Summary Report

SUMMARY REPORT

67 th Annual Meeting of the SOUTHERN LEGISLATIVE CONFERENCE

Mobile, Alabama | July 27 - 31, 2013

SOUTHERN LEGISLATIVE CONFERENCE of THE COUNCIL OF STATE GOVERNMENTS

SEPTEMBER 2013 Meeting Highlights

Inside: Meeting Highlights...... 2 Campaign Against Hunger...... 3 Meeting Summaries Agriculture & Rural Development. . . . 4 Economic Development, Opening Plenary Transportation & Cultural Affairs. . . . 6 Education...... 8 BO JACKSON Energy & Environment...... 10 Fiscal Affairs & Government Operations...... 12 Human Services & Public Safety. . . . . 14 Legislative Service Agency Workshop...... 16 Legislative Fiscal Plenary...... 18 Technical Tours...... 19 Conference Notes...... 20 SLC & Committee Leadership...... 22 Sponsors...... 23 Host State Committee & Staff...... 23 SLC 2014 » Little Rock, Arkansas. . . . . 24

During four days in July, meeting in Mo- bile, Alabama, legislators from across the Legislative Fiscal Plenary South joined together with policy ex- perts to discuss, review, and consider the Greg Canfield, Secretary, Alabama opportunities that exist to bring prosper- ity and promise to states and communi- Department of Commerce ties in the region . In addition to presentations and dialogue on substantive issues, each standing committee of the Southern Legislative Con- ference conducted a roundtable discussion and summary of legislative activities from the 2013 session, elected officers for the committee, and considered any policy positions that were presented for adop- tion by members . Presentations from committee sessions, where available, and attendance lists for committee sessions can be found on the SLC website at www.slcatlanta.org/AL2013 . The meeting summaries in this report are condensed overviews of speaker Closing Plenary presentations made at substantive sessions of the SLC standing committees. Stephen Foster Black

2 The SLC Annual Meeting Takes on Hunger in the South

According to Feeding America, in Alabama alone, 936,410 residents, 19 5. percent of the state population, face food insecurity .

In response to this national crisis affecting more than 50 million Americans and disproportionately affecting Southern households, the Southern Legislative Confer- ence (SLC) of The Council of State Governments established the “SLC/Mark Norris Campaign Against Hunger” project .

This year’s community service food packaging event brought together nearly 200 annual meeting participants to assemble 20,000 meals to be distributed to families in Alabama, Florida and Mississippi through the Bay Area Food Bank, serving the central Gulf Coast .

The “SLC/Mark Norris Campaign Against Hunger” is one of several packaging events coordinated by Outreach Inc ,. an Iowa-based nonprofit that recently was awarded the prestigious Daily Point of Light Award by President Barack Obama and President George H . W . Bush, presented at the White House, for their long-standing commitment to provide food, water, medical care and education to millions of children in the United States and in East Africa .

In addition to the packaged meals, the Bay Area food bank received a $1,500 00. donation from the Southern Legislative Conference of The Council of State Govern- ments . An additional $1,500 00. donation was made to Outreach, Inc .

3 AGRICULTURE & RURAL DEVELOPMENT COMMITTEE MEETING SUMMARY

Sunday, July 28 Water Management and Agriculture Richard McNider, Ph.D., Distinguished Professor Emeritus in Atmospheric and Mathematical Sciences, University of Alabama, Huntsville Mark Masters, Ph.D., Executive Manager, ACF Stakeholders, Inc ,. Georgia New Options for Rural Housing Marion McElroy, 20K Manager, Auburn University Rural Studio, New York Representative Andy Anders Louisiana | Chair Monday, July 29 Water Management and Agriculture Farm Bill Update Nathan Smith, Ph.D., Associate Professor and Extension Economist, Even for non-farmers, the importance of wa- University of Georgia ter to agriculture is a given . Too little rain or too much can be catastrophic for crops, and The New Extension Service smaller variations in timing and amounts Jimmy Henning, Ph.D., Associate Dean for Extension and Director of the Cooperative can have an outsized impact on crop yields, Extension Service, University of Kentucky prices, feed costs and farm income . Agricul- tural water management, the development tershed . What the region lacks, however, New Options for Rural Housing and implementation of infrastructure to re- is investment in infrastructure, including Low-income Americans living in rural com- serve and deliver water to fields when it is off-stream storage and delivery, and poli- munities face significant challenges in se- needed, is still not widely established in the cies, including interbasin transfer and wa- curing housing, including limited options, Southeast . ter withdrawal restrictions tied to water minimal financing opportunities, and poor insurance programs Several. state and quality alternatives . As a response to the Water management in the West, which has federal programs are in place to encour- need for better options for rural residents, allowed for impressive productivity in the age improved and expanded irrigation, Auburn University’s College of Architecture region for agriculture, is facing increased ur- but the greatest concentration of invest- established the Rural Studio to provide stu- ban demands, even as the long-term irriga- ment remains in the West . dents with hands-on experience designing tion of soils leads to increased salinization and building projects in Hale County, Ala- and selenium contamination in soils un- An early recognition that water manage- bama, one of the poorest places in the Unit- accustomed to significant water, reducing ment comprises more than just a plan to use ed States . yields and land use . more water moved Georgia to undertake a permitting process for water withdrawals The Rural Studio has created a wide range For the South, the diminishing opportuni- for agricultural use in 1988, grandfathering of projects, including single family homes, ties in the West and risks associated with in existing uses . Following a moratorium churches, community centers and play- concentration in corn represents an oppor- on new permits in 1999, the state passed the grounds . For the past decade, the Studio has tunity to increase the use of water manage- Flint River Drought Protection Act the fol- been developing a housing option that could ment systems in the region, particularly lowing year in response to low flows in transform rural, low-cost housing on a large with corn . Irrigation has been demonstrat- the watershed . The Act provided a mecha- scale . The 20K house is a single resident ed to more than mitigate the soil disadvan- nism for farmers to auction off their water home intended to be constructed for $20,000 tage with which Southern growers contend, rights for a season in the event of a declared (the amount a person living at the poverty and because transportation costs are low- drought . The state established a program line can afford to pay for a mortgage) to ad- er for regionally grown and delivered corn, of metering withdrawals and mapping the dress a need for affordable housing, improve corn producers in the South with irrigation wellheads and field locations, providing the housing for residents and to extend housing potentially will see higher net prices . state with a robust database of where and how options for those who don’t have financing much water is used . options . Additionally, because the cost pro- Compared to the West, where utiliza- vides for labor ($8,000) and locally sourced tion of available water is at or above total This information has become an essential materials ($12,000), the houses provide ben- capacity (resulting in water deficits for component of the water use planning pro- efits to the local economy . The 20K proj- many later appropriators), the Southeast cess, which the state has devolved to regional ect is making a transition from project to uses on average 10 percent of the avail- water councils empowered to develop water product, with the goal of commercial devel- able water, with peak utilization seldom use plans, shifting decision making to a more opment by private builders and supportive rising above 40 percent in any given wa- local level . housing groups .

4 Farm Bill Update context, with the discussion much more par- terpiece of the safety net for farmers could Every five to seven years, Congress must pass tisan and somewhat less regional . have some interesting consequences . Most comprehensive farm legislation known as problematic of all will be the missing nutri- the Farm Bill or U S. . farm policy reverts to This past spring, the Senate passed a bipar- tion title in the House legislation . Congress permanent law last updated in 1949, and sub- tisan Farm Bill that included $23 billion in does not need reauthorization to continue to stantially older than that in many parts . Af- cuts . House legislation was passed out of com- fund federal nutrition programs but without ter a major rewrite in 1996 and 2002, the 2007 mittee with larger cuts, but it unexpected- them in the Farm Bill, it is highly unlikely Farm Bill amounted to a less ambitious ad- ly failed on the floor of the House . A month that the Senate will pass, or the president will justment, providing a long period of stable later, the House approved along party lines a sign, any Farm Bill legislation . farm policy . Farm Bill that removes the nutrition title en- tirely, and includes cuts to commodities and The New Extension Service The 2007 Farm Bill technically expired in conservation, with a total savings to the fed- The Cooperative Extension Service cele- 2012, but Congress at that time failed to find eral budget of $12 9. billion over 10 years, and brates its centenary in 2014 . After 100 years, a suitable compromise to pass legislation and makes the Farm Bill permanent legislation . this unique federal-state-county partner- instead enacted a one-year extension . The ship remains an important part of the na- reasons a Farm Bill was so difficult in 2012 re- In most respects, the farm policy propos- tion’s agriculture and rural development main largely unchanged . A struggling econ- als from the House and Senate are not sig- activities . The Extension Service serves ag- omy has put significant strains on the federal nificantly different . Both eliminate direct riculture, family and consumer science, com- budget and swollen the size and proportion- payments; replace the current Average Crop munity development and 4-H, but recently is ate scale of the non-farming related nutrition Revenue Election (ACRE) program (an alter- adapting to a changing landscape . programs in the Bill . At the same time, com- native revenue-based safety net) with a shal- modity prices and farm income have reached low loss insurance program (favored by corn The increasing complexity of agriculture, record highs, making the need for a farm and soybean producers); cut conservation the growing plague of invasive and exot- safety net seem less urgent . spending by reducing the number of pro- ic pests and diseases, the changing nature of grams; expand subsidies for crop insurance; technology, marketing and the regulatory The roots of current proposals for the Farm include counter-cyclical payments; and con- environment make the work that Extension Bill date back to the debt ceiling crisis of tinue the Marketing Loan Program . Among performs with farmers and ranchers increas- 2011 and the creation of a supercommittee the greatest differences between the pro- ingly important . The fact that most farmers to recommend budget reductions . The Ag- posals is in dairy, with the Senate offering work off the farm to support their families riculture Committees of both chambers of a production program and the House an in- means that farmers need both reliable assis- Congress proposed at that time to end direct surance program . Program eligibility is re- tance in their agricultural efforts in a man- and counter-cyclical payments to farmers and duced as well, with updated limitations on ner convenient to them and a strong rural move to a risk management model . These be- adjusted gross income, a return to payment economy in which they can find employ- came the heart of both House and Senate pro- caps, and a redefining of what a legal entity ment . Extension is active in both of these posals in 2012 and, after the House failed to is for farming . areas, supporting rural community develop- advance a bill to the floor, also in 2013 . ment in a variety of ways, connecting with a The Farm Bill is largely about providing a network of land grant universities to bring Historically, debate over the Farm Bill has safety net . The challenge has always been resources to individual farmers, and innovat- been regional in nature, with corn and soy- how to provide sufficient protection to farming how this information is delivered . bean producers often on one side of the divide ers so that the sector remains healthy, with- and Southern producers on the other . The out protecting them too much from market The Extension Service is being challenged to current debate, however, does not have that signals . A shift to crop insurance as the cen- meet the needs of a changing audience, with agents increasingly responding to urban residents . These new clients often have the same needs as rural farmers, but the scale and scope is very different . Adding to this are changes in technology that have led to new demands from those using the Extension Service, with expectations for a broader range of information, more rapid response and round-the- clock availability . Election of officers The Agriculture and Rural Development Committee elected Representative Andy Anders, Louisiana, to serve as the Com- mittee’s chair, and Representative Tom McKee, Kentucky, to serve as the Com- mittee’s vice chair for 2013-2014 .

