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tv   Politics and Public Policy Today  CSPAN  February 26, 2016 5:00pm-7:01pm EST

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certainty if this side. wins. m >> mr. james. >> in his statement the prime minister observed that leaving p the eu might briefly make us feel more sovereign but does he not acceptth for many members t issue of parliamentary sovereignty will be the central one of thehe debate that we're l about to engage on, that so long as we are subject of the fiat of the european commission and court of justice, we will not bg truly sovereign and that very little changed last weekend in that respect. >> well, i think what changed w last weekend ine that respect i that because we're getting out i of evero closer union, we now know that we can't be forced into further political union against our will. i think that's very important. e but on this issue of becau sovereignty, i repeat again, of course, if you leave the eu, you might feel more sovereign because you could pass this law or pass that law. but on the other hand, if you still want to sell into europe, you have to meet all the rules over which you have no say and to me that is a dimunition of
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sovereignty rather than an increase of sovereignty. >> thank you, mr. speaker. on the issue of sovereignty, it has been reported in several t w news media organizations that the prime minister intends to unveil a british sovereignty a billse, in the next few days. t will he confirm that that is the case. and if so, will he tell us whats provision he's going to make in that bill to recognize the principal of sovereignty of no parliament is a distinctly english principle whichch -- whh has no counterpart in scottish constitutional law. do >> what eve said i think we in should do is build on what we did in 2011 when we set out that parliament is sovereign and just as parliament can choose to join the eu parliament can choose to leave the eu and that i think is good for the whole of the united kingdom. do have a sovereign o parliament. now, i think b there'sri ways wn add to that. as other countries have done. and i look forward to bringing m
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somer. p proposals forward in t coming days. >> mr. peter bone. >> thank you, mr. speaker. on friday 2,500 people packed the qe2 center to see go launch the national cross party leave campaign.mr. s amongst the speakers, mr. speaker, were two uk mps, a renowned economic commentator, a senior trade unionist, a very respected labor mp, the co-chairman of conservatives for [sitain, four conservative mps, and theho leader of respect.e in 2014, mr. speaker, ruth davison our excellent conservative leader in scottland linked arms with george galloway in the national interest. does the prime minister agree v
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that ruth davison was right andt does he agree that sometimes you have to work with people you don't like?one wo >> everyone will have to make hy the choice about what platform they appear on and who they appear on those platforms with. i think the disadvantage of a appearing on any platform with eitherer is what i consider whot their friends are and the people they support. caref and the politicians overseas that they seem to support. but as i say, this will be something that everyone will have to think carefully about who they want to appear with. >> mr. peter kyle. >> there's been a lot of talk of e rightly about the city london and big multilateral cour companies working here and y. investing in this country, but the beating heart of our economy is the small to medium enterprise sector. eu smes export 39% of smes in thiss country export to eu countries. does the prime minister not
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agree with me it would be sup madness to slam the door in their face? >> well, makin i think the majority of ssmes that export support the point i'm making. many are exporters and involved in a supply chain with companies that do export.nd i think this is a point that a lot of business service organizations, banks and accountants and lawyers are very well placed to make.e.>>would >> mr. henry smith. >> thank you, mr. speaker. i would like to also thank my honorable friend the prime minister and all right honorable and honorable members of this house who voted for us to have a referendum on our eu membership. can the prime minister say whether the agreement he has e t reached also is the lisbon treaty at all.l.thisere >> well, obviously it does. s when we change these treaties, e this will be one of the, as it l were, founding documents of then eu, so the international law
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agreement and then in time the h treaty changes will sit f alongside the other treaties that have been produced in the past. like him, i regret the fact thac so many treaties were passed with so little democratic accountability and i think d wem putting that right in two ways, things like getting out of ever closer union, a distant dream . for many of of us who used to argue about it and never got itr and the democratic possibility of holding the referendum. >> mr. gramstringer. >> the prime minister has stated explicitly that people who vote to leave the european union y don't love their country. i represent -- i represent many veterans of the armed services n whose patriotism will not be ad questioned. will the prime minister rema apologize to thosein people?h >> i absolutely did not say inu that. i love my country andnd i thinkt
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will be greater and more e powerful if we remain in organizations through which we can project ourng to power and e influence and do great things ie the world.at pa i don't question the patriotism of anyone in our country.he we're all going to have to maker a achoice, but i actually beliee part of britain's greatness is m not simply the parliamentary democracy that we enjoy, the rights we have in this country,n but we are an outward-looking country. i'm proud of the fact that we help whether it's with syrian refugees or trying to stabilize countries from which so many n problems come. how are we able to do it because we're makes of nato and we're h permanent seat at the u.n. and we're a part of the eu. i think it's technical jargon to call it a force multiplier but that's what it is and we should be proud of the role we play in the world. "washington journal" live every day wish issues and politics that impact you. coming up tomorrow jill stein will join us live in the studio
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and conservative radio host h r erick erickson will join us and be sure to watch "washington journal" beginning live at 7:00 a.m. eastern tomorrow morning. join the discussion. on saturday, south carolina holds its democratic presidential primary. and at 7:30 p.m. c-span will bring you results from south carolina along with speeches from the candidates and your reaction on the phone and on facebook and twitter. and two days later super tuesday, when 12 states hold presidential primaries or caucuses. it's also been called the s.e.c. primary, because many of the states holding contests that day participate in the u.s. collegiate southeastern conference. results from those races and candidate speeches are live on tuesday starting at 7:00 p.m. eastern.
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during campaign 2016, c-span takes you on the road to the white house. as we follow the candidates on c-span, c-span radio, and cspan.org. the nation's governors gathered in washington last weekend for their annual winter meeting. the opening session of the national governors association meetingng focused on the economs this is an hour, 20 minutes. >> good morning. welcome to the nga winter meeting and to the session states attracting companies and investment, what do firms look for. we'll turn it overrstat to our o moderator. >> thanks very much,ur mark.ou d
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thank you and good morning, pan, everyone, and welcome to this in panel of the national governorsi association onr attracting kinsy companies and investment, what matters to firms.r prac i'm a partner at mckenzie's frar publicuc sector practice, and w have the privilege of working u withsa governors and state leads across the country on health care, infrastructure, higher education, public safety, our ec pensions and governmenton s i wo operationsr and i.t. i have the unique privilege of i leading our economic development practice which means that i work with governors and their economic development teams on s their most ambitious jobs and competitiveness initiatives. the premise of this morning's op panel is quiteen simple. states focus disfor force comp natalie on company attraction, retention and expansion. governors spend a lot of their time doing this.es do so, what actually matters to companies as they decide where to locate and where to invest. and what should states do,
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therefore, to ensure that the they're asag competitivee ol asn possible in a attracting those g companies. this discussion and this debate is obviously an age old one, bu. this particular thread of the conversation began a few months ago in october at the nga's rtii trilateral summit in colorado springs. it was there that my colleague t andre ivdua led a discussion wi several governors starting with a fairly provocative proposition. he stated that the incentive is dead, long live the incentive. the thinking behind that notionh is a conversation that we at sis mckenzie have been having based on some observations we've been seeing across the country. there's been a move away from an overreliance on subsidies and sm incentives in attracting companies. instead, many states have been a building morewa broad, more dee states. incentives, of course, have not
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gone away, but they've rather w been deployed more strategically in order to support more sustainable growth and job growth. which brings us back to the big two questions for this panel. what actually matters to companies when they're deciding where to locate and what should states do to meet their needs. or more precisely, what can states do to maximize the return on investment when they're trying to attract companies. to help answer these questions we have a vice stellar set of panelists this morning. we have frank irvin iii senior n director for government affairs at magnet international.ional we have jim frazier vice president for government ouri d relations at eptallas usa. we have ann pardalus manager of the international trade and investment office for the missouri department of economic development. we have donovan johnson director of global resource management p. group for the north dakota trade office and last but not least we have leslie alexander, international director for the tennessee department of economic
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and community development. but before getting to the panelists, i want to frame this. discussion just a little bit more. forgive me, i can't help but pu some data on power point slidesc so i wanted to share with you a little bit of some research that we at mckenzie have done. a few years ago we did a survey over 2,900 global company executives. we asked first the reasons for o why thesene executives and thei companies were seeking new locations. by far and away the number one reason was to reach new markets or customers as you can see on this chart. no other answer came even close including, i might add, seeking locations that had a lower cost profile. we also asked these executives s what criteria they used to choose specific locations.wth po the most important, again, by far and away was the size and growth potential of a local
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economy. that's what executives cared about.and than half of the executives also ome cared about key components like talents and also the availability of an industry cluster. the supply chain customers need to be nearby. rounding out the top five were infrastructurere and then local politics and regulation.th this is what matters to companies.is is slide i would just note that what is not on this slide is that 14% of responde respondents, 14% only, said that of incentives were a reason why they did not choose a location. it did not make the list, in other words.states so, how are states in providing the features that executives are looking for. well, one imperfect indicator is what states actually spend their budgets on to promote economic ssociatiiveness. we pulled together some state data -- state expenditure data from a number of sources including the national nd a association of state budget officers, the national science
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foundation and others. as you can see here, states spend a lot per capita on higher education and transportation, et exactly what executives arehe looking for. far behind is how much they spend on incentives and r&d, however, you'll also note that d where there's the largest growth in terms of spending over the past several years, r&d leads the pack. would transportation is there in second players and then finally you have incentives and higher education. so, it would seem we could conclude that states are, in fact, aligning their investments with what companies seem to be wanting. however, i would say that these numbers also show that incentives are not dead. they are, in fact, growing in size. but anecdotally i would also say that what we've seen is much wt more of w a strategic deploymen ofince incentives as a tool, ag to build outive grow the broade economic ecosystems that drive growth and that companies are attracted to.e doin
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i'd now like to turn it over to my private sector colleagues too say ar few words about what they're doing and their reflections on this topic. first up is frank irvin iii, , > again, senior goo director for government affairs at magnet international. >> thank you. good morning, everybody.e i'm glad to be here. my name is frank irvin and i'm a senior government affairs at magna international. i wanted to give a couple facts to create a little credibility about what we're going to talk y about, say who magna is. i always come to washington, d.c., and i talk about magna. i think it's the largest company nobody knows anything about so we have to tell everybody about it.tive sup at magna we are 59 years of growth.. we're rankedthe wo as the large automotive supplier in north america andth the second largesh inat the world. we're the most diversified automotive supplier in the world and we supply every automaker in the world something, some kind
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of parts and some part of what they do in the automobile sector. our global presence is pretty -- we're in 29 countries. we have 139,000 employees. we have 305 manufacturing plants around the world and we're $36.6 billion company. more importantly, in the united states we employ about 21,000 people and we have 53 manufacturing plants in the united states spread out over 12 states including tennessee and missouri. and we're very happy to be there. but the key i think is that the 14 to xvi & d. centers that we x have also inpend the united sta. our expenditure in the united states last year in r&d was about $300 million of our total expenditure around the world, so r&d is very important to the automotive industry and where we're going. at magna we -- our global capacity are engineering and
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services, product systems, different product systems and also vehicle assembly. we actually assemble vehicles in austria. we assemble 200,000 vehicles a year in austria for bmw, have chrysler and porsche. our core competencies are varies and diversified. we are in metal forming and camera driver assistance products for safety, closures, power train, plastic interiors, seating and we do the contract manufacturing and we are the number one globally in just mag. about every sector with the r tj exception of seating where we're number four. that's a little bit about magna and i'll turn itt over to jim from thales. >> thank you. it's a pleasure to be here this morning. as you've heard, i'm jim frazier. i lead government relations in the u.s. and i handle our relationships at the federal, state and local
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levels, not unlike frank. the diversity of what i get to look at a day-to-day basis varies dramatic. a snapshot. globally we have 61,000 world employees in 56. countries.of go you can see we are all over the. world. we've seen a lot of growth over the past number of years and i think that's going to continue. one of the things that i'll alss mention it's kind of hard to see on the bottom but we also invest a tremendous amount of our revenues back into r&d, $675 million annually. r&d we're a very high-tech company so the thinvestment wet in research and development is ' significant. here in the u.s. we have a footprint of 3 100 y ,000.0.on we're atly i 21 locations in 13 states. the interesting part of thales u we've been here over 100 years and only in the last few years did the name coming into being.n the thales footprint has been here for quite some time but the name has not.
