The Council of State Governments Eastern Regional Conference (CSG/ERC) Volume 11, Number 1 Winter 2006

The The Council of State Governments Eastern Regional Conference (CSG/ERC) Volume 11, Number 1 Winter 2006 U.S. and Canadian Legislators Seek Border Security and Economic Viability Leaders Concerned About Proposed Federal Passport Rule Northeastern state and Eastern Canadian provincial officials are concerned that a rule requiring anyone entering or reentering the United States to have a passport will wreak havoc at the U.S. - Canada border. Elected officials on both sides of the northern border contend that the passport requirement, if adopted, would hurt the region s travel and tourism industry, impede trade, create long delays at border crossings and place undue hardship on frequent travelers who cross the border to go to work or visit family or friends. To implement the U.S. Intelligence Reform and Terrorism Prevention Act of 2004, enacted by Congress in the aftermath of the 9/11 terrorist attacks, the U.S. Departments of State (DoS) and Homeland Security (DHS) proposed the Western Hemisphere Travel Initiative (WHTI) which would establish more secure border identification standards for travelers between the U.S. and other nations and territories in North, South, Central America and the Caribbean. On September 1, 2005, the Homeland Security and State Departments published an Advanced Notice of Proposed Rulemaking and opened a 60-day comment period on the requirement for a passport, or alternative documentation. The proposed rule, also known as the WHTI, would take effective beginning Jan. 1, 2008, for travelers entering or reentering the U.S. at a land border. For travelers crossing the border by air or sea, the WHTI initiative would take effect beginning Jan. 1, 2007. At the urging of the CSG/ERC Eastern Canadian Provinces Committee officers, the CSG/ERC Executive Committee passed a resolution, at its October meeting in Halifax, Nova Scotia, requesting that the federal government delay implementation of the WHTI. The CSG/ERC resolution, sent with a letter to DHS Secretary Michael Chertoff, Secretary of State Condoleeza Rice, and senior members of Congress, urged the federal agencies to consider less onerous and less costly travel documentation than a passport (see Web site for text of the resolution). The CSG National Executive Committee passed a similar resolution at its Annual Meeting in Wilmington, Delaware, in early December. For families and low-income individuals, passports can be cost-prohibitive. The typical expense is $97. Passports also take several weeks to process. As the vast majority of Americans, and most Canadians, currently do not have passports, elected officials are concerned that faced with the choice of obtaining a passport or staying home, citizens would simply choose the latter. U.S.-Canada Passport, cont d on page 4 Delaware Hosts National CSG Annual Meeting Delaware s Governor Ruth Ann Minner, CSG President; Representative Roger Roy, CSG Vice-Chair; and the host state delegation welcomed over 800 state officials from across the country to the CSG 2005 Annual Trends and Leadership Forum held in December in Wilmington, Delaware. The conference featured special presentations regarding a broad range of emerging trends including urban sprawl and its effect on farmland, public safety and justice issues confronting America s aging population, and the use of information technology to reduce costs while improving the quality of health care. State officials discussed preparations for the new Medicare prescription drug benefit and the opportunity that state leaders have to help their constituents understand the new benefit and get them enrolled. The dynamic lineup of keynote speakers included Louis Freeh, the former FBI director under Bill Clinton, author of Delaware Annual Meeting, cont d page 3 In This Issue 2005 CSG Annual Meeting - page 1 U.S. - Canada Passport Rule - page 1 Director s Column - page 2 Inaugural Eastern Leadership Academy - page 3 Regional Innovations Award Winners - page 4 Criminal Justice Board Meeting - page 5 Legislative Service Agency Directors and Fiscal Officers Meeting in D.C. - page 6 ETC and NSAAS Agriculture Mission to China - page 7 Upcoming Meetings - page 8 Connecticut Delaware Maine Massachusetts New Brunswick New Hampshire New Jersey New York Nova Scotia Pennsylvania Puerto Rico Québec Rhode Island Vermont U.S. Virgin Islands

