PUBLIC POLICY AGENDA - The Greater Cleveland Partnership

ADVOCATE
PUBLIC POLICY AGENDA
2015 – 2016
TABLE OF
CONTENTS
4
TO OUR OFFICIALS
6
WHO WE ARE
8
OUR PRIORITIES
8
- Business Retention, Attraction, and Growth for Established
Companies and Focused Support of Start-Ups
12
- Protecting our Civic Assets
14
- RNC Ready
16
- Health Care
18
- Education and Workforce
22
- Diversity and Inclusion
24
- Immigration Reform
26
- Business Costs and Competitiveness Issues
38
- Elevating our Voice by Joining Others
42
COUNCIL AND STAFF
42
- GCP Government Affairs Council
43
- GCP Staff
4
TO OUR OFFICIALS
NORTHEAST OHIO IS IN THE MIDST
OF A RENAISSANCE.
We are experiencing unprecedented economic growth
The following Public Policy Agenda describes the
and investment and garnering national attention for
priorities we believe are critical to accelerating our full
the rebirth that is occurring here. Yet, with all of our
economic recovery, while remaining nimble enough
success, we know we must take steps to continue this
to respond quickly to a changing environment.
momentum. To boost our growth, we must invest
in and support activity that has the greatest potential
It highlights our need to invest in and expand businesses
to strengthen our competitiveness and vitality as a region
that are here and provide strategic support to start-up
and state.
companies. It continues our focus on advocating for
policies and regulations that create a positive business
environment in Ohio and the importance of developing
a highly educated, innovative and diverse workforce
to meet our current and future needs. It mobilizes our
members and a strong coalition of partners to speak
with one voice and influence government decisions at
the local, state and federal levels.
The road ahead is challenging but also filled with
BETH E. MOONEY
Chairman, Greater
Cleveland Partnership
Chairman and Chief
Executive Officer,
KeyCorp
many opportunities to build upon our renaissance. The
Greater Cleveland Partnership and our partners are
privileged to play an important role in maintaining this
THOMAS ZENTY III
Chair, GCP Government
Affairs Council
Chief Executive Officer,
University Hospitals
JOSEPH D. ROMAN
President and Chief
Executive Officer
Greater Cleveland
Partnership
momentum and we are honored to work with you to
move this agenda forward.
DEBORAH Z. READ
Vice Chair, GCP Government
Affairs Council
Managing Partner,
Thompson Hine
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6
OUR PRIORITIES
BUSINESS RETENTION, ATTRACTION, AND
GROWTH FOR ESTABLISHED COMPANIES
AND FOCUSED SUPPORT OF START-UPS
Working with companies already doing business in Ohio provides the highest return on
investment and opportunity for economic growth. While business attraction is important, economic
development data shows that more than half of all job growth comes from business expansion and
retention. Therefore, to improve the economic vitality of our region, GCP will prioritize its focus on
well-established companies with strong growth trajectories, while providing strategic support for the
small, quickly growing companies of tomorrow.
JobsOhio
JobsOhio is a statewide, nonprofit economic
JobsOhio is a major contributor to Ohio’s recent
development organization charged with creating new
rebound. Less than 20 percent of JobsOhio’s job
jobs and capital investment in Ohio through business
creation has come from business attraction. However,
attraction, retention and expansion efforts. JobsOhio
with a focus on business expansion and retention,
was created in 2011 and receives its funding through the
the organization has helped create over 60,000 jobs
state’s liquor tax proceeds. In 2013, JobsOhio assisted
and retain more than 190,000 jobs. We will work with
more than 250 companies, retained over 70,000 jobs
JobsOhio to create innovative ways to infuse funds
and secured commitments for nearly 18,000 new jobs
into high-potential business retention and expansion
in the state. JobsOhio leverages the efforts of GCP’s
projects in Northeast Ohio. There are 18 counties
business development team, who call on member
in JobsOhio’s Northeast Ohio region that constitute
companies. GCP members, including Vitamix Corp.
over 40 percent of the economic output in the state.
and Nestle USA, successfully worked with JobsOhio to
Additional grant support is needed to enhance the
expand and create jobs in our region.
retention and expansion efforts in our region.
8
Recent success
For more than a year, various leaders in Cleveland have
GCP was an early and vocal supporter of JobsOhio
been engaged in the development of a comprehensive
and testified in the Ohio General Assembly for
regional economic competitiveness strategy. GCP has
clarification and limitation of legislative provisions
been supportive and, if advocacy issues emerge from
that would have allowed state government to perform
this effort, we are prepared to be active.
unrelated, company-wide audits. Left unaddressed,
this issue would have had a chilling effect on economic
development efforts.