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i think we're on the leading edges for growthth potential fo trann the u.s., though. the diversity of what we do is quite interesting.d, you can see the five business activities. these are the market segments we serve globally. ground transportation, security which goes into the cyber worlds defense, aerospace and also thoo space. globally we're very active in those market segments. in the u.s. our operations mirror each one of those. and you can see underneath that it goes in a little more depth on some of the things we do. we're big on in-flight entertainment and connectivity and the highlighthtconn is the g connectivity part.tection it's staying connected.a big it's all about data.the dive it's all about sharing. it's all about data protection as well a very big issue for us that goes into the cyberworld but also the radios, the air traffic management we're quite big in.ery si you can see the diversity of who we are and what we do in the u.s. about $2.2 billion in the u.s. for our 2014 revenues probably very similar to last year and about $17 billion or $18 billios globally, we're a good solid
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percentage of the thales group annual revenues.-- just a couple of quick thoughtso onw some of the things john haf mentioned and we'll get into a discussion later on.rising i think when we look at how we're trying to grow in the u.s. and the factors that really matter to us, i don't think anything is surprising on the factors he put in. i think growth potential, where we see that kind of potential e investment, not just near term but over the next five or ten years, everything we do is driven by our strategy which is i think the way it should be. how do we grow, where does it make sense for us to grow. i think also a workforce. we have very highly skilled jobs. we have a lot of engineering talent that we need and having a that available workforceve workg with the states to provide training for our employees, we have a very intensive internal training that matters to us and proximity to our customers and supply chain. in the aerospace world where we're grouped together for do, aerospace companies like ours, that's very important for us ase well to be a part of that
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community. other companieselopme do, we want to be invested in ,t our community as awell. the relationships matter. federal, state, and local engagement for us is very, very important. the relationships with governors and their staffs and the local development agencies that all really matters for us. as we hope to grow, it's really important to establish that it baseline relationship first' anf then grow u into the opportunits as they come forward. but i think it's a vitally important topic for all of us here in the room so i'm really pleased to be a part of the discussion. thank you. what >> thanks very much, frank and jim, for that introduction. jim in particular, thank you for the thoughts on what criteria actually matter for you. frank, can you say a little more about what magna looks at and what you look at inn terms of oa whatnt criteria, what pops out for. >> yeah, sure.e sure, one of the things that pops out and that wee have to be cognizat of is the oem. if we have to make sure becauseo
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we sell to the oem, we're not a consumer-driven company. so we have to be where the oem is, where the original equipment manufacturers are. and at sometime it's very, very sticky because depending on the commodity or the whatever part you supply at that time to that vehicle, you're required to be in two different circles of what we call just in time circles.ci one is if it's a really urgent n requirement, such as a seat or i somethingn like that, we're e required to be in a 25-mile circle from the manufacturing plant. so, you got to draw that circle around and we have to be inside that circle. if it's not a critical component, one that can be inventoried to a point of maybe three days to a week, you have to be in 125-mile circle of the plant, so you have to be within that circle. and if not the oems will actually charge you a logistics penalty for not being inside
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that circle, so you have to be e very careful. d but theny of you look at the st and we do a demographic study of where we want to be, so within n that circle sometimes outside the circle but most of the time in it, we look at the state that we want and we do the demographics and the first thing we look at is to standard of living for our employees.th making sure that we can get the tallnent that we need there but also we can get the workers that we need there and make sure that that talent is educated toh a point that weer can bring thee into the s plant, train them, mk sure that they stay there. our turnover in the united states is less than 1%. and we do that because we take good care of our employees. then we also look at, you know, obviously the economic part of what -- where we're going to be and we talk to the states and wn look at, you know, how the state can help us mitigate the huge, e huge capital investment we have to make.
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when we invest in a plant the normal, probably the lowest that we do is $100 million, so that's a huge investment. it's a long-term investment and we have to be careful where we are with it. >> it makes a lot of sense. both of you talked a lot about the importance of r&d in your business. and you threw out very large yom numbers, $65 million, $750 million a year on r&d.rk close do you work with states on r&d and thinking about the r&d agendas for your companies? >> i think you have to work wit the state.ology we work closely with the states. especially in the automotive side, i know jim has some on this side, on the automotive side you have to work with the v states now because where the technology in the automotive wis is going, autonomous vehicles, connected vehicles especially you have to have permission to e test autonomous vehicles in most states and you got the to have some place to test them and we're not, you know, some peopl.
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look at the autonomous vehicle and say that is that the driverless vehicle? autonomous vehicles are not hemn necessarily 100% driverless vehicles. they'll move to that and we're 10 to 15 years away from driverless vehicles. we have automatic stom where yos don't have to put on the brake if the vehicle senses a vehicles very, very close to you, it stops on its own.the those systems are coming into play. there are many,we have somepl m technologies that are coming into the automotive industry.gon and the other thing that really gets us is we have to be someplace where we can do the r&d because the federal government is requiring that wev go toe st 54 miles a gallon by . and both the industry and the department of energy have already stated you're only going to get there three ways. number one is transmission, 54 m turbocharges transmissions. number two is lightweighting of vehicles and number three is electric vehicle.ogy go
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that isin the only way that you can get the technology to get to 54 miles a gallon by 2025. so, r&d is very important in the automotive industry because we can see that technology going forward and we need to do it right here in the united states. >> absolutely. i agree r&d is at the core of all that we do. we recently opened at the m.i.t. media lab in boston an innovation center and we have a team of five there, but their mandate is to work with all of our businesses u.s. and globally to try to drive this innovation forward. how do we work with our sites. how does r&d come into play here. a lot of what is going on in digitalbo transformation is ver important as well. one aspect i'll mention in addition to that is that globally we have 30 or so cooperative relationships with universities on cooperative r&di projectsth as great as talent as we have we love to bring in the best and brightest from the rwa.