Update on CSG/ERC Electronic Waste Recycling Project In the summer 2005 issue of the Nor Easter, we reported on an unprecedented gathering organized by the CSG/ERC Environment and Energy Committee and the Northeast Recycling Council (NERC) where more than 90 stakeholders met with more than 20 state government officials and staff in New York City to discuss recommendations for financing systems for the collection and recycling of used electronics. CSG/ERC Staff Alan V. Sokolow, Director Monica Anzaldi Policy Analyst, Criminal Justice Program Fran Boyd Agriculture Consultant franboyd@meyersandassociates.com Renee Brackett Administrative & Logistics Coordinator, Criminal Justice Program Katherine Brown Policy Analyst, Criminal Justice Program Véronique Cavaillier Policy & Program Director, Eastern Trade Council Rona Cohen Sr. Policy Analyst, Environment/Energy Program Rumman Chowdhury Research Assistant Marshall Clement Danielle Edwards Grants Manager, Criminal Justice Program David Ewing Transportation Consultant, eewing@erols.com Michael Gilles Hope Glassberg Wendell M. Hannaford Deputy Director; Director, Eastern Trade Council Karen Imas Communications Manager, Nor Easter Editor Toni Irving Policy Consultant, Criminal Justice Program Marge Kilkelly Director, Northeast States Association for Agricultural Stewardship The goal of the project is to develop coordinated, consistent model legislation that will be filed in the Northeast states in the coming months. The stakeholder group continues to work towards devising a unified regional approach to managing electronic waste. Any interested parties should check the Web site for periodic updates. For more information, please visit: http://www.csgeast.org/enrgwaste.asp or contact Rona Cohen, Senior Policy Analyst, Energy & Environment Program: rcohen@csg.org Rachel McLean Policy Consultant, Criminal Justice Program Elizabeth Nevins Project Coordinator, Criminal Justice Program Jessica Nickel Director of Government Affairs, Criminal Justice Program Seth Prins Cort Richardson Policy Analyst, The Northeast High Level Radioactive Waste Transportation Project Maripili Rodriguez Administrative Assistant, Criminal Justice Program Matt Schwarzfeld Michelle Shiwamber Administrative Assistant Conrad Smith Program Director, The Northeast High Level Radioactive Waste Transportation Project Pamela Stanley Assistant Director of Administration & Conferences Michael D. Thompson Director, Criminal Justice Program Denise Tomasini Policy Analyst, Criminal Justice Program Cynthia L. Valle Administrative Assistant Mark Wolfe Energy Consultant, mlwolfe@earthlink.net Our standard format for e-mail addresses is: first initial last name@csg.org, (ex. Alan Sokolow = asokolow@csg.org) For more e information on CSG/ERC policy activities and publications, please visit our Web site: www.csgeast.org Director s Column ERC s 2006 Agenda Before focusing on the year ahead, I wanted to take the opportunity to remind CSG members of the significant highlights of 2005, some of which are discussed in greater depth in this issue of the Nor Easter. First, I wish to commend our Co- Chairs, Senator Toni Harp and Representative Robert Godfrey, of Connecticut, for their outstanding leadership of many new policy initiatives and for hosting a very successful 2005 Annual Meeting and Regional Policy Forum in Connecticut last summer. Second, I want to thank Senator Stan Rosenberg (MA) and Senator Robert Martin (NJ) for their vital roles in reviewing our policy committee structure and mission, as well as establishing the ERC Eastern Leadership Academy, respectively. The long-term success and viability of CSG/ERC has been strengthened by these crucial efforts. I am very proud, too, of our on-going efforts in agriculture, criminal justice and international trade which are covered in detail in this edition. The year ahead is filled with challenge and excitement as we continue and enhance our policy initiatives and services, organize a significant policy seminar, provide leadership training and continue outreach to the Canadian provinces. As a result of the guidance and direction provided by the ERC Executive Committee and Committee on Committees, the Eastern Office will be seed funding three-year programs on health care and education. We are in the process of selecting very knowledgeable and networked consultants in these respective fields to staff separate steering committees of state legislative and executive branch officials from Director s Column, continued on page 6 Page 2 Winter 2006

State Officials Gather for Inaugural Eastern Leadership Academy In September, the Council of State Governments Eastern Regional Conference held its inaugural Eastern Leadership Academy in Philadelphia. The program, presented by the University of Pennsylvania s Fels Institute of Government, helped the region s best and brightest officials develop their leadership skills and examine the most significant policy issues facing the region today. Lawmakers and state officials from all branches of government from nine Eastern states, Puerto Rico, the U.S. Virgin Islands and the Canadian provinces of New Brunswick, Nova Scotia and Québec participated in the Academy. This year s dynamic program focused on the region s changing economy and culture, strategies to create new jobs, efforts to rein in the cost of health care, and strategies to build an ethical climate in state government. Academy members worked to enhance their personal skills in communicating with the public, building consensus, and solving problems. Participants praised the program as an excellent training and networking opportunity and a great source of professional and academic inspiration. They also remarked favorably on the non-partisan nature of the Academy. For information on the 2006 