5 ECONOMIC DEVELOPMENT, TRANSPORTATION & CULTURAL AFFAIRS COMMITTEE MEETING SUMMARY

Sunday, July 28 Ensuing Economic Growth: Investing in Infrastructure Henry Henderson, Municipal Bond Credit Analyst, Public Finance Infrastructure Group, Standard & Poor’s, Massachusetts Innovative Funding and Financing Tools for Transportation Joung H. Lee, Associate Director for Finance and Business Development and Deputy Director, Center for Excellence in Project Finance, American Association of State Senator Bill Sample Highway and Transportation Officials (AASHTO), Washington, D C. . Arkansas | Chair Monday, July 29 Ensuing Economic Growth: Investing Moving the Global Supply Chain Along: What Should States Do and What Are They Doing? in Infrastructure Joe B. Hanna, Ph.D., Associate Dean and Regions Bank Professor of Supply Chain Management, Auburn University, Alabama While adequate and ongoing infrastruc- Jimmy Lyons, CEO, Alabama State Port Authority ture investments remain imperative for sol- Arts and Culture: Catalyst for Economic Growth id economic growth, there have been serious Albert B. Head, Executive Director, Alabama State Council on the Arts shortfalls in state infrastructure investments for a number of years . In fact, the American Society of Civil Engineers’ (ASCE) 2013 assessment of U S. . infrastructure assigned an overall grade of D+ to U S. . infrastructure, an alarming condition . In terms of high- ways, the Federal Highway Administration estimated that even though all levels of government in the 50 states should invest a minimum of $170 billion annually to significantly improve highway conditions, only $91 billion currently was being invested .

Notwithstanding the fact that state debt levels are not unbearable and not significantly higher now than before the Great Recession, many states either have downsized or not enacted a number of large proposed infrastructure programs, particularly for transportation . There are some states that are pursuing a variety of infrastructure and transportation projects by activating the following funding strategies: Innovative Funding and Financing billion, since 2008, from the General Fund to federal Grant-Secured Obligations (GANs/ Tools for Transportation the HTF . The variance between the project- GARVEEs); General Obligation Bonds (GOs) ed outlays and receipts in the HTF is expect- including appropriation debt (Certificates of Due to a number of reasons – reduced vehi- ed to widen, and it is estimated that there will Participation or COPs); Sales Tax Revenue cle miles travelled, erosion in the purchas- be an average gap of $15 .6 billion per year be- Bonds; Gas Tax Revenue Bonds; Motor Vehi- ing power of the gas tax due to inflation, tween fiscal years 2015 and 2023 . cle Registration Fee Bonds; Enterprise Rev- lower receipts as a result of higher CAFE** enue Bonds (Airports, Ports, Parking, Toll standards – the federal Highway Trust Fund In response to this disturbing situation, Roads, Transit Systems); and Public Private (HTF) has been seriously depleted . As a re- in 2013, states proposed and, in certain in- Partnerships (P3s) with or without TIFIA* in sult of these significant shortfalls, the U S. . stances, enacted a number of funding pro- the capital structure . government has been forced to transfer $53 .3 posals to bolster weakened transportation * TIFIA refers to the federal Transportation Infrastructure Finance and Innovation Act (TIFIA) program that provides federal credit assistance in the form of direct loans, loan guarantees, and standby lines of credit to finance surface transportation projects of national and regional significance . ** Corporate Average Fuel Economy (CAFE) standards are regulations enacted by the U .S . Congress in 1975 to improve the average fuel economy of cars and light trucks .

6 the physical flow of goods; and support busi- growth, with containerized freight experi- Election of Officers nesses that locate in the region . encing the largest gain (22 percent increase) The Economic Development, Transporta- over 2011 volumes . While steel volumes tion & Cultural Affairs Committee elect- In terms of preparing for the future contri- gained 8 percent and export coal volumes ed Senator Bill Sample, Arkansas, to serve bution of ports to global supply chains, it is grew by 5 percent, growth is projected to con- as the Committee’s chair, and Senator Jeff critical for state policymakers to provide for tinue with planned investments in intermo- Mullis, Georgia, to serve as the Commit- current operational and maintenance needs; dal rail, warehousing and terminal upgrades tee’s vice chair for 2013-2014 . keep pace with expected growth; minimize to expand capacity and market reach . The port congestion to support international Port’s lead project currently is the Intermod- funds . While more than a dozen states trade; enhance intermodal transportation to al Container Transfer Facility that, by 2015, proposed raising fuel taxes, only four states facilitate trade; improve technology for se- will provide an intermodal rail option to (California, Maryland, Vermont and Wyo- curity and efficiency; and accommodate the shippers in North Alabama, Tennessee and ming) actually did so . States also pursued large Post-Panamax vessels with the Pana- surrounding states . directing gas tax proceeds to transporta- ma Canal expansion scheduled for 2015 . The tion uses as intended and reducing gas taxes Canal expansion project will require states Arts and Culture: Catalyst for but increasing other taxes for a net increase to ensure that their ports have the neces- Economic Growth for transportation (Virginia) . States al- sary channel depths along with terminal A discussion of the importance of the arts so allocated a portion of their sales taxes and crane expansion and other multimodal with policymakers has to include empha- to fund transportation projects (Arkansas improvements . sizing the intrinsic, social, pedagogic and and Virginia) and increased the sales tax economic value of the arts . The arts are es- on fuel or other variable taxes/fees (D C. ,. Alabama State Port Authority sential for all these reasons, though in an era Maryland and Virginia) . One state (Vir- In June 2013, the Alabama State Port Au- of limited and strained resources, focusing on ginia) increased its vehicle registration thority celebrated its 85th anniversary . At its the economic aspects with public policymak- fees . While Oregon continued its vehicle dedication in 1928, the Port of Mobile’s ini- ers is a useful exercise . In Alabama, recent miles traveled (VMT) fee pilot project, sev- tial exports were limited to sugar, coal and research documents almost 5,000 creative in- eral others set up the framework to study forest products . Even though the Port’s ter- dustries employed more than 70,000 people a potential VMT fee program (Arizona, minals still handle forest products and coal, with wages totaling about $2 billion a year, a Florida, Washington, Wisconsin) . Finally, the list of items transiting through the port staggering figure by any standard . The rev- several states enacted special fees or taxes has expanded considerably to include auto- enue of these Alabama creative industries for electric or alternative fuel vehicles (Vir- motive components, poultry and steel . The approaches $9 billion, another figure of enor- ginia and Washington) . Port’s new container facility has significant- mous proportions . Furthermore, not only Moving the Global Supply Chain ly boosted its business and led to the Port han- do the creative industries in Alabama repre- dling over 25 million tons of cargo in fiscal sent 4 9. percent of the state’s businesses, they Along: What Should States Do and year 2012 . Currently, the container, gener- also cover 3 7. percent of the state’s employ- What Are They Doing? al cargo and bulk facilities have immediate ment, at least 2 9. percent of all wages earned The efficient, effective flow of materi- access to two interstate systems, five Class 1 and 2 .5 percent of all business revenue . als and finished goods through the supply railroads, and nearly 15,000 miles of inland chain depends on a state’s transportation waterway connections . In fact, the cargo di- While the private sector plays the domi- network . Not only does transportation fa- versity and growth account for 127,591 direct nant role in creating this thriving arts scene cilitate the physical link across the supply and indirect jobs and contributes an impres- in Alabama (and other places), the role of chain, transportation disruptions can cause sive $18 7. billion in economic impact to the the public sector is critical too . In fact, the supply chain failures and unhappy custom- state’s economy . modest investments made by the public ers . These supply chain failures and dis- sector to promote the arts results in reve- satisfied customers erode a state’s economic One of the major factors that boosted ac- nues and economic impacts that far outpace competitiveness and eventually adversely af- tivities at the Port was the more than $700 the size of this public investment . Anoth- fect the state’s economic growth . million in capital investments carried out er reason for the public sector to be invest- since 2008 at the Port’s terminals and in ed in promoting the arts involves the fact Water transportation is a key component the federal channel . These infrastructure that increasingly, quality-of-life decisions, of any state’s supply chain process, and state upgrades noticeably enhanced the Port’s i e. ,. whether a city or region has a thriv- policymakers are acutely aware of the need ability to handle Post-Panamax vessels, di- ing arts and cultural scenario among other to ensure that their ports are functioning at versified its cargo base, attracted industri- things, remain a determining factor when peak capacity . Ports are integral to global al investment and generated jobs across the companies decide to locate, invest and ex- supply chains for the following reasons: they state . The Port continues its improvement pand business activity . Feedback from cor- make global supply chains possible; facilitate efforts with continued investments in inter- porate executives documents that living global transportation and storage activities; modal and transportation infrastructure, a in a community that is culturally vibrant expedite efficient product and goods move- development that will lead to even greater and stimulating remains a huge priority for ment; provide economies of scale beyond oth- economic activity . businesses . In fact, creative communities er modes; create cost effective capacity to ship and creative industries are integral to Ala- a variety of products; serve as economic cat- In 2012, the Port’s containerized, steel and bama’s economic future and strategy for ro- alysts for their region; assist businesses with export coal volumes all posted significant bust, sustained growth .