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universities as well that can .t help us move our initiatives forward. in the u.s. that's very true as well. a lot of those are centered around where our current te the locations are. but i think as we grow that tht we're e also looking where elseo they have centers of excellenceo that wecu can help create these cooperative relationships that e establishes all presence for usr an interest in an area that we ' might not have bee' focused on before. that can help grow the relationship as well. absolutely, r&d is core to whate we do.importan >> wonderful. so, we've heard a little bit about regulatory relief for r&d in addition to the incentives.eb you also mentioned talent a lot and the importance of talent and also relationships with ularly universities. can you speak a little bit about the relationships that you have with local universities you particularly publicas universits in terms of developing talent and making sure the talent has the skills that you as a company need. >> well, we have a lot of schoo relationships with l universiti, but i thinknk itsc goes furthern
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that. i think you have to go further. today i think you have to get back into the high school and junior high school and start young people off from that point and engage and articulate to them thatt this industry or thi manufacturing industry is not bad anymore, okay? it's not where you go in and you go in and you got a nice shirt on, you come out you got a greased shirt on. it's not that way anymore. if you look at a body stamping plant that we have, you have yo 300-ton presses that are 12 bodw stories high that we have to di six foot trenches to hold the press in the floor, and, you go know, you look and at all this work going around and i remember when i worked at chrysler, a long, long time ago and i was in what was called a spot welding jungle where you had a spot welding gun and things coming down from the ceiling and you e are spot welding these vehiclest well, that's not done by humans anymore. in one plant that's 1,000 --
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that's a million square foot 50b plant thatot has 1,000 employee in it where we pump out bodies. there arerobo 1750 robots in th plant. and all the people doo that wor there basically is control the robots. so, you got to have people that can control the robots, so having said that, i think you have to go back and you have to create programs for high school even junioror high, but really o high school,re moving into the college area to show them that this is the expertise they need and the core competencies they need to get into that. and that being robot, you know, either an engineer but also an t operator, a robot operator, is o good living. and you can make a lot of money and live comfortably with it.ich so, we go that way. and then we create also the university programs where we do a lot of apprenticeship programs and we bring in college -- young
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people from college every year to work in all of our facilities. >> jim? >> we do the same thing and i agree with frank's comments. it goes past the universities.is first on the university side, though, we have internships, we have the commentive nity t relationships, we sponsor robotic competitions where university teams take part. we give our engineers an opportunity to work with the college students as well to hela them further their projects.on,e globally to manage our corporate social responsibility we have an organization called the thales i foundation, several years in the making now it's relatively new but one of their primary focus areas is on ths.t.e.m. educatiom so we're encouraged our employees to submit projects around the world and there are examples here in the u.s. we go in the high schools to toe work with those to get them excited about science and technology, engineering and mat the skills that companies like ours really need. it's kind of giving back to the community as well. if i had to characterize what we do in the communities and this
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is the same for most companies, certainly magna, we want to be part of the community, we want to be involved, education, the local highh schools, the community, giving back to the communities. we do a lot of charitable work globally but we do a lot locally where it focuses on the issues o that matter to those communities. we think it's important not only to be good corporate citizens but to bring that to where we live and work and the live part as well. it's a big area for thales. >> thank you, jim. and building on that a little bit, how much do quality of life factors matter to you as you think about the communities that you choose? obviously you will be investing in these communities in large ways as a large employer going forward, but even before you choose a community to move into, how much does quality of life actually matter? something that we haven't discussed yet. >> i think quality of life is very important. we -- the work/life balance that we hope to have for all of our o employees, the opportunities in the communities.
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it's a partnership with the local community. it's very important to us.e oppo it's a factor. there are a lot of factors thatm go in. the one thing i wanted to is i mention, too, i didn't want to lose sight of mathis, incentivew are still heimportant. theyey still matter in the bigg picture of what we look for when we invest or grow in an area.elr a lot of our growth has come from locations where we currently exist.-- it go that doesn't mean that we won't be growing elsewhere in the supi near-term future. but i think, again, it goes back to the relationships you have in the communities, the quality of life. is it compa an area that's supp of foreign direct investment as well. and being a global company we bring in employees from all over the world, we obviously hire very much in thehe local communities but it has to be thf right quality of life.invest a community that's welcoming. ae and, again, a community that isy recentive and supportive of that foreign direct vestment, that's very, very important to us. >> i agree. and moving into quality of life is very important, so when we do the demographics of where we
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might put a location, that becomes -- we look at, you know, whatlocal the cost of living i what kind of employees because k most of the employees that we put into a facility will come from the local area. but getting back and expand upon the incentive part. i always come back and talk e ru about rnincentives in a way thae think is positive and i try to u make it positive. it's not about the incentives. it's about the return on the investment that this state's going to get from what we put in there. u know, i give you an example. we have one state and it's a large -- we're large in the state, and we have 26 manufacturing plants. indus and over the years since -- and i'll go back to 2009 when the auto industry kind of went down. since 2009 that state has granted us $26 million in inv t incentives. but if you go back from 20099 t today, our capital investment
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just foror expansions and new plants in that state $780 million.he key so, i went back and i said, okay, what are you getting back for this. what do you really get back ford this. and i think one of the key parts is what people sometimes don't understand is what goods and services that comee from puttin that plant in that city or that state goes for.services so, in 2014 in the same state where we have 29 manufacturing, we went back and we looked at t all of the goods andst services that were purchased by that plant, by 29 plants in that one state from that state's base vendors. it wascan talk $1.6 billion in . so, i think, you know, anybody can talk about the incentive rem part thatil you want. and understanding the intense ai capital investment, when you are investing $100 million to put a plant in, you're investing $100 million within four years because it takes two years to
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put the building up and you got the start of production.e and basically what -- it's not a corporate giveaway, it's just basically helping someone making mitigate the capital expense that you have to put in plus get the employees plus get them trained, get them ready to go and alsoon making sure that the vendor base that you buy goods and services from are right there. >> terrific. i want to move on to the state s colleagues but before we do f that, i'll put you on the hot o seat, what are one or two top t pieces ofis advice you would gi to state economic developers and their roles as folks trying to attract your companies and youre dollars? what's one or two pieces of advice you would give them? >> i think the biggest thing is to bring all facets of what yout need for infrastructure together.ies arth make sure that the state ce economic development people are there at the is table, but als make sure that the utilities
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there because id thinkwe a the biggest problem we may have andt sometimes a face is that we liks what we see,ud we're ready to g and then we find out that the utility doesn't have the electric power to that area and, you know, all of a sudden you ob find out you have to build a substation. thateryb odsubstation is $5.5 m. so, i think the advice i would . bring is to bring everybody together. come out with a plan and a program andd let's not negotiat. let's just sit on the table and tell everybody let's do this, you do this, i'm going to do get this, that's the way it's going to be.ved, wor >> team sport and partnership. terrific. >> i think getting the highest levels of government in your state involved. focus the governor's engagement, hel working with the local partners. when we see a team come in that has a lot of focus from top to . bottom and really looking to, t okay, how do we create this partnership and how do we help you grow, you know, we're looking short term, we're
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looking longer term. but having that top-level engagement, the buy-in which i think i've seen in so many greah examples in the meetings i've had, that's very, very important. and also take a look at the companies you're talking to as well. understand who they are and where they arey get andin wher growth potential could come this from. that little bit of home work oge beforehandr comes in so we've already gottenlo past the introductions and now we can gee into the substance of the meeting. this is how we can work together and help you grow. we have -- a lot of state ts sen economic development agencies have european offices as well. that kind of engagement for us is great. they come tog ourwe h paris ena headquarters. it usuallyn work gets sent back here in the u.s. to engage. understanding how the company is structured, know ing we have a u.s. presence that already exists and working all the way e through isd helpful to make th discussions when we get a chance to meet really productive. >> that's great.
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common theme around do your home work and doing the intelligencea and being prepared and knowing o the range of the fullr needs ov the company ise really parent. i want to turn it over to ann to give us a few comments. >> john, thank you very much. it's a pleasure to be here todaa and if you'll allow my one bit a of business before we getnk t oy started here, i'd like to take o this opportunity tor thank mar brady and his team at the s national governors association and primarily not only for the extended relationship that we've had through the state's international development very organization but also for convening this fantastic and very informational, important panel. thank you, again, very well done and we really appreciate your partnership throughout the years, john.f you wh i want to take this opportunity to just kind of familiarize those of you that may not be all too familiar with missouri. i am from missouri.
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although there's some people from missouri as well, too, sta. matter, in our state.ple in but nonetheless, we are the ded show-me state and the show-me state throughout the years, you know, missourians have been nsea definedti literally by their stalwart, their nonflinching, conservative and usually , even incredulous character, a and toy we call it commonsense. today is a little bit of common sense and how we at the missouri department of economic development approach foreign direct investment, even domestic investment, expansions within the state and how important that is, you know, with regards to everything that we do. it's that common sense once puto again that literally had us look inwards and put together a strategic plan if you will for the department moving forward and governor nixon actually was,
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you know, the huge proponent oft that. you know, he was very big ond t making sure that, number one, we had a strategy in place, but, number two, we were following e the strategyaddres and making c we were addressing all the needs that needed to be addressed. just very briefly to kind of, you know, talk to some of the items as a matter of fact that were brought upsl by our two private sector panelists. on the slide here you'll see just very key economic indicators. but i wanted to take an opportunity, though, as well to just kind of telll youou a litt bit about, you know, some of thy other key advantages that we have in state of missouri that are not readily available or recognizable as well, too. and to that point, you know, wet are as i said earlier, you know, smack dab in the middle of the united states. he state our location is key to the k atm success of the state of missouri. it's location,th location,
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location. and if you look at the state of missouri, one of the things that you'll find is that within 600 miles of our state are 52% of all the manufacturing plants in the united states. that's critical. in addition to that, though, we have, you know, an extensive hs interstate system, you know, that spans all across the state just like many other states do, of course. but we're kind offt in the fort we've got the scenic route 66 in ours. in addition to that, though, we also have a rail system that's one of the largest ones in the country. 4,000 miles of track.ssouri 17 freight railroads as well, too. 17 public river ports in the state of missouri, both on the missouri and the mississippi river. not and last but lea not least, your know, twots. international airports. so, if companies are looking to hit either one of the coasts within one day's time, we've gos them covered from the state of missouri specifically.
