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Senate | March 25, 2015 | Committee Room | Workforce & Economic Development

Full MP3 Audio File

Please take their seat where going to go ahead and get started we got a lot to do today and not much time to do it. We have two sergeants at arms today Jim Hamilton and Giles Jeffreys. I want to welcome ya'll. Our our pages are Alma Mahter sponsored by Senator Mcguinness, Sam Krauss, by Senator Heist. Stephin Little by Senator Stein, and finally we have Amruth Repiruth Bedur, who was born in Hydrabad India and Audre Padre State and speaks Hindi and pelagu and English. So we are proud to have him here. We had two bills today for consideration. how many do we need for a quorum? Five? First bill is Senate bill 105 and we have a propose committee substitute. so do hear a motion that we hear the propose committee substitute by senator Davis? and second by senator raven. senator brown would you like to tell us about this bill. {SPEAKER CHANGE} Thank you Mr. chairman i will first id like to run a amendment if i could Mr. chairman. {SPEAKER CHANGE} ok i believe everybody has a copy of the amendment [SPEAKER CHANGE]i think its pretty explanatory on page two it just rewrites the line to read liability company and this state during the period covered by the report who are veterans so basically what the amendment does is make sure we're talking about veterans in north Carolina only. [SPEAKER CHANGE] do i have a motion. motion by senator Davis to approve the amendment second by senator wydell. now the PCS sentra band you want to explain it or lets [SPEAKER CHANGE] I'll try to get through it and maybe staff can add but this bill really comes out of the military affairs commission [SPEAKER CHANGE] Mr. chair just real brief i think we need to probably cure a devote on the amendment. [SPEAKER CHANGE] oh I'm sorry all in favor that the question amendment say aye. Aye. all appose. ok it passes. Thank you senator Davis. [SPEAKER CHANGE] again this bill comes out of the military affairs commission. and what it really relates to is why, how were trying to make north Carolina the most business friendly state in the nation and i think trying to measure how many veterans we have working in our state is a key piece of that. so what the bill does is under current law domestic and foreign companies insurance companies and L.L.C.s have to deliver a annual report to the Secretary of state. that includes name of the entity and the state or country under which law is incorporated the street and mailing address if different of the registered office the county in which it is located in the name of registered agents address and telephone numbers of principal offices names titles and business addresses of principal offices and a brief description of the nature of the business what this bill does is also add a requirement that each domestic corporation and each foreign corporation plus each L.L.C. and each foreign L.L.C. authorize to transact business in the state to include in its annual report to the secretary of state the number of full time equivalent employees employed by the corporation of this state during the period covered who are veterans. the P.C.S. also defines the terms such as the number of full time equivalent employees qualified service and what veterans truly mean and the bill would direct the secretary of state to compile and publish summary information about the number of veterans employed in this state a corporations and L.L.C.s on its website on or before October one of each year the P.C.S. would also direct the department of labor insurance and commerce implore security commission industrial commission to assist the secretary of state and notifieng the public of the requirement to report the number of veterans employed by corporations and L.L.C. effective date is January one of two thousand and sixteen. i think i covered it pretty well. [SPEAKER CHANGE] alright we have a motion by senator raven unfavorable to the original bill favorable to the P.C.S. is there a second. to Roland to the new P.C.S. ?? Sam. come in? any comments from the committee? senator Davis. [SPEAKER CHANGE] thank you Mr. chair senator brown thank you so much for bringing us forward as north Carolina positions itself to remain a military friendly state one thing that came out of program evaluation is a lot of times we-

Do not know what's going on, so this is a great measure, and thank you so much for bringing this forward, and I look forward to voting for it. [SPEAKER CHANGES] Okay, and mister chairman, secretary of state's office has been in contact with me, and I think we changed a little language to help with them. So I think they're okay with the bill as well. [SPEAKER CHANGES] Okay. Any other comments from the committee? Okay, all in favor say aye. All opposed no, and the bill passes. [SPEAKER CHANGES] Thank you mister chairman. Thank you committee. [SPEAKER CHANGES] Thank you Senator Brown. Okay, we have Senate bill 112, Senator Cook, commercial fishing courses for the coastal colleges. Senator Cook, would you explain the bill? [SPEAKER CHANGES] This is a bill. Got to punch a button somewhere. How about that? Can you hear me now? Hear me now. All right. This is SB 122, commercial fishing courses, coastal colleges. This bill simply urges coastal community colleges to offer fishing courses on commercial fishing and aquaculture. Aquaculture courses are currently being offered at only two coastal community colleges, Carteret Community College and Brunswick Community College. Carteret Community College offers courses that can be transferred to a four year marine biology program at UNC Wilmington or East Carolina University. Brunswick Community College also offers an aquaculture program although its curriculum focuses on freshwater aquaculture. In North Carolina, there is a significant potential for aquaculture to become a greater source of income and economic prosperity for North Carolina's commercial fishing industry. We're the largest estuary in the nation that doesn't