7 EDUCATION COMMITTEE MEETING SUMMARY

Sunday, July 28 School Climate and Safety Kristen Varjas, Ph.D., Director, Center for Research on School Safety, School Climate, and Classroom Management, Georgia State University Kerri Williamson, Training Director, National Association of School Resource Officers, Alabama The Third Grade Reading Hurdle Representative Sara Thomas Laurie Lee, Reading Specialist, Just Read, Florida! Mississippi | Chair Cari Miller, Policy Advisor, Foundation for Excellence in Education, Florida School Climate and Safety Judy Stone, ARI Coordinator, Alabama State Department of Education School safety encompasses protection from Monday, July 29 physical threats, emotional and social secu- Remaking Remediation rity, and respect for rules and norms . A safe Bruce Vandal, Ph.D., Complete College America, Washington, D C. . school climate supports teaching and learn- The Teaching Profession in Transition ing and provides for social and civic devel- Tom Carroll, Ph.D., President, National Commission on Teaching and America’s Future, opment . School climate includes respect for Washington, D .C . diversity as well as social support for adults Sandi Jacobs, Vice President and Managing Director, State Policy, National Council on and students and a connectedness for every- Teacher Quality, Washington, D C. . one in the school community . Support for adults is important in part because it affects their willingness to intervene, as well as pro- room and community resource, but should that students are reasonably able to meet this viding for a positive work environment . not serve as the disciplinarian in the school . reading benchmark .

The Columbine shootings in April 1999 A shift to prevention will increase the use Possibly the first state in the country to fo- serve as the reference point for most school of school resource officers and school men- cus directly on early reading is Alabama, safety efforts states are engaged in today, al- tal health professionals to help prevent where the Alabama Reading Initiative (ARI) though the December 2012 shooting in New- school crime and student-on-student vi- began in 1997, and which has enjoyed the town, Connecticut, may well prove to be olence . This also will feature school and strong support of the Legislature since that equally pivotal . After the Newtown shoot- community personnel working to establish time . The state convened a broad panel to ing, among the calls for increased security, trusting relationships with students, result- review what was needed to improve student arming staff and expanding mental health ing in early detection of threats and aversion reading performance, identifying key skills services, the Interdisciplinary Group on Pre- of crises . By establishing a statewide com- culled from an extensive review of the avail- venting Community Violence, a broad coali- prehensive school climate and safety stan- able research and developing a literacy action tion of nearly 400 organizations, scholars and dards or guidelines, states can provide some plan for the state . practitioners, called for a balanced, and not consistency and focus to school and district reactive, response, relying upon both preven- efforts . Once in place, reviewing and eval- Alabama’s remarkable success has been close- tion and the creation of a safe environment . uating policies to determine their effec- ly tied to the state’s investment in reading tiveness is a key to success, as is identifying coaches and professional development for School resource officers (SRO) are an im- and rewarding schools that consistently do teachers . On the National Assessment of portant element in any school safety sys- good work . Educational Progress, Alabama had the fast- tem . While there is no fixed definition of est gains in scores for 4th grade reading be- what constitutes an SRO, the National As- The Third Grade Reading Hurdle tween 2003 and 2011, moving from near the sociation of School Resource Officers (NAS- The importance of students being able to bottom of the nation to the national average RO) encourages that they be a sworn officer read at grade level by the third grade has in less than 10 years . working in a school and the only person on gained considerable prominence in the past campus authorized to carry a firearm . An few years, with several states passing legis- In Florida, the state implemented a policy SRO must be properly selected and properly lation to retain third grade students whose ending social promotion at third grade in trained, and often is charged with being out reading is not at a sufficient level . These ef- 2000, using retention as a last resort . Bor- in the school community, building relation- forts have proven effective at improving out- rowing from Alabama, the state took a com- ships with and mentoring children . Because comes when coupled with targeted intensive prehensive approach to literacy in the early of this, they are visible and serve as a class- interventions in the prior grades to ensure grades, coupling this with the opportunity to

8 retain those students who were not prepared cent of all first-time undergraduate students of today is about teamwork, collaboration for fourth grade . Students are screened at the are placed in remedial education programs . and other skills that are not part of the cur- beginning of each school year in grades K-3 to riculum in most schools . Jobs will be analyt- give teachers information on the student and Remediation is a critical point of concern be- ical and problem solving in nature, focused to determine if they are on track . For stu- cause most remedial students fail to make it less on what individuals know and more on dents found to be lagging behind, the school through college level gateway courses (those what they can do with their knowledge . notifies their parents and initiates interven- courses typically taken in the first year of tion plans to bring them up to the level of college), and very few students placed in re- To prepare students for this new environ- their peers . At the end of third grade, stu- mediation graduate . To resolve the problem ment, the United States requires fundamen- dents who are unable to demonstrate compe- of time (and money) spent without earning tally different schools and teachers and a new tency are eligible for retention . credit, colleges need to find ways to deliver teacher education system Teacher. training courses and material in a manner that helps will need to move to a residency model where Retained students must receive a completely students move forward, alleviating the prob- teachers are trained in schools with the sup- different course of action for their retained lem of long remedial sequences . port of faculty from the school and from col- year, including placement in a small group leges of education in a collaborative team or class setting with a highly effective teach- One option is to assess students in the ju- structure, providing them with ongoing super . Districts are required to offer these stu- nior year of high school for college readi- port to make them better teachers . dents an intensive reading camp over the ness . Those who are college ready then move summer, additional reading instruction and on to college coursework through dual en- Students with poor quality teachers can ac- daily interventions in reading during the rollment, and those below that level conduct tually lose ground academically compared school year, and routine progress monitor- their remediation in their senior year . A to their peers . Of all the factors contribut- ing to guide instruction . second option is to deliver academic support ing to student success that can be controlled students need at the same time they pursue by schools, teacher quality is the most signif- As a result of this policy, the percentage of their gateway college courses, making re- icant . States are the drivers for teacher qual- Florida students scoring at the lowest levels mediation a co-requisite and not a pre-requi- ity: setting requirements for admission, exit, on state assessments has dropped from nearly site . This may be the most effective strategy licensure standards, evaluation, compensa- 30 percent in 2000 to 16 percent in 2010 . The to ensure that students who have academic tion, dismissal and more . But states essential- number of third graders retained has de- needs can satisfy them and bypass the points ly set a minimum standard for teachers, a bar clined as well, from a high of 14 4. percent in at which they might otherwise drop out . A that policymakers need to ensure is adequate . 2003 to a low of 5 9. percent in 2010 . third approach is to redesign assessment and placement in postsecondary education using An important initial concern for state policy Remaking Remediation multiple measures . Research has shown that is who is allowed into teacher training pro- When students arrive at most postsecond- a single assessment is not a good predictor of grams . The barrier for entry into teacher ary institutions, they are asked to take an as- college success . Other valid measures can in- preparation programs in most states is a ba- sessment for placement, typically without clude high school GPA, senior year courses sic skills test that is not normed to the gen- any preparation beforehand . Based upon and class rank, all of which serve as measures eral population . Another policy lever for the results of this single test, students may be of persistence and practical skills . improving teacher preparation is to use grad- placed in remedial courses that do not earn uate performance to hold teacher prepara- college credit, extending the time and costs The Teaching Profession in Transition tion programs accountable and take action of postsecondary education . This serves as The United States has had essentially the against programs whose graduates consis- an additional hurdle to completion for these same school model for nearly 150 years . The tently perform poorly . students, making remediation more of an off- workforce for which that education model ramp from, not a path to, college success . In was designed has changed radically, particu- For teachers already in the classroom, evalu- the United States, possibly as many as 40 per- larly over the past 20 years . The workforce ating them annually and including measures of student learning is a core part of state efforts to identify the best and worst teachers (and all those in between) and support all teachers in becoming better Using. teacher evaluations to determine professional development for individual teachers becomes an essential part of connecting evaluation, performance, and improvement . Election of Officers The Education Committee elected Sena- tor John Unger II, West Virginia, to serve as the Committee’s chair, and Senator Do- lores Gresham, Tennessee, to serve as the Committee’s vice chair for 2013-2014 .