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in addition to that, though, one of the other key assets that we truly believe the state of missouri is our large and productive workforce. you know, that's been talked about a lot today.that has we have literally a placed a lot of resources in training, education, it's critically important. we want to make certain that the workers in missouri do have those skill sets, do have the education, the background that they need, the technical skills for the jobs of the future because that's where we're going, mattas a matter of fact. it's critically important for us in that regard. in addition, though, we also ano understand, you know, how vital it is that we expend resources in that regard. you know, our customized jobs program in missouri, our on-the-job training program as well, they're national models,
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so we're very, very proud of that activity and such as well, too.rces in well. in addition, though, you know, some other key information withs regards to the state of missouri, our key clusters, advanced manufacturing, im critically important. these two gentlemen right here advanced manufacturing is critical. automotive sector, once again, x very, very important. just want to tout the governor n one more time with regards to, you know, theto very first thin that governor nixon did, first day on the job, was an executiv order to literally make certain that the automotive industry, h. put together a task force that was going to address the issuesu facing thes sector back in lli 2008-2009. critically important. and it's because of that, you an know, and thed in a focus that placed on the automotive sector that literally has led to $1.7 billion worth of investment
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from, you know, two of the largest, you know, u.s. manufacturers, the oems, but in addition to that over 66 we are suppliers, including magna, thank you very much, as a matter of fact, frank, the automotive industry literally led the resurgence in the state of missouri and we are a truck manufacturer. we are number two now in the country with regards to truck y production in the state of missouri, so we're very, very proud of that and especially with regards to that cluster. also though, biosciences, rtanto hugely, hugely important in ourl state. energy as well, too.d d in our so with regards to these clusters, we have some of the most important, you know, corporate leaders in the world located in our state. as i mentioned, we make everything from f-150 trucks to f-15 military aircraft in our state.o chocnce te hallmark cards to lindt
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chocolates, you know, electrical transformers to crop science technologies in missouri we literally do it all. we have a diverse economy that's founded on manufacturing, founded also on professional ot services, and then, of course, with regards to tourism and agriculture, not to belittle our agriculture by any means, we are a very large agricultural state and the ag technologies, of course, are critically important to us. so, just to kind of round things off here, you know, we've talket a little bit about talent and how important that is. well, we've realized that that' very important in missouri.s wok we've got talent in missouri. as a matter of fact, of our workers, 3 million of missouri'o workers, you know, like, over -- just over half of the population of missouri, high lie educately with a degree of some sort but
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in addition to that we have 140e degree-certifying, you know, institutions in the state, so education, again, critically important. also with regards to that, the interesting thing is we are kint of above the national norm. there's more educated people in the state of missouri than there is nationally, so that's another factor that we're very, very dii proud of. and we want to make certain that we continue to invest in education so that we move the tile in that regard. lastly, we're a low-tech state. we are a low cost of living state. and in addition to that, we have low energy costs as well, too, . which is critically important to companies, you know, all the time., one we are a very stable state, though, at the same time. triple a bond rating. one of only four states for over 50 years. so, we balance the budget in missouri. we make certain that our financial house is always in
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order. and we make certain that, you know, we'ree taking care of business in a responsible and comm commonsensical manner once again. with all ha greatve thi advantages as coi we discussed in the state of missouri, it's no surprise that companies like kawasaki, toyota, and, yes, even magna, you know, call missouri home. so, i'm very excited to to be on the panel and to have this discussion and literally continue, you know, looking for ways that we can address the business models and the businesr needs of companies as we work with them to locate in the state. johns >> wonderful. >> okay? >> thank you, ann. >> thank you. >> i'd like to now turn it over to donovan johnson who is the he director of the global resource management group in the north dakota trade office. >> thank you, john, i appreciate the opportunity to be here and thank you to the national governors association for the invitation to represent the'm
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greatwi state of north dakota. i'm with the north dakota tradel office and we deal with export a related issues in the state of north dakota.onom we alsoic d partner with econom development finance through commerce which is where we fall under also with the fdi, foreign direct investment. and we take a team approach to what we try to achieve. north dakota's somewhat of a unique state. have a little bit of information just as ann did on the state of where we are, what we do.ve som and we're considered a rural state.tages as so, we have some of the advantages, maybe some disadvantages for people to look at as it relates to how we operate, what we have as natural resources, what we have as simply y resources available. one of the facts about north dakota we are the geographical center of north america. so, companies want to be
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geographically centered in north america to do business, north dakota is it. and there's plenty of place to expand.s plen but how we approach foreign direct investment, investment t into the state is, we look at he our strengths are and we sell into our strengths. we know we aren't going to be a fit for everybody. and that's okay with us. we're not looking for companies who want to get a five-year lease into north dakota through the use of incentives and then t when that's done they decide le they're going to leave and go somewhere else, so when we talk about who we are, what we are, we talk about our strengths. a i and i want to highlight just some of those. our governor and his team have done a tremendous job in leading our state.ic stren as relates to all the states in the country. and so we have economic strength that we are proud of. we outsurpass all states in gdp
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growth, that's north dakota. we're the top economic performer in the nation since 2000. the year 2000. run state in the nation four years running.for we are constitutionally balanced budget state just as anne mentioned and we also have fund that are set aside for future needs and generations. in our mind-set, we aren't here just for today, we are also her to plan for tomorrow. that's important to us. on the slide it shows some other things that we're involved in ue also. number one growth and number in revenue of women-owned business in the nation, that's in north dakota. so we look at our strengths and we try to identify that and say how are we going to approach companies or investors that want
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to come into north dakota based on who we are. so what can we offer to investors that are coming into us?we h well, i think somebody had mentioned before the idea of having highly skilled labor force. we do have that. we have 21 public and private universities and technical chae schools in north dakota. but in addition they are able to quickly adapt to the needs of the changing workplace.industri so if somebody is coming in and they need something, we can talk about industries.r school for instance, when energy came in, the need for welders becameb huge. another example is one of our guess what, like a lot of states we didn't have as many welders as we should have. but our technical schools were able to adapt pretty quickly and develop that skill. another example is one of our universities developed a four-year engineering degree because of need of energy within our state. another example is the unmanned aircraft systems.
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and i'll talk a little about that in a minute in the state of north dakota. the need was significant. developed a four-year program on unmanned airport operations the first one in the nation. and so we can adapt fairly quickly to what the workforce might need and what's going on. another thing is we offer a person-to-person introduction and get to know you on all levels of government. whether it's from the legislators all the way up to the governor's office. we're a small state. we will get to know you, and you will get to know us. it's that simple. you can access the decision makers. so i know that was brought up a little bit here before that topped on down. and meeting with the correct individuals that might assist in
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making decisions, we offer that. so many times you're walking around the state and it's on a first-name basis. run into people in restaurants or setting conference, that's just how we operate. that's a real advantage. in yesterday's economic development committee session, kevin plank who is the chairman and ceo of under armour was here, and did a tremendous job by the way. but one of the things he said that the states need to have as a priority is an entrepreneurship environment. well, it just so happens that according to a recent university of nebraska, lincoln, study, north dakota is the number one entrepreneurship environment in the nation. so, again, we look at what our strengths are. i say all these to say i think it's important for states to identify, and anne has mentioned this also, identify what your strengths are. and sell into those strengths. if somebody's looking for a port on the ocean, north dakota isn't going to be it.
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okay. you know, if somebody's looking for an environment where the temperatures don't get below freezing, again, north dakota is not going to be it. if somebody is looking for quality of life and ability to enjoy four seasons and all the natural resources that we have to offer, north dakota has a lot to offer. so it comes down to what you're looking for from that standpoint. we border an international market. if you or your company thinks that's important, we have great inroads. in fact, port coming into north dakota is the fourth busiest highway port in the nation open 24 hours a day. so there's a lot of traffic that comes through that way. we have a low cost of operation also, just as anne mentioned. low tax. the highest corporate tax rate is 4.31%. so we have been busy reducing taxes, not increasing them. and we've done that to a
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significant degree. how do we attract fdi into the state? for any of those at the session yesterday, at the same economic committee, important for states to attract if they want to attract fdi into their state and i'm happy to say north dakota is following those examples. he must have read our notes. marketing campaigns, we have aggressive marketing campaigns that go out and target industrys that are appropriate to where we're at and who we are. aerospace and aviation is huge, so we may have to do some talking from that standpoint, but we start looking at those type of things. what do we have to offer? we start looking at we have overseas offices and contractors
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that assist us in identifying leads, possible companies that might be moving in our direction. and those are play scenarios that north dakota is strong from an export market standpoint. we engage our exporters into the process. they're the ones that are traveling a lot, visiting various countries, markets, representatives and we engage them into what we're doing. it's so important to meet foreign delegates on a face-to-face basis and establish that level of trust and build that relationship with them. that is key to when you're dealing with a foreign investments coming in here. we host government dignitaries in our state frequently. we want to showcase, not quite the show me state, but we want to showcase who north dakota is. and we are consistently doing
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that. again, because of the size of our state, we have the opportunity to introduce them to the decision makers. so when they go back, they are bringing back a message that says here's what's available, here's what can happen. here's what you can do. we encourage partnerships with universities for research and development. because again, we can react. the universities and colleges and technical schools can react to what needs to happen with them. we provide workforce development grants and training. and if that's needed, we do that. and of course we have significant and numerous financial economic incentive programs that are available to assist. we also have a very unique structure. we have the bank of north dakota that can offer unique financial assistance. it's the only state-owned bank in the nation. so we get to do some things that are unique to everybody else. if it doesn't fit a mold, we can go to the bank of north dakota