span across other states. There, there was explosive growth in oyster aquaculture sales in Virginia but practically flat growth in North Carolina. Currently, I'm working on a different bill that will improve oyster fishing industry in North Carolina. For this industry to grow in North Carolina, we need to make sure our coastal community colleges are offering courses that support aquaculture. This bill will do that. [SPEAKER CHANGES] Okay, do we have a motion for a favorable report on this bill? Senator Alexander, a second? We'll do questions after the motion. Do we have a second? Okay, Senator Sanderson. Okay, now any questions or comments from the committee? [SPEAKER CHANGES] Just a couple of questions. I think it looks like a good bill, but for the bill sponsor. Mister chair? [SPEAKER CHANGES] Yes ma'am? [SPEAKER CHANGES] To the bill sponsor, I would wonder if you have done any inquiry with the community college board since they have the, they do the research in terms of what we need, course offerings, course, this may cost some, require some cost to some of those college. When you implement a course, you gotta get somebody to teach it of course, et cetera. But I'm saying that the community colleges would look at whether we should offer it here and what, what kind of students, and interest, et cetera there may be in this particular community college. I think it's a good idea, but I'm saying in terms of the community college structure itself, in terms of looking where that kind of possible enrollment might come from, it may make sense for them to say, well, we'll start right here, this particular college, and offer access because we might not get but 10 or 15. And I guess my question is that as well as does this bill allow for gradual increase amongst community colleges as opposed to implementing across all of those on the coast. [SPEAKER CHANGES] I think the bill just urges them to look into it. It's not requiring them to do anything, so they can, they can do it as they see fit. They can move forth as they see fit. [SPEAKER CHANGES] Okay, the first question. Senator Cook, go back to the first. Thank you mister chair. In terms of your inquiry with the community colleges boards. Have you talked to any of the community colleges? [SPEAKER CHANGES] A little bit. Not a lot

I think I've mentioned it to a couple of college presidents, they're fine with it as far as I can tell. This is, again, just urging folks to look at providing courses that will help encourage our aquiculture industry in North Carolina. We have tremendous potential for this to grow, it's worth hundreds of millions of dollar to the economy of North Carolina, as so far it's just sort of withering on the vine. And this is just one way to encourage folks to consider a career in this and to provide them with them with the tools to be part of this industry. We often hear about how farmers in North Carolina have an age, I think the average age is around 59 years old. I'm a little older than that so I can appreciate the gravity of that concern. I think I would submit that it's probably worse with the fishermen. Fishermen are being run out of business. As far as I can tell, we used to have a thriving fishing industry and aquiculture was on the horizon, and now we done. Now, because of crazy regulations, mostly Federal, we have a situation where fishermen are a dying breed. This is just another way to encourage it. [SPEAKER CHANGES]Okay, thank you. Senator Davis? [SPEAKER CHANGES]Thanks, Mr. Chair, and just had a brief comment, more so. I think the merits is really sound and urging is not a shall and absolute, but along the sentiment that Senator Robinson was sharing, there may be also consideration given to, obviously, getting those queued that are still around in the industry to bring them to the table, and I think that would be awesome. [SPEAKER CHANGES]Okay, thank you, any other comments? Staff, do you have any? Okay, all in favor say aye. [SPEAKER CHANGES]Aye. [SPEAKER CHANGES]All opposed no, it passes. Thank you Senator Tucker. [SPEAKER CHANGES]Thank you Chairman and Committee, I appreciate you allowing me to speak to you today. [SPEAKER CHANGES]Okay, now we have three information speakers, the first is NC Chamber, Gary Salamido. Is Gary here? [SPEAKER CHANGES]Thank you Mr. Chairman, members of the Committee. It's a privilege to be here today. I'm going to go through a presentation relatively quickly in respect to the other two folks that need to get up and talk with you. A little bit about workforce development and economic development and what it means. It's been an important piece of what the business community and particularly the North Carolina Chamber over the last few years has been working on in order to connect our education, our talent, our development, and our talent supply our young people with jobs as we get through this very difficult time in our economy. How do we get everybody back on track and how do we get as many folk looking for, and finding, and getting the opportunities in the jobs that they need. Quick snapshot on the North Carolina Chamber, about 35,000 members who employ about 1.2 million North Carolinians. About 30% of the total private sector workforce is a member of the North Carolina Chamber. 100% business funded, all by our members, small and large, and we're the state affiliate of the US Chamber of Commerce and the National Association of Manufacturers. So we have a broad base of members that we draw upon when questions like what's going on, what's happening with the workforce that we need to have, some input and some answers for. There's four key pillars, that to be a winner in the competition for jobs going forward, that you have to have a good foundation for, and they work together, they don't work in isolation. The first one is education and talent supply. Well over 50% of the jobs in the future are going to require some post secondary education in some way, shape, or form, in order to really advance our innovation economy that is so much a part of North Carolina's future.