9 ENERGY & ENVIRONMENT COMMITTEE MEETING SUMMARY

Sunday, July 28 Innovations in Fossil Fuel Electricity Production Paul Franklin, Vice President of Generating Assets, Southwestern Electric Power Company, Arkansas Regulation of Greenhouse Gas Emissions Howard J. Feldman, Director of Regulatory and Scientific Affairs, American Petroleum Institute, Washington, D .C . Representative Denny Altes Arkansas | Chair Carol Kemker, Acting Director, Air, Pesticides and Toxics Management Division, U .S . Environmental Protection Agency, Region 4, Georgia Innovations in Fossil Fuel Electricity Production Monday, July 29 NASA DEVELOP National Program The John W . Turk, Jr . Power Plant, locat- Jamie Favors, Deputy National Lead, NASA DEVELOP National Program, Washington, D C. . ed in Southwestern Arkansas, is the first ultra-supercritical cycle project deployed in the United States since the late 1950s, and is dition, every year the plant emits 320,000 izing New Source Performance Standards operated by the Southwestern Electric Pow- fewer tons of CO2; 150 fewer tons of SO2; and (NSPS) for new power plant sources within er Company, a subsidiary of American Elec- 100 fewer tons of NOx . For these achieve- the next 12 months . tric Power (AEP) . Plans to assemble the plant ments, AEP received the Edison Electric In- were initiated in August 2006 and, in Decem- stitute’s 2013 Edison Award, the group’s most A variety of potential NSPS regulation ap- ber 2012, the plant began commercial oper- prestigious award . Currently, no other ul- proaches are being considered for indus- ation . Performance tests in February 2013 tra-supercritical plants are planned for op- tries . For new or modified sources, there indicated the plant is meeting capacity and eration . However, the success of the Turk could be existing controls, traditional heat rate expectations . The plant current- Plant has prompted much interest in the en- work practices, and possible regulatory op- ly employs 110 people and utilizes the Pow- ergy and environmental advantages of such tions . For existing sources, there could be der River Basin subbituminous pulverized technology . existing controls, traditional work practic- coal in a balanced draft steam generator to es, possible regulatory options, or plans for produce 600 megawatts of electricity . Su- Regulation of Greenhouse Gas equivalency of state programs . The Amer- percritical steam cycles, through the use of Emissions ican Petroleum Institute (API) opposes EPA high pressure, allow water to be convert- American Petroleum Institute regulation of stationary source emissions of ed to steam without boiling . Ultra-super- During the last 15 years, tremendous prog- greenhouse gases (GHGs) under the Clean critical steam cycles, used by the Turk Plant, ress has been made in reducing aggregate Air Act . Relative to electric generating utilize this same process, but at tempera- emissions, or the six commonest pollutants, units throughout the world, the U S. . refin- tures above 1100 degrees Fahrenheit . Mod- in the United States . Carbon dioxide (CO2) ing industry is not a major contributor of ern chrome- and nickel-based super alloys emissions are at a 20-year low, dropping 59 GHGs, and the U .S . electric industry already in the steam generator, turbine, and piping percent between 1990 and 2010 . This has is incentivized for energy efficiency based systems that can withstand prolonged ex- been achieved even as the Gross Domestic on cost . GHG standards should be indus- posure to high temperature steam make the Product, vehicle miles traveled, population, try specific, and any regulatory approach processes possible . and energy consumption have continued to should be preceded by an industry-specific increase . President Obama’s new memoran- Advanced Notice of Proposed Rulemaking Plant emission controls use the best available dum directs the U S. . Environmental Pro- to more formally and fully gather infor- technologies, including low NOx burners and tection Agency (EPA) to complete carbon mation for this precedent-setting initia- a selective catalytic reduction system; spray- emissions standards for new and existing tive . API recommends evaluation criteria dryer flue gas desulfurization systems to con- power plants . The original proposal was that apply to any EPA regulatory propos- trol SO2; pulse-jet fabric filter baghouse for issued in April 2012, and the EPA received al . Among these criteria are: standards particulate control; and activated carbon in- more than 2 7. million comments . The EPA that recognize the complexity of refiner- jection for mercury control . Higher efficien- is likely to issue distinct standards for coal, ies; standards that account for cogeneration cy has greatly benefited the environment, natural gas, and petcoke, and a new propos- and other facility emissions; impact on fa- resulting in 180,000 fewer tons coal used per al will be issued by September 20, 2013 . The cility safety and reliability; recognition of year; 1,600 fewer tons of lime used per year; final rule is expected to be issued no later improvements already implemented; flexi- and 14,000 fewer tons of total ash and flue than June 1, 2014 . The Obama Administra- bility on compliance; and sufficient time for gas desulphurization waste per year . In ad- tion has stated that it is committed to final- implementation .

10 leveraging existing climate-related data efforts, including the EPA’s GHG Reporting Program, ultimately building stronger and safer communities and infrastructure, support climate-resilient investment, and provide tools for climate resilience . Alternative fuels accounted for about half of all new generation capacity installed in 2012, and 35 states now have renewable energy targets in place, and more than 20 states have set GHG reduction targets . NASA DEVELOP National Program The DEVELOP National Program is a NA- SA Applied Sciences initiative that seeks to broaden the range of recipients using sci- U.S. Environmental Protection Agency gases, including HFCs, perfluorocarbons, and ence data, modeling capabilities, and knowl- President Obama’s climate plan involves sulfur hexafluoride . These are synthetic, edge in their decision-making activities . cutting harmful pollution and protect- powerful heat-trapping gases emitted from a DEVELOP utilizes a dual capacity intern- ing the nation from the impacts of climate variety of industrial processes . They are po- ship for college students and recent gradu- change . This involves reducing carbon pol- tent, heat-trapping gases as well, and by 2030 ates that addresses environmental and public lution from power plants; building a 21st cen- U .S . emissions of HFCs are expected to triple policy issues through interdisciplinary re- tury transportation sector; cutting energy from the 2005 level . search projects that apply NASA Earth obser- waste in homes, businesses, and factories; vations to community concerns around the reducing methane and hydrofluorocarbons The EPA plans to work closely with states, globe . DEVELOP bridges the gap between (HFCs); preparing the United States for the industry, and other stakeholders to estab- NASA Earth science and society, educat- future impacts of climate change; and lead- lish carbon pollution standards for both new ing interns and building capacity with local, ing international efforts to address global and existing power plants . In order to deter- state, regional, federal and international or- climate change . About 33 percent of total mine carbon pollution standards for exist- ganizations to better prepare them to han- U S. . greenhouse gas emissions come from the ing power plants, the EPA intends to engage dle challenges that face society . For example, production of electricity; 28 percent from in a collaborative dialogue with stakeholders the DEVELOP program has partnered with the transportation sector; 20 percent from and leverage state leadership and experience various community and governmental orga- industry; 11 percent from commercial and to develop a direction forward . President nizations in Alabama to address increases in residential activities; and about 8 percent Obama’s plan also involves enhancement of carcinogenic byproducts from natural and from agriculture . the transportation sector . An ambitious fuel anthropogenic sources in Mobile Bay . Using economy standard of 54 .5 miles per gallon av- information from NASA Earth observation,

Since CO2 is considered the biggest driver of erage performance equivalent for automobile DEVELOP was able to project urbanization climate change, comprising 84 percent of all manufacturers has been set for 2025 . This probabilities and statistics for every year out emissions, a concerted effort will be made to could yield a combined savings for consum- to 2050, invaluable information for city plan- further curb emissions of this gas, at the fore- ers of more than $1 .7 trillion in fuel costs and ners and other officials involved . The Gulf front of which is cooperation with states, cit- cut 6 billion metric tons of CO2 over lifetimes Coast Regional Public Outreach Campaign, ies, industries and consumers . CO2 enters of vehicles sold . Other EPA efforts include which began as a DEVELOP project in 2010, the atmosphere through burning fossil fu- the Tier 3 standards for vehicle emissions, a provided information to Gulf Coast commu- els, such as coal, natural gas, and oil, as well proposed program that provides a compre- nities about NASA and other federal agen- as through solid waste, trees and wood prod- hensive approach – considering the vehicle cies’ response to the Deepwater Horizon Oil ucts, and also as a result of certain chemi- and its fuel as an integrated system – aimed at Spill . In addition to community benefits, the cal reactions, such as the manufacturing of addressing the impacts of motor vehicles on DEVELOP program is simultaneously train- cement Another. 9 percent of greenhouse air quality and public health . The program ing participants in real-world application of gas emissions come from methane gas, emit- seeks to set new vehicle emissions standards science and technology . Since its inception, ted mostly during the production and trans- and lower the sulfur content of gasoline be- more than 2,800 internship opportunities portation of coal, natural gas, and oil, as well ginning in 2017 . have been provided across the country . as small amounts from landfill gas . Meth- ane has a global warming potential of more Another major portion of this plan is to sup- than 20 times greater than CO , although port additional renewable energy projects, Election of Officers 2 The Energy & Environment Committee it is a short-lived climate pollutant . Since which made up about half of all new gen- elected Representative Denny Altes, Ar- 1990, the United States has decreased meth- eration capacity installed in 2012 . In 2013, kansas, to serve as the Committee’s chair, ane emissions by 8 percent due, in part, to federal agencies released Climate Change Ad- and Representative Bill Sandifer, South partnerships with industry both at home and aptation plans for the first time . The goal is Carolina, to serve as the Committee’s vice abroad . Finally, about 2 percent of green- to assess climate change impacts in the Unit- chair for 2013-2014 . house gas emissions come from fluorinated ed States and track observed changes, while

11 FISCAL AFFAIRS & GOVERNMENT OPERATIONS COMMITTEE MEETING SUMMARY

Monday, July 29 Tax Credits, Incentives and Exemptions: What Works and What Does Not? Dan White, Senior Economist, Moody’s Analytics, Pennsylvania Josh Goodman, Senior Researcher, Pew Center on the States, Washington, D C. . Public Pensions: Solutions from the SLC states Senator Arthur Orr, Alabama Representative Randy McDaniel Oklahoma | Chair

Tax Credits, Incentives and Exemptions: What Works and What Does Not? In the last few decades, for a variety of reasons, state tax revenues as a percent of nominal state gross domestic product (GDP) have been lagging, a development that pos- es serious challenges to state fiscal systems . During the decade of the 1960s, the gap between state tax revenues and nominal state GDP was the largest, with state tax revenues routinely exceeding GDP . In the 2000-2013 period, the situation flipped and, currently, state GDP levels exceed state tax Tax Expenditures gram, while several operate multiple pro- revenues Another. development that pres- In an era of extremely limited resources, grams . Based on the evidence gathered by ents challenges to state fiscal systems in- states are increasingly looking at their tax the PEW study, it is apparent that 13 states are volves the extreme volatility experienced expenditures to ensure that they are extend- leading the way in generating much-needed in state tax revenues in the 2000-2013 peri- ed to projects that generate the most reve- answers about tax incentives’ effectiveness, od . Among the reasons for these two devel- nue . Economic development tax incentives, including the SLC member states of Arkan- opments is the increasingly dominant role i e. ,. exceptions to regular state tax rules that sas, Louisiana, Missouri and North Caroli- played by the service sector in the contem- are meant to achieve an economic goal by en- na . While 12 states have mixed results in porary U .S . economy, an area that is largely couraging people or businesses to do some- terms of assessing the efficacy of these pro- untaxed by most state sales tax systems, and thing that they otherwise would not have grams, the remaining 25 states trail behind the significantly larger influence of person- done, have been under increasing scrutiny in probing whether they actually provide a sol- al income taxes (PIT) . During the 2001 re- the aftermath of the Great Recession . Given id return on investment . cession and the Great Recession, state fiscal that state policymakers allocate billions of systems were enfeebled by the severely re- dollars annually on tax incentives for eco- The PEW study documented that there duced PIT, a tax that is particularly vulner- nomic development, increasing pressure is are a series of questions that states should able to swings in the economy . Finally, the being exerted to ensure that policymakers be posing to determine the validity of tax other major factor behind the two develop- rely on good evidence about whether these expenditures: ments - gap between state tax revenues and investments deliver an overwhelmingly nominal state GDP and extreme volatility positive return . Often, states that have con- »»To what extent did the incentive affect the experienced in state tax revenues – is the ducted rigorous evaluations of some incen- choices businesses made? substantial increase in state tax expendi- tives virtually ignore others or assess them »»How were existing businesses affected by tures, i .e ., tax credits, exemptions and incen- infrequently; other states regularly exam- the incentives? tives provided by states to corporations in ine these investments, but not thorough- »»Did the benefits outweigh the negative ef- the last two decades . In fact, an increasing ly enough . fects of paying for it? number of states have initiated comprehen- »»Is the program meeting the state’s goals? sive reviews of their state tax expenditures In recent decades, states have increasingly »»How could it be improved? to ensure that only the most beneficial pro- deployed these investments and, currently, »»Are the state’s incentives working togeth- grams are retained . every state has at least one tax incentive pro- er efficiently?

