“ “OUR PROMISE

Texas Association of Business strives to make the Texas business climate the best in the world.

Accelerate – The Lone Star Initiative is the Texas Association of Business’ (TAB) five-year plan to expand efforts advocating for its members and the overall Texas business community. Highlights include plans to provide a more consistent and effective voice in Washington, D.C. as well as a new program to encourage businesses to stay and expand their operations in Texas. There is much more and we encourage your review of the Initiative’s overall plan herein. We ask for your investment in this important and necessary work to advance the growth of the Texas business community and our economy.

“OUR PROMISE

Campaign Cabinet

Campaign Committee Chairs

Charlie Amato Chairman Southwest Business Corp. San Antonio

Greg W. Hartman President, External Affairs & Network Support Services Seton Healthcare Austin

Darcie Durham Director, Southwest Region State & Local Government Operations The Boeing Co. Houston

Eric Evans CEO, Texas Region Tenet Healthcare Corp. Dallas

Brian Chase Director, Global Public Afairs Bell Helicopter Fort Worth

Richard Gergasko President & CEO Texas Mutual Insurance Co. Austin

Gray Mayes Director, Public Affairs Texas Instruments Dallas

Brett Graham Owner,CEO Graham International & Truck Centers Sherman

Robyn Jacobson COO Entrust Inc. Houston

Dennis Knautz President & CEO Acme Brick Fort Worth

Greg Turner Partner & President Turner Duran Architects Houston

George Peckham President Office Systems of Texas Houston

AJ Rodriguez Vice President External Affairs Zachry Group San Antonio

Brint Ryan Chairman & CEO Ryan, LLC Dallas

Eddie Aldrete Senior Vice President IBC Bank San Antonio

John B. Zachry Chairman & CEO Zachry Group San Antonio

Rossanna Salazar Managing Partner ROSS Communications Inc. Austin

Amplifying the Voice for Texas BusinessTexas Association of Business provides the voice of experience and influence, fighting for issues most important to your business. It is time to accelerate effort, providing the ability for your business, large or small, to grow and prosper.

TAB is quick on the draw, engaging legislative and regulatory bodies to ensure a hearing for employers’ opinions.

Our state has an outstanding business climate. TAB works in Austin and Washington, D.C. to keep it that way.

TAB, in the past few years, helped win victories for you by:

H Pushing back on a National Labor Relations Board ruling infringing on the free speech rights of employers. H Creating the TAB Marketplace for member companies and their employees to acquire affordable, high quality health insurance via a private exchange. H Endorsing, via the TAB Political Action Committee, business-friendly candidates in the last election who won in over 90 percent of state races. H Advocating for constitutional amendments to fund transportation and water projects. With an eye toward the future, TAB presents this five-year plan budgeted at $2,738,900 to advance, on your behalf, advocacy, outreach and influence. We ask for your financial support for this endeavor.

The Texas State Chamber

ADVOCACY

Goal: Continue to make Texas the #1 place to do business and grow your companyFive-Year Budget: $1,305,000

TAB fights for the basic tenets of a thriving free market. Our steadfastness has paid off in job creation and retention. TAB and its members deserve credit for Texas’ recent victories for business, including:

H Tax relief of nearly $2.5 billion with a decrease of the franchise tax by 25% across all businesses, and a deduction of the first $1 million from taxable revenue. H $1.2 billion in tax relief due to an increase in the homestead exemption. H A new public school grading system to better develop a qualified future workforce. H Advocating for increased transportation funding resulting in $2.5 billion available to repair and improve Texas roads. H Advancing solutions regarding other infrastructure and water supply challenges, while shielding business from bearing the ultimate financial burden. H Savings of about $300 million over the next two years for 650,000 professionals due to an annual $200 exemption from the occupation tax. H Passsage of the Export-Import Bank of the United States (EX-IM Bank) reauthorization and Trade Promotion Authority to grow global commerce for Texas businesses.

“TAB can say things that I could never say, and reach people I could never reach. My one small voice doesn’t even register, while TAB’s unified voice can’t be ignored.”