You also have to look at entrepreneurship and innovation. Fifty percent of annual USGDP demand going forward is going to result and be reliant on innovation. A key statistic here in our competitiveness, our aging population is going to have an impact on that. Fifty percent are going to be 65 and older in a few years, which is going to put additional strains on our health care system and also create opportunities for folks in that market sector. So there will be job opportunities there, but there will also be strain on resources. One of the key factors when we put our plan together was, by the year 2030 economists are predicting that around 3 million people are going to be coming in to North Carolina. That's the equivalent to the entire population of the state of South Carolina, making us easily one of the seventh or eighth most populous states in the country. Which is a great opportunity but also indicates that we have to create about a million new jobs in that time period in order to make sure that we keep North Carolina as a Top Ten competitor here, in the nation, and the world, and make sure our citizens have opportunities for them going forward. Again, each pillar is critically important, and they work together. What's our challenge? These statistics are from two different places. One of the sources is the National Manufacturing Association's Marketing Institute. And the other was a University of Phoenix study that our foundation, North Carolina ?? Foundation, commissioned. It shows that 83% of US manufacturers lack skilled workers, and that hurts business. 600,000 US manufacturing jobs go unfilled because of the skills gap, the gap between what the businesses, and in these particular cases the manufacturers, need and what our talents apply, what our education system is connecting with. And North Carolina is competing globally. Fast-pace and high tech. The speed of business is where we need to begin to move our connectivity between our talent supply or talent development, our young people, and where the jobs are. Every year we survey a number of our members across different economic groups, different types of businesses. We survey them often. I think what's telling here is when you go back to 2011, you can see the green line was what is the most important? In 2011 it was taxes. But right now it's clearly education talent supply and development. It has shifted. Right now we're getting our economy competitive. Our business climate is getting competitive. However, the skills gap is continuing to grow. It becomes clear, with a steady three-year increase, the importance of a talent supply and an educated and connected workforce. Linking workforce development and jobs. First of all, we would be very remiss if we didn't really thank Will Collins and the NCWorks folks for all the good work that they're doing over there. They have pulled together a lot of different groups. They are interacting with business on a regular basis. And they're beginning to break down the silos in order to make sure that we do everything we can to get the jobs, the education, and the people connected so that they can get into those jobs as quickly as possible. We have to break down those silos. And we have to have our workforce development system, moving forward, continue to develop and evolve at the pace of business. Because as technology and innovation goes, so does the opportunity for people to have new opportunities. But also they may lose what they're currently doing, so we have to get them retrained and we have to get them the experience and education they need for the jobs of the future. So we have to break down those silos and move at the speed of business. Some actionable items. We were asked to pull together some thoughts and considerations for some actual items we can do to help us with the skills, to help us have the best workforce development system anywhere. Continue our efforts to maximize the Certified Work Ready Communities and apprenticeships, which I'll give specific examples to in a moment. And again, an incredibly good NCWorks program that was developed down east, and I'll give you more detail on that. Aligning our prosperity zones with WIOA local areas. I know that there are some sensitivities around those, so we should all get in the room together and work collectively to make sure that we get the alignment that we need to get there. Again, we're not creating silos, we're creating opportunity. Better coordination between NCWorks, business community, and job seekers. That's going well. We continue to have good dialogue, and we want to encourage that. The NCWorks folks in particular have been great at reaching out to business. We've just got to keep that dialogue open. Things change quickly. And as we continue to talk, we'll be able to respond quickly. Establishing employer-based performance measures. What we are talking about there is, what are the metrics that look at if our talent supply, our education, our talent development matching up with the needs of the employers. And how do we measure that? We need to get together in a room and begin to speak the same language. We're making great progress there also. But getting those metrics right