12 Election of Officers The Fiscal Affairs & Government Oper- ations Committee elected Representative Randy McDaniel, Oklahoma, to serve as the Committee’s chair, and Senator Ro- man Prezioso, West Virginia, to serve as the Committee’s vice chair for 2013-2014 .

els . At the time DROP was eliminated in Al- abama during the 2011 legislative session, it was projected to reduce employer retirement contributions by approximately 0 75. percent of payroll annually and, for fiscal year 2012, this resulted in estimated employer savings of about $60 million . Over a 10-year period, this would amount to an estimated total employer savings of more than $600 million, a substantial amount .

Another measure enacted in Alabama involved creating a separate retirement benefit structure for public employees hired after January 1, 2013 (Tier 2 employees) . In terms of earnable compensation, for these Tier 2 employees, it included overtime up to 125 percent of compensation; in the past, there had been no limit . The average final compensation for Tier 2 employees will be determined by the average five of the last 10 years, whichever average is highest, while for Ti- er 1 employees (employees in service before January 1, 2013), it is the average three of the last 10 years for whichever average is highest . In terms of accrued sick leave, while it may convert into creditable service for Ti- er 1 employees it does not for Tier 2 employees . Another area with changes involves Public Pensions: able for employees who had at least 25 years of retirement age: while Tier 1 employees may Solutions from the SLC states service (exclusive of sick leave), were at least retire at age 60 with at least 10 years of cred- 55 years old; and eligible for service retire- itable service or at least 25 years in the sys- Like many states, Alabama faced serious chal- ment . While employees could participate in tem, Tier 2 employees have to be at least 62 lenges related to the long-term viability of its the DROP for anywhere between three and in age with at least 10 years of creditable ser- public pension program . In the last several five years, the employee continued to receive vice . For Tier 1 employees, their pension is years, the Alabama Legislature has enacted a regular salary with their retirement bene- equal to 2 .0125 percent of average final com- and the governor has signed into law a num- fit plus employee’s retirement contribution pensation multiplied by the years of credit- ber of measures to bolster the fiscal position being paid into a DROP account that earned able service; for Tier 2 employees, it is equal of the retirement system . One such measure a guaranteed interest rate of 4 percent . Al- to 1 .65 percent of the member’s average final was eliminating the Deferred Retirement abama’s DROP disbursements proved to be compensation multiplied by years of credit- Option Program (DROP)* . Before elimina- very onerous and contributed toward the able service and, importantly, the allowance tion, participating in the DROP was avail- state’s public pension unfunded liability lev- cannot exceed 80 percent of the employee’s average final compensation . Finally, a Ti- * The Deferred Retirement Option Plan (DROP) is an optional retirement method that allows a public er 1 employee pays 7 5. percent of earnable employee who has retired to defer obtaining retirement benefits (their pension, for instance) for a certain compensation into the retirement system, period of time while continuing to work in the public sector, often with their original employer . While whereas a Tier 2 employee pays 6 percent neither the employee nor employer will pay contributions to the state retirement system, the employ- of earnable compensation . Over 30 years, ee does earn additional service credit during the DROP participation period . The employee’s monthly DROP benefit is deposited into an individual DROP account which the employee can access after final Alabama would save approximately $5 bil- retirement . At that point, the employee is provided a lump sum disbursement of the monthly DROP lion as a result of moving employees to the benefit and a guaranteed interest rate . The employee continues to earn a regular salary and accrue an- more restrictive benefits contained in the nual and sick leave while in DROP . Tier 2 format .

13 HUMAN SERVICES & PUBLIC SAFETY COMMITTEE MEETING SUMMARY

Sunday, July 28 Juvenile Justice Reform Kirsten Widner, Director of Policy and Advocacy, Barton Child Law & Policy Center, Emory University, Georgia Sonja Hallum, Senior Associate, State Policy, Pew Charitable Trusts, Washington, D C. . Monday, July 29 Senator Emmett Hanger, Jr. Expansion of Medicaid: Next Steps Virginia | Chair Speaker Davy Carter, House of Representatives, Arkansas Matt Salo, Executive Director, National Association of State Medicaid Directors, Juvenile Justice Reform Washington, D .C . Juvenile justice reform has been a major topic of discussion for states looking to curb recid- el offenders; reduce recidivism by investing home placement experienced shorter lengths ivism rates, which can be as high as 50 per- in evidence-based programs and practices; of stay in state facilities, with one excep- cent within three years for some cohorts . In and improve government performance by tion: those who committed “designated an effort to ensure detention beds are re- requiring data collection and performance- felonies,” or the most serious – typically vi- served for the most violent offenders, many based contracting . At the recommendations olent – crimes . Until recently, there were 30 states have examined alternative sentencing of the Special Council on Criminal Justice such designations in Georgia, up from just for juvenile offenders . A majority of crimes Reform for Georgians, and with the advise- 11 in 1980 . Much of the expansion of these committed by juveniles are non-violent, and ment of the Pew Charitable Trusts, Emory categories occurred during the late 1990s, among the offenders allowed to remain at University’s Barton Child Law and Policy at the height of the “tough on crime” move- home, about 76 percent are considered low Center, and other groups, the state passed re- ment . Currently, almost 98 percent of youth risk for reoffending . forms that are expected to save approximate- in juvenile detention centers are there for ly $88 million over the next five years . This these offenses, meaning they fall into a catego- In fiscal year 2013, the Georgia Department will be accomplished by ensuring that ap- ry that requires strict, punitive punishment, of Juvenile Justice was appropriated $300 mil- proximately 640 fewer juveniles are placed with little or no opportunity for alternative lion, nearly two-thirds of which was used for into secure state facilities, which cost tax- sentencing . The legislation now allows judg- out-of-home facilities . The state’s secure res- payers about $90,000 a year per bed, and es the discretion to give the harshest penal- idential institutions, called Youth Develop- shift them to non-secure residential facilities, ty, but does not require them do so . In turn, ment Campuses (YDCs) and Regional Youth which cost approximately $30,000 a year per it allows judges to mete out a combination of Detention Centers (RYDCs), require substan- bed . The legislation streamlines and revises punitive measures along with community- tial funding, yet have yielded poor results in the state code relating to juvenile justice and based and/or substance abuse assistance . terms of recidivism . In fact, more than 50 child welfare, including creating new pro- percent of adjudicated youth returned to the cesses for cases involving children in need Another aspect of the reforms requires an system as a delinquent or convicted of a crime of services, and eliminates the need for the assessment of how likely a juvenile is to within three years of release, a rate that has state to build two additional juvenile residen- reoffend, and that information can be incor- gone unchanged since 2003 . For youth re- tial facilities . HB2, which contained many of porated into sentencing guidelines . Addi- leased from YDCs, the recidivism rate has the Council’s recommendations, passed both tionally, there are now more local sentencing been a staggering 65 percent . In addition, chambers of the General Assembly unani- options for judges . One distinction the legis- many parts of the state have limited or no mously and was signed into law by Governor lation makes is to differentiate between sta- community-based programs for juvenile of- Nathan Deal on May 2, 2013 . tus offenders – those who commit crimes fenders, leaving judges with few options oth- that would not be considered crimes if they er than commitment to a state facility . These The Pew Center on the States and the Bar- were adults, such as truancy or running away issues prompted a reexamination and reallo- ton Center were integral in analyzing data from home – and those who commit actu- cation of resources in the state . from the state Department of Juvenile Jus- al misdemeanors or felonies . All status of- tice, Georgia Bureau of Investigation and fenders, as well as many more misdemeanor Following a criminal justice overhaul in the courts . A two-year study revealed var- offenders, now will be diverted to commu- 2012, the Georgia General Assembly passed ious key findings, such as recidivism rates nity-based programs, unless they are habit- reforms in the 2013 regular legislative ses- remained flat for the last decade, while of- ual offenders . sion to address these concerns in the juve- fense types and risk levels did not change nile population . The legislation aims to dramatically during that same time . Al- The Pew Charitable Trusts is working in focus state facilities’ attention on higher-lev- so, most significantly, all juveniles in out-of- various other states to advance similar data-

