The legislative priorities for Golden Triangle Days-Austin represent the crucial business issues in the Golden Triangle-the energy-rich region of Southeast Texas in and around the cities of Beaumont, Orange, and Port Arthur. This agenda has been developed by the chambers of commerce of those cities and approved by their respective boards of directors- dedicated volunteers elected to represent the approximately 2,500 member businesses across the several Golden Triangle chambers.

The past two years have brought monumental challenges to the Golden Triangle, but there is no region in Texas more resilient. Since 2007, the Golden Triangle has taken direct hits from two hurricanes-Humberto in 2007 and Ike in 2008 -just as recovery from 2005's Hurricane Rita was concluding. Though wind and wind-driven water from Hurricane Ike caused billions of dollars in physical destruction and economic damage, the regional outlook remains bright thanks to the courage and determination of local businesses. The inestimable value of a healthy business climate was on clear display in the aftermath of this devastating storm as neighbor helped neighbor and employers large and small donated valuable resources to execute a vital role in recovery efforts. The process continues as local refineries and chemical plants resume operation and move forward with plans for historic expansion projects set to bring $15-20 billion in industrial investment to the area. In the Golden Triangle, business is not just the foundation of the economy, but also our community.

The Golden Triangle presents this biennial agenda for the 2009 legislative session with a singular purpose: to affect positive change for the Southeast Texas community by bringing important issues to the Texas Legislature on behalf of local business. In this agenda, the Golden Triangle adopts positions on the following issues:

- Economic Development

- Education

- Employment/ Workforce Development

- Environmental Quality

- Health Care

- Hurricane/ Disaster Recovery

- Taxes

- Transportation and Infrastructure

- Water Resources

- Windstorm Insurance

If enacted, these policies will create a business atmosphere conducive to growth across all sectors in a region with a proven track record and the ability to power Texas into the future.

• Economic Development
  While many regions across the nation face contraction and recession, the Golden Triangle's strong regional economy has played a crucial role in keeping Texas at the forefront of economic development, job creation, and commerce. For this statewide success to continue, it is important that several formidable challenges in the Golden Triangle be addressed to ensure continued growth. First among these challenges are inadequate workforce training and housing, each necessary to support the expected $15-20 billion industrial expansion.
  
  For economic development to continue, entrepreneurs must be able to explore new technologies and businesses encouraged to employ local contractors. Though implementing the revised margin, or franchise, tax in 2006 was the best option at the time, modifications are needed this session to ensure the new system is fair to businesses of all sizes. To this end, the Golden Triangle encourages the reimplementation of research and development (R&D) tax credits as well as the exclusion of contract worker compensation from a company's taxable margin.
  
  For the sake of economic prosperity, the Golden Triangle encourages the following:
  
  - Support continued funding of the Texas Enterprise Fund, Texas Emerging Technology Fund, in order to attract new business and encourage innovation.
  
  - Support continued funding of the Skills Development Fund at the Texas Workforce Commission to improve workforce training.
  
  - Support tax abatements and other economic development incentives providing maximum local control and flexibility.
  
  - Support continued use of the economic development sales tax law and encourage efforts that prevent raids on these funds for purposes unrelated to economic development.
  
  - Support a long term state policy to place Texas as the leader for fuel cell technologies, biofuels, hydrogen and other alternative power sources by encouraging research and a supportive climate for investment.
  
  - Support reinstatement research and development (R&D) tax credit incentives created in 1999 (SB 441) and inadvertently abandoned by the new margin (franchise) tax in 2006.
  
  - Support changes to the margin (franchise) tax to allow businesses to subtract from their taxable margin any compensation paid to contract workers that provide a service to that company.
• Education
  The ability of the Golden Triangle to meet the workforce needs of the current expansions and support the success of tomorrow depends on the quality of education today. Recently, economic growth has enabled great strides to be made towards improving the quality of area public schools. In the past several years, several area communities passed historic bond packages worth nearly three-quarters of a billion dollars. In doing this, the Golden Triangle has stood up for public education; it is time for the education system to do the same in return.
  
  Two years ago, the Golden Triangle helped raise statewide awareness to the fact the "4x4" calculation in the state curriculum did not sufficiently provide for career and technical education (CTE) at the high school level. This session, action must be taken to ensure the state curriculum supports the career aspirations of all students and arms them with the tools they need to be a successful, contributing member of the workforce.
  
  The Golden Triangle also provides for those seeking higher education. Lamar University has solidified its place as a global leader in engineering, and the institution's groundbreaking approach to distance education and programs for the deaf and hearing impaired are making waves in their respective fields. Lamar Institute of Technology and the pair of two-year state colleges in Orange and Port Arthur perform acrucial role alongside the four-year university in providing training for tomorrow's workers. There is a strong local educational infrastructure in place, but more can still be done to guarantee graduates at all levels are prepared for successful entrance into the workforce.
  
