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 5 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. 10 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. 13 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. 14 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. 19 21 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. 22 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. 23 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. 24 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. 26 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. 27 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. 28 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. 29 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. 30 31 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. 32 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. 33 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. 34 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. 35 36 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. 37 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. • • • 38 39 40 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. 41 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 42 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] 43 THE GREATER CLEVELAND PARTNERSHIP 1240 Huron Road East, Suite 300 • Cleveland, OH 44115 216.621.3300 • gcpartnership.com
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