9
Ohio Third Frontier
Ohio’s Third Frontier program remains one of the
The Third Frontier was last reauthorized with a
most successful economic development programs
statewide public vote in 2010, providing $700 million in
in the state’s history. Authorized by a statewide public
funding through 2015. Collectively, the Entrepreneurial
vote in 2002, the $2.1 billion initiative has created nearly
Signature Program (ESP) and Pre-Seed Fund represent
15,000 jobs and is securing a seven-to-one return on
less than 20 percent of what the state allocates to
the public investment. The goal of the program was to
the entire Third Frontier program but have been
support technology-based economic development in
responsible for over 50 percent of the jobs created
the state by expanding early-stage capital, supporting
and retained. Doubling down on these programs
entrepreneurs, enhancing research and development
will maximize the economic impact for the state.
collaboration between in-state assets and developing
GCP will encourage the allocation of Third Frontier
industry clusters.
funds towards those programs generating the highest
outcomes in job creation and dollar leverage.
Cleveland has a rich history of innovation and business
creation. From Sherwin-Williams to Brush Electric,
GCP played a lead role in the 2010 statewide ballot
many local companies were built upon a foundation
initiative and will work with state leaders to reauthorize
of innovative ideas. Through the Third Frontier, the
and expand this important program. Efforts to
public sector has played a significant role in turning
effectively align the Third Frontier Program and
ideas into businesses and accelerating the growth
JobsOhio should be supported.
of start-up companies. Regional, large-scale Third
Frontier successes include the Global Cardiovascular
Innovation Center at Cleveland Clinic, the Harrington
Discovery Institute–Innovation Support Center at
University Hospitals and JumpStart Inc.’s operation of
a high-performing program assisting entrepreneurs.
The Third Frontier should continue partnering with
existing Northeast Ohio organizations.
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Expanding access to capital
Private investment capital is desperately needed to
A recently released capital gap study indicates
ensure that new companies have the resources to grow
over $160 million is needed to continue the state’s
and succeed in Northeast Ohio. With the majority of
momentum. Expanding the program is essential to
venture capital firms located on the east and west coasts
mitigate financial risks to the state and to keep and
preferring to invest in their local companies, and with
grow Ohio’s young and promising companies. GCP
Dodd-Frank related regulations increasing problems
will also explore the potential to develop comparable
in generating private investment capital, an Ohio-
programs at the state, regional and local levels.
based approach to growing our own young and most
promising companies is critical.
Similar to the Ohio Capital Fund, the Ohio Technology
Investment Tax Credit (TITC) reached its statutory cap.
The Ohio Capital Fund, created in 2003, is an
The TITC provides a tax incentive for investors in qualified
economic development tool aimed at driving private
small, research and development firms. Since 1996, the
investment to Ohio-based start-up companies. To
program encouraged private investments totaling more
date, the fund has invested in two dozen professionally
than $180 million to over 300 young technology based
managed funds—not individual companies. The result
companies. Reauthorization of this program is essential to
is a private-sector-driven approach to addressing the
grow small technology-based companies.
capital needs of the state, as opposed to the public
sector picking winners and losers.
The Ohio Capital Fund implemented a diversified
approach that minimizes the risk to the state. The state
guarantees up to a certain dollar amount. Because
of the success of the program, the state has never
needed to pay on the guarantees, but the statutory
program cap has now been reached. Seventy-six Ohio
companies have received Capital Fund commitments,
attracting more than $7 of additional private
investment for every dollar of state commitment.
11
PROTECTING OUR CIVIC ASSETS
With more than 13,000 employees and an annual economic impact of $3 billion, our
federal assets are an important part of our economy.
NASA – our next mission
For more than 70 years, the National Aeronautics and Space Administration (NASA) and
its predecessor, the National Advisory Committee for Aeronautics, have maintained a
large presence in our region. Lewis Field and Plum Brook Station, which comprise the
Glenn Research Center, have added billions of dollars to our economy, attracted top
talent to its workforce and continue to be a source of pride for our citizens.
Lewis Field continues to be heart of the Center’s research and development mission
through the agency’s Space Technology Mission and Aeronautics Directorates. GRC
is developing the technologies that will enable the agency’s future missions in space
exploration and beyond and providing for safer terrestrial travel. Plum Brook Station,
with recent and planned investments by the agency, the State of Ohio, the European
Space Agency and private industry, is the center’s linchpin within the agency’s
Exploration Directorate. Testing and verifying tomorrow’s exploration technologies
today has made Plum Brook an integral part of both the government’s and private
industries’ efforts.
12
Over the better part of the last two decades, GCP has
led the effort to maintain and build upon the viability
of NASA in this region. However, as NASA’s mission
changes, and Administration and Congressional priorities
shift, NASA’s positive economic impact on our region
and our state is increasingly in jeopardy. We now find
Protecting our defense assets
ourselves at a juncture in time that requires additional
GCP will continue to engage leaders on federal
focus and leadership by GCP.
retention issues, specifically on the Defense Closure
and Realignment Commission (BRAC) and pre-BRAC
GCP will maintain its advocacy focus on the annual
activities. Many signs indicated a new BRAC process
budgetary needs of the Glenn Research Center, but the
could be authorized by the federal government in
time also has come for us to determine the best future
the coming years. In addition, programmatic changes
for the region’s talent, infrastructure and resources that
within federal agencies are having a detrimental
make up NASA’s presence in Ohio. To that end, GCP will
impact on our federal facilities.
lead an effort to work with community stakeholders to
determine how our region can maximize the economic
GCP supports and plans to work with the newly created
impact of these resources for generations to come. A
Ohio Federal Military Jobs Commission to develop a
comprehensive assessment of the opportunities and
statewide strategy to protect federal assets. As with the
challenges for the Glenn Research Center will enable the
BRAC process in 2005, the state must allocate funds to
development of a plan and recommendations to guide
enable local advocacy efforts. Consistent with GCP’s
engagement of the business community.
efforts to retain private business, the organization will
engage in efforts to protect the region’s federal assets.