ELA, please visit www.csgeast.org or contact Karen Imas, CSG/ERC Communications Manager: kimas@csg.org Front Row (from left to right): Representative Melissa Olson (CT), Senator Jose Garriga-Pico (Puerto Rico), Professor Donald Kettl (Director, Fels Institute of Government), Alan Sokolow (Director, CSG/ERC), Karen Imas, (Communications Manager, CSG/ERC), Senator Wendy Wilton (VT), Sylvia Hamer (NY) Middle Section (from left to right): MNA Eric R. Mercier (Quebec), Erika Leigh Kruse (RI), Andrew Sislo (PA), Senator John Rafferty (PA), MNA Jody Carr (New Brunswick), Representative Matthew Good (PA), Representative Emily Ann Cain (ME), Senator Terrence Positive Nelson (USVI), Vicki Nichols (CT), Senator Claire Ayer (VT), Representative Stephanie Ulbrich (DE), Senator Phil Bartlett (ME), Representative Jenniffer Gonzalez Colón (Puerto Rico), Senator Robert Martin (NJ), Assemblyman Robert Gordon (NJ), Jeffrey Wallace (PA), Representative Denise Barnard (VT), Senator Neville James (USVI), MNA Elsie Lefebvre (Quebec), Assemblywoman Sandra R. Galef (NY), Senator Jonathan Harris (CT) Back Row (from left to right): James Werner (DE), Dan Sullivan (MA), Mark Brainard (DE), Tom Cook (DE) Not pictured: Raymond Hayling, III (NJ) Delaware Annual Meeting, continued from page 1 My FBI; Daniel Pink, author of A Whole New Mind; U.S. Senator Joseph Biden (DE); Frank McKenna, Canadian Ambassador to the U.S.; and John Zogby, internationally recognized pollster. Pink spoke to delegates about how right brain thinking, rather than analytical thought, is changing the nature of the workplace and economic development. Artistry, empathy and inventiveness increasingly matter most in the economy, he said. Pink calls this transformation the conceptual age. While the American GDP has tripled in recent years, satisfaction is stagnant. Pink claims that today, prosperity is linked with a creative work force that is searching for selfrealization. Lawmakers can play a role in integrating these concepts into their communities through various measures including the promotion of arts and music education. Zogby, acclaimed by many as the nation s most accurate pollster, presented findings from a recent national survey that compares the public s perceptions of government to that of state officials and discussed the implications for state governments. The survey shows that confidence in state government is dwindling. The governor has a less than 40% confidence rating, judges have the confidence of about a third, and the state legislature has the confidence of about a quarter of the general public surveyed. CSG members showed more confidence. Most adults agree that the federal government should have less power, while state governments fare better in this category. When asked what type of government they feel is most effective, both members of CSG and adults nationwide agree that they prefer a state government that is proactive and plans for the future, said Zogby. Most respondents agree that state issues should be examined comprehensively rather than by separate departments the way most states handle issues now. We haven t taken seriously the abilities of artists, teachers, nurses and public servants - the big picture thinkers, he said. Page 3 Gov. Jim Douglas of Vermont was unanimously selected as the incoming CSG President for the year ahead. His policy priority will be the continuum of health care services for the country s children to senior citizens. Winter 2006

U.S.-Canada Passport, cont d from page 1 The officers of the ERC Eastern Canadian Provinces Committee traveled to Washington, D.C. on February 1-2 to pursue joint interests on the WHTI and to advocate for crossborder infrastructure initiatives. They met with senior U.S. Dept. of Transportation staff and key members of Congress. The ERC Executive Committee members readily acknowledge the national security concerns at play in the development of the WHTI. At the same time, they argue that a solution must be found that does not threaten the region s economic security and the vital cultural and social relationships that have been established over many years. The economic and social impacts on the border communities would be particularly harsh. Further, ERC state and provincial officials argue that the WHTI would not protect citizens in the Northeast from a terrorist attack, as would-be terrorists are unlikely to use major border crossings. Economic and Trade Impacts of the WHTI Canada and the U.S. have the largest non-militarized common border in the world - 4,400 miles. The need to maintain a seamless border is underscored by the integrated economies of the border region and the frequent trips made by families, students and working people. Canada and the U.S. also have the largest commercial trading relationship in the world. A truck-load of products crosses the border every two seconds. Ambassador Frank McKenna, speaking at the CSG Annual Meeting in Delaware, said Canada is biggest export market for every state in New England. Economic integration is crucial to the U.S.