  For the prosperity of this and future generations, we take the following positions:
  
  - Support legislative actions aimed at promoting academic excellence in public schools with emphasis on math, science, and skills required in modern workplaces.
  
  - Support legislative and administrative actions that promote the mastery of core academic subjects but provide for greater flexibility in the "4x4" calculation. Enable students to explore multiple academic pathways including career and technology education (CTE) as long as those pathways lead to college/career readiness by qualifying for college credit, lead to industry-ecognized credentials, or fulfill a requirement for a state license.
  
  - Support appropriations and special funding items for Lamar University, Lamar State College-Orange, Lamar State College-Port Arthur, and the Lamar Institute of Technology to facilitate their growth.
• Employee/Workforce Development
  Despite the global economic downturn, the Golden Triangle has between $15-20 billion in industrial investment on the horizon. Each year, more than 120 million tons of cargo pass through the public and private terminals of the Sabine-Neches Waterway-a port system that provides 48% of the supplies for American military personnel in the Middle East. Additionally, 11% of American gasoline and 60% of the nation's jet fuel originate in the Golden Triangle. In 2007, the waterway supplied the region with 14,983 direct jobs and more than 80,000 indirect jobs. That number is growing. To meet this rising demand, we support policies that enable recruitment, cultivation and maintenance of a skilled workforce capable of meeting the needs of area employers and take the following positions:
  
  - Seek new strategies by the Texas Workforce Commission to develop and recruit skilled workers in competition with the Gulf Coast region for the construction and manufacturing jobs in Southeast Texas.
  
  - Support continued funding of the Skills Development Fund at the Texas Workforce Commission to improve workforce training.
  
  - In the wake of Hurricane Ike, support the expeditious allocation of community block grant funds to facilitate housing and infrastructure assistance.
• Environmental Quality
  Despite the common perceptions surrounding industrial expansion, the Golden Triangle prides itself on being in compliance with federal air quality standards while simultaneously experiencing unprecedented growth. Companies operating in the Golden Triangle have invested hundreds of millions of dollars in air quality improvement projects that have resulted in a 47% reduction in industrial air emissions.
  
  Water, rare in most of the state, is one the most valuable resources found in our green corner of Texas. Protecting and preserving this resource is in the best interest of the region both economically and ecologically.
  
  The Golden Triangle is a major import site for wind and alternative energy infrastructure. Lamar University is at the forefront of fuel cell technology and local plants are dedicated to the viable production of biofuels and other forms of cleaner, more efficient energy.
  
  The Golden Triangle's legislative priorities in environmental quality are those that will promote:
  
  - Continued improvement in efficiency and timeliness of the State emissions permitting programs such that a good balance between economic growth, high equipment reliability and environmental quality is sustained.
  
  - Expeditious EPA approval of TCEQ petition for re-designation of the Golden Triangle as attainment of the 1997 ozone standard.
  
  - Consideration of removing certain Golden Triangle cities from TCEQ "Air Pollutant Watch Lists".
  
  - Recognition that 50% overall emissions reduction and 96% reduction of emissions from plant upsets in the Golden Triangle demonstrates that impressive environmental performance improvement is achievable through stakeholder cooperation as well as regulation.
• Health Care
  Access to high quality health care is a key component to continued economic development. Prior to Hurricane Ike, UTMB in Galveston performed a crucial role to the Golden Triangle by providing indigent care and a top-tier trauma center. In the wake of this devastating storm, we encourage the restoration of health care access in the Golden Triangle to pre-Ike levels, including potential local solutions to these health care challenges.
  
  In today's world, business and health care go hand in hand. Therefore, the Golden Triangle supports measures that provide affordable quality health care to Texans in a manner that remains equitable to the employer. We recommend the following:
  
  - Support legislation and regulatory efforts to reduce the number of uninsured Texans and promote cost efficiency in controlling the costs of Medicaid.
  
  - Empower consumers by developing tools to improve their individual ability to make good health care decisions.
  
  - Support funding of the Texas CHIP program at the level that maximizes the availability of federal matching funds. Support the implementation of policies that maximize the number of eligible children enrolled in CHIP.
• Hurricane/Disaster Recovery
  The physical and economic devastation brought by Hurricane Ike to the Golden Triangle in September 2008 is very real and very far from over.
  
  For example, Bridge City, a bedroom community in Orange County that serves the chemical-industrial complex, experienced total loss on all but 20 of its 3,200 homes. Sabine Pass-near Port Arthur and ground zero for Hurricane Rita in 2005-was all but wiped off the map. Thankfully, the loss of life was diminished due to careful planning and swift decision making. Now, the 81st Texas Legislature has an opportunity to alleviate economic damage from this and future storms with similar action.
  