Additionally, the GCP will continue its involvement
with the Ohio Aerospace and Aviation Technology
Committee, which will serve in an advisory capacity to
this statewide effort.
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RNC READY
Next stop, Cleveland
For the first time in 80 years, Cleveland will host a major political convention in 2016.
The Republican National Committee’s (RNC) selection of Cleveland followed intense
competition with major markets from around the country.
With an anticipated 50,000 visitors, eyes from around
With all eyes on Cleveland, it is the perfect time
the world will be on Cleveland for a week in the
to highlight our decade-long investments in our
summer of 2016. It will be the largest media event ever
community and region.
hosted in Cleveland – with three times as much media
attention as the Super Bowl. More than $400 million in
In addition, the state and JobsOhio should capitalize on
RNC-related economic activity is expected in Cleveland
this effort through increased support of public-private
as a result of the convention. Highlighting our regional
efforts to promote tourism as part of Ohio’s economic
progress and conducting an excellent convention are
development strategy.
essential to maximize the economic development
potential to Northeast Ohio.
Finally, the RNC convention provides a unique
opportunity to present GCP’s agenda to high-ranking
The Greater Cleveland Partnership, Destination
policymakers and thought leaders from across the
Cleveland, the City of Cleveland, Cuyahoga County,
country. GCP will identify and highlight key initiatives
JobsOhio and others led the effort to secure the
consistent with this agenda to advance in coordination
convention. GCP recruited the Cleveland-based Host
with convention activities.
Committee and is coordinating with key public- and
private-sector staff and will continue raising the
resources needed to host a successful event.
GCP also is leading the effort on accelerating projects
and community readiness. GCP will work with publicsector leaders to ensure that key physical development
projects, including Public Square, are funded and
completed prior to the convention.
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15
HEALTH CARE
A global leader
Northeast Ohio is home to some of the best health
The positive impact that this sector brings to the region
care facilities and providers in the world. The region’s
is undeniable, but with all the benefits comes the
hospital systems consistently rank as the top employers
simple truth that skyrocketing health care costs impede
in total number of jobs and annual payroll.
further economic development. Simply put, health care
costs are growing at an unsustainable rate and continue
Health care is a prominent economic driver in the
to be a daunting challenge for employers throughout
area, not only in the traditional sense, but also in terms
Northeast Ohio.
of innovation. Investments in medical research and
innovations have increased substantially, which brings
The Affordable Care Act (ACA) is being implemented
along the potential for new jobs in other industries.
through policy initiatives on both the federal and state
levels. Balancing cost containment and the quality of
care will be a focal point for federal rule makers and state
leaders. GCP will engage in ongoing initiatives to improve
health care delivery and will support policies that reward
health care providers for value over volume.
16
In 2012, GCP called on state leaders to expand
While this previously uninsured population comes to
Medicaid eligibility as permitted by the U.S. Supreme
Medicaid eligibility with significant unmet health needs,
Court decision on the ACA. GCP is again calling
ensuring they have health insurance for the long term
upon key decision makers to maintain current Ohio
will help end unfair cost shifting to the private health
Medicaid eligibility standards beyond June 2015. The
insurance market. As this population gains access to
Governor and Legislature must take appropriate steps
preventive and timely health care in non-emergency
to ensure our hospitals and businesses do not face
settings, more Ohioans will be able to enter the job
severe negative economic consequences.
market or increase their current employment, raising
Ohio’s productivity.
17
EDUCATION AND WORKFORCE
Our commitment to the community
The business community recognizes the economic development potential that an
educated and skilled workforce will have on the region. GCP is committed to working
with its partners in the public and private sector to ensure that Northeast Ohio
creates, attracts and retains a 21st-century workforce by continuing our advocacy
efforts across the preschool to workforce continuum.
Improving public education within Cleveland is an area
In 2012, GCP worked with Cleveland Mayor Frank Jackson
where we have influence and presents an opportunity to
and leaders from the CMSD, labor, philanthropy, and
transform one of our region’s most notable weaknesses
charter school community to craft “Cleveland’s Plan for
into a strength. Therefore, central to our work will be
Transforming Schools,” which, in many ways, serves as a
continued support of efforts to positively transform the
model for urban education reform. The plan called for:
Cleveland Metropolitan School District (CMSD).
•
Growing the number of high-performing district
and charter schools in Cleveland, and closing and
replacing failing schools.
•
Focusing CMSD’s central office on key support and
governance roles while transferring authority and
resources to schools.
•
Investing in high-leverage system reforms across all
schools from preschool to college and career.
•
Creating the Cleveland Transformation Alliance, a
public-private partnership, to ensure accountability
for all public schools in the city.