Bring on those metrics ahead of time about what a business needs, and what is being produced, and then at the same time saying: Is this actually linking people with jobs? Those metrics need to be put together and we need to agree on them. Special veterans initiatives? We were hearing about a couple earlier today? One that was last session that has particularly yielded some significant results is getting a waiver for CDL, the commercial driver's license for our folks that are coming out of the military. When that bill was being discussed, there were about four thousand trucking jobs in North Carolina that were available. By getting that waiver for the commercial driver's license we're allowing our veterans to come out of the service and get into those trucking jobs much quicker. Those are the types of things that continue to help us fill that skills gap— very skilled, very talented people who have served their country— getting them into the workforce in a more expeditious manner, and we're seeing incredibly good results with that, and we'd be happy to share the data with you. But it's working. And last is maximize grant writing and cross agency coördination. Grant writing is a science, grant writing is a technique, there are specialists in it. We should make sure that those specialists work across the agencies in order to take advantage of the different efficiencies that can happen that way, and also to take advantage of the opportunities. If you have three or four different grant writers, one grant may work for one agency, it may not work for another. If we're able to maximize that efficiency, we're able to look at and access as many of those grants as possible. Some current North Carolina Business Initiatives: The number one consumer of an educated populace and educated workforce is business. It is folks that are in the private sector that are working to try and produce a product, try and produce a service that meets the needs of a market. So our number one consumer is business. Businesses are focussed on achievement and outcomes, all right? So we need a workforce that continues to be focussed on achievement and outcomes, and we need to be investing so that they have the skills necessary to meet those needs. I'm gonna give you three examples now, and I alluded to them earlier, of very distinct ways that the business community, local and state, are coming together to help with those achievement and those outcomes and help to align things. NC Works Certified Work Ready Community is an initiative of NC Works. It was an opportunity where folks came together, and they said: We have got to look at our community, look at the needs of our community, look at the gaps that are in our individual communities, put key thought leaders together, and develop a program that matches the gaps with the needs. So, in 2005, the Community College System, in partnership with the Department of Commerce, began a pilot program: the North Carolina Certified Work Ready Communities. The Foundation was the North Carolina East Alliance, which was really the pioneer behind getting this alignment right [??]. And NCWorks now serves as the framework for that piece, working with DPI and working with the business community and groups of local leaders—there's a group of folks in each county that designate themselves, or are in the process of designating themselves for applicants to the Certified Work Ready process, and again, it's high schools, community colleges, businesses, K12, all coming together and making sure they align with those gaps. Our Chamber Foundation now serves as the final certifying body for those, too. You'll be seeing a press release coming out shortly about the first two counties that were certified by our Foundation Board. We'll be certifying anywhere from five to ten coming up at our August Foundation Board. What this does is it says that these communities have a workforce that has meet a certain level of standard of education and workforce development that businesses can rely on to know: I can go to this county, I can go to Wake County, Wayne County, Lenoir County, and they're ready. They can serve these types of jobs. Andrews Aviation Academy is an example. I don't know all the details on this— we have a good member of ours who's on it, very involved with NCWorks, who's given us some really good examples of how this began to really address a very specific need in a very specific part of our state. It's 150 Aviation Academy students, it's an early college program for those folks. It provides the aviation community with a pipeline of skilled workers where the jobs are, where the facilities are. It keeps our talented youth in their local communities, and in North Carolina, and it involves internships, scholarships, degrees, certifications. We can provide more detail on what that is but it's specific to the aviation community. For example, when you look, there's FAA licenses and industry certifications such as SOLIDWORKS and AutoCAD that these young people are coming out with. There's also— [short personal comment about 'dealing with trifocals for the first time'; not germane to the talk, above.]