-Canada relationship and our economic competitiveness abroad. In the auto trade, Ambassador McKenna noted that an auto part travels across the border six times before the car is put on the lot for sale. CSG s Innovations Awards Program was established in 1986 to bring visibility to exemplary state programs and policies and to facilitate the transfer of the successful models to other states. At the CSG Annual Meeting in Delaware, the following programs from the Eastern Region received the Innovations Award: New Jersey s DNA Convicted Offender Sampling and Testing Program ensures that offenders and their DNA samples are properly identified and entered into the state s criminal records database. In 2003, New Jersey instituted legislation that all persons convicted of an indictable crime are required to submit to DNA identification. The program uses handheld biometric computers to read a single sample fingerprint and biometric computers to take full fingerprints of convicted offenders. With these computers, information on offenders is captured correctly and quickly. Also, the state criminal record database is available to other states. For more information, contact Thomas J. O Reilly, administrator, Office of the Attorney General, at (609) 292-9660. Page 4 A recent report, prepared by Conference Board of Canada for the Canadian Tourism Commission, estimates that the passport rule would result in 3.5 million fewer trips into the U.S. from Canada by 2008, resulting in a loss of $785 million in potential tourism revenue, and 7.7 million fewer trips by U.S. citizens into Canada, resulting in a $1.7 billion loss in revenues. Alternatives to the Passport Requirement The Intelligence Reform and Terrorism Prevention Act mandates that DHS develop a plan to require passport, other document or a combination to be sufficient to denote identity. During a panel discussion on WHTI at the 2005 CSG Annual Meeting, Lisa Katz of the Detroit Chamber of Commerce said that other options should be explored including: 1. Alternative ID s for travelers under 16. 2. Northern Border ID Card. 3. Enhanced driver s licenses which feature all the security requirements of passports (Congress passed the REAL-ID Act in May 2005 which creates more stringent requirements for obtaining driver s licenses). Options that tip the balance too far away from economic security can be catastrophic, said Katz. While driver s licenses currently do not prove nationality, state DMVs could provide the option of putting citizenship on the card. Note: On January 17, DHS announced the U.S. would start issuing a special ID card this year that would allow Americans who travel frequently to Canada or Mexico to continue crossing the border without a passport. The card will have a picture of the holder and cost $50. Citizens will be required to provide the same documentation needed to obtain a passport. Eastern Innovations Award Winners For more information, contact CSG/ERC Deputy Director, Wendell Hannaford: whannaford@csg.org New York s Pharmacy Service and Clinical Knowledge Enhancement System (PSYCKES) is an innovative health information technology product implemented in the state mental health system. PSYCKES provides access to medication guidelines and medical information that physicians and other clinicians can review and assess in order to prescribe an appropriate and effective medication regimen for their patients. PSYCKES also provides information for quality managers. This innovative system to access patient history and clinical resources is a secure, HIPAA compliant application that requires three levels of security clearance. So far, no other state has developed a mechanism for sharing all clinically relevant data with treating physicians in a flexible, point of service, Web-based manner. It is the first example of an integrated, guideline-driven, clinical and fiscal decision support system for psychiatry. For more information, contact Edith Kealey, MSW, New York State Office of Mental Health, at (212) 868-6707. Winter 2006

As the newly inducted chairman, Representative Mike Festa (MA) led the November 2005 meeting of the CSG/ERC Criminal Justice Board of Directors. The Board reviewed recent developments in ongoing Criminal Justice Program projects, discussed emerging criminal justice issues - including sex offender management, immigration, and reducing substance abuse through trauma center interventions - and honored outgoing chairman Assemblyman Jeffrion Aubry (NY). Members of the influential body include legislative leaders, state corrections directors, juvenile justice administrators, leading judges, prosecutors, and others from the 10 northeastern states, Puerto Rico and USVI. Over the past several years, the Board has developed bipartisan recommendations on pressing criminal justice issues, including the overrepresentation of people with mental illness in the criminal justice system, the growing numbers of people released from prison and jail each year, services and rights provided to crime victims, and justice reinvestment strategies. The projects that our Board directs - the Criminal Justice / Mental Health Consensus Project, the Re-Entry Policy Council, and