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and say how do we make this work for the benefit of the state? so we look at all these things from that standpoint. as far as industries, agriculture is still number one. we lead the nation in 14 different commodities as far as growth, agri business, advanced machinery. we have global headquarters in the state of north dakota as it relates to agriculture manufacturing. so that's really key. energy is a second industry. and energy is made up of obviously oil. we're the second largest producing state in the nation. natural gas, bio mass, coal and wind power. so we have a lot of opportunity for both the fossil fuels and the trend to more green energy that's available in our state. and that's available to us. two other areas that are really strong, we have a lot of diversified industries but i want to highlight technology as one of them. we have a strong biotechnology field and industry in the state
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of north dakota. most people wouldn't realize that. and literally interacts all over the world on a global market basis. i don't know if anybody knows that microsoft's second largest campus is in north dakota. so, again, a very strong technological state. the unmanned aircraft systems industry, boy, talk about an industry that is just starting off. you know, a lot of people referred to it as the wild west as it relates to the uas industry. recently or a couple years ago at federal aviation administration select six test sites across the u.s. to develop and do some testing and research to develop rules and regulations to integrate the unmanned aircraft vehicles into the manned air space. north dakota is one of those six test sites. and i am not hesitant to say that we lead this effort into
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the research and what's going on. and what does this do? this attracts a significant amount of interest. so, again, i'm coming back to we look at what our strengths are, and we sell into our strengths. in one of only six test sites in the nation, there isn't a lot of competition that can come up against us. we have an air force base -- u.s. air force base in north dakota that only flies drones. and we have the first private development on 217 acres on this air force base that is going to be used for commercial development. north rupp grumman and general electronics are the first tenants. we have additional companies that are coming in both domestically and foreign coming into the region. give you an example in october 2015, just a few months ago, did a mission to the nordic countries as it related to the uas industry. and as a result of that trip -- that's five months ago. we have a finnish company that has expanded into north
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dakota on the u.s. industry. we are hosting, in the next couple weeks, several other companies that are coming to north dakota and want to partner or locate in north dakota, because you're looking at literally a multibillion dollar industry in the u.s. and north dakota is a gateway to that marketplace. so we look at that. we have success stories. wind power, the danish company was looking for an area to bring in manufacturing plant, and after due diligence, research and stuff looked at north dakota and decided to locate there. and we did use some additional bonds to make that happen, but part of that process of expansion and growth. frank, as you said, it's been a tremendous return on investment for us. that's one of the things we look at. we don't want to just give money away. we have a limited budget like
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everybody else. what can a company invest into the state and the local community? and what can we as a state invest into them? it's a partnership. sears aircraft is manufactured in north dakota. it's the airplanes, single engine airplanes with a parachute on it. in case you look at it that way. they needed some capital. so they ended up selling their company to a chinese company, got the capital and the chinese company then is going to take an industry leader and introduce that aircraft into their general aviation asian market. stot oil, large norwegian company, wanted to get involved in the shale production in the u.s., came in and bought a company in north dakota. so in conclusion, again, what we look at is who is a good fit for north dakota, how can we benefit them, how can they become part of the community, how can it be long lasting? you know, all the positive things that come about through that process. north dakota is fertile ground to use an agricultural term. and we can actually say from
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north dakota that we're from the government and we're here to help you. thank you. >> thanks very much, donovan. leslie alexander, international director for tennessee department of economic community and development will wrap us up here in terms of introductory comments. leslee. >> thank you, jon. so, leslee alexander with the state of tennessee. i want to say thank you to our governor who is a big proponent of obviously foreign direct investment into the state of tennessee, but also workforce development. and our commissioner of economic and community development, randy boyd, was first tasked before he came to the state with developing a stronger workforce, identifying how to develop a stronger workforce. but i'm going to hold those two things on the side and talk a little bit about our strengths as a state as that's what we're here to do as well. but also talk about some of the
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similarities. we're talking about the united states of america here as well, and foreign direct investment into the united states. one thing i love about the panel and my colleagues here is that, yes, we are all landlocked. and so when you look at it from a logistics perspective, we provide a really unique perspective. we're not on the coast. we don't have a big port for someone to come into. we logistically have very unique attributes. and tennessee has one of those 600-mile radius attributes, but we also happen to have memphis. which in talking about things like microsoft, we have the most exports with microsoft as a result of them having a facility there. so we have some really unique attributes throughout the state, which is one of the things i see some similarities as well between the three of us sitting up here. but onto some more specifics about tennessee, we are the volunteer state.
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so that goes hand in hand with me commending my colleagues here about some of their attributes as well. similarities between us are along the ideas of industrial machinery, advanced manufacturing i should say, i.t. but you've also heard a common theme of agriculture and commerce, which is what our state is best known for. so when we look at what we try to draw into the state from, again, the west side with memphis, tennessee, we have a lot of advanced manufacturing around medical devices. but also a lot of opportunity there where we have some clients who may manufacture a device, ship it out, in 24 hours it comes back because it's completed its job, it's cleaned and again shipped back out again. so because of the logistics opportunity with federal express, fed ex, and memphis, we have some really strong attributes to the state. in middle tennessee we continue the theme of medical devices and health care management with hca
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based there. and so we have these strongest -- we have more beds -- hospital beds managed out of middle tennessee than anywhere else in the world. and along with that we draw in the tier two and tier three parts of it. to hit on i.t. and those opportunities, if you look at tier two and tier three within the hospital management components, you really look at the fact that i.t. is everywhere in this world. so we think of autonomous vehicles is just sort of what we talk about now. so to move on to the east side of the state, we get more into our agricultural. but again, we do have that combination of, again, advanced manufacturing and health care management on the east side of the state. to talk some about automotive, we're happy to have up in east tennessee in clinton 1,200-plus people at a magna facility. and it wouldn't be but for our tier two and tier three businesss that we have established either as a result of great opportunity we have in tennessee with some large headquarters there with volkswagen, nissan, gm being in the state, we also have a strong
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relationship with those other companies that feed into that. and have some resuring possibilities and initiatives that have been going on. so when we look at the industries across the state, we can look at health care, advanced manufacturing, automotive, we have aerospace as well, imbra air from brazil has their manufacturing facility and repair facility based in nashville, tennessee. so along with all of those various industries that we have, some things you may not think about as advanced manufacturing would be ceramics. we've recently had a lot of activity in tile making companies from europe landing in tennessee. and so these companies are looking at the ball play in the west of the state and then the feld spa that's in our mountains. that speaks again to the unique attributes in tennessee. that's just sort of an overall picture of some of our clusters and the things we work on there. we also have, and this feeds
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into some of the things we've been talking about is the workforce development component of which i'm very proud of. getting back to our governor and our commissioner, we started a couple years ago a thing called the tennessee promise. and so any graduating high school student in tennessee is guaranteed a two-year education vocational and technical studies for free. so if you graduate from high school, you get into this program called tennessee promise, and then there's people like myself who are your mentors. and we hold your hand and make sure you make it through. and we do this with the guidance of the companies who have landed in our states. on a larger picture, we've just recently worked with nissan to develop a workforce development system for them specifically, but in general we are
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consistently going out into the field and talking with our companies to see what needs they have. and i can tell you in a state like tennessee there's a lot of them. we have a very rural workforce. along with those come some of the challenges. we have a huge broadband initiative going now. we have a huge rural initiative going now to make sure that the pads are set, the infrastructure's available so that when our companies come and look at a site, they know that their needs will be met. and so from a statewide perspective there are a lot of challenges as all of us have in the more rural communities of the united states, but in general i think that tennessee with over 10,000 jobs created last year from foreign direct investment and then with over 125,000 all created by foreign direct investment, i think we can provide a lot of opportunities. on a smaller note as far as what do we do internationally from the trade office, which my colleagues work with me on, we recently had an initiative going to israel. a governors-led business mission. and we took some of our main health care start-ups over there, talked with other health
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care start-ups on ways that we can scale up. and how can we bring together some opportunities with some bilateral trade opportunities. and so we see foreign direct investment as truly a full circle with trade where if you can show somebody that you can take their product back out but also provide the resources they need on the ground, then that's something that we can help you with in tennessee. so, again, we're the volunteer state. and we're here to do for you in the international community what you ask us to do. and we're quick to jump as well. so think about us with our workforce 360 and the opportunities for students to get on the demand what they need as far as education goes that suits the workforce needs and q- our companies' needs. and to add to that we also provide transitional support if we have a company coming in and a company going out and the people in those communities need to transition from what they had been doing traditionally, we provide workforce development for that as well. so in closing i have to mention
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entertainment and whiskey, of which are some of our larger benefits in the state of tennessee. we are proud home to the country music hall of fame and all things country music. so that's why our tourism is huge for us, without saying. but we have attributes in the east with the beautiful smoky mountain national park, which is also home to some of our best music. but we also have jack daniels, so i hope you all are fond of it and enjoy it when you have a chance. whiskey is one of our largest exports. and as you can see canada, mexico, china, japan and belgium are our top markets. but again, we do have that interesting factor with fed ex being based in memphis 24/7, 365 that thing is running and moving product out and into the united states. and we are home to that. and we are very proud of that. so thank you again for letting us be here today. i appreciate it. >> wonderful. thank you very much, leslee.