Air frame and power plant mechanics and avionics technician, and anything in the aviations business. There's certifications and degrees there for these young people that are coming out of these early college, or excuse me, early high school, early college academy. The final one I wanna talk about is that the apprenticeship program that is modeled after apprenticeship 2000 in Charlotte. Now the North Carolina Triangle apprenticeship program is doing it, and I've got a short video here with, from Buhler Aeroglide which kinda depicts what it's like. It's based on the Austria, Germany, and Switzerland model of the apprenticeship program. It's a four year apprenticeship program. The, the fellow here in the video is gonna describe it. You're gonna see an apprentice talk about what it means. After they go through the process, they have a job directly with that organization. It's a trained person who is very loyal to the organization. We're very excited. We're looking at how does the business community directly get involved with the apprenticeship program. Does our foundation serve for apprenticeship programs, very similar to what we do with the good, the good relationship with NC Works on a certified work rated communities. We're trying to make sure that we do that in a way that is very respectful and keep the integrity of this apprenticeship program and this process intact. At the same time, gets it out to as many folks as possible. So I think I'll show this and then I'll be happy to ask any questions. In theory. Uh oh. What did I do wrong? Is there a ?? Jake? I'm very technology challenged honestly. Yeah. Oh, there we go. So you left that piece out for me. There we go. There we go. Thank you. No sound. It's not here. Is it? It's unmuted, right? Oh okay. [SPEAKER CHANGES] Maybe someone under 25 can fix it. [SPEAKER CHANGES] That's right. I can't, this is a skills gap right here. [SPEAKER CHANGES] I am the director of human resources at Buhler Aeroglide. I started my career at Aeroglide two and a half years ago building up the, the human resource department, but what we really wanted to get into was to fill the pipeline of our talents, and where I come from in Switzerland it's very common that young kids at the age of 16, 17, they decide either go to college or do a, a trade, learning a trade. And this is what we wanted to establish in North Carolina, and it's a real apprenticeship program. In 2013 we were lucky to find other companies that wanted to start a venture with us, and so we founded NC TAP, that's the short name for North Carolina Triangle Apprenticeship program. So we having a lot of problems really finding very skilled ??, especially welders, because we are in the full industry and there we have very high quality standards. So we decided to invest in this apprenticeship program in, in North Carolina and the United States. It's quite a bit investment. It's a long term investment but we are very convinced and the history shows that it will be a success. [SPEAKER CHANGES] The apprenticeship program's important to Buhler Aeroglide. It's to help train our future

Skill and trade and most of all to help young adults get a start in life and some of the things we've worked on in the apprenticeship program, they've worked on drilling, filing, cutting, mig welding, ?? and ?? working on stainless steel tig welding right now. Personally I chose the apprenticeship program because going to a four year degree didn't exactly appeal to me. I wanted to be able to go ahead and work and get started and work with my hands a little bit. And so the apprenticeship program offered a great mix between getting a college career as well as working with my hands and it's been good so far. [SPEAKER CHANGES] It's very important basis of value behind the program, and you get for us as a company, why are we investing so much into this program is not only having these skilled workers, it's also we have customers in the food industry at the high end and there is a certain qualities needed, and with this labor, with these skilled workers we are able to provide the quality ?? well known around the globe. Normally such a program starts in manufacturing as we are doing in our company. You can multiply that. You can have the same structure of this apprenticeship program also in other disciplines throughout the company so I will always in the future also have a program for example in engineering or in ?? I think the sky is the limit there. But I am sure companies who are in investing in this long-term training will be more successful than others here in North Carolina. If you'd like to know more about NC Tech, we are very open to talk with other employees in North Carolina and support them, please go to the web page nctech.org and you'll see a lot of information about the program. [SPEAKER CHANGES] Okay, thank you so much. Senator Rabin has a question. [SPEAKER CHANGES] On your line chart, the haystack chart. It really depicts the gap between the workforce requirements in the education process. Is it fair to say that the gap is created because of changing requirements, because the requirements probably drive how close they can come to being filled. I think to say there's an education gap is one thing, and to see it is a very vivid description. But the cause and effect relationship becomes less visible depending on how you think about those lines. The way I visualize the lines and just tell me when I'm wrong, is that at least part of the reason for the line going up on education and development