the Justice Reinvestment Initiative - have been recognized by governors, leading members of Congress, and legislative leaders from both sides of the aisle and from across the country as being instrumental in shaping new policies and laws, said Representative Festa. Over the past year, each of these projects has marked major achievements: The Consensus Project hosted a groundbreaking conference for all mental health courts nationwide and has contributed to the appropriation of $5 million for grants under the Mentally Ill Offender Treatment and Crime Reduction Act; Page 5 Criminal Justice Board News The Re-Entry Policy Council issued its report, a comprehensive collection of recommendations for charting the safe and successful return of prisoners to the community, and has contributed to the introduction of the Second Chance Act in the U.S. House and Senate; and The Justice Reinvestment Initiative has worked with legislative and executive policymakers in four states - Connecticut, Rhode Island, Kansas, and Arizona - to generate savings by curbing the growth of the prison population, and to reinvest some of those resources in the high-stakes communities that receive a large portion of those individuals re-entering communities from prison or jail. Several policy experts addressed the Board including Dr. Antonio Fabelo, a national expert who served as the lead crime policy advisor to former Texas Governor George W. Bush and David Naisby, Communications Director for the Pennsylvania Justice Network. They addressed the Board on the dilemmas and practical realities of the promotion of public safety through public information, particularly as it relates to sex offenders. Senator Liane Sorenson, appointed as First Vice-Chair said, I am eager to continue working with legislative leaders from both sides of the aisle and from across the country as being instrumental in shaping new policies and laws in the criminal justice arena. In the upcoming year, the Board will not only continue to advance existing projects, but also will consider new issues, such as immigrants and the criminal justice system and improving the response to people with acute substance Representative Mike Festa (left) hands the plaque to outgoing Board chairman Assemblyman Jeffrion Aubry. abuse disorders served in emergency rooms. These issues were identified by Board members as important issues emerging in their states for which there is a particular need to develop innovative, bipartisan policy solutions. At the meeting, members of the Board acknowledged Assemblyman Aubry s exemplary leadership of CSG s Criminal Justice Program, and in particular his role in guiding the development of the Re-Entry Policy Council, which took shape during his tenure. According to Representative Festa, Assemblyman Aubry s leadership contributed immeasurably to improved and effective criminal justice policies in states across the country making communities safer, stronger, and healthier. By convening and motivating leaders from the full range of relevant systems and from across the nation, the CSG Criminal Justice Programs are paving the way to solutions for entire communities, said Assemblyman Aubry. CSG s Criminal Justice Program has experienced significant growth in terms of staff and funding sources. The program has 17 positions and draws funding from over 20 separate sources ranging from foundations to federal agencies. Winter 2006

LSA Directors and Fiscal Officers Examine Federal Trends Legislative Service Agency (LSA) directors and fiscal officers from the Eastern Regional Conference visited Washington, D.C. in November where they had the opportunity to hear from federal officials working in the Department of Health and Human Services (HHS) and the Environmental Protection Agency (EPA) on programs and issues affecting states. Also, the group was briefed on trade policy and federal tax reforms by policy experts. I think I speak for all of us when I say that the joint meeting of Fiscal Officers and Service Agency Directors was both useful and informative. A broad range of federal officials and other experts provided us with very frank and direct analyses of issues critical to the Northeastern states, including the impact of proposed changes in federal budgetary and tax policy. Further, trade experts outlined cases where international trade agreements supersede state and local environmental laws and ordinances, said Dr. Michael King, Executive Director of the Pennsylvania Legislative Office for Research Liaison, and Chairman of the Northeast LSA Directors Group. Stan Collender, General Manager of Financial Dynamics and acclaimed federal budget watcher, briefed the group on the appropriations process, the deficit, and the repercussions of federal fiscal policy for states. Domestic spending and aid to states and localities is under pressure reported Collender. Congress and the administration have said Social Security and Medicare will not be cut. Other untouchable areas include interest on the debt, the military, and homeland security. The reconstruction costs involved with Hurricane Katrina will linger for several