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i want to get into a few questions now for our state colleagues. thank you very much for all your comments. it really warmed my heart to hear about the strength based approach to attracting companies and investments. be it your geographic location, to infrastructure that you've built out to country music and jack daniels. it doesn't get better than that, right? what i want to ask you a little bit is about the process for attracting some of these companies. and specifically i'd love for each of you to speak a little bit about how does your governor get involved, and also a little bit about, donovan, you spoke to how you involve legislators. i think for this audience it would be wonderful to hear a little bit about how you think about involving your executive and your legislative branch as well in the economic development game. anne, do you want to start? >> sure. john, thank you for that. the state of missouri we have 13 foreign offices. that global network is managed
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by myself and my team on a daily basis. so we work with our local staff to make sure that they are reaching out to various companies within that particular market that they're based in. so leap generation is literally what the main purpose of that particular -- of our global office network is. in addition to that though we work very closely with our sister agency the missouri partnership. the missouri partnership helps to do actually the marketing for the state of missouri, but in addition to that also the project management. so when the leads come in, we of course then hand them over to the project managers. and we work in tandem together to make sure that we're addressing the needs of the company. interestingly enough though those foreign offices are also in charge of governors trade missions, in charge of trade shows, international trade shows we do on a regular basis we take companies to. for example just last month we
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had, you know, 12 missouri companies at arab health in dubai. and we were able to not only generate export sales there but we were also in a position to garner leads, investment leads. because these international shows, and we tend to focus on the ones that are the industry leaders, if you will, or the top show in the sector. so what happens is you have, you know, leading corporate -- you know, a leading corporate presence there. so you have companies that are from all over the world that are probably, you know, very high within the sector. so it helps for us to generate leads in that regard. but to further address your question with regards to the governor. you know, i've been doing this for a long time, john, interestingly enough. and i won't tell you how long exactly, but i've worked for
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many, many governors. governor nixon has literally -- you know, i can't even say the stamina this man has is just amazing. but he's tasked us and he's really helped us with some additional resources to be in a position to, you know, go after every deal that we possibly can, work with as many companies as we possibly can, make certain that, you know, we are bringing those projects home. once again i'm going to tout the common sense approach, but the governor has led trade missions for us. he's gone to various trade shows for us. and he just has not stopped with regards to that activity. i'll give you a perfect example. and because frank is sitting here, you know, governor nixon was in canada a couple of years ago. and one of the very first things that we did is we met with magna. and one of the reasons we did that is because we knew that this was, you know, in the
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pipeline. we were working with the corporate executives. and the governor was in a position to literally help close the deal for us. so it was critical. and we tried to engage the governor as often as we can in those types of situations. nobody sells the state better than the ceo of the state, and that's the governor. i mean literally. when we talk about the legislature, however, then we get into some kind of, you know, unique situations. because every legislative leader represents a particular district in their state. so sometimes the challenge that i see sometimes what happens is the overall state requirements, needs, necessities with regards to economic development, are not always the priority of each of our legislative leaders. you know, that's par for the course because like i said, they represent a certain district, they represent a certain community. and so it's very important that
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they focus on those needs first. and maybe then to the greater good of the state. what i will say though as far as missouri is concerned, when it comes to economic development, when it comes to foreign direct investment and when it comes specifically to engaging with companies, we have really set -- and actually this is a testament to the governor, he set a bipartisan kind of approach to making sure that the state is represented properly in that regard. so, you know, once again governor's a huge cheerleader for us and very, very important with regards to our efforts in economic development. >> leslie, thanks. >> sure. to close the deals, we want to bring in a company, he's definitely at the table. i think of recent wins we've had in our administration, bringing bret ta down to tennessee, under armour, they all came because the governor was there and he showed that this was very
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important. and there are the incentives, we have the incentives, but it is the return on investment. so how can tennessee satisfy the needs of a company when they come to us? and that is where the ceo, you know, makes the close. i think on the legislative side, john, when you think of how the legislature supports the different ideas, as you say, anne, i look at west tennessee and there's a large -- we have a whole africa in april. and we have a huge movement for, you know, bettering our relationships with the continent. and so if it weren't for the legislatures from west tennessee promoting that, then we wouldn't have that continued relationship going with the trade missions in and out of tennessee in that regard. in east tennessee we have the
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music again and the whiskey. so our legislature see the benefits of those things and developing those attributes as far as export goes. but when you look at the foreign direct investment piece, andy carellas takes some of our groups from the state level into federal level across the pond. we work with our federal partners, work with the state international development organization, counsel state governments, we don't work in a silo. i think it's the working together and collaborating to make sure that you get into different communities, different cultures, new ecosystems, new business ecosystems with your strengths and your certain clusters to learn more about what those opportunities are back and forth. >> i don't know, frank and jim, if you had any thoughts around your meetings with governors and legislators what works, what might not work as well.
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any reflections on that? >> i think it's very important that when you're going to invest money in a state that you have a chance to meet and talk to the ceo of the state. it gives you kind of a feeling how it's going to go as we move along. it's very important to talk to the legislators in the state, especially when it comes to what they're going to take a look at the next session because we've had a lot especially foreign investment companies. we've had a lot of states that come up with different potential laws. especially when it comes to how you report state income taxes that are contrary to diverse as opposed to single entity company. i think if you don't have that conversation, you find yourself down the road in a big problem. >> i agree with frank's comments. i think establishing that
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relationship really with the governor the key leaders in the state legislature, establishing that level of trust and commitment on both sides is really critical to making the relationship grow from there. >> that's great. donovan, you mentioned the unique situation you have with the bank of north dakota. has there been any examples where you've been able to deploy that in an innovative way and it's been a real difference maker for companies? i'd love to hear more about that. >> yeah. so it's very interesting that the only state in the nation having its own bank, but there are some restrictions and things even in the banking world that you can and cannot do in there. you know, without probably going into the specifics on the type of assistance and stuff, the things that can be done is the bank of north dakota works as a support system to the banks in the state. they're not a competing entity. and that's one of the things the
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legislature makes sure does not happen. so the local bank is comfortable operating within north dakota. if the local bank cannot perform, cannot provide, cannot meet the need of somebody in the state or particularly somebody new coming into the state, that's where the bank of north dakota can get involved. and that can be through loans or guarantees. they could be direct loans. could be financial guarantees to the local lender. could be some kind of grants that might be available. the opportunity is there to structure something that meets the need of the company without having to go through a lot of different gyrations or hoops. again, small state, can get to the decisionmakers. you're talking specific example. there's another company from norway wanted to relocate to north dakota. been very successful in norway, sold the business there and wanted to come to the u.s. and start it, came to north dakota. went to a local bank, new company, we don't feel comfortable, doesn't meet their
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criteria, et cetera, bank of north dakota got involved. they call me asking what do you know about this, so i gave them my information, met the people and had been involved with them. said, here's what i know about them, but, like anything else, you have to do your due diligence. but because it's unique, the local lenders weren't willing to give a loan to the start-up from norway. bank of north dakota steps in and says we can make that happen, we can do something like that. so that gives us a real edge. >> wonderful. and, donovan, lastly i would love to hear from you what's worked well, in particular, what hasn't worked well in the past in your relationships with companies? and i'd love for jim and frank to actually comment on that in terms of from their perspective how they see this. any examples or past experiences, or scars even, around what's particularly worked well or hasn't particularly worked well in your dealings and relationships with companies?
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>> i'll start. i think it's the workforce piece is a challenge especially for rural states here in the united states. that's why we developed the workforce 360 program. because we had identified we were losing companies. we've been able to land them, but they were then leaving because they couldn't get the right employees to the plate. so we now have an opportunity to talk with companies as they're looking to develop a program to suit their needs. so just as the money might take four years to spend, two years to build the facility, within those two years you can train your workforce up to man that facility. and so that's the approach that we're taking to resolve a concern that is not unique, i think, to tennessee, it's unique to a lot of rural communities throughout the united states. >> and have you found good participation from the companies
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when they come in terms of co-developing curriculum? >> absolutely. absolutely. that's part of why we're focusing on the tech piece and the vo tech piece because within 24 months you have someone enter and exit with a new skill set. so we're working with all our technical colleges throughout tennessee and the southeast. it's really a cross border collaboration we see going on. and we have that a lot in the southeast. we have a canadian and southeastern united states relationship where we look at developing opportunities in the workforce to feed into the system. >> wonderful. donovan, any thoughts on what went particularly well in the relationships or what hasn't worked well? >> well, i think we all probably have our instance where it hasn't worked so well. we kind of bury those maybe a little bit and hopefully learn from them. >> right. >> we don't want to just air our dirty laundry. but, you know, due diligence on the part of the state is also. it's one thing for a company to
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come to your state and you get all excited about the prospect of something happening. and it is exciting. the local community, the state and in particular again go back to the state of north dakota, which isn't a large state to start with and go, wow, isn't this great. however, what does it mean? is it going to be long-term? is it going to be lasting? what it's going to cost us? how about the relationship with the local community and various individuals that make recommendations? you know, all these things come into play. so i think when you look at it we definitely have positive experiences. no doubt about it. but i think i mentioned earlier before in north dakota, again i can only speak for us, we're not looking for somebody to want a five-year lease in real estate in north dakota just because we can give a lot of incentives. we're looking for somebody who actually wants to be in north dakota and can assimilate their business and people and take our people and our citizens and put them to work and be productive and effective. i think that's so critical in what you're doing. do due diligence on both sides.
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yes, exciting, welcome, got this lead, fantastic. let's talk about it. and then bring the decision makers together to say does it work, does it make sense. >> john, i just want to add, you know, like one thing to everything that leslie and donovan said. and i agree wholeheartedly. obviously we all have great and positive experiences. the fact that, you know, a company like magna i'll pick on frank again comes in and hires the employees that they hire. that to us is like the greatest, you know, feeling in the world, someone's got a job. on the flip side of that though, i think what we see a lot of
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times as well too is, you know, those middle red flags that go up occasionally when a company comes to us and all they really care about is an incentive package. that, you know, just to kind of throw it back on the private sector a little bit, i mean, that raises flags for any state. you know, and anyone that's, you know, in this line of business or even if it's a consultant to be quite honest with you, because quite frankly, you know, it goes to what donovan had mentioned. it's that commitment. in other words, we don't want a company to come in, you know, set up shop and then all of a sudden five years after, you know, the incentive program has expired or even less time than that, all of a sudden leaves to go find a better incentive package. so that probably, you know, that whole side and that whole perspective are probably some of the battle scars that maybe we've kind of encountered throughout the years with regards to this. >> right. and building out the ecosystems. >> exactly. >> the clusters. >> exactly. >> not just a one and done deal. >> absolutely. >> about cost.