14 driven, fiscally sound policies and practic- tional – that it could not be mandated by the neutrality requirement in the state . It is an es in juvenile justice systems that are being federal government – states have examined exchange-based mechanism, whereby pri- implemented in Georgia, in order to protect the pros and cons of expansion, as well as vate insurance coverage is obtained through public safety, hold offenders accountable, and the various avenues and approaches for ex- premium support . Existing Medicaid and control corrections costs . panding traditional Medicaid The. expan- SCHIP populations will be transferred to sion is a difficult choice facing all 50 states, the private option by 2015, so that all those Expansion of Medicaid: Next Steps particularly since each option yields differ- living at 138 percent or below FPL will be Annually, more than $366 billion of feder- ent consequences for each state, with their purchasing private insurance through the al and state funds are spent on more than 60 unique uninsured populations and health- exchange . In addition, health savings ac- million Medicaid recipients . Beginning Jan- care systems . With uncertainty around counts will be available for those at 50 to 138 uary 1, 2013, individuals and families with what healthcare reform will look like in 10 percent of FPL . The speculation is that costs incomes up to 138 percent of the federal pov- years, states are unable to anticipate what borne by the state in the next decade will be erty level (FPL) – approximately $15,856 for measures should be taken now to ensure the offset by a variety of savings factors . For an individual – will be eligible for Medicaid greatest coverage for the least amount of instance, general revenue expenditures for in every state that chooses to expand under money in the future . At least 17 states and uncompensated care will be reduced . In ad- the federal Affordable Care Act . If all states the District of Columbia have passed some dition, there will be a smoothing out of the elect to expand Medicaid, the estimated num- form of Medicaid expansion; 27 states out- “churn” factor, whereby individuals are ha- ber of new beneficiaries would be around right rejected the prospect; and several other bitually moved in and out of the state Medic- 17 million . The Congressional Budget Of- states are still considering the move . aid program . In addition, provider rates will fice estimated that providing Medicaid cov- be determined by the market, and underpay- erage to the newly insured would cost about In April, the Arkansas House of Represen- ment and uncompensated payments will be $6,000 per year per person, while health in- tatives passed HB1219, an expansion mea- mitigated, since there will be a cost shift to surance purchased on the exchange would sure, with a 77-22 majority; the next day the private insurance . Finally, administrative cost about $9,000 per person, since private in- Senate sent the measure to Governor Beebe overhead and government agency expansion surers traditionally pay healthcare providers with a 28-7 vote . Both chambers needed a will be avoided . The state also intends to ad- much more than Medicaid does . One huge three-fourths majority for approval, since it vance Medicaid program integrity reforms, incentive for states is that the federal govern- was a spending bill . What is unique, and si- which will reduce fraud, abuse and errors in ment will cover 100 percent of the program multaneously significant, about the Arkan- the system, another cost-saving component . for the first three years, with states gradual- sas model is that it serves as an alternative ly picking up larger percentages of the costs to the Affordable Care Act’s one-size-fits-all At least six other states – Florida, Louisiana, each year . Thereafter, one concern is that, in approach, and replaces it with a state-based Montana, Ohio, Tennessee and Texas – have these economically strapped times, although method that will expand Medicaid coverage considered expansion plans similar to the states will bear a small percentage of costs, it to an additional 225,000 individuals, placing one passed in Arkansas . The U S. . Depart- is a small percentage of a very large figure . A a total of 950,000 Arkansans on the Medic- ment of Health and Human Services, which second concern is that the federal govern- aid rolls . approved the Arkansas plan, has indicat- ment would renege on their portion of the ed exactly what is required of states wish- reimbursement in future years, strapping the What has become known as “the private ing to qualify for this alternative, although states with huge, and unexpected, payouts . option” or “premium assistance plan” is be- the agency also has stated that it would ap- ing implemented through a Section 1115 of prove “a limited number of premium assis- Ever since the U S. . Supreme Court held last the Social Security Act waiver, not the Af- tance demonstrations” as a way to test how year that the expansion of Medicaid is op- fordable Care Act, and will meet the budget these plans will actually work . States essentially file for a waiver of existing Medicaid rules, and state and federal public hearings are held to determine eligibility . There is concern among many states that they will go through the process of passing a plan, only to be denied expansion by the federal government . However, the Obama Administration has appeared eager to let states find their own way to provide healthcare coverage for low- income uninsured citizens . Election of Officers The Human Services & Public Safe- ty Committee elected Senator Emmett Hanger, Jr ,. Virginia, to serve as the Com- mittee’s chair, and Representative Joni Jenkins, Kentucky, to serve as the Com- mittee’s vice chair for 2013-2014 .

15 LEGISLATIVE SERVICE AGENCY WORKSHOP SUMMARY

Saturday, July 27 The Federal Agenda and the States: Briefing from CSG’s Washington, D.C. Office Chris Whatley, Director, The Council of State Governments, Washington, D C. . The Supreme Court and the States: Briefing from the State and Local Legal Center Lisa Soronen, Executive Director, State and Local Legal Center, Washington, D C. . The Evolving Role of Staffing Services in Term-Limited State Legislatures Dr. Peverill Squire, Professor of Political Science, University of Missouri Jerry Bassett, Director Marcia Goff, Research Director, Oklahoma House of Representatives Legislative Reference Service Alabama | Chair Demographic Changes in State Legislatures: The Role of Women in Government Audrey Salgado, Chair, The 2014 Project, Alabama The Federal Agenda and the States: Briefing from CSG’s Washington, posed eliminating the bond exemption al- the coverage formula was permissible at the D.C. Office together . During the last decade, state and time of the Act’s passage, “current needs” did local governments have funded more than not justify the Act’s violation of the “fun- Provisions that benefit state programs are $3 2. trillion in infrastructure through the damental principle of equal sovereignty” oftentimes the only funding that the feder- bond market . If a 28 percent cap had been in by forcing some states – but not others – to al government can cut without severe polit- place, this same infrastructure would have bear the burden of preclearance . Howev- ical repercussions . In FY13, states lost more cost $173 billion more and, had the bond ex- er, the Court did not throw out Section 5 of than $2 7. billion in federal funding, spread emption been eliminated, it would have cost the Act, which deals with the preclearance across 13 programs, and funding for states $500 billion more . The Council of State coverage formula and was challenged in the may very well be the target for further cuts Governments and its coalition partners have case, stating that it is Congress’ prerogative this year . According to the National Gov- made protecting the bond market a top pri- to do so, if they so choose . Section 2 of the ernors Association, the top overall tax ex- ority for the year ahead . Act, which prohibits discrimination in vot- penditures in 2013, other than funds for the ing procedures and is enforced by lawsuits, exclusion of employer payments for health One of the other major issues before Con- is unaffected by the ruling and remains in insurance, were provisions that benefit states gress is the Marketplace Fairness Act . State force . In short, formerly covered states and ($105 billion), which comprises deductibility and local governments currently loose more localities no longer will need to ask for feder- of state and local incomes, sales and proper- than $23 billion every year in uncollected al permission to make minor changes to vot- ty taxes ($69 billion), and exclusion of inter- sales tax on remote purchases (both online ing procedures . est on public purpose state and local bonds and catalogue sales) . The Marketplace Fair- ($36 billion) . This makes states a huge tar- ness Act would give states the option to com- In United States v. Windsor, the constitutional- get for cuts . pel remote sellers to collect and remit sales ity of the Defense of Marriage Act (DOMA) tax in return for streamlining their sales tax was challenged and struck down by the Currently, the Senate is holding out for a systems . In May, the Senate voted 69-27 to Court . The case involved a same-sex cou- grand bargain, but the House of Representa- pass the Marketplace Fairness Act . Howev- ple whose marriage was recognized by the tives refuses to pass anything that includes er, opponents of the legislation have lobbied state of New York but not the federal gov- revenue, resulting in a stalemate and Con- heavily against it in the House over the past ernment . When one partner passed away, tinuing Resolution that will fund the gov- several months to dissuade members from the living spouse was forced to pay $363,053 ernment at FY13 levels and trigger more bringing it up for consideration . in estate taxes from which an opposite-sex cuts . The debt ceiling will be hit as soon as couple in the state would have been exempted September, sparking another cliff-like dead- The Supreme Court and the States: under federal law . The Supreme Court ruled line . The House has hinted that a debt ceil- Briefing from THE SLLC that Section 3 of DOMA was unconstitution- ing deal may be linked to an expedited vote In the 2012-13 term, the U S. . Supreme Court al, emphasizing its examination of the “de- on tax reform . Both the House and the Sen- considered a number of important cases, sign, purpose, and effect of DOMA,” as well ate have embarked on a comprehensive effort specifically those that addressed the Vot- as the federalism aspect of the case, namely to limit or remove tax exemptions in order ing Rights Act of 1965 and the issue of same- that the federal government has always de- to lower rates or, potentially, generate rev- sex marriage . In a 5-4 decision, the Supreme ferred to the states on the issue of marriage enue . The president has proposed capping Court held in Shelby County v. Holder that Sec- and that the federal government should be re- tax exemptions at 28 percent, which would tion 4 of the Voting Rights Act, which the quired to extend the same benefits to all cou- limit the attractiveness of municipal bonds District Court had upheld, was unconstitu- ples married under the state law, including as an investment tool . The House has pro- tional . The majority insisted that, although same-sex couples .

16 A variety of other decisions were decided support his efforts . McCarthy’s unit quick- felt in the 2004 election cycle . The House by the court, including those involving the ly evolved into the Legislative Reference Bu- of Representative, for instance, which com- Clean Water Act, the Privilege and Immu- reau, one of the first in the country . In fact, prises 101 members, saw 36 open seats due nities Clause, the National Voter Registra- the U S. . Congress followed Wisconsin’s lead to term limits . The election resulted in 39 tion Act of 1993, drug warnings, DNA arrest by establishing the Legislative Reference Ser- newly elected members and brought about a laws, water permitting, the Federal Aviation vice (now called the Congressional Research change in the majority party . Four years lat- Administration Authorization Act, and ma- Service), in 1914 . By 1910, 19 states had cre- er, another 26 new members replaced outgo- ny others that had far-reaching implications ated legislative reference services of some ing members . for states . capacity . Term limits also restricts the ability to ac- The Evolving Role of Staffing The provision of reference services was pro- cumulate organizational knowledge and Services in Term-Limited State moted in states as an efficient way to compen- means lobbyists have more institutional Legislatures sate for the inexperience of most legislators, tenure than many elected officials . While In 1954, the American Political Science As- which obviously located more power with term limits has, in part, increased the need sociation’s Committee on American Legis- staff . Just as the importance and power of for staff expertise, it also has increased the latures issued a report saying that “a good legislative staff grew, so did the potential reliance on professional staff to teach fun- research and clerical staff is an indispensable for corruption, and the growth of legislative damentals, the number of partisan lead- aid to the legislature ”. Legislative staff have staff was stunted, in part, during the first de- ership staff, and staff workload, and has played an integral role in the daily work of cades of the 20th century . By 1935, the best diluted staff expertise in specific policy ar- running local and regional government since estimate is that less than 500 full-time staff eas . However, it also has increased trans- before the existence of states . In fact, there worked for the 48 states legislatures . parency, collegiality among staff, staff is early indication of involvement of staff efficiency (due, in part, to advances in tech- in legislative processes since the founding Legislative staff size has continued to ebb nology), and led to staff being more proac- of the nation . Many great American lead- and flow to this day . From 2003 to 2009, 32 tive about educating members about what ers worked as staff . For instance, Benjamin states had staff that either stayed the same services they provide . Franklin served as clerk of the Pennsylva- size or increased, and 18 states had staff siz- nia Assembly . es that decreased . Term limits for lawmak- Demographic Changes in State ers, which became popular for states in the Legislatures: The Role of Women in During the 1800s, states saw growth in pro- 1990s, as well as greater turnover in mem- Government fessional legislative staff, driven largely by bership in general, have increased the need In 1894, the first female state legislators need . This dynamic progressed even more for expertise among legislative staff . A re- were elected to serve in the United States, rapidly through the second half of the cen- port from the University of Michigan states, when three women – Clara Cressingham, tury into the 1900s . In 1890, Melvil Dewey “Under term limits, legislative staff may not Carrie C . Holly and Frances Klock – were (of the “Dewey Decimal System”), helped es- become more influential, but they clearly be- elected to the Colorado House of Represen- tablish in New York state the nation’s first come more important to the effective work tatives . In 1896, the first woman state sen- legislative reference unit . During this same of legislators and the institution ”. Currently, ator, Martha Hughes Cannon, was elected time, Charles McCarthy, who held a Ph D. . 16 states have term limits for lawmakers, in- in Utah . However, today women still are in history, was hired as a document catalog- cluding five SLC states . Oklahoma was the disproportionately represented in state er to run a small library in the Wisconsin first state in the nation to pass term limit re- government . Particularly, compared to state capitol . Once he took over the library, strictions in 1990 by a margin of 2 to 1 . The other industrialized countries, the Unit- on his own initiative, he began providing re- measure limited House and Senate members ed States fares poorly in the percentage search assistance to legislators . In 1903, ap- to 12 years maximum lifetime service begin- of women officials serving in public of- preciative lawmakers appropriated funds to ning in 1991 . The full impact of the shift was fice compared to that of the general population, and certainly compared to the proportion of woman voters . The 2014 Proj- ect, a statewide, nonpartisan campaign to increase the number of women serving in government, attempts to highlight the benefits of having more women in state and national positions, and provide opportunities for women who seek public office through educational campaigns and public service events . Although the project began in Alabama, satellite programs have been implemented in Mississippi, Oklaho- ma and South Carolina, and initiatives are being developed in Arkansas and Louisi- ana . These programs involve both political parties and seek to recruit women of all ethnicities and backgrounds .

