2017 Mid-Year Report. Committee of 100 for Economic Development, Inc. P. O. Box 1546 Baton Rouge, LA (225)

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1 2017 Mid-Year Report 25 th Committee of 100 for Economic Development, Inc. P. O. Box 1546 Baton Rouge, LA (225)

2 A Letter from Our Chair As we move on from this year s legislative session, the Committee of 100 will continue working to engage our members to be as effective as possible in making a difference, and positively impacting the business climate of our state. Our mission is to influence public policy issues that impact business and industry, as well as to engage in and to support activities by the Louisiana Department of Economic Development as part of our current Memorandum of Understanding. During the course of 2017, we will be seeking your thoughts on fiscal and budgetary reform via regional member meetings beginning later this summer. These meetings will culminate with a facilitated Policy Session to be conducted in early Fall. This session will more fully develop business positions as they relate to an anticipated special Legislative Session dealing with the fiscal cliff. And because we consider fiscal reform to be a long-term endeavor, we have renewed our engagement with the Washington, D.C. based Tax Foundation. Also, in accordance with the MOU between C100 and LED, we will be supporting business development activity centered around the Saints/Dolphins football game in Wembley Stadium this Fall. C100 members will be part of a team designated to call on those businesses in the U.K. that have a presence in Louisiana. We appreciate your review of this brief mid-year report to assure awareness of the activity of your Committee of 100. We stand ready to represent you as an important voice of the Louisiana business community, making a vital difference in our state. With best regards.. Sonia Perez C Chair Washington, D.C. Briefing The C Washington DC Briefing was held Feb This year s program began on Wednesday with the Congressional Luncheon hosted by Jones Walker followed by a national policy briefing conducted by the US Chamber of Commerce. That evening, members enjoyed receptions hosted by Adams and Reese, Cheniere Energy and ended with the After Party hosted by Driftwood LNG. Thursday was highlighted with an address by Governor John Bel Edwards, followed by a panel of former Louisiana congressmen who gave a Washington insiders view. Gulf States Initiative Committee of 100 was an integral part in facilitating the fourth Gulf States Initiative meeting between the Mexican States and the US States which border the Gulf of Mexico. The 2017 meeting was held in Campeche, Mexico, January and in partnership with WTC, LED, and our colleagues in Campeche the 2017 Gulf States Initiative was a great success. Over 200 businesses from Mexico and the US engaged to discover how business could be conducted between our two countries at a most propitious time. The 2018 program is slated for New Orleans.

3 Around the State with C100 CEO, Michael Olivier, engaged in speaking engagements, organizational meetings and educational opportunities for the promotion of economic development around the state and nationally. Presentations on Fiscal Reform for the Natchitoches Chamber of Commerce with Stephen Waguespack- CEO of LABI and an interview on the Louisiana Business and Industry Show were two important public speaking engagements during the first two quarters of Olivier currently serves on several boards including the WTC New Orleans Board, WTC International Business Council Chair, and on the Accreditation Committee for the International Economic Development Council. He is currently assisting in the formation of the Louisiana Transportation/ Supply Chain Council and was appointed by Governor Edwards to the Restore Louisiana Task Force and the Louisiana Board of International Commerce. Olivier also attended a meeting of the State Business Roundtable Executives Association in Washington DC hosted by the National Business Roundtable. Cuba C100 has been a go to on Cuba initiatives to assist the Louisiana Alliance for Cuba under the Engage Cuba nonprofit in Washington DC and assisted the LED to coordinate the Governors October 2016 visit to Cuba with Cuban authorities. As a follow up C100 engaged with Louisiana Economic Development and the Port of New Orleans to welcome a Cuban trade delegation visiting New Orleans on Wednesday, January 25th,2017. Cuban officials provided an overview on Cuban trade and investment opportunities, legal and regulatory frameworks, and foreign and economic policy Legislative Briefing Early Childhood Business Roundtable Louisiana School Readiness Tax Credits: Louisiana's unique and effective School Readiness Tax Credits (SRTC) program have received national acclaim and have been extremely effective in supporting access to high quality child care in Louisiana. There were 5 bills this session that threatened their effectiveness, or threatened to reduce them or to eliminate them altogether. Through the leadership of Senator JP Morrell, an additional $5 million (30%) was allocated to them. Now BESE will need to pass rules to spend these additional funds. Fiscal Year 2018 Budget: Pre-K Programs did take a generally 2% cut across the board. It is hoped that any loss of slots will be made up in the expansion next year of the federal Pre-K Expansion Grant; increasing by 440 slots in the school year. This federal grant will end after the school year. One big disappointment this year was no restoration of funding for the Child Care Assistance Program which has been cut by over $65 million (70%) in the last 8 years. It is because of these cuts that the Louisiana Department of Education will have to close the CCAP program to new children and begin a waiting list starting July 1. A feature of the 2017 Legislative Briefing was a panel presentation by members of the TASK FORCE ON STRUCTURAL CHANGES IN BUDGET AND TAX POLICY outlining recommendations for the legislature and governor to consider for the 2017 Legislative Session and what has been done with those recommendations. The panel was comprised of C100 past Chair Tom Clark who moderated the panel and Dr. Jim Richardson (LSU), Commissioner of Administration Jay Dardenne, Revenue Secretary Kim Robinson, Robert Travis Scott (PAR), and Barry Erwin (CABL). The Briefing venue was the Lod Cook Center on the LSU Campus May 17th with presentations by the House Speaker Pro Tempore, Walt Leger and the Senate President Pro Tempore Gerald Long, Lt. Governor Billy Nungesser, LED Secretary Don Pierson with Transportation Assistant Secretary Dr. Eric Kalivoda and a luncheon presentation by Governor John Bel Edwards. A Legislative Reception preceding the Wednesday Briefing was hosted on Tuesday, May 16th evening at the City Club- downtown Baton Rouge.

