GOP Candidate Johnson Announces Economic Recovery Program
“One of my first priorities as governor will be getting unemployed
Alabamians back to work and getting part-time or under-employed
workers back to full-time positions.”
Montgomery, AL, Mar. 29, 2010 – Bill Johnson, GOP candidate for governor, released his economic recovery plan for Alabama today.
“One of my first priorities as governor will be getting unemployed Alabamians back to work and part-time or under-employed workers back to full-time positions,” said Johnson. “As during the Great Depression of the 1930s, this economic downturn has its roots in the bursting of the national housing bubble. Even more directly impacting Alabama were the collapse in the demand for housing materials, lack of financing and the disintegration of consumer confidence.
“My economic recovery plan will address restoration of the current weakened consumer confidence and financial liquidity for our struggling businesses. At the same time, Johnson knows that Alabamians are some of the most innovative people across the globe. Support and assistance from a governor who has a background in growing the economy, training our workforce, and working with leadership on both state and local levels will be crucial. Johnson will work directly with Alabamians by stimulating the great ideas they have for expanding existing businesses and creating new ones.
“If you compare my economic recovery plan with those of other candidates, you will find new, progressive ideas and expansion of proven programs. My experience as assistant director and director of the Alabama Department of Economic and Community Affairs (ADECA) for six and a half years has given me a broad knowledge of the state of our economy, workforce, our challenges and our opportunities. My experience having lived and worked in more than 40 countries on five continents, positions me as the person best qualified to lead our state in what is now a globally competitive marketplace. Being fluent in Spanish and having a conversational knowledge of German, Johnson has the background, abilities, experience and leadership skills to work with Alabamians and beyond to help us achieve the economic greatness we know our State has the potential to achieve.”
Bill Johnson: Restoring Alabama’s Economy
1) Assemble an Economic Recovery (ER) Advisory Team
A key part of any economic recovery is restoring consumer and business confidence. As Governor, Johnson would identify and assemble an ER Advisory Team comprised of relevant cabinet members and policy staff, as well as Alabama’s leading economists, financial analysts, bankers, real estate experts and others. Ideally, this ER Team will have established credibility with the business and financial editors from across the state. The goal of this team is to help restore confidence of the public that the Governor’s Office has assembled the best and the brightest to help identify solutions for the continuing challenges we face as we begin the lengthy recovery process from the current financial crisis.
2) Create a Bond and Financing Oversight Commission
The main source of the economic crisis in America is the freezing of the credit markets. This is largely due to uncertainty in the market and has been compounded in Alabama because of the Jefferson County sewer debt fiasco. This led to a real challenge for our municipalities and utilities that have funding streams and revenue to support bond issues, but can't get to the credit markets.
This is crucial for Alabama because the uncertainty of resolution causes potential investors to hesitate in locating or expanding businesses in our largest county and even in our state. To help unfreeze the credit markets for Alabama’s businesses and governments, Johnson will create a Bond and Financing Oversight Commission. This Commission’s role will be to review and publish details of public financing instruments by cities, counties and public utilities and will reassure investors that an Alabama municipality teetering on the edge of bankruptcy will not happen again.
3) Clear the Backlog of Work Opportunity Tax Credits Applications
A number of gubernatorial candidates have included business tax credits as a means to restoring Alabama’s economy. On the surface, such credits appear to offer hope to struggling businesses. At this very moment, however, there is a nearly 3-year backlog in processing the federal Work Opportunity Tax Credits (WOTC) at the state level. This backlog is costing Alabama businesses more than $200 million in tax credits. It is a disgrace to the State of Alabama that $200 million could stay in our state right now if this backlog was resolved. Georgia, for instance, processes WOTC applications within 30 days. These credits incentivize businesses to hire workers in targeted categories, such as Veterans, SSI, vocational rehabilitation and others, with a $2,400 dollar-for-dollar offset to any tax obligation.
If the 85,000 applications currently pending would have been processed before April 15of this year, it would have meant $200 million would have immediately been available to hire new employees, invest in new equipment or close financial gaps that will allow our businesses to keep their doors open.
4) Alabama to Go (Growing Alabama’s Exports)
The quickest way to get our economy back on track is to ramp up the exports of our existing industries. It is great to recruit new international companies, and Johnson will continue to pursue these opportunities. However, it often takes years and millions of dollars of state and local incentives before these industries actually begin hiring workers and open their doors for business.
Alabama now has thousands of international workers. Each of these Alabama residents has relationships with businesses, friends and family back in their home country. Alabama to Go will seek to capitalize on those existing relationships by partnering interested international citizens with existing industries in growing their exports with a "win-win" commission incentive performance structure.
5) Develop Broadband and High-Speed Internet
The superhighway of the present and future is the information superhighway. To diversify our economy and acknowledge that we live in an increasingly service sector economy, we need to ramp up understanding and usage of the internet and encourage internet service providers to build out infrastructure. Broadband access will be the great equalizer for our rural areas by providing access to distance learning, telehealth, enhanced public safety, tourism and more. As the former director for the Alabama Department of Economic and Community Affairs (ADECA), Johnson knows that many companies simply will not locate in an area without broadband internet access. In fact, more and more families are moving away from areas without access to this advanced technology. It is imperative we work toward a solution that will reach all rural areas.