and the line being down here on the job and workforce needs, is created because the requirements aren't being met not because the education isn't happening but perhaps in the wrong disciplines. [SPEAKER CHANGES] I think what we're seeing is that as innovation over the last five, ten years or so is really just going in leaps and bounds. It's exponential. And the education system is good. It's just got to be a little bit more nimble, and try to evolve at the pace of innovation and the pace of business. So the kids are coming out and they're getting a good education but there's a gap because the innovation and the technology is evolving at a faster rate. [SPEAKER CHANGES] Any other questions? One more question, Senator Davis, and we need to go to our next speaker. [SPEAKER CHANGES] Thanks, Mr. Chair. I just had more brief, short questions regarding the Andrews Aviation Academy, if that's possible. I was just trying to get a feel for the number of students that are enrolled and that typically graduate. [SPEAKER CHANGES] I do know it's a hundred percent graduation, when they graduate. I think, I don't have all the details on that because that was just presented a little while ago. I'd be happy to get them to you. [SPEAKER CHANGES] Follow up Mr. Chair. If it's okay for time sake, we'll just speak afterwards. [SPEAKER CHANGES] Yes, that'd be fine. [SPEAKER CHANGES] Thank you so much. Now we'll have Mary Phillips, Surrey County Commissioner, talk about county economic development strategies. [SPEAKER CHANGES] Thank you Senators, ladies and gentlemen. He's just going to set this PowerPoint up for me. And let me just say that a year ago President Jeffers asked me to chair an economic development task force. We've seen the landscape changing and I

With the rules center and a lot of changes in commerce in North Carolina, and as County Commissioners, we certainly didn't want to be behind the ball on that, as we find ourselves quite often on things here in Raleigh. But it was a great task force, there were 26 members comprised of both rural and urban county representation. We've done listening tours and I going to share with you six representations in just a moment. But to just give you a backdrop, but as a County Commissioner, I come from a county that has lost 10,000 manufacturing jobs the last decade. Our per capita income, household income for families is down $10,000. If you took our county average median wage and went to a bank and tried to secure a $120,000 mortgage at 4.25% interest, the bank's going to tell you, sorry, you don't make enough money. And after 10 years of economic strategy, and development, and incentives, and policy, we have a flat tax base in Surry County, it just simply hasn't worked. So, as a County Commissioner, theories are great, but what I look at is the bottom line and how it impacts the citizens of Surry County, how it enables them to be able to move forward with their lives, to be able to sustain their families, and that's what I bring to the table in this discussion. We looked at a lot of things, developing a strategic approach that's easy to understand. A lot of the times, one of the problems we saw with counties, as well as the state is that you chase the wind, and when you chase the wind you get nothing. A county can not be everything to everybody, we've got certain skill sets, we've got certain strengths. Every county has certain strengths and weaknesses, and identifying those and then building the strategy around that, develop a regional economic division. We have some rural counties, Senator Krawiec from Forsyth County is one of our neighbors, we have a good partner there, Guilford County. There are great things at PTI Airport, there are great things in our urban counties and neighboring counties that are important to us, and so we need those guys healthy and in turn they need Surry County healthy. Develop a collaborative mindset, partnership, and county turf wars are in no one's best interests. I can assure you, an investor in West Germany this morning that's looking at North America, he's probably not thinking the boundaries, the county lines of Surry County. He's thinking regional, he's thinking Southeast, he's probably, maybe not even thinking about state lines, for that matter. And we've come to an understanding that bad public policy around economic development is just bad public policy, regardless of which side of the political aisle it comes from. When a family's struggling and people are hungry, it doesn't matter where the help comes from, they're just wanting help and they're wanting to move forward with their lives. County incentive policies and guidelines should be flexible, but yet, predictable, a lot of those include non-tax incentives, which may be fees, regulatory fees. Make counties business friendly, we're currently, in Surry County, trying to look at combining our inspection and permitting processing to streamline that, so we've heard feedback from our business community that said, you guys are not the most business friendly county, and we've listened and we're making the appropriate changes. Acknowledge and qualify value, required deliverables that demonstrate progress assure citizens that the investments are protected. Which brings me to this point, the counties need a tool to help calculate return on investment. The Federal Reserve, the Communities Affairs Unit used to have a CD that was available to local governments and it's called FIT, F-I-T and it's an acronym for physical impact tool, and it enabled