4 Legislative Wrap Up-2017 With the 2017 Regular and Special Session finally concluded, the legislature goes on break until next spring, unless the Governor calls them back earlier. Looking back, lawmakers filed more than 900 bills for consideration in the legislative session that just ended, with the heaviest debate focused on tax policy and fiscal measures. Other issues of importance included criminal justice reforms, as backed by C100. The political dynamics were apparent throughout, with the House reluctant to pass any new revenues/taxes for any purpose, while the Senate was unwilling to pass House reform measures that came over, without also addressing new revenues for the budget and fiscal cliff. This impasse played out all Session, down to the last committee meetings and final days of the Regular Session, with many bills bottled up including HB1 (budget) and HB2 (capital outlay) which carried over to a 10-day Special Session where the budget bills were finally acted upon, in a manner preferred by the Senate/Governor. C100 was tracking about 100 bills in the legislative process, of which few made it through to final passage. In the end, no deal was reached on comprehensive tax reform, despite a path set forth by the HCR11 Task Force to restructure the state s tax code AND address the looming fiscal cliff of $1 billion plus July 1, 2018 when temporary taxes are due to expire. Instead, the legislature did neither, parking reforms and the cliff for another day. The House where most tax measures must start blocked many tax policy measures filed. In total, 45 tax related bills out of 252 filed made it through the legislature, now sent to the Governor for action. Many of the bills passed were not reform related but rather incremental changes to existing law. Outcome of key tax reform measures: Failed Constitutional Convention (Abramson, died in House) Failed Commercial Activity Tax - CAT Tax (Jones, never moved) Failed Personal Income Tax federal deductibility/flat tax (Stokes, died in Senate) Failed Corporate Income Tax federal deductibility/ flat tax (Ivey, died in Senate) Failed Sales Tax expand the base/reduce the rate (Reynolds, never moved) Failed Sales Tax exemption cleaning/rate reduction (J. Morris/James, died in House) Failed Sales Tax Uniformity (Stokes, died on House Floor upon reconsideration) Failed Franchise Tax phase out (Hilferty, never moved) Failed Inventory Tax phase out (Allain, never moved) Failed PILOT ad valorem tax changes (Seabaugh, died in Senate) Failed ITEP ad valorem tax changes (Allain and Morrell, died in Senate) Failed Gasoline Tax for transportation/infrastructure (S. Carter, died in House) Failed Removing Revenue Dedications (Shadoin, died in the House) Passed - Establishes the Louisiana Uniform Local Sales Tax Board (HB601 Stokes) Outcome of key economic development measures: Passed Changes the Motion Picture Tax Credit (SB254 Morrell) Passed Changes the Quality Jobs Program (SB183 Morrell) Passed Changes the R&D Tax Credit (HB300 Davis) Passed Changes the Ports Tax Credit (SB150 Chabert) Passed Changes the Angel Investor Tax Credit (HB454 Abramson) Passed Changes the Sound Recording Tax Credit (HB646 Leger) Passed Extends the Enterprise Zone program (HB237 Barras) Passed Provides sunset on various Tax Credits (SB178 Morrell) Passed Makes permanent the 28% reduction to tax credits in 2015 (SB79 Luneau) Passed Property Tax Exemption on Construction While in Progress - CWIP (SB140 Walsworth, constitutional amendment on November 2017 ballot)

5 SAVE THE DATES! Upcoming C100 Events Regional Meetings: July - November C100 Annual Fall Meeting: November 2017 Washington, D. C. Briefing: January 24-25, 2018 Annual Spring Meeting / Legislative Briefing: April/May, 2018 Committee of 100 for Economic Development, Inc. Office Address: Office: (225) Laurel Street, Suite 1830 Fax: (225) Baton Rouge, LA Mailing Address: olivier@c100la.org P. O. Box 1546 simms@c100la.org Baton Rouge, LA Website:

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