6) Provide Financing for Distressed Businesses through the EB-5 Visa Program
The EB-5 Visa Program is a federal initiative that provides citizenship opportunities to foreign investors who invest at least half a million dollars in distressed companies or in companies in targeted (high unemployment) areas, and create a combined total of at least ten full-time direct and indirect jobs per half million dollars of investment. The Alabama Center for Foreign Investment, LLC (ACFI-RC), the federally designated statewide Regional Center for Alabama, was established a few years ago to facilitate such investments in Alabama.
In addition to working toward increased awareness and advancement of this program, Johnson will submit a request for waiver from the Immigration and Naturalization Service (INS). The request will petition allowance of EB-5 investors to qualify for this program by investing in recapitalizing Revolving Loan Funds (RLFs) of the Regional Planning Commissions. The Commissions can then invest in eligible businesses in their region.
As Governor, Johnson will also submit a request for a waiver from INS to allow EB-5 investors to stimulate housing by allowing their investments to create a guaranty fund for Low Income Housing Tax Credit projects in Alabama. Such a fund could free up as many as twenty-five projects with over 1,800 units located throughout the state. Projects targeted would be those that are already in a position to break ground, but are being held up by the lack of financial backing or tax credits that fund developments.
7) Recapitalize Revolving Loan Fund Programs of the Regional Planning Commissions
The Revolving Loan Fund (RFL) Programs typically are able to make “gap financing” investments to businesses when banks consider them too high a risk. The real challenge in these economic times is that financial institutions are not able to make loans to even the lower risk applicants.
These loan programs already have an oversight structure in place, a good understanding of the local economies, a backlog of requests and have developed great working relationships with local banks. In Alabama, according to their last quarterly report, $50.5 million in revolving loan investments have leveraged $166 million in bank loans and $264 million in total investments. Approximately 12,000 jobs have been created through this program. Recapitalizing the RFLs will also increase overall bank deposits, which is good for Alabama’s economy.
Existing and expanding businesses will be one of the determining factors in the recovery of the U.S. economy. This federal investment will assist financial institutions in placing capital in the marketplace to stimulate economic growth.
8) Complete and Continue Science and Technology Roadmap for Alabama
There are more then $3 billion dollars invested in research every year in the State of Alabama. In 2008, as director of ADECA, Johnson directed the investment of $200,000 to fund a Science and Technology Roadmap for Alabama. This Roadmap is managed and coordinated through the Economic Development Partnership of Alabama (EDPA), and is a unique collaboration between EDPA, ADECA, the Alabama Research Alliance, the Alabama Development Office and Alabama EPSCoR (Experimental Program to Stimulate Competitive Research). A number of outcomes will develop from the Roadmap, but the basic overall goal is to synchronize the research currently being conducted in Alabama with the needs of Alabama businesses. Johnson worked with the Roadmap consortium and is committed to continuing this effort to assemble information, develop strategies and engage the appropriate public and private stakeholders that will enable Alabama to compete in a global, innovation-driven economy.
9) Stimulate Entrepreneurship by Expanding the Alabama Launchpad Program
The Economic Development Partnership of Alabama (EDPA) is one of the founding partners of the Alabama Launchpad. The Launchpad is a non-profit corporation funded by more than 68 leading companies in the state, and is a partnership between the state’s research universities and the business community. As ADECA director, Johnson invested $250,000 of state funds to help leverage private investment.
The Launchpad encourages and supports innovation and high-growth entrepreneurship in Alabama. Leaders from across the state are working together to build and mentor a pipeline of innovative startup companies founded by Alabama entrepreneurs, create jobs and prepare our state for the global economy.
Alabamians are some of America’s most ingenious entrepreneurs and creative thinkers. Johnson is committed to expanding this innovative program by offering the Launchpad to all Alabamians who want to present their ideas for consideration. This will reward and incentivize the entrepreneurial spirit of our people and give them an opportunity to partner with research students and businesses that can advance their dreams into realities.
10) Aid Distressed Inner Cities with Alabama Land Bank Authority
Even before the housing bubble burst, many of our communities were struggling with tax delinquent and blighted properties. There are more than 17,500 of these properties on the state rolls alone. Johnson was honored as Habitat for Humanity’s “Public Official of the Year” in 2008 for working to establish legislation creating the Alabama Landbank Authority. This Authority seeks to facilitate the reinvestment in abandoned, tax-delinquent property by providing eligible property owners with amnesty for taxes and liens if they redevelop, donate or sell their property. Clearing blighted lots allows organizations like Habitat for Humanity to build new, safe structures on the properties.
11) Task the Office of Faith and Community-based Initiatives to Engage Alabama’s Faith Community to Provide Assistance to Distressed Families
After every disaster, we witness the tremendous outpouring of support from thousands of compassionate volunteers from our faith community. Johnson personally witnessed this after Katrina and other disasters, including the recent flood of support for victims of the Haitian and Chilean earthquakes.
During our current economic disaster, Johnson will continue and expand efforts of the Governor’s Office on Faith and Community-based Initiatives, and will increase awareness that compassionate Alabamians also have opportunities for at-home ministries. Most Alabamians have neighbors who are hurting in our own communities.
Bill and his wife, Kathy, have highlighted the increased demands for services and the growing needs of those living in our own state by spending the night in Birmingham-area homeless and recovery shelters; spending the day working at 15 Place, a homeless day shelter that provides a variety of services in Mobile; and walking miles with Auburn students who dedicated three days and a 60-mile trek to the Capitol to help us all better understand the plight and challenges of those suffering and dying of malnutrition.