local governments to enter the data and actually see what economic development policies would mean, how it would move the needles in counties. A lot of rural counties in North Carolina have no way of knowing, they hope that it's going to work, they think it's going to work, they've been told to trust that it's going to work, but yet at the end of the day, to have the solid evidence that says this is really going to move the needle, this is going to expand the tax base, this is going to create the opportunities and job opportunities your citizens are looking for, that hard data is missing. And as a new commissioner, I've only been a County Commissioner for three years so I bring some, let's just cut through some smoke and mirrors to some realism, guys, if it's not working, it's not working. If it doesn't expand the tax base, it's not working. And so, at some point in time, you can't just keep doing the same

...thing and say, "well I hope we're gonna get it right - maybe we're gonna get it right." Let's stop and say, "what're we doing? Why isn't it working? And what could we be doing better with that?" I think regionally, I highlight the regional assets. When we market our counties, our rural counties, think about Charlotte-Douglas Airport and the proximity to that. We think about PTI. We think about Raleigh-Durham. The port systems not only in North Carolina, but in South Carolina. Approach infrastructure investments with a long term view. Water, sewer, and natural gas: those are critical to having the kind of infrastructure in place that enables - can make a county attractive to businesses. Access to capital. Convene groups that can provide various kinds of small business assistance at the local level. Consolidate resource information in one place online. That would be a big key, and a big help for counties. Set up a revolving loan fund for small businesses' development or expansion. Periodically request an open dialogue with representatives of the small business community, and then strength of agro-business economy in rural areas. Invite the federal and state agencies to educate citizens on international markets for product. In Surry County exports is 15.4% of our county GDP. It's pretty amazing for a rural county that we would have 15% of our county GDP in exports, but the possibility is there. We found out in talking with counties that a lot of them are not knowing that North Carolina has representation in foreign countries and how those counties can get their footprint in their offices abroad and be represented. Define and expand the role for the cooperative extension and promote the expansion of the NCSU farm schools. The recent changes in that, and I talked to the ?? county and explained why we were gonna lose one office and I asked him how the formulas were calculated and he said it was population. And I said well we were always going to lose when that equation comes. And I said, "Have you ever thought about calculating something counties' needs based on the percent of agro-business?" What it is is a percent of our county GDP, and they hadn't thought of that. I don't think they'll change that anyway. Develop strategies to promote local agriculture growth with the same urgency as manufacturing growth. That is a key and for a lot of eastern counties especially that's a big key. Work force alignment capacity. Promote apprenticeship programs. If you look at, and I agree with the chamber that our skills gap in our workforce is critical. One example that we found was if you look at BMW in Greenville, SC, the workforce in creating that labor force actually begins in middle school. Our public school systems are gonna have to recognize a need for vocational training; that not everyone's going to go work at NASA, but I paid a plumber $100 an hour two weeks ago and gentlemen that's pretty good money where I come from. The skills, the workforce gap skills, mean more than incentives. No company is going to come and invest 30 or 40 million dollars in a county where the people can not operate the machinery, and don't have the ability to operate it. That is critical. Convene local forums to understand the gaps and the workforce needs and availability. Develop strong working relationships with the county EDP commissions and directors. I serve on the board of our county economic development. Those relationships need to stay healthy. They need to be maintained, and even though there is a lot of change in Raleigh, it's important that the counties maintain - and reach out and try to maintain - that healthy relationship with the Department of Commerce here. [SPEAKER CHANGES] Mr. Phillips I'm sorry to cut you off, but we only have 10 minutes left. Any quick questions? We have one more speaker. [SPEAKER CHANGES] OK [SPEAKER CHANGES] Any other questions? OK. [SPEAKER CHANGES] Can I just say, Mr. Chairman, we've got to give out these handouts - notes. We are available at the Association County Commissioner I'm available for any questions you have after that. [SPEAKER CHANGES] OK. Thank you so much. [SPEAKER CHANGES] Thank you. [SPEAKER CHANGES] OK. Our final speaker, Ronnie Goswick Franklin County Economic Development Commission from Senator Barefoot's district. [SPEAKER CHANGES] Thank you, Mr. Chairman. I am Ronnie Goswick, Economic Development Director for Franklin County. I have had the privilege of serving with Larry on this Economic Development Task Force that the Association set up and it was a privilege to serve with him and we have some great ideas. Thank you.