17 LEGISLATIVE FISCAL PLENARY JOINTLY SPONSORED BY THE EDUCATION COMMITTEE AND FISCAL AFFAIRS & GOVERNMENT OPERATIONS COMMITTEE

Alabama Department of Commerce Sunday, July 28 Alabama’s success in linking workforce de- Preparing A 21st Century Workforce: Alabama’s Workforce Development Strategy velopment, education and economic devel- Greg Canfield, Secretary, Department of Commerce, Alabama opment is attracting a great deal of attention Mark Heinrich, Ph.D., Chancellor, Community College System, Alabama across the country and already is a model for Jim Bolte, President of Toyota Motors and Manufacturing, Alabama other states . The importance of aligning the efforts of these independent agencies toward providing a well-trained and well-prepared workforce to tackle the challenges of the 21st century manufacturing environment is increasingly important in the contemporary global economy .

Alabama’s efforts to provide a competent and well-trained workforce to companies operating in the state began in fiscal year 1971, when the Alabama Industrial Development Train- ing (AIDT) program was established . While AIDT was inaugurated as a contract program reporting to the State Board of Educa- tion, in 2012, AIDT became a division of the Alabama Department of Commerce . AIDT’s mission is to provide quality workforce de- fees and other program expenses . Based on velopment for Alabama’s new and expanding their performance at Shelton State, these stu- businesses and to expand the opportunities of dents will be eligible to be hired as Mercedes its citizens through the jobs these business- employees . es create . The critical point related to AIDT is that it encourages economic development Toyota Motors and Manufacturing through job-specific training Training. ser- Toyota has more than 40 years operating fa- vices are offered in many areas of the state, at cilities in North America and, since the late no cost, to new and expanding businesses op- 1980s, operates major manufacturing facil- erating in Alabama . ities in five SLC states: Alabama, Kentucky, Mississippi, Texas and West Virginia . The Alabama Community College System more than a dozen Toyota facilities operat- The successful collaboration and partnership ing across the United States involve a collec- between the Alabama Department of Com- tive investment of more than $24 billion and behind this success has been the very compe- merce (through AIDT), Alabama Communi- 40,000 direct employees, a clear indication of tent workforce operating the plant . In terms ty College System and corporations such as its enormous economic footprint . Toyota’s of identifying the most competent work- Mercedes, Toyota and dozens of others is ex- Huntsville, Alabama, facility, which manu- er to operate the sophisticated equipment at emplified in the following example . In Jan- factures four- and six-cylinder engines for a the facility, Toyota has been very pleased in uary 2013, Mercedes and AIDT formalized variety of Toyota and Lexus models, opened the collaboration with the Alabama Indus- a contract valued at $1 6. million for Shelton in June 2001 . The 334-acre property with trial Development Training (AIDT) . For State Community College (Tuscaloosa, Al- more than 1 13. million square feet in build- the most recent round of hiring, AIDT as- abama) to support technical programs for ing space involves an investment of about sisted Toyota in screening 10,000 applicants prospective Mercedes employees . Shelton $864 million . By January 2014, the Hunts- to help select the most qualified 300 candi- State Community College will use the larg- ville facility will have a total of 1,150 direct dates . AIDT’s efforts involved a 40-hour est portion of the funds ($1 2. million) to buy employees . pre-hiring “hands on assessment” of all equipment that will be housed on campus to the applicants prior to selecting the final- train students in robotics, electrical and oth- The Huntsville facility’s extremely efficient ists . AIDT also has assisted Toyota in train- er high-tech skills required in automotive engine production operation has resulted in ing workers for the company’s renowned manufacturing . The remainder of the funds several expansions and additional invest- Advanced Manufacturing Technician Pro- will be used to support students with tuition, ments in the last 12 years . The driving force gram at local community colleges .

18 COMMITTEE TECHNICAL TOURS

This year’s technical tours offered legislators an opportunity to grasp a specific understanding of programs unique to Al- abama . The three tours took in four desti- nations that demonstrate a handful of the many successes of public and private sector operations .

thority, who briefed legislators on the infrastructure upgrades recently introduced at the Port; new container terminal and the post-Panamax gantry cranes currently operational; other preparations for the Pana- ma Canal expansion; multimodal aspects of the Port’s development strategy; economic impact of the Port; and the role played by the Port in Mobile in attracting an impressive roster of multinational corporations (including Airbus, Thyssen-Krupp, AUSTAL, Hyun- dai, Mercedes, Toyota, Honda) to the state of Alabama . James M. Barry Electric Generating Plant The James M . Barry Electric Generating Plant is a coal- and natural gas-fired electrical generation facility that has been captur- ing and sequestering carbon dioxide since June 2011 . The plant, located along the Mo- bile River, is owned and operated by Al- abama Power . The carbon recovery and compression processes used at Plant Bar- ry require considerably lower energy consumption than most plants, and ensure a lower level of impurities contained in the coal-fired flue gas, making the captured product more commercially viable . The 25 megawatt plant has more than 42 gigawatts of total generating capacity, and serves more than 4 4. million customers . The facility is designed to capture about 500 met- Waters Nursery & Sirmon Farms ric tons per day from energy production potato brokerage business and Sirmon processes, eliminating about 90 percent of The Waters Nursery is a 120-acre contain- Farms, which consists of 1,200 acres of cot- the carbon dioxide from the inbound flue er-grown wholesale nursery located in ton, 1,200 acres of peanuts, and 550 acres of gas slipstream . Annually, the plant cap- Robertsdale, Alabama . The family-owned sweet potatoes . tures 150,000 to 200,000 tons of carbon di- and operated company got its start in 1998 oxide . The facility utilizes state-of-the-art and they have come to specialize in 1 to 200 Port of Mobile technologies, including those developed gallon containers . Sirmon Farms, locat- This technical tour involved a visit and brief- by Mitsubishi Heavy Industries, to support ed in Daphne, Alabama, has been in oper- ings at the Port of Mobile . The tour, which the goal of reducing carbon emissions from ation for more than 60 years . The Sirmon included a water tour, was hosted by Mr . electricity generation through capture and family operates Sirmon Produce, a sweet Jimmy Lyons, CEO, Alabama State Port Au- sequestration .

19 CONFERENCE NOTES

SLC STAR PROGRAM CARTER/HELLARD and, if so, provide contact information to ser- The Southern Legislative Conference, South- vices available for combat veterans . Vets are LEGISLATIVE ern Office of The Council of State Govern- connected to a wide range of services avail- STAFF award ments (CSG), has a long history of high- able to veterans through the United States The Carter/Hellard A- lighting exceptional state government pro- Veterans Administration, the state Depart- ward is presented to grams . The CSG Innovations Awards Pro- ment of Veterans Affairs and other sources . the individual whom, gram recognized and promoted creative and in the judgment of the successful state government programs and The program only required amendment of LSA Directors Group, initiatives for nearly 40 years . Begun in 1975 the form used by pretrial services officers has demonstrated excellence and dedication as the Innovations Transfer Program, refined during their initial interview; no additional in staffing service to state legislators in the and renamed the CSG Innovations Awards in equipment or software was needed . What South . Bryan Vincent, who recently marked 1986, the program transitioned to the region- was required was the willingness of the of- his 20th anniversary of joining the staff of al level in 2013 . The SLC STAR Program ficers to do the extra work to identify and House Legislative Services of Louisiana, was is the Southern regional adaptation of the assist veterans . Supervisor training for the the recipient of the 2013 Award . former, national CSG Innovations Awards new program was conducted at no or mini- program . mal cost . Kentucky pretrial services officers In 1993, Bryan began his long and productive have displayed a willingness and enthusiasm tenure of service with the House as a legis- Twelve panelists, comprising Southern state to perform this service for those who have lative analyst for the House Committee on legislators, legislative staff, international af- served the country . Municipal, Parochial and Cultural Affairs in filiates, and Southern Legislative Confer- the Governmental Affairs Division . In 2001, ence staff, selected two winners for the 2013 The second winner selected by the panel was Bryan was promoted to the position of Direc- State Transformation in Action Recogni- Virginia Department of Corrections’ (DOC) tor of the Resource and Infrastructure Divi- tion (STAR) . Step Down Program for Administrative Segre- sion . In the aftermath of Hurricanes Katrina gation, which utilizes evidence-based prac- and Rita in 2005, Bryan was at the forefront The first, from Kentucky, Veterans’ Con- tices (EBP) to provide a safe and secure way of working on issues related to the momen- nect Program, identifies and provides ser- for offenders in Administrative Segrega- tous impacts these storms had on Louisiana . vices for combat veterans at the time of an tion to earn their return to the general pop- arrest . Specifically, the program requires ulation . The Virginia DOC is the first state In 2007, upon the retirement of E . Anne pretrial investigations and services to ask correctional agency to apply the principles Dunn, 2003 recipient of the Carter/Hellard whether an individual has been in combat and practices of EBP research to an Admin- Award, Bryan assumed the position of Di- istrative Segregation super-max prison pop- rector of the House Governmental Affairs ulation, and the program has significantly Division . He has served most capably in this reduced the number of offenders in Admin- capacity, supervising the staff and work of istrative Segregation by 53 percent; increased four of the House’s standing committees and safety by reducing prison incidents by 56 per- advising legislators on various issues includ- cent; and reduced staff stress and improved ing education, local government, ethics, ex- morale as evidence by a decrease in use of ecutive branch reorganization, campaign sick leave . finance laws, and House rules revisions .

