project improves overall traffic flow and provides critical capacity and safety improvements along this urban principal east-west artery with average daily traffic volumes ranging from 33,000 to 48,000 vehicles per day. Highway 72 has become a major throughput and safety concern for the greater Huntsville community.

■ Hwy 72 East / I-565 Extension (Corridor V) – This project is ready to bid. Utilities and ROW have been completed. This project provides a critical link for commuters, as well as freight 3

2020 STATE AGENDA

carriers, entering and departing east Madison County, Jackson County, and southern Tennessee.

■ Research Park Boulevard from I-565 to North of U.S. 72 – Provide funding to begin the design and construction.

■ Widening of Wall Triana Hwy. from Capshaw Road to Hwy. 72 West – This section of road is located within the city limits of Huntsville, Madison and the unincorporated area of Madison County, and is a major north to south corridor.

■ Hwy. 53 Widening to the Tennessee State Line – This project has been on the ALDOT books for 25+ years. As growth in northwest Madison County has continued, this road is becoming increasingly more dangerous. What was once a sleepy agriculture community is now filled with vibrant subdivisions and retail.

■ Widening of Jeff Road from Douglas Road north to Hwy. 53 ■ Madison Boulevard – Widen Madison Blvd. from four to six lanes from County Line Road east to Madison/Huntsville City limit, including drainage, landscape improvements, and an added sidewalk.

■ Huntsville-Browns Ferry Road – Widen Huntsville-Browns Ferry Rd. from two to four lanes from Mooresville Rd. to County Line Rd., including sidewalk/multi-use path on at least one side.

■ Widening of Old Monrovia Road from the Huntsville City limits west to Jeff Road ■ Completion of the Eastern Bypass from U.S. 431 to U.S. 72, including the construction of bridges ■ I-565 Interchange near Zierdt Road, Hughes Road Extension, and Auxiliary Lanes on I-565 – A 2015 Federal Interstate Justification Study showed that the proposed interchange would reduce traffic load at the Wall Triana Interchange by hundreds of cars per hour. Additionally, this locally funded new interchange will provide immediate and improved access to Zierdt Road from I-565 into Redstone Arsenal, which will allow the newly widened Zierdt Road to become a second major artery from I-565 into Redstone Arsenal’s Gate 7.

Enhance Alabama’s Economic Development Environment The Huntsville/Madison County area has been very successful in economic development thanks to good working relationships with and support from the Alabama Department of Commerce.

The Chamber supports the Department of Commerce in its effort to extend the sunset of the Jobs Act from 12/31/2020 to 12/31/2024 and to remove the $300 million cap as these incentives are “pay as you go” and are required to be net revenue positive.

The Chamber also supports the Department of Commerce in its effort to extend and expand the Growing Alabama Act by extending its sunset from the end of fiscal year 2020 to the end of fiscal year 2024, increasing the cap from $10 million to $20 mil4

lion, allowing banks and insurance companies to contribute, and removing the pass-through restriction on individual Alabama donors so that the credit may also be claimed by owners, shareholders, partners, or members.

The Huntsville/Madison County economy is recognized for its leadership in technology and innovation. To better support and grow our targeted industries, the Chamber supports a research and development act that would provide R&D tax credits to companies for in-house research, contracted research expenses conducted in Alabama, and consortium research expenses for qualified research conducted in Alabama. The total annual credit proposed is $25 million, limited to $2 million for any one company or business in a single tax year.

Update Alabama Antiquated ABC Laws and Support Local Distillers, Brewers, and Wineries ALIGN THE STATE SMALL MANUFACTURER DEFINITION WITH FEDERAL LAW Alabama defines small breweries as producing less than 60,000 barrels of production per year, but that definition doesn’t address how to count production issues such as manufacturing at multiple locations, manufacturing by joint ventures with other breweries, and outsourced production. Federal law addresses these issues and is generally understood by the industry. ABC policy is not coherent and lacks statutory guidance.

ADDITIONAL ABC REFORM GOALS INCLUDE: ■ Reform the Alabama Brewpub Act and allow brewpubs to grow by removing the cap on brewpub production (at 10,000 barrels/year); the restrictions on the sale of cans and bottles; and limitations on craft breweries from opening brewpub locations.

■ Change the law to defining “financial interest” by brewery and distillery owners to let them support nonprofits hosting licensed special events ■ Allow direct wine shipments to retailers and residents

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

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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 develop an 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 broadband policies that promote: (1) increased access to affordable broadband for all Alabamians, (2) the efficient deployment of advanced technologies, including small cells and 5G, while also recognizing local authority to manage the rights of way consistent with local character and existing law, (3) continued investment and innovation to enhance deployment across Alabama, and (4) competition and choice for Alabama’s businesses and residents.

tegration 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 local school districts, colleges and universities, the Alabama School for Cyber Technology & Engineering (ASCTE), U.S. Cyber Camp at USSRC, and Cyber Huntsville which have all developed programs that promote STEM education. ASCTE will generate a pipeline of skilled personnel through advanced curriculum developed jointly with the Missile Defense Agency, the FBI, the U.S. Army, and U.S. Cyber Camp, promoting diversity through hands-on application of cyber and engineering skills.

The program will enable those already interested in or pursuing cyber career opportunities in industry or government. These efforts will provide a workforce development model that is coupled with legislation to promulgate across the State of Alabama. The results will serve as a model to be shared with the nation.

REQUESTED ACTIONS: ■ Provide continued operating funding to ASCTE for facilities, statewide exportable curriculum development, personnel, and outreach to public school systems statewide.

Expanding Alabama’s Excellence in Cybersecurity

■ Provide additional funding for the expansion of U.S. Cyber Camp to help outreach efforts to disadvantaged/underserved communities. 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 U.S. government agencies. The curriculum will be taught through U.S. Cyber Camp and ASCTE.

The unmatched capabilities found at Redstone Arsenal are among the most advanced in the country and require rapid in-

■ Fund statewide Law Enforcement participation in the FBI’s Regional Computer Forensics Laboratory (RCFL).

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STATE GOVERNMENT LEADERSHIP

Governor Kay Ivey (R) ALABAMA S E N AT E

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 ALABAMA HOUSE O F R E P R E S E N TAT I V E S

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 at hsvchamber.org.