18
The Cleveland Plan expanded CMSD’s portfolio
GCP recently supported Issue 4, CMSD’s capital
schools strategy to where high-performing, traditional
bond renewal levy. Issue 4 is an important boost
public schools and charter schools would be viewed
to transforming Cleveland’s schools by providing
as partners – not competitors – and allows charters
the resources, without raising taxes, to implement
to share in a portion of the revenue produced from
CMSD’s Master Facilities Plan. Funding will allow for
the levy. Charter schools serve an important role in
construction of 22 new schools across the city and
educating Cleveland’s kids, as nearly one in three
the refurbishment of 20-23 other schools, as well as
Cleveland public school students attends a charter
technology and equipment upgrades that are essential
school. Ohio leaders must take steps to improve charter
to the learning process.
school law by focusing on quality and financially
supporting charters that demonstrate academic success.
GCP and its members are also deeply committed to
helping CMSD align around consistent and efficient
On behalf of the Cleveland Plan coalition, GCP led a
business practices; our involvement has illuminated
collective effort to secure passage of needed reforms
their need to consolidate and upgrade their existing
to Ohio’s Revised Code, raised funds necessary to pass
information technology infrastructure. Specifically,
the related school operating levy and provided in-kind
the CMSD needs support to develop effective
campaign support. This GCP-supported campaign
and capable internal systems that can generate
produced the first CMSD operating levy to be passed by
and analyze the data necessary to track student
Cleveland voters in 16 years. The operating levy passed
outcomes. GCP will support this work and engage
in 2012 and will expire in 2016. Marked progress will be
the public sector where appropriate.
needed to gain community support for a renewal of the
operating levy in 2016.
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DIVERSITY AND INCLUSION
Positive focus for the future
GCP strives to be a civic model for the development and implementation of
diversity and inclusion strategies that advance productivity, innovation, and
economic growth.
Our commitment to this goal is evident in much of the work that we do and is one
of the frames through which we approach our advocacy work. The Commission on
Economic Inclusion, a program of GCP, is focused on creating positive, measurable
outcomes that lead to increased workforce and supplier diversity of member
organizations and increased total revenue, value, and size of minority-owned
businesses in Northeast Ohio.
Working with Cleveland Mayor Frank G. Jackson, the Commission played a key
role in convening, developing and gaining broad support for a Memorandum
of Understanding regarding community benefit agreements. The goal of the
community benefit agreement is to create a more equitable and inclusive local
economy that creates shared prosperity. The agreements ensure an inclusive
workforce, apprentice opportunities, minority contracting and local hiring.
Through the work of the Commission, it is clear that challenges with minority business
enterprise (MBE) certification are hindering inclusion efforts. The private sector has a
single certifying process for MBEs accepted across the country. Yet minority-owned,
women-owned and disadvantaged business enterprises must fulfill requirements for
city, county and state projects as well as federally funded city or state projects that
demand a minimum of four different certifications.
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Efficiency and opportunity
This is an inefficient way to do business and the state
We also support the following initiatives and will work
can, and should play, a lead role in creating a single
with the Commission to pursue policy opportunities in
and streamlined certification process that can be
these areas:
implemented by government agencies and the private
•
Increasing the availability of both debt and equity,
sector. In addition, state leaders should consider a
through tax incentives to investors, and the
statewide disparity study that could aide MBE efforts
creative use of funds to support bonding of small
across the state. Finally, the state should ensure
construction companies;
prioritized programs, such as JobsOhio and the Ohio
•
Third Frontier, have qualitative and quantitative goals
related to diversity and inclusion.
Eliminating the bonding requirement for projects
under a certain size;
•
Providing incentives for companies in distressed
census tracts and encouraging increased supplier
The Commission operates the Cleveland office of the
diversity for local and minority companies through
Minority Business Development Agency (MBDA), a division
tax policies; and
of the U.S. Department of Commerce focused on creating
access for MBEs across the state. GCP will support federal
•
Offering tax incentives for companies that achieve a
certain level of supplier diversity and local spending.
reauthorization of this program and advocate that it
remains located in Cleveland.
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IMMIGRATION REFORM
Growing our workforce
The GCP believes that a strong and diverse workforce
GCP continues to support its board-passed resolution
is needed to support the region’s economies. We
supporting principles of immigration reform including:
are a region built by immigrants. The social framework
enhancement of our world-class workforce through
exists here to welcome and encourage those new to the
visa reform; legal entry for a broad range of workers
United States. We also live in a global economy and the
both skilled and unskilled; establishment of a balanced
ability to attract and retain talent from around the world
and workable employment verification system and
is essential to our economic growth and success.
strengthening programs that offer English language and
civic education classes.
GCP will continue to directly advocate for the passage
of reform legislation that addresses our principles and
the economic and workforce needs of our region and
our state. We also will continue to work directly with
chamber partners and organizations who support our
position and desire to find solutions that continue
moving our national economy forward.