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>> exactly. >> frank, jim, any reactions to that? >> well, i think i'm going to tell you what doesn't work. >> please. >> you know, we council economic development professionals all the time. what does not work are long-term tax credits, they are terrible and never get collected on. i don't know how anybody budgets for that 12, 20 years out. i think what you have to look at and i agree you look at if you do the due diligence on a project, the project and the reason for, quote, incentives, whatever you're doing is to mitigate the capital expenditure investment on the front end. i kind of see if you got a program that goes more than five years, and somebody's asking you for something more than five years, you're probably wrong because they're probably not going to be around for five years from now. they're going to sign a five-year lease and be gone. so, you know, what we say is, look, we're trying to mitigate some costs up front. we're trying to get people trained to get them ready to go and get them ready to work. let's talk about something that is good for the community, good for the state and good for us to help mitigate that loss. i think that we sometimes forget
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as companies but everybody that when you talk about getting people to come there and having some kind of incentive to come there, you're still spending taxpayer money. and those taxpayers look for return on investment number one, but if you're going to be a good corporate citizen, you can't have a 30-year incentive plan. it just doesn't work. the two don't go hand in hand. and the real question becomes is you're looking to get a foot hold for the project and a are looking to grow. we want to grow in five to ten years. so if you got a long-term incentive program with a state, the question is how are you going to come back when you're growing asking for something else again when taxpayers are saying well, wait you got a 20-year plan on the initial investment. so we tell them to shorten that program up. make it easier to manage from
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both sides by the way. and make it easier and make the corporation and the company look more like a good corporate citizen. that's the way we look at it. >> that's great. >> one challenge i'll add, the process takes time. we have an internal process. it's often market driven. i know the states obviously have a process they have to follow to. stay in for the long haul. i wish things were easy and we could move forward so quickly. but sometimes that isn't the case. but make that commitment for a long-term relationship. it may take years to see that come to fruition, but i think it's important. i wanted to add another thought on a positive note, how you enable these relationships there's a lot of different ways to do it. first, i want to echo the comments to mark and the national governors association for making this discussion come together. i think it's really important discussion we have to continue and grow.
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i think flst a lot of different ways, select usa summit has been successful in bringing global companies together to promote investment in the u.s. the air shows that have been mentioned, trade shows, great opportunities. there's also a group in washington called the organization for international investment, they have an fdi front lines coalition. they support u.s. subsidiaries and global companies. they bring together companies like mine with state and local economic development agencies that are all trying to do the same thing. we're all trying to grow and invest. and those relationships there's a lot of different ways to do it. a few examples very positive things that are happening and the focus is my colleagues on the panel have mentioned on foreign direct investment, very, very important. wonderful. >> i love to open it up to the audience if there are any questions from the audience as well. and the remaining time if anyone has a question, i'd be very happy to entertain it. yes. please. can you use the microphone just right there? thank you. >> hi.
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i'm from china daily. first i think you're very well represented panel. my question is related to china. it is for the three economic officer. so would you elaborate a little bit on the overall status of investment from china? because chinese investment has been in the -- in recent years compared to other countries. are there any particular characteristic of chinese investment and what you have done or plan to do to reach out. i know ms. johnson has mentioned the aircraft taken by avic from china. it has been doing very successfully. if you can add on top of that, that would be great. thank you so much. >> sure. be happy to do that. thank you for the question. we actually have an office in china. and we consider very strong marketplace for obviously what comes out of north dakota. that's how that started. obviously when you do that there's a reciprocal agreement, relationships that develop from that standpoint. so it is very strong that way. china is a huge market, no doubt about it. and there is certainly
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opportunity that's available in north dakota. we have an eb-5 regional office in north dakota. and china is a huge market to develop for investors coming into north dakota to invest in the companies. so they may or may not bring their own company in, but they will bring capital into north dakota to invest into existing companies. and so that's a very strong proponent. we have in the trade office a program that we call export assistance. so we take graduate level students from various countries internationally. and we place them within companies in the state of north dakota to assist in there to work on a part-time basis and we subsidize that from the trade office. but speaking on china, we have students from china who come here, work with the companies, understand what they're doing, where they're going, what their goals are. they want to remain potentially, or they want to go back to china. and so that relationship really is strengthened between our companies here, the state of north dakota, who we are, the
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university structure and what's happening back home in china. we have a lot of things we work with from that perspective to strengthen that relationship. >> with regards to the state of missouri we have two offices actually in china. our primary office is located in shanghai and we also have an office in hong kong. to that end we have probably had i'd say about four or five china in the state of missouri. what we have been seeing, and once again being one of the landlocked states and being in the midwest, you know, we tend to be a flyover. so a lot of investment coming in from china. what we have noticed of course it's been on the coast. so we hadn't -- they hadn't quite made their way yet in regards to expanding market share in the united states to be able to locate in the midwest.
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that having been said as well too what we have seen though from china and literally for probably about the last decade is a lot of investment with regards to property. just like tennessee has nashville, we of course have branson, missouri, the live music capital of the world. and interestingly enough we have a great deal of investment in that entertainment sector from the chinese. and we continue to build upon relationships as donovan has mentioned. we continue to market the state of missouri, continue to, you know, try to recruit chinese investment, traditional investment as far as, you know, manufacturing facilities, et cetera. but i think also that we're just not there yet. the midwest, you know, as a region is just not there yet with regards to chinese investment.
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>> any thoughts. >> i'd have to say as well from the tennessee perspective, we have a long-term relationship culturally with china from tennessee with the trade mission back in the '80s that took a whole group over to investigate how can we share cultures. and we've had consultants working with the state off and on over the years. but we did most recently, the administration just before this administration took a large group over for more business focus mission. as a result, we established a foreign direct investment office as well as a trade office in shanghai. so we've had those ongoing relationships over the years. we are currently looking for a new foreign direct investment office right now in china. and that's an active search right now. but i think most recently what we have had is that entertainment piece. and so we've hosted at the nashville film festival an inbound trade mission just starting last year from china with the ministry's support obviously.
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and we brought over six producers, film producers. they are bringing another group again this march to the nashville film festival, and, in turn, we're looking at going over there. we have a great asset in tennessee with the film industry and the entertainment industry in general. but abigail washborn has been working with china in a less formal participation, bringing some chinese music to tennessee. and, again, taking some of our folk music over there. and so we're engaging in some of these activities that have been going on unofficially and kind of crystalizing them and saying these are true opportunities for cross-cultural relationships and developing business between the two areas. >> wonderful. thank you. i'm mindful of time. and i'm afraid we have to wrap this up. thank you all so much for this rich discussion. i might highlight that we heard about market strength and supply chains, the importance of
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growing market and a good supply chain. we heard a lot about talent and workforce development as a key atractor. we heard about infrastructure. and, yes, we did hear about incentives. but we also heard about the process, how internally it's a team sport. you need to align all the players internally to make sure that you attract the companies properly. we also heard about how it's a long-term partnership on both sides, and both sides see it as something that you co-invest into. and the incentives, when they do come into play, they're about growing clusters, increasing competitiveness and ultimately about creating more jobs. again, i'd like to thank the nga, mark brady. i'd love to thank frank, jim, anne, donovan and leslie for being such a great panel this morning. thank you all very much for your time. [ applause ] more now from the national governors association winter meeting with the session from the groups education and workforce committee. they discussed the nation's new
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k through 12 education law and how to encourage more study in the science, technology, engineering and math fields. >> we're all getting seated here so we can start this great meeting. thank you. let's gavel the meeting of the national governors association education and workforce committee is now called to order. i want to thank everyone for joining with us. this is a great day. a great new start in our nation's educational world. i'm very appreciative of folks joining us today. i'm jay inslee, governor of the state of washington. i'm co-chair of the nga education and workforce committee. i'm honored today to have
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govern govern governor bentley of alabama, who's our vice chair. to my left is steven parker. he's done great work making sure governors can be very effective implementers of this new law and order we have. we also are joined by a person who i think i may nominate later as a co-prize winner for the nobel peace prize. tennessee senator lamar alexander. in a few minutes, he's going to discuss the opportunities our states have now under this new federal education law that he passed along with the co-winner of the nobel peace prize, senator patty murray of the state of washington. later, we're going to hear from theresa sullivan, who's president of the university of virginia, how states can better promote stem education. before i go any further, i do have to make one, a local plug
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for the state of washington. we have a nominee for teacher of the year, mr. nathan gibbs bowling of tacoma, washington. i hope you'll all vote for him. assuring every single student has access to a quality education is our paramount duty. it's one thing we share, republicans and democrats alike. we know that governors can help implement this tremendous opportunity. i'm proud of some of the work we've done in washington state. we're all proud of our efforts. last year, just want to tell you what we want to build on on our state and why i'm excited about new law's opportunity. we've made unprecedented investments in our children in the last couple of years. we've had the largest investment in k through 12 funding in the history of our state. i'm proud to say there is one
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state that enjoyed tuition reductions for all our college students and community college students as well. it's the state of washington. we hope 49 other governors will follow that lead eventually. we've expanded all day kindergarten. and we've had reduction of our early class sizes in unprecedented, increased access and really high-quality early childhood education. we're now tackling a teacher shortage. hope we can talk about this today. we are joining other governors in leading the efforts to improve our stem education and access to coding and computer science. we're also -- as many of our states, improving our graduation rates. i think our state demonstrates why this new law is so exciting to us. it allows us to build on the local leadership we have in 50 states and that's why we're here today. we know there's a lot of work ahead of us.
