Staff recommends removal of this policy.

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1 Staff recommends removal of this policy. D 3: S U P P O R T S TAT E O P E R AT I O N A L F U N D I N G F O R T H E A R I Z O N A I N T E R N AT I O N A L D E V E LO P M E N T A U T H O R I T Y (A IDA ) The Arizona International Development Authority (AIDA) was established as an agency and political subdivision of the State of Arizona (ARS et seq.) with a mission to facilitate trade between Arizona and other countries. Governed by a seven-member Board appointed by the Governor and confirmed by the Senate, it advises the State regarding international trade. AIDA is authorized to operate in Arizona within 62 miles of the border, and up to 6 miles inside Mexico. It may support a wide range of public and private sector projects, such as providing financing to projects by securing loans and grants or by issuing revenue bonds and applying the proceeds to the projects. Bonds would be repaid by loan repayments, tolls, fees or other charges for the use of the projects. AIDA Board members were selected by the Governor in 2011 and confirmed by the Arizona State Senate in However, no operational funds have been set-aside for the organization to launch projects so that it can become fully operational and self-sustaining. Therefore, the AIDA Board is requesting $350,000 in start-up funding from the Legislature so that it can fulfill its mission and facilitate international trade. Without start-up funds, it is unlikely that the Board working alone will be able to successfully initiate and implement any projects. Therefore, consistent with other PAG legislative policy positions that support transportation infrastructure legislation, projects and initiatives that facilitate international trade, PAG supports legislation that provides start-up operational funding for AIDA. PAG supports legislation that provides start-up operational funding for the Arizona International Development Authority (AIDA).

2 Staff recommends addition of the following policies. P O L I C Y D 3: S U P P O R T R E G I O N A L E F F O R T S T H AT E N H A N C E A I R PA S S E N G E R S E R V I C E A N D A I R C A R G O CO N N E C T I V I T Y A S A M E A N S T O I N C R E A S E M U LT I M O D A L C O N N E C T I V I T Y, B U S I N E S S O P P O R T U N I T I E S, T O U R I S M A N D I N V E S T M E N T. Expanded passenger and freight service at Tucson International Airport (TIA) would provide economic benefits and increased mobility to the region and its residents. Increasing air service at TIA directly contributes to economic vitality in the region through additional high-quality airline industry jobs and airport landing fees. In addition, the region s economy benefits from increased activity in industries that service the airline industry, such as hotels, airport vendors and fuel suppliers. Businesses considering relocating or expanding to Tucson also factor in non-stop air service to important markets in their decision making, and convenient air service is a factor in increasing tourism to the region. Increasing air cargo traffic through TIA also could be an important factor in improving the region s economic vitality. Air cargo makes up less than 1 percent of the world s freight shipments by volume, but analysts estimate it constitutes 35 percent of freight value worldwide. Previous economic analysis of air freight has found a positive association between increased air cargo connectivity and increases in trade value. PAG supports regional efforts to improve the region s status as an international destination and trade hub through increasing passenger and air cargo connectivity.

3 P O L I C Y D 5: S U P P O R T W O R K F O R C E D E V E LO P M E N T L E G I S L AT I O N, I N V E S T M E N T S A N D S T R AT E G I E S T H AT H E L P A L I G N E D U C AT I O N A N D W O R K F O R C E T R A I N I N G P R O G R A M S W I T H E M P LOY E R N E E D S. Across the United States, communities are experiencing a growing talent gap due to increasing workorce demands for highly skilled, technical labor. Workforce development programs offer the potential to strategically align workforce training and industry needs. Training in careers requiring technical skills, better known as Career and Technical Education (CTE), can yield above-average wages and increased employment opportunity for workers. Of the 55 million U.S. job openings estimated to become available between 2010 and 2020, 64 percent are projected to require some post-secondary education, but only 35 percent are projected to require a bachelor s degree or higher. The Pima County Joint Technical Education District (JTED) is one of the region s most significant workforce development programs. It offers tuition-free career and technical education programs to the region s high school students and students under the age of 22 without a high school diploma or general education diploma (GED). In 2011, the state Legislature removed JTED funding for high school freshmen (9th graders). Workforce development advocates have argued that involving young people in workforce development programs during their freshmen year allows them to choose a career track and obtain the credits necessary to begin a career matched to community needs immediately upon graduating high school. Governor Ducey signed two bills extending the JTED program in A bill renewing JTED funding for 9th graders, however, failed to make it to the house floor for a vote during the 2017 session. The state Legislature introduced a total of five workforce development bills during the 2017 legislative session. Governor Ducey signed three of the bills into law. HB 2248, signed by the governor on March 21, 2017, extends JTED program eligibility to adult students who have earned a high school diploma or GED. On May 2, 2017, Governor Ducey signed into law HB 2388, which extends eligibility for the Private Postsecondary Education Grant Program, to a student enrolled in a certified or degreed science, technology, engineering or math field or a certified program at an accredited private postsecondary educational institution in the state. HB 2229, signed into law on May 8, 2017, expanded the definition of the JTED program to include courses that require specialized materials, in addition to specialized equipment, and courses or programs that lead to career readiness and entry-level employment, even if a vocation or industry does not require certification or licensure.

4 Rep. Clodfelter introduced HB 2432 to renew funding to the JTED program for 9th graders during the 2017 session, but the bill died in the House Education Committee. Another bill, HB 2071, would have established a program to provide tuition waivers, housing assistance, on-the-job training and apprenticeship programs for persons who have lost employment due to economic conditions. This bill failed to make it out of House committee. PAG supports legislation that funds and administers work force training to match worker skills to market demands in the region, including restoring JTED funding for Pima County 9th graders.

5 P O L I C Y D 6: S U P P O R T L E G I S L AT I O N, I N V E S T M E N T, T E S T I N G, D E P LOYM E N T O R OT H E R E F F O R T S T H AT H E L P TO A D VA N C E T H E R E G I O N S ROL E A S A L E A D E R I N E M E R G I N G T R A N S P O R TAT I O N T E C H N O LO G I E S A N D S M A R T C I T I E S /CO M M U N I T I E S I N I T I AT I V E S. Innovations in transportation, communications and data analytics are poised to have a transformative effect on our region s economic vitality, impacting mobility, community services, sustainability, energy, public safety and more. The state government has put several policies in place designed to accelerate growth of innovative and technologyfocused businesses in Arizona. In 2015, for example, Governor Ducey signed Executive Order to encourage and promote autonomous vehicles in the state. Since the order, Waymo (Google) and Uber have launched autonomous vehicle pilot projects in the Phoenix metro region, establishing the Phoenix area as a national leader in autonomous vehicle testing. The state also has implemented programs to encourage technology startups through the Arizona Commerce Authority (ACA). The ACA is the state s leading economic development organization. It primarily focuses on attracting and growing high-wage industries with high growth potential. For example, the ACA s Arizona Innovation Challenge awards $3 million annually to Arizona technology startup companies with promising business plans. Another example is the ACA Angel Investment program which certifies up to $2.5 million in Arizona state tax credits annually for investments in qualified small businesses, primarily in the technology and research and development sectors. PAG supports legislation that encourages investment, testing, deployment or other efforts that advance the region s role as a leader in emerging transportation technologies and smart cities /communities initiatives.