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25
BUSINESS COSTS AND COMPETITIVENESS ISSUES
Energy
The significant increase in domestic oil and natural
At the state level, GCP was a supporter of Senate
gas production is helping to drive a manufacturing
Bill 310, which placed a freeze on the state’s energy
renaissance in Ohio. While much of the exploration and
efficiency and renewable mandates. This was an
extraction is occurring on the perimeter of our region,
appropriate move to ensure the growing subsidy costs
the positive economic impact is lifting the Northeast
to ratepayers do not negatively impact prices and our
Ohio economy via our integrated supply chain and
regional competitiveness.
through increased employment opportunities.
GCP will engage in the energy debate at both the
At the same time, federal regulators continue to
federal and state levels and work to ensure there is a
propose and institute rules that curtail the utilization
consistent and coordinated strategy in responding to
of certain natural resources, such as coal, that are
the U.S. E.P.A. carbon rules and the subsequent study
readily available in Ohio and help produce reliable,
and implementation of SB 310. Given that energy is
inexpensive base load energy that supports our
a growing area of need and concern among GCP
region’s manufacturing economy.
members, we also will establish a special task force on
this subject to help direct our future involvement.
Current and proposed rules and regulations by the
United States Environmental Protection Agency (U.S.
E.P.A.) have negatively targeted coal as an energy
resource. With our state and region reliant on energy
produced by coal, GCP will work in concert with
chamber partners and organizations such as the Great
Lakes Metro Chambers Coalition to support our region’s
manufacturing community and advocate for policies
and positions that balance efficient utilization of natural
resources and environmental concerns.
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Air service
Regulation
Consistent and quality air service continues to be a
FEDERAL
priority for the region. GCP has been involved in air
The proposed U.S. EPA carbon rule is a clear sign that
service at the local, state and federal levels for the past
the federal administration plans to use rulemaking
several years. We will continue to support the City of
authority to accomplish goals that have proven
Cleveland in developing attractive business conditions
unattainable through Congress. The newly elected U.S.
to draw new carriers to our region as well as addressing
Senate Republican majority and enhanced Republican
local and federal policies that have an impact on the
majority in the U.S. House increase this likelihood. GCP
cost of doing business.
supports comprehensive federal regulatory reform
aimed at reducing outdated burdens on business.
STATE
GCP supports a regulatory framework that reduces and
eliminates unnecessary or problematic regulations,
making it easier for businesses large and small alike to
be successful. On the state level, the Common Sense
Initiative (CSI) requires state agencies, when developing
or reviewing their business regulations, to seek input from
interested parties early in the process to balance the goals
of the regulation with the costs for businesses to comply.
GCP supports this initiative and urges Cuyahoga County
and other local political subdivisions to implement a
procedure like CSI to reduce the regulatory burden on the
region’s businesses. Proposed rules should be reviewed to
determine if the regulatory intent of the rule justifies the
impact on businesses.
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Tax
FEDERAL TAX AND ENTITLEMENT REFORM
As federal debt and deficit figures reach staggering amounts, the need for
comprehensive tax and entitlement reform has never been more apparent. U.S. tax
policy must be globally competitive and predictable for businesses to invest and
create jobs. Governing through extensions and artificial crisis introduces uncertainty
into businesses and stalls our collective momentum. GCP will work with members
of Congress to support comprehensive federal tax reform. In doing so, GCP will
implement the strategy used on similar pieces of large-scale federal legislation by
developing an issue-specific position for inclusion in the omnibus bill.
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STATE TAX REFORM
LOCAL GOVERNMENT
Ohio’s business climate is improving and we applaud
Northeast Ohio has over a dozen counties and more
the efforts of the Governor and legislature that have
than 600 municipalities, towns, and school districts.
positioned the state for economic growth. As we move
The convoluted system of local governments and taxing
forward on further tax reform, we must ensure that we
authorities leads to growing costs for duplicative and
have a tax structure that strengthens our competitiveness
redundant services.
while simultaneously investing in those things that will
support our economic vitality.
GCP supported the municipal tax uniformity state
legislation (HB5) that passed late last session. The
All signs indicate a new tax reform proposal will be
law provides standard definitions and regulations for
considered by state leaders as part of the operating
municipalities’ tax practices. It was an important first
budget process commencing in early 2015. Further
step to ease compliance burdens for businesses.
reduction in the state’s personal income tax is an
appropriate goal. Tax cuts should be funded through
GCP supports the continuation and enhancement
government efficiency or budget cuts – not by increases
of Ohio’s Local Government Innovation Fund and
or expansion in other state taxes, particularly the
comparable local and state programs looking to
Commercial Activity Tax (CAT) or sales tax.
enhance collaboration and drive down the cost of
local government.
GCP staff will work with members and the Ohio Metro
Chambers Coalition to develop a proactive position on
state tax reform.
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The Great Lakes
The Great Lakes are home to 21 percent of the world’s surface fresh water
and 84 percent of North America’s surface fresh water. The lakes are a
national treasure that demands protection at both the state and federal
levels of government.
Lake Erie, Ohio’s Great Lake, is the smallest of the five Great Lakes and the
shallowest. As a result, Lake Erie’s ecosystem is subject to rapid changes from
environmental factors such as cold and heat, as well as other factors such
as agriculture runoff and other nonpoint source pollutants. The result of this
pollution has caused dangerous algal blooms in Lake Erie’s Western Basin and
oxygen dead zones in other areas.