- Sally Larrabee, Bus. Development Mgr., Process Control Outlet

While TAB has long been successful in its advocacy efforts, Accelerate - The Lone Star Initiative sets its sights squarely on the future with imperatives for business growth in Texas.

At the Washington and Austin Capitols

H Making TAB’s presence in Washington permanent. Trust and collaboration happens with strong relationships to further Texas’ economic prosperity. We propose to: I Hire representation in Washington, D.C. I Establish The Texas Center for Public Policy to bring to Washington our message of economic success and solutions.

Your issues fought at the nation’s capitol and in Austin. TAB works against unfunded mandates, arbitrary environmental standards, overzealous labor initiatives, and excessive taxes. Your voice heard for sound monetary policies and right-size government. We also address health care issues, specifically, insurance and the shortage in primary care services.

At Home in Austin H Education TAB members cite the lack of a qualified workforce as their number one challenge. We propose to: I Hire an additional education policy expert for strengthening Texas’ educational standards and promoting effective workforce training programs. This helps you compete and win in a global economy. I Increase participation in TAB education focused activities. Education summits are planned for business leaders and policy makers for Pre-Kindergarten, K-12, and Higher Education. These are key components for a comprehensive legislative advocacy, public affairs and media campaign to further quality education.

H Transportation An inadequate system inhibits your ability to transport goods, make timely deadlines, and move about safely. We propose to: I Determine a consensus of TAB members. An additional TAB lobbyist will deliver the pro business message to lawmakers regarding transportation and infrastructure needs. I Monitor the over $2.5 billion available for transportation improvements authorized by the 2015 legislative session.

H Water Demands from a multiplying population are draining the water supply. Texas needs an additional 9 million acre-feet of water for a projected 46,000,000 residents by 2060. We propose to: I Identify and establish legislative priorities via the TAB Water Committee. TAB will survey members to give greater credibility for current and future business needs, thus promoting more specific water shortage economic impacts to legislators.

H Texas Expand This will be a new program for business retention and expansion coordinated by TAB.The program will operate in partnership with local and regional Texas chambers of commerce and their public-sector economic development organizations. The primary focus is to retain Texas businesses and encourage them to expand here. Every Texas Expand visit has four parts: I Thanking the business owner or manager for doing business in Texas and employing Texans. I Learning as much as we can about the business and its Texas activities. I Asking if we can assist the company to stay and grow in our state and identify resources to expand its network. I Determining what policy-makers can do to improve our state’s overall business environment , including economic development programs. One recent example of TAB’s involvement with policy-makers was successful environmental permitting reform legislation. This process had frequently been an obstacle to economic development and job growth. TAB spearheaded legislation (SB 709) that addresses this problem by requiring specific time limits for the permitting process. It also allows only those with legal standing to contest a permit application. The estimated cost savings to TAB members is conservatively $1million or more per permit, depending on the complexity of the project/permit.

H Criminal Justice Reform There are compelling societal and economic reasons to address inequities and shortcomings in our state and federal policies on crime. Texas spends between $2.5 billion and $3 billion a year incarcerating more people than any other state. The population of nonviolent offenders costs taxpayers $3.4 million per day with businesses bearing most of that burden. TAB proposes to add statewide education programs via a dedicated staff person and annual Crime Symposium.

At the state level, our agenda includes efforts to: I Change the age of criminal responsibility from 17 to 18 years of age to reduce repeat offenders. I End the Driver Responsibility Program because it creates economic hardship from more unlicensed drivers on the road and limits employment opportunities. I Implement smart sentencing via specific penalty reductions for certain minor non-violent crimes. I Prioritize educational and vocational interventions proven to reduce recidivism and increase workforce participation.

At the federal level: I Expand alternatives to incarceration such as community supervision and residential re-entry centers. I Develop a unified criminal code to reduce redundancy and increase relevancy. I Expand early release programs as appropriate. I Allow federal prisoners to return to court to seek fairer sentences per the Act of 2010. I Expand the “safety valve” applied to drug offenses for sentences determined from specific factual circumstances. I Reduce the length of minimum sentences for non-violent offenses that cut costs by reducing recidivism and the federal prison population. I Extend programs allowing sentence reduction by credit for good behavior and program participation for rehabilitation.