Summer Cruising was a program that we established several years ago to help bridge the gap between what we’re teaching our kids and w hat we actually need in the workforce area. It was a program setup to bring together teachers, superintendents, CT teachers, core teachers, guidance counselors, community college presidents, county commissioners and interested citizens to address the problem of the disconnect between what we’re preparing our students for the future and what the real future is. Many of our participants were surprised to see what/how much of a gap that was over the years. Gone are the days that you could get an eighth grade education and go to work at the cotton mill. It’s going to take at least two years of education beyond a high school diploma to do the job that we’re trying to get our children to do. That’s not to say that all of our kids need a four-year college education (certainly that’s important), but a lot of our jobs, as Larry mentioned, good jobs, can be had with a two year education. The ability of our community college system to adapt as a valued partner in this effort to attract industry to our state. The Summer Cruising program provided an eye opening experience for most of our participants. We encourage everyone to develop in the program to be aware of the types of jobs that we need to prepare our students for. As you sit here, Franklin Vance Warren ?? were the candidates that participated in our Summer Cruising program. It was a three day event. The core teachers, guidance counselors, the career tech teachers and support staff were part of our group. The objective was to identify and visit emerging issues within the ?? regional council of government region to expose them to the types of companies that are currently there. Also to expose participants to current market data and the qualification needed for entrance into this workforce. We also exposed participants to the emerging issues and sustainable trends in industry, like Novozymes, houses North America and centrally[?]. Exposed participants to the 21st century literacy skills, strong academic skills, thinking, reasoning, teamwork and proficiency in using technology. We also encouraged our teachers to develop a career notebook or academic plan, video clips and career resource material on the emerging issues in our region. I’d like to say that we have a very successful program. These are a few pictures of the participants -- we were on a bus together. We had a chance to interact with each other from all over our region. So they have a good background and some good contacts in the future. This picture here was taken at Novozymes, North America, which is the largest enzyme producer in North America, located in Franklin County. They have worked closely with us. When they first came here, we had trouble finding people to work at Novozymes. Novozymes donated the equipment, the personnel and a lot of other costs, [coughs, excuse me] to set up a program called Bio Works. It grew into several more programs throughout the state, and this program has been emulated all over the state and the world. This is a local company, CaptiveAire, a good corporate citizen there, Bob Luddy started this company back in 1991. It has grown tremendously. He is currently having, he’s developed plants all over the United States and this one is his base headquarters. Again, we’ve put them in the community college system where they’re working with technology, and believe me, some of the young teachers and the older teachers were about my age and we needed some exposure to technology. I’ll be glad to answer any questions you have. Again, try to establish a program that will allow you to train our teachers and make

[SPEAKER CHANGES] Teachers and our parents aware that you don't have to have a four year college education to be successful. Larry mentioned it and I think he was right, some great paying jobs out there with a two year college education. I will mention a few more programs. Futures for Kids is a great program to make kids aware, or students aware of what's out there and what it's going to take to get into those programs. North Carolina Works, the BioWorks program I mentioned, and that is a certificate program. Again, Summer Cruising was great for us and if you need any, have any questions or need additional follow-up please, contact me in Franklin County. Mr. Chairman. [SPEAKER CHANGES] We have about two more minutes, any questions from the committee? Senator Alexander. [SPEAKER CHANGES] Sure thank you for your presentation. The physical facilities where you conduct this, is this at Vance-Granville Community College or Wake Tech or do you have your own facilities there in Granville County, Franklin County, sir? [SPEAKER CHANGES] We-we've spread it all over. We went to different counties, Vance-Granville Community College was a major player. They hosted most of the events. We went to different companies, so it's a, it was just a sort of a shared, shared venue. [SPEAKER CHANGES] Okay, Senator Waddell. [SPEAKER CHANGES] Thank you and thank you for the presentation. I listened very carefully to your explanation of Summer Cruise and I think it's a great program. But I didn't hear anything about internships. I know a lot of times we'll have apprenticeships, but many students need to earn money because, for whatever reason, to supplement their family income, sometimes to supplement their own income. So I think that would be helpful and do you have any such programs that can provide pay for them while they're in school? [SPEAKER CHANGES] We do not. We do provide some, some work for the Workforce Development Board through our Kerr Tar Regional Council of Governments. And we do provide funding for those, it's the, it's a kids' program. I can't think of the formal name of it, but it's really, it provides them a chance to go out and work with companies. One of the failings I think we have there is that it doesn't put them in a position where they learn anything. We may give them a broom and say sweep the floor, we may give them a-a chance to interact a little bit with the companies but it needs to be more in-depth and more challenging. There's an apprenticeship program in, in Lee County with Caterpillar, great-great one to look at and we are planning to do something similar to that in Franklin and Vance-Granville and Warren County and Person. [SPEAKER CHANGES] Okay, thank you so much. Our time is up. Thank everybody for coming, we're adjourned.