Recent successes to protect Lake Erie and the entire Great Lakes Basin include the
passage of the Great Lakes Compact, the Great Lakes Restoration Initiative and the
passage of the multi-year Water Resources Reform and Development Act (WRRDA).
However, our work continues in support of the Great Lakes.
GCP, as a founding member of the Great Lakes Metro Chambers Coalition, will
continue its work in support of this multi-state advocacy organization. We will
continue to advocate for full funding of the Great Lakes Navigation System, as
created in the WRRDA legislation. We will ensure that Harbor Maintenance Trust
Fund dollars are appropriated as required by WRRDA and at the levels directed in
the legislation.
Relative to the Great Lakes Restoration Initiative, we will work to maintain the
maximum amount of funding possible as authorized by the law, with a minimum
amount of $300 million annually to fund the five-lake basin.
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Essential development tools
With nearly $19 billion of development completed
Related challenges with Ohio’s program and overbearing
or planned since 2010, Northeast Ohio continues
real estate restrictions leave the program essentially
to see unprecedented growth and investment. Yet,
defunct. A permanent extension of the federal program
challenges with critical public-sector programs
is essential and statutory modifications to the state
threaten Cleveland’s momentum. We have
program are needed. In addition, the recent modification
been involved in several of these programs that
to Ohio’s Historic Preservation Tax Credit enabling
have made a difference and will look for similar
“catalytic projects” should be continued.
development tools and opportunities.
As a partner in the Cleveland International Fund
Cleveland Development Advisors (CDA), an affiliate of
(CiF), GCP has a vested interest the success of this
GCP, is a real estate and business development finance
economic development organization. Licensed by the
organization investing privately funded capital and New
U.S. Government, CiF offers EB-5 investment projects
Market Tax Credit allocations into catalytic projects
primarily centered in the commercial development,
designed to advance economic and community
mixed-use construction, and health care sectors. With
development projects throughout the region. CDA used
over $200 million of overseas private capital investments
federal and state New Market Tax Credit allocations to
in Northeast Ohio, catalytic projects that have received
support several new and exciting projects such as The
funding through the work of CiF include Flats East Bank,
9, The Residences at 668, Fairmount Creamery and
The 9, Uptown, and University Hospitals.
many other investments across our region.
The EB-5 program’s authorization expires on September 30,
Federal and state new market tax credits provide a
2015. GCP supports the EB-5 investment program and will
modest incentive to taxpayers willing to invest in low-
advocate for its reauthorization, including a reform of the
income areas. The federal New Market Tax Credit awards
program’s visa cap that threatens to limit the program’s full
of mid-2014 excluded allocations for Ohio-based
potential to create permanent jobs.
community development entities, such as CDA. Ohio
essentially was cut out of the federal program.
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Prioritizing development opportunities
Recent success
GCP is committed to accelerating development and
GCP was asked by Governor Kasich to conduct
will engage the public sector in support of key areas
a capital bill economic development project
such as downtown Cleveland (including the waterfront),
prioritization process that culminated in 2014.
Opportunity Corridor, West 25th Street corridor and
State leaders ultimately funded more than $30 million
other targeted neighborhoods.
worth of projects in Cuyahoga County including the
lakefront pedestrian bridge (connecting Mall C to
Cuyahoga County casino tax revenues are generated in
North Coast Harbor), Flats East Bank, and the New
downtown Cleveland. Spreading the roughly $10 million
Economy Neighborhood in the Fairfax neighborhood
annually across 59 communities would leave little meaningful
of Cleveland – closely related to the Opportunity
long-term economic impact for our region. Supporting
Corridor project. GCP will continue efforts to
existing assets in our urban core or in targeted areas ripe for
accelerate development in these targeted areas.
development is crucial.
The infusion of state funds to complete Opportunity
Corridor, a three-mile road connecting University Circle
to the interstate highway system, ensures the road will
be completed. More work is needed to ensure that the
400 acres of surrounding land ripe for redevelopment are
maximized and that the project leads to jobs for those in
the community. GCP will continue prioritizing economic
development opportunities related to the project.
Similarly, as MetroHealth begins a needed upgrade to its
physical plant, GCP will engage with public-sector leaders
to support the project and to aid efforts to revitalize
contiguous neighborhoods.
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Constitutional modernization
Tax levies of regional importance
The Ohio Constitutional Modernization Commission
GCP takes an active role in evaluating and
(OCMC) was established through legislation by leaders
advocating for levies that aid economic
from both parties to provide a much-needed update to
development and our regionally focused public
Ohio’s Constitution. Ohio needs to examine this process
policy agenda. As noted elsewhere in this agenda
to ensure a thoughtful approach, given the significance
and pending full endorsement by the organization,
of amending the constitution. The OCMC will address
GCP may engage heavily in ballot initiatives aimed
a variety of topics including term limits, legislative
at continuing the Third Frontier and reauthorizing
redistricting and other subjects that could be added to,
the CMSD operating levy, which is crucial to the
or deleted from, the Constitution. The OCMC meets
implementation of the Cleveland Plan.
monthly and has until July 1, 2021 to complete its work.