20 CONFERENCE NOTES

Comparative Data Reports Policy positions adopted at the 67th Thomas B. Murphy Comparative Data Reports (CDRs) are pre- SLC annual meeting Longevity of pared annually by select SLC states’ fiscal re- The Southern Legislative Conference adopted Service Award search departments . Because CDRs track a four policy positions at the 67th Annual Meeting: James T . “Jabo” Wag- multitude of revenue sources and appropri- goner is the current ations levels in Southern states, they pro- »» Concerning Federal Transparency on state senator who rep- vide a useful tool to legislators and legislative State Medicaid Payment Error Rate Mea- resents Jefferson and staff alike as they determine their own state surement (PERM) Shelby counties’ 16th spending . The reports presented at the SLC »» Concerning U S. . EPA Proposed Green- district in the state of Alabama . Senator Annual Meeting were : house Gas Emission Standards for New Waggoner has the longest record of service » Education » Transportation Fossil-Fueled Power Plants of any legislator from Jefferson County in » Medicaid » Adult Correctional »» Encouraging the Southern United States- Alabama history, having served 17 years in » Revenue Systems South Korean Economic Council the House of Representatives and 20 years in Comparative Data Reports are prepared un- »» Relating to the 2013 Farm Bill the Senate . der the auspices of the Conference’s Fiscal center for the advancement Affairs & Government Operations Commit- To view the full text of these policy posi- tee . Reports for 2013 and dating back to 2000 tions and those of previous years, please visit of leadership skills (CALS) are available through the SLC website at: www.slcatlanta.org/policy_positions/. In ac- alumni event www.slcatlanta.org/Publications/. cordance with SLC Rule X, these Policy With the implementation of term limits in Positions of the Southern Legislative Con- five SLC member states, and in recognition ference shall sunset the first day of the of the changing political landscape in the following Annual Meeting . The SLC col- South, the Executive Committee of SLC ap- laborated with the CSG Washington, D C. ,. proved the establishment of the Center for office to forward the positions to the prop- the Advancement of Leadership Skills to er authorities . help emerging leaders from the South develop their communication, conflict resolution, Continuing Legal Education consensus building and critical decision- For the third consecutive year, the Southern making skills . Legislative Conference Annual Meeting gave attendees an opportunity to earn Continuing CALS embodies the SLC’s mission of cham- Legal Education (CLE) credit for attending pioning excellence in state government and substantive sessions of SLC standing com- providing non-partisan forums for state of- mitteees . Attendees were eligibile for up to ficials who might rarely cross paths to share 12 hours of CLE credit by attending informa- ideas . CALS offers full scholarships for can- tive sessions . For more information regard- didates from the legislative, executive and ing the annual meeting CLE accreditation, judicial branches of state government . Vis- contact Mikko Lindberg at mlindberg@csg. it http://www.slcatlanta.org/CALS/ for more org or the SLC office by calling (404) 633-1866 . information .

21 2013-2014 CONFERENCE AND COMMITTEE LEADERSHIP

CONFERENCE LEADERSHIP

Senator Keith M. Ingram Speaker David Ralston Senate President Robert Stivers Speaker Mike Hubbard Arkansas | Chair Georgia | Chair Elect Kentucky | Vice Chair Alabama | Immediate Past Chair COMMITTEE LEADERSHIP AGRICULTURE & RURAL DEVELOPMENT ECONOMIC DEVELOPMENT, TRANSPORTATION & CULTURAL AFFAIRS

Representative Andy Anders Representative Tom McKee Senator Bill Sample Senator Jeff Mullis Louisiana | Chair Kentucky | Vice Chair Arkansas | Chair Georgia | Vice Chair EDUCATION ENERGY & ENVIRONMENT

Senator John Unger II Senator Dolores Gresham Representative Denny Altes Representative Bill Sandifer West Virginia | Chair Tennessee | Vice Chair Arkansas | Chair South Carolina | Vice Chair FISCAL AFFAIRS & GOVERNMENT OPERATIONS HUMAN SERVICES & PUBLIC SAFETY

Representative Randy McDaniel Senator Roman Prezioso Senator Emmett Hanger, Jr. Representative Joni Jenkins Oklahoma | Chair West Virginia | Vice Chair Virginia | Chair Kentucky | Vice Chair LEGISLATIVE SERVICE AGENCY DIRECTORS GROUP SLC OFFICE

Colleen Cousineau Marty Garrity Director Director Southern Legislative Conference; Bureau of Legislative Research Deputy Executive Director Arkansas | Chair The Council of State Governments

22 A THANK YOU TO OUR SPONSORS The Southern Legislative Conference extends special thanks to the following friends in the private sector for their generous assistance with the general and substantive committee programs for our 67th Annual Meeting . We are grateful for their continued support and interest in the Conference over the years .

Alabama Power Company Altria Client Services Inc . Blue Cross Blue Shield of Alabama International Paper HOST Alabama Association for Justice AmeriHealth Caritas Eastman Chemical Company Norfolk Southern Corporation Alabama Beverage Association AT&T Exxon Mobil Corporation Phillips66 Alabama Education Association BP America Inc . GlaxoSmithKline Raytheon Company

PATRON Alabama Nursing Home Association Business Council of Alabama Mobile Bay Convention & RAI Services Company American Pharmacy Cooperative, Inc . Comcast Visitors Bureau UPS

Alabama Association of RC&D Councils Automobile Dealers Enbridge Petroleum Exchange Mobile County Alabama Association of REALTORS® Association of Alabama, Inc . Government of Canada PhRMA Alabama Bankers Association, Inc . Bayer Healthcare Intuit Poarch Band of Creek Indians Alabama Beer Association Beth Marietta Lyons, Lyons Law Firm HCA PowerSouth Energy Alabama Community College System BNSF Railway Company Jacksonville State University Regions Financial Corporation Alabama Farmers Federation Boeing Foundation SAS Institute Inc . Alabama Hospital Association Cash America Jim Hudson/Hudson Alpha Institute of Security Finance Alabama Retail Association City of Mobile Biotechnology Software Technology Alabama State Port Authority Community Financial Johnson & Johnson Southeast Recycling Development

SPONSOR Koch Companies Public Sector, LLC Council Alabama Tourism Department Services Association Lorillard Tobacco Company Maynard Troy University American Chemistry Council Community Loans of America Cooper & Gale, PC University of Alabama System Association of County Canon Solutions America, Inc . Medical Association University of South Alabama Commissions of Alabama Credit Union Coalition of Alabama of the State of Alabama Volkert, Inc . AstraZeneca Domtar MedImmune Vulcan Materials Company Auburn University Drummond Company Merck & Company WalMart AAA Alabama Alabama Sheriffs Association Engage South ACCCE Alabama Wholesale Beer Association Express Scripts Perdue Farms Alabama Cable Telecommunications Anheuser-Busch Companies Home Builders Providence Hospital Association Associated Builders and Association of Alabama State Farm Insurance Alabama Cattlemen’s Association Contractors of Alabama, Inc . JM Family Enterprises TMX Finance DONOR Alabama Petroleum Council/American Bank of America LexisNexis Toyota Petroleum Institute Boys and Girls Club of South Alabama Matrix LLC Triton Management Group Alabama Road Builders Association, Inc . CenturyLink National Federation of Tuskegee University Alabama Rural Electric Association Cosby Company Independent Business Wells Fargo Host State Committee HOST COMMITTEE CO-CHAIRS HOST COMMITTEE House Speaker Mike Hubbard House Speaker Pro Tempore Senator Rusty Glover Representative Jamie Ison Senate President Pro Tempore Del Marsh Victor Gaston Senator Bill Hightower Representative Senate Minority Leader Representative James Buskey Howard Sanderford Vivian Figures Representative Randy Davis STAFF COORDINATOR Happy Fulford, Executive Director, Office of Governmental Relations, University of South Alabama HOST STATE STAFF Khanh Bailey Lynne Chronister Janice Godwin Heather Lambert Joy Murphy Ginny Russell Tasha Sullivan Owen Bailey Tom Coker Jason Gray Ryan Lambert Mike Murphy Julie Saint Lynn Tate Porter Bannister Drayton Cosby Will Hamm Eddie Lavoie Bill Neighbors Myra Sands Lynda Telle Lindy Beale Noopie Cosby Stan Hammack Nick Lawkis Natasha Nettles Nick Sciple Paul Thrash Virginia Bear James Currington Maggie Harmon Angela Malone Kim Nicholson Gina Shaffer Liz Travillion Wanda Buchanon Rachel Dickinson Ava Havard Goddess Malone Carla Pattillo Don Sherrod Jacqueline Tynes Carol Bullard Johnny Flowers Amy Herring Demetrius McGhee Tara Preyer Steve Simmons Sommer Vaughn Bill Bush Carolyn Franklin CJ Hincy Meg McGovern Chris Pringle Doretha Smith RB Walker Sharon Calhoun Ron Franks David Johnson Will Menas Marcus Robinson John Smith Susan Wesson Shaurice Carr Sherri Fulford Armand Keyser Ann Morris Vickie Robinson Jill Stallworth Joyce Wright Val Chaney Donna Glover Torrey Keyser Polly Mosley David Russell Sam Strada

23 The Council of State Governments Southern Office Southern Legislative Conference 1946 Clairmont Road | Decatur, GA 30033 P O. . Box 98129 | Atlanta, GA 30359