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that's why i'm proud to be able to work with you and this great committee. i'm particularly proud about the governors association work with congress to get this bipartisan every student succeeds act through the u.s. congress. i think the governor association played an important role in the adoption of this bill. we know no child left behind goal was important. but the punitive aspect left in this law and the lack of state flexibility adversely impacted our state schools and students and i know other governors share that view. that is wear a former preschool teacher and now senator from washington and the former governor from tennessee stepped in and delivered big time. for a number of years, governors had called on congress to reform the no child left behind act. and i'm proud about the nga's work on this. so our group endorsed this law, heartily. it was the first major
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legislation that our association has endorsed in the education field for 20 years, so this is good work on a bipartisan basis that we did as governors as well. i think it's testament to how closely congress adhered to the long-standing nga priorities. i think it's a good thing the congress has finally figured out they should follow the ngo in all matters. they certainly did here. but that did take some really tremendous bipartisan leadership in the congress. it's no surprise to me, having known senator murray since she was a young legislator in 1998 when she and i both ran for the legislature. it's not a surprise what she has been able to work with senator alexander. she's worked on the waiver issue. she's delivered for our country and our state in so many ways. she's unfortunately working back in the state today, but i want to take a moment to recognize her, her hard-working staff. sara bolton, amanda bolmont.
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could you guys stand? we'd like to recognize staff. you're a proxy to all the staff in the country. [ applause ] we know my former colleagues in the house worked on this as well. it was a herculean effort. minnesota representative john klein. virginia representative bobby scott really helped to fashion this bipartisan proposal and convinced their colleagues this was really an endeavor worth working on. we're joined today by their staff and members of senator alexander's staff. thank you for all many sleepless nights and the incredible effort you put into creating this new education law. let's apply to all the staff who's been working on this for the u.s. legislature. [ applause ] and i really look forward to senator alexander's comments about this. before i turn to senator alexander, though, i want to
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comment on something that's important to all our states, particularly important to my state is we have to find out a way to finance these necessary investments. it's going to take some additional financing. and we desperately need the u.s. congress now to follow this bipartisan success with another bipartisan success. and that's to pass federal e-fairness legislation. which will allow us to really have a structure of financing to make these investments which we now know, because of this additional flexibility, we can put new money to work successfully. as i mentioned in our state, we've been working to provide these greater investments. we've had some success. but one crucial policy tool that's really going to help us accomplish this is for congress to pass e-fairness legislation. in the form of the remote transactions parity act. or the marketplace fairness act. know, we now are 50 states
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because of this hole in our financial structure are losing a combined $23 billion a year because of our lack of authority to collect sales taxes on internet purchases. and this also not just hurts our school kids, it hurts the fundamental foundation of our economy, which is our small business men and women. because they are at an enormous disadvantage against the giant consortiums in every state in the union. so if you believe in your mom and pop appliance salespeople, in your shoe salesmen and your book stores in the small towns of our states, we have to get this job done. i hope we're going to do another. in my state, it means $300 million in the next bianium, so we're hopeful we can crack this nut. thank you, senator alexander, for your work on this issue as well. at this point, i want to turn
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the floor over to governor bentley. governor. >> thank you, governor inslee. it's a pleasure to be here with you. it's a pleasure to help lead this committee with you this next year. in alabama, we couldn't agree more than what this committee and these governors all feel and this legislation has been passed. the agreement that education is so important to our children. in fact, in alabama, one of the -- one of the areas that i have pushed so strongly for is a first-class pre-k program to allow every child in the state of alabama to be a part of a first-class pre-k program. before i get out of office in three years if the funding continues as we have been doing over the last five years, every parent that wishes their child to go to the best first-class pre-k program in the country, they will get to go to that one
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in alabama. and we're very proud of that. because the foundation that's laid by first-class pre-k can never be substituted for. there's nothing more important in education than a quality first class pre-k program. and we have worked hard in alabama to put that into place. and we believe that we will be able to implement that before i get out of office. we appreciate the proactive steps of the u.s. department of education and reaching out to governors and working with nga and we look forward to working with secretary king and his staff to ensure thatesaa is implemented thoughtfully and effectively. the message to the department is two fold. first, the federal government should consult meaningfully with governors throughout the essa
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implementation. the federal government should use regulations selectively and only provisions where states and local districts agree that guidance is needed. you know, james madison said that the federal government has few and defined powers. but the states have numerous and infinite powers. and that's what we believe in education, as well as that's what we believe as far as governors are concerned. moving forward, governors will continue to utilize nga to engage the department to ensure that it adheres closely to the principles of federalism. to assist with these efforts governor inslee and i are pleased to announce that the nga will be establishing a governors essa i ple menation task force. this task force will serve as a collective voice for governors
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on essa modern to the execution of the law so it matches congressional intent and ensures that nga's implementation assistance meet it is needs of governors' offices and state education staff. we're calling on all the governors who want to be at the center of making this new law work to join our efforts. if you would like to join, please speak with stephen parker. we look forward to working with all of you. as we know, many stakeholders contributed to the development and the passage of a strong essa bill. many stakeholders will contribute to its implementation for. this reason ng recently joined with nine education organizations and this was a miracle in itself. because these organizations came together and worked together to
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help develop this. and they will help put into place the implementation of this law. we're honored that the leaders of these organizations are here with us today. we had a meeting with them earlier and i would like to recognize them. the national education association. the american federation of teachers. the national pta. the national association of secondary school principals. the national state board of education association. the superintendents' association. and in particular, we want to thank utah state senator howard stevenson and new hampshire commissioner of education virginia barry for flying in just today to represent the national conference of state legislation churls and the council of chief state school officers. governor inslee and i as i said we met with them earlier and we
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had a very good, open discussion with them at 12:00 today. thank you all for your commitment to our nation's students. and we look forward to this partnership. now -- governor inslee -- i wanted to introduce governor hasl haslam. he is going to introduce our next speaker. >> thank you. in 1978 is a 20-year-old college junior i had the first involvement in a campaign and decided to volunteer for the lamar alexander for governor campaign and i envisioned bringing college students voice to the campaign and leading insight and wisdom so that i could help the campaign win and the candidate thought i would be better putting up yard signs. and so i put up a lot of yard signs for then candidate lamar alexander who soon became tennessee's next governor. fast forward a few years to
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2010. it's the night before the general election and we were doing a statewide tour on a bus, and we're kind of heading to the last stretch and it looked like i might win and senator alexander with me on the bus said there's no better job in the whole world than being governor but if your home state happens to be tennessee it truly is the best job in the world and he could say that because he served with distinction in the state of tennessee. there's no better job of being gover nor of your home state, particularly if the senior senator of your state happens to have been a governor before. because we can talk a lot about federal/state relations and what we need out of the u.s. congress but when the leading member is a governor and been through the battles and knows how important it is to have decisions about the state happen at your state, then you can't have a better advocate than that. lamar has -- he's been a
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governor. he's been united states senator. he's been the president of the university of tennessee. the secretary of education for the first president bush and he literally has given his life to serve our state and we have a lot of famous sons of tennessee but i would argue that the man on my slept among those we owe the deepest debt of gratitude. help me welcome back to nga senator lamar alexander. [ applause ] >> thank you, bill. and governor bentley, governor inslee, ladies and gentlemen, i see some very good governors around the world. we think we have the best one in tennessee. i was -- i was having some vague memories as i looked around the room. i know how much governors like to take advice from each other. not much. and i suspect how much you like to take advice from former governors. even less. so they said 15 or 20 minutes. i think i'll take less than that
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and see if you want to have a conversation about the subject that we have. after i was out of office about a month, someone came up to me and said, we have a name for people like you. meaning former gover nofrs. i said, when's that? he said rooster today. fester duster tomorrow. so as a fester duster, here i am. before i start talking about education, i'd like to take three minutes of my time and go to the issue the governor inslee talked about which the marketplace fairness. i brought some slides. marketplace fairness is the federal proposal that would recognize the right of states to collect your sales tax from everybody who owes it and not just some of the people who owe it. that's what it's about. and the importance of bringing it up now is that representative
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cha chaffetz of utah has a bill in the house of representatives that speaker ryan says will get a vote this year. now, there will be a competing piece of legislation. i wouldn't recommend you support. but i'd support the chaffetz bill and we have a bipartisan group that passed a bill two years ago with 69 votes that will support this bill. i wanted you to know that. senator mcconnell said we'll have a vote on the issue in the senate this year. a vote in the house. a vote in the senate sometime this year. now, these -- this issue to me is about two words. states' rights. i don't think it's any of washington's business to tell states what their tax policy ought to be. period. period. i think it ought to be a slam dunk but it's not. it's also a lot of money. here's the amount that the state
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legislators say tennessee loses each year. from taxes that aren't collected from people who already owe them from -- who buy things from autoof state. in ohio, it's $629 million. ohio has decided to reduce the income tax if congress allows ohio to collect all of its sales tax. virginia had decided i think before the governor came in that if we passed our law the state gas tax wouldn't go up because virginia would have more money. in texas, it's $1.8 billion a year. that tennessee is telling texas it can't collect but texas passed a law saying that it's owed. so what would my suggestion beabout it? i would -- i would suggest you meet with senators and congressmen in your states. former secretary of state dean rusing told me one time. i invited him and he insisted to talk about the property come and
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the proint is that governors in the own state outrank everybody in the world except the then president of the united states. they outrank the former president of the united states, the king of england, the current vice president, the united states senator. everybody. they outrank but the current president of the united states. outside of their state, they outrank almost nobody. that's -- so i stayed home a lot. and my suggestion is, i wouldn't come up here and talk to your senators and congressmen. i'd invite them to come talk to you at home. we come home every weekend. and meeting with the governor at home and ask him the question, do you trust washington to decide our tax policy more than you trust the state of tennessee? i i think you will get a better answer on that. i'm a republican but the republicans are the biggest offenders about this stuff. let's be blunt about it. governors went around the country talking about unfunded federal mandates. three voted against it. inter

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