In 2014, the General Assembly agreed to a bipartisan
In 2013, GCP was supportive of and deeply involved
redistricting proposal for state districts and began early
in fundraising for the Cleveland-Cuyahoga County
discussions of term limits. GCP will focus its attention on
Port Authority, Cleveland Metroparks and Cleveland
any pertinent issues that arise from these processes.
Public Library levies. Our organization also endorsed
and contributed to the Cuyahoga County Health and
Regional business environment
In late 2012, Cuyahoga County leaders implemented
a purchasing policy to enable a preference for
businesses based in the county. Keeping spending
Human Services levy.
GCP also supported the Cuyahoga County cigarettetax levy that passed in 2006; it provides roughly $15
million annually to arts and culture organizations.
closer to home may be an admirable goal, but the
In 2013, more than $13 million was distributed to
ordinance was not the right solution.
Cuyahoga County’s leading culture organizations,
$1.5 million was distributed for targeted events
GCP has gone to great lengths to encourage organizations
and $500,000 was provided for community artist
and individuals to break down the lines that divide the
workshop grants. In total, public arts funding
region. As the largest chamber in the state with a broad
supported organizations with over 5.5 million visitors
geographic footprint, GCP recognizes Northeast Ohio as a
and a workforce of nearly 10,000 employees.
regional marketplace. Empowering parochial protectionist
concerns to influence policy is counter to our agenda
This levy will be up for renewal in 2016 but may be
and is rife with opportunity for mismanagement. GCP will
on the ballot as early as November 2015. GCP may be
continue efforts to ensure public policies support growth
active in campaign efforts and will engage with arts and
and encourage competition.
culture leaders on a strategy.
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Recent success
In 2013 and 2014, GCP successfully led a coalition of
supporters to maintain and lengthen the lifespan of
Cleveland’s professional sports facilities. Recognizing
the collective economic impact of Quicken Loans
Arena, Progressive Field and FirstEnergy Stadium, GCP
worked with state leaders to modify state law regarding
Cuyahoga County’s alcohol and cigarette tax.
The City of Cleveland and Cuyahoga County are
contractually obligated to pay for repairs above a
specific dollar level. Continuing the modest tax on
cigarettes and alcohol protected these facilities and
prevented competition with other community needs.
The three sports facilities host more than 300 events
and four million guests annually.
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Funding for roads, bridges and transit
The current extension of the federal Surface
A safe and reliable transportation system is critical to our
Transportation Authorization bill is set to expire in
region as we continue to grow and gain momentum.
May 2015. As with previous authorizations, multiple
The GCP will engage with other business and partner
extensions have been necessary until Congress could
organizations to ensure a long-term authorization and
agree on the latest authorization, which upon its
funding to pay for included projects.
enactment was less than two years in length.
A long-term, multi-year authorization of the Surface
Transportation Authorization is needed. Temporary
extensions and short-term authorizations are a poor
way to fund assets and projects that drive commerce
Recent success
GCP worked with state leaders to enable flexible
funding solutions to ensure priority transportation
projects in our region would move forward. GCP
lobbied heavily on the most recent state transportation
in our country and, in many cases, take multiple
budget bill that included provisions allowing Ohio
years to construct.
Turnpike funds to be used for other state transportation
projects. GCP’s involvement enabled full funding of
As a long-term authorization is considered, Congress
Opportunity Corridor, a three-mile roadway linking the
must address the law’s funding shortfall. Supported by
interstate to University Circle, and the acceleration of
the federal gas tax of 18.4 cents per gallon, the tax rate,
timelines on other priority projects including the second
which has not been increased since 1993, is a static,
Innerbelt Bridge (Voinovich Bridge) and renovation of
specific amount collected per gallon of gasoline sold
the West Shoreway.
and is not indexed for inflation. Due to the economic
recession, increased vehicle efficiencies and less miles
being driven, the tax revenue has decreased. As a result,
it has been necessary to transfer General Revenue Fund
dollars to the Highway Trust Fund to pay for the increased
number of authorized projects and the inflationary costs
associated with construction.
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ELEVATING OUR VOICE BY JOINING OTHERS
Building strong coalitions
We need broad and strong coalitions to influence government decisions in Columbus and Washington,
D.C. GCP plays an active role in convening and, in some instances, leading coalitions at the regional, state
and national level. GCP regularly meets with the CEOs of the chambers in Northeast Ohio to focus on issues
that impact the region. In addition, GCP President and CEO Joe Roman currently chairs the Ohio Metro
Chambers Coalition and will soon chair the Association of Chamber of Commerce Executives that addresses
core economic development issues on a national scale. We will continue to engage our key advocacy
partners as we advance this public policy agenda.
Great Lakes Metro Chambers Coalition
Recent successes
If the 12 states and two Canadian provinces of
As a result of joint lobbying, GCP and the Great Lakes
the Great Lakes trading region were a country, it
Metro Chambers Coalition secured language in the
would have the world’s fourth-largest economy.