  Regardless of physical damage inflicted, industry cannot resume normal operations with a displaced workforce. Pre-existing workforce and housing challenges in the Golden Triangle have been significantly aggravated by this catastrophe.
  
  A community's ability to recover from a disaster is a direct function of the region's economic health, and the Golden Triangle is on the road to recovery-again. However, for the sake of those who suffered this storm and for those to endure in the future, we ask the Legislature take the following actions:
  
  - Support the expeditious allocation of community block grant funds to facilitate housing and infrastructure assistance.
  
  - Support tax incentives to promote affordable housing construction.
  
  - Support the implementation of a statewide bridge loan program specifically designed to assist and expedite the recovery of local economies in the aftermath of a disaster.
• Taxes
  Research and development (R&D), job creation, and capital investment tax credits are an important recruitment and retention tool for Texas communities. These credits, which were initially created in 1999 (SB 441), were abandoned when the franchise tax was replaced with the revised margins tax in 2006. Golden Triangle business supports legislation that reenacts these important credits with the new margins tax, as well as legislation similar to HB 3287 proposed by Rep. Allan Ritter (2007 session) which would have created franchise tax credits for low-income community investments based on the federal New Markets Tax Credit program. With this in mind, the Golden Triangle supports the following legislative policies:
  
  - Support reinstatement research and development (R&D) tax credit incentives created in 1999 (SB 441) and inadvertently abandoned by the new margin (franchise) tax in 2006.
  
  - Support changes to the margin (franchise) tax to allow businesses to subtract from their taxable margin any compensation paid to contract workers that provide a service to that company.
• Transportation and Infrastructure
  The movement of persons and goods is the linchpin to economic development. In the Golden Triangle, nearly 110,000 vehicles pass through Beaumont on Interstate 10 everyday. Half a dozen state highways also meet in the region, making the Golden Triangle a hub for regional and national transportation.
  
  The Sabine-Neches Waterway, the nation's third-largest ship channel, is America's energy gateway. Each day, ships dock to more than 60 terminals and link the world to the region's extensive industrial infrastructure system which feeds a growing state and energy-hungry nation. But we are more than just petroleum; the Golden Triangle encourages a balanced development plan to ensure reliable and affordable energy for long term growth. The development of alternative energy sources including the gasification of petcoke, wind, coal, and nuclear should all be considered in the development of electric and hydrogen power generation.
  
  To ensure the continued mobility necessary for a vibrant economy, we take the following positions:
  
  - Support legislation which enhances the competitive position of Texas ports, highways, and other infrastructures that facilitate trade.
  
  - Support continued reconstruction and expansion of IH-10 through Orange and Jefferson counties.
  
  - Support a double rail crossing over the Neches River to allow for the growth of freight movements in Southeast Texas.
  
  - Ensure capital investment in the transmission grid.
  
  - Support a strong and reliable electrical system with a financially healthy utility capable of attracting new business and industry with competitive energy costs.
  
  - Support a review of the existing power regions to determine which power region is most beneficial to all current and future customers.
• Water Resources
  We understand Texas' growing population and increased economic activity have increased the statewide demand for water. Water infrastructure funding may prove to be an essential element of this legislative session. During this debate, it is important not to lose sight of the role played by the Golden Triangle in the state, national, and global economies. Protecting and preserving this resource is in the best interest of the region-and the state-both economically and ecologically.
  
  Therefore, it is the position of the Golden Triangle to:
  
  - Oppose elimination of junior water rights protections from legislation on water resources.
  
  - Support financing for water infrastructure projects that encourages development initiatives and sharing of water resources. State water planning must recognize the state and national impact of the oil and gas industry in Southeast Texas.
  
  - Support a broad-based funding structure to effectively finance statewide water infrastructure projects that address current and projected needs.
• Windstorm Insurance
  All regions of Texas face formidable natural challenges that oftentimes go hand in hand with their unique geographic benefits. The primary challenge to coastal regions, including the Golden Triangle, is windstorms. Three hurricanes and a tropical storm have made landfall in our area since 2005, two-Hurricanes Ike and Rita-of historic proportions, each causing billions of dollars in damage. With TWIA currently financially unprepared to deal with another such storm, the economic future of the state is as uncertain as the weather. Solutions must be found that take into consideration the statewide benefit provided by the vibrant coastal economy.
  
  We, therefore, take the following position:
  
  - Support efforts to recapitalize the Texas Windstorm Insurance pool to ensure both short and long term stability without disproportionate burden on ratepayers in coastal communities.