years and the budgets for FEMA and the Coast Guard will be increasing over the coming years. Consequently, the nuts and bolts of domestic spending, including many state aid programs, will be easiest to cut and will undergo the least amount of examination according to Collender. Staff of the NJ Office of Legislative Services at the meeting. From left to right: Albert Porroni, Executive Director; Lori O Mara- Van Driesen, Director of Public Information; Glenn Moore, Director of the Central Management Unit; and David J. Rosen, Legislative Budget and Finance Officer. Mr. Moore was awarded the Virgil S. Puskarich Regional Legislative Staff Award. The discussion on the federal budget - the long-term perspective and the potential changes in policy that might impact states was useful, commented David Rosen, New Jersey s Legislative Budget and Finance Officer. Many of the attendees have been working with their legislatures on issues surrounding Medicaid and Medicare and had a chance to hear from senior staff at HHS. The agency staff has done outreach to state and local officials to explain the transition of dual eligibles into a new Medicare prescription drug plan (Part D) starting January 1, 2006. Medicaid reform was also discussed with HHS, particularly the recent federal commission report that said $10 billion in savings needs to be recovered in the program, largely by states. The connections made at the federal level are beneficial in that it s easier to follow-up with individuals on these pertinent matters when you ve had a chance to meet with them, said Rosen. Moreover, networking with peers across the region is invaluable. A presentation on Smart Growth given by officials at the EPA highlighted practical models and best practices in planning communities. Adhir Kackar and Mary Kay Bailey of the Office of Director s Column continued from page 2 the region. The goals will be to define a set of priorities in each area and develop fundable projects with federal and foundation support. The focus will be on regional niche issues. We hope early success will lead to permanent activities in health and education policy. The ERC Environment and Energy Committee will host a seminar in the Spring entitled The Northeast s Energy Challenge. The meeting will be an interactive dialogue among the region s state energy policy leaders on the mid- and long-term issues facing our competitiveness. The emphasis will be on building consensus to pursue specific regionally focused projects. Now that the ERC Eastern Leadership Academy had a most successful inaugural program, attracting over 30 of the region s best and brightest leaders from 13 member jurisdictions representing all branches, we are launching plans for 2006. With our academic partner, the University of Pennsylvania s Fels Institute of Government, we have started planning the program for Philadelphia from September 17-21, 2006. Our continuing efforts to include ERC s Eastern Canadian neighbors in our work includes outreach to the Provinces of Ontario and Newfoundland and Labrador whose Assembly leaders have shown interest in becoming International Affiliate Members joining their colleagues from Quebec, New Brunswick and Nova Scotia. We look forward to your involvement in our ambitious and exciting 2006 agenda. Policy, Economics, and Innovation discussed transportation, development, environmental and property tax issues related to smart growth. They pointed out that while auto-oriented, low-density, single-use development tends to be the norm, there needs to be more diversity. Emerging alternatives include mixed-use neighborhoods. They urge state and local officials to consider planning reforms that stress compact development which can create savings for communities. Page 6 Winter 2006

ETC and NSAAS Partner to Promote Regional Exports to China A unique mission, jointly sponsored by CSG/ERC s Eastern Trade Council (ETC) and the Northeast States Association for Agricultural Stewardship (NSAAS), involved three legislators from the Northeastern states who visited Inner Mongolia in China to promote Northeastern agricultural exports. Their itinerary included visits to small, family-owned dairy farms and briefings by Chinese and American government officials in Beijing. The purpose of the visit was to observe Chinese agri-business, in order to help Northeast companies understand the Chinese market. Assemblyman Darrel Aubertine (NY) and Representatives Arthur Hershey (PA) and Nancy Smith (ME) are all state legislators and dairy farmers interested in promoting a strong agriculture industry in their home states. This combination of job and legislative experience gave the group unique insight in evaluating the potential export and joint venture opportunities with farmers in Tongliao, Inner Mongolia. Agriculture is one of the few sectors where the United States has a trade surplus with China. China hopes to boost its dairy industry over the next 10 to 15 years, thanks to the growing consumption of milk and other dairy products. Milk consumption is increasing by 15 to 18 percent annually (37 percent in 2003 alone) while flavored