U.S. Water Resource Reform and Development Act
Recognizing this economic force, the commonality
designating the Great Lakes’ ports, harbors and
of issues and strength of the collective representation
connecting channels as a single, comprehensive
in Washington, GCP was the founding member of the
navigation system. This is a first and will result in higher
Great Lakes Metro Chamber Coalition. More than 30
levels of investment over time. The legislation required
chambers of commerce collectively advocate a public
that the interdependence of the system be recognized
policy agenda to:
and that project decisions will result in allocations to
support the entire Great Lakes system.
•
Preserve and enhance the quality of our Great Lakes
•
Adopt immigration policies that encourage high-skill
The Great Lakes Metro Chambers Coalition also testified
immigrants to locate in our region
in U.S. E.P.A. hearings regarding the proposed regulation
Encourage development of natural gas, nuclear
aimed at reducing carbon emissions in power plants.
energy and clean coal technology that are essential
The coalition raised concerns regarding increasing
to manufacturing
electricity costs, price volatility, and reliability issues
Improve border crossing on the U.S. and
potentially impacting businesses. The Coalition will
Canadian borders
remain heavily engaged in this effort as the agency
Address transportation infrastructure issues.
moves to finalize the rule in 2015.
•
•
•
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Ohio Metro Chambers Coalition
GCP currently chairs the Ohio Metro Chambers Coalition, comprised
of the Ohio Chamber of Commerce and the eight major metropolitan
chambers from across the state. The coalition jointly advocates at the
Ohio Statehouse on issues of common interest including budget,
education, Medicaid, tax and transportation policy issues.
Late last session, the coalition took an active position to oppose an effort
by members of the Ohio General Assembly to repeal Common Core. The
Coalition will remain heavily engaged in this effort in the new biennium and
will play a proactive role on tax reform related matters that are expected to
emerge in the next biennium budget process.
Political Action Committee
GCP maintains a state and local Political Action Committee (PAC) as a
tool to ensure our advocacy message is heard by policymakers. GCP
members and staff contribute to the PAC and lead the steering committee
that authorizes expenditures. During 2014, the GCP PAC
made contributions in 18 state and local races.
During the 2015-2016 biennium, GCP’s PAC will develop a strategy to
increase contributions, implement a candidate endorsement process and
explore expanding the PAC to allow contributions to federal candidates.
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COUNCIL AND STAFF
GCP GOVERNMENT AFFAIRS COUNCIL
THOMAS ZENTY III (CHAIR)
JOSÉ FELICIANO
DUFFEY MILKIE
University Hospitals
Hispanic Roundtable of Cleveland
Cedar Fair
DEBORAH Z. READ (VICE CHAIR)
JOHN J. FERCHILL
SCOTT MILLER
Thompson Hine
The Ferchill Group
Dominion East Ohio
MYLAYNA ALBRIGHT
JAY GERSHEN, D.D.S., PH.D.
RANDY MYEROFF
AT&T Ohio
Northeast Ohio Medical University
Cohen & Company
(NEOMED)
KEITH A. ASHMUS (COSE)
Frantz Ward LLP
TIM MYERS
MARCUS GLOVER
Alcoa Wheel & Transportation
Horseshoe Cleveland
Products
NED HILL
STEPHEN NORTON
Cleveland State University
STERIS Corporation
ALEX JOHNSON, PH.D.
ASHLEY BASILE OEKEN
Cuyahoga Community College
Engage! Cleveland
KEVIN JOHNSON (COSE)
LARRY OSCAR
Glenwood Management Company
Hahn Loeser
DANIEL KLIMAS
DICK PACE
Lorain National Bank
Cumberland Development
DARYL LAISURE
KYLE ROSE
ZIN Technologies
PolyOne
LISA LOGAN
DEBORAH RUTLEDGE (COSE)
Logan Clutch
The Rutledge Group
PATRICK MANFRONI
MICHAEL STANEK (COSE)
(Engage! Cleveland) OnShift, Inc
Hunt Imaging, LLC
JOEL BAILEY
FirstEnergy Service Company
AKRAM BOUTROS, M.D.
MetroHealth Medical Center
MICHAEL CANTOR
Allegro Realty Advisors
MICHAEL CANTY (COSE)
Alloy Bellow & Precision Welding
JAMES CLAY
Westfield Group
KEN COLEMAN
Fairport Asset Management
PAUL J. DOLAN
Cleveland Indians Baseball Club
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GCP STAFF
PAUL STRACK
JOSEPH D. ROMAN
Michael Baker, Jr. Inc
President and CEO
216.592.2341
STEVE STRNISHA
[email protected]
Cleveland International Fund
MARTY MCGANN
TERRY SZMAGALA, JR.
Senior Vice President, Government
Eaton
Advocacy
216.592.2244
ROBERT TRIOZZI
[email protected]
Calfee
NICK GATTOZZI
DANIEL WALSH
Vice President, Government Advocacy
Huntington National Bank
216.592.2306
[email protected]
JEFF WALTERS
CBIZ MHM, LLC
ALESHA WASHINGTON
Senior Director, Government
JERRY WAREHAM
Advocacy
WVIZ/PBS and 90.3 WCPN
216.592.2225
ideastream®
[email protected]
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THE GREATER CLEVELAND PARTNERSHIP
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216.621.3300 • gcpartnership.com