yogurt is growing in popularity, especially among young people. In 2004, China s purchases of dairy products, amongst other agricultural commodities, set records. The trade mission initially intended to promote assisted reproductive technology, particularly cow embryo transfer, to small and medium sized farms. However, the delegation discovered that many of the Tongliao farms are not well equipped for implants, nor is this method the most effective approach for local farmers to increase production. Going over there, we realized that we could make a fabulous one-time sale, Page 7 but we looked at this mission as a meaningful opportunity to build relationships for the long-term. We hoped to impart to the dairy farmers and industry representatives that when they think about cows, they think about the Northeast, said Assemblyman Aubertine, a member of the Assembly Committee on Agriculture as well as the Committee on Economic Development, Job Creation, Commerce and Industry. The legislators agreed that with a change in herd management, production of milk could increase and even double. Given that the dairy farms in Tongliao were relatively similar in size to many small and medium sized farms in the Northeast (two to 500 cows), the legislators were able to use their own farming experience to suggest many cost effective and efficient solutions to help the farmers increase productivity. The ultimate goal is to create a partnership to help Tongliao develop a dairy industry and encourage local farmers to look to the Northeast as a resource for information and equipment. This would result in new potential export opportunities for businesses in the ERC region. This holistic approach would help increase and enhance production levels, getting the Tongliao dairy industry stabilized, which sets the basis for them to buy other products, like embryos from the U.S., said Rep. Smith, House Chair, Business, Research and Economic Development Committee. The legwork done by the legislators in conjunction with ETC and NSAAS provided the foundation for future growth for the Northeast economy. There are numerous small and medium sized Northeast companies who would benefit from increased trade with China, said Rep. Hershey, Chair, House Agriculture and Rural Affairs Committee. This trip allowed us to establish a network and presence that will be good for the regional economy as we increase foreign trade. Following the trade mission NSAAS Director Marge Kilkelly (left), Assemblyman Aubertine (second from left), and ETC consultants, Jeffrey Qi (right), and David Lin (second from right) met with Senator Hillary Clinton (NY) and her staff in Washington, D.C. to discuss the trade mission and potential export opportunities for small and medium sized agri-businesses in New York and the Northeast region. Northeast Ag Works! NSAAS is a project partner in an exciting new collaboration called Northeast Ag Works!, a region-wide project to propose, promote and support public policies that sustain and foster the region s agriculture and food system. The project is funded by the W.K. Kellogg Foundation. The region includes Maine, Vermont, New Hampshire, Massachusetts, Rhode Island, Connecticut, New York, New Jersey, Pennsylvania, Maryland, Delaware and West Virginia. Northeast Ag Works! will: Help create innovative state policies, for example to encourage states to purchase local agricultural products. Make it easier for all farmers to process and sell their products by removing regulatory barriers and promoting cross-state cooperation to foster robust local and regional markets. Promote federal food and farm policies, with a particular focus on the 2007 Farm Bill, that are more responsive to our region s unique needs. For more info, contact mkilkelly@csg.org Winter 2006

Trade Mission to Czech Republic and Poland ETC will sponsor a trade mission to the Czech Republic and Poland in the Spring of 2006, targeting critical industrial sectors such as information technology, environmental, defense/aerospace, and manufacturing. The ETC, with the assistance of the US Dept. of Commerce s Foreign Commercial Service Offices in Prague and Warsaw, will provide customized matchmaking meetings with potential public and private sector counterparts for delegate companies recruited from the Northeast. For more information, please visit: http://www.csgeast.org/etcmissions.asp or contact Veronique Cavaillier: vcavaillier@csg.org Upcoming State Capitol Visits Alan Sokolow, Director of CSG/ERC, will be visiting state capitols in the region starting in January, along with ERC policy staff. These state visits are a chance for our members to hear more about our activities and services and tell us how we can better serve state government. If you would like to arrange an appointment, please call Alan Sokolow at 212-482-2320. CSG/ERC 46th Annual Meeting Philadelphia, PA July 30 - August 2, 2006 Marriott Philadelphia Downtown The Council of State Governments Eastern Regional Conference 40 Broad Street, Suite 2050 New York, NY 10004 Presorted Standard US POSTAGE PAID Permit No. 5432 White Plains, NY Address Service Requested