Influence Capacity Goal: Ensure that TAB keeps pace with the growing demand for its services and expertise. Five-Year Budget: $940,000

Increased grassroots and grasstops activities for YOUR voice on issues. Encourage greater participation in the political process. Membership growth will also add to your voice on issues. We propose to: H Provide employers get-out-the-vote education tools relating to specific industries. For the first time ever, employer credibility among employees ranks above both political parties for employees looking for voter education. H Conduct regional candidate training workshops for business leaders seeking to run for local and state political offices.

Growing our network H Add Regional Managers where there currently is no representation - Corpus Christi, El Paso, The Rio Grande Valley, Lubbock, and Longview/Tyler areas. H Create positions of Chapter Chamber Chair comprised of TAB member Chamber of Commerce Executives. This will enhance local chamber engagement with TAB Chapters. H Retain Chapter Coordinator to assist with events and activities in the regions.

INFLUENCE / OUTREACH / AWARENESS

“The employer group market makes up about 90 percent of our business. Being a member of TAB allows us to connect with businesses and make sure we understand our customers.”

- Bert Marshall, President, Blue Cross-Blue Shield

Outreach/Awareness Goal: Enhance TAB’s presence and accessibility making TAB a resource for businesses large and small.Five-Year Budget: $590,000

Attention and awareness is one of the early steps in the buying cycle for your customer/client. The messaging plan will bolster development of TAB as “THE” resource for Texas business. We propose to: H Develop a research office to serve member requests and assist staff with requests for information and provide due diligence for policy recommendations. H Produce brief specific issue publications to help you communicate with your legislators and regulatory agencies. H Conduct quarterly outreach to issue and industry specific targeted audiences. H Develop and execute strategic media plans for advocacy and member communications. H Create a corollary website and YouTube library segmented by subject manner to reinforce TAB policy positions. H Expand and maintain a member-to-member electronic marketplace. H Develop companion opinion editorial from your perspective for member use with your local media. H Conduct a comprehensive capital campaign to secure private resources to support and fund our five-year plan. H Create an “investor oversight committee” made up of top investors to oversee program implementation and maintain program accountability and progress (meets twice a year and receives special updates as needed).

INFLUENCE / OUTREACH / AWARENESS

PROPOSED FIVE-YEAR BUDGETStrategy 5-Year Budget Total

Advocacy Washington, D.C. Lobbyist & Travel $814,165 Education and Crime Policy Experts & Travel $490,775 Sub-Total $1,304,940

Influence Three Regional Sales Managers $940,525 Outreach and Awareness Research Director $361,950 YouTube library / website $24,000 Specific issue education pieces / target marketing $107,500 Sub-Total $493,450

Total Projected Five-Year Budget $2,738,915

“We have a great tradition in Texas of leaders working together to find common ground. The Texas Association of Business has led the charge in promoting a healthy business climate and fostering economic development across the state.”

- Texas House Speaker Joe Straus

PROJECTED OUTCOMES

Anticipated outcomes include and are not limited to: H Increasing associate and bachelor’s degree attainment.Texas needs 4,100,000 additional degree attaining residents by 2030 to be at globally competitive numbers. (OECD, U.S. Census Bureau) H Advocating for the passage of a Taxpayer Savings Grant Program. Estimated taxpayer fiscal savings could reach $2 billion dollars over five years. (Center for Education Freedom, Texas Public Policy Foundation) H Alleviating staggering costs due to deficient roads that cost Texans $25.1 billion every year. For example - $1,740 per person in Dallas/Ft. Worth, $1,850 in Houston, $1,780 in San Antonio and $1,655 in Austin. This in addition to time wasted sitting on congested roads and the toll on human lives due to dangerous heavy traffic. (TRIP study 2014) H Saving short and long term losses in corporate and personal income that could mount to $116 billion annually if water demand is not met by 2060. H Increasing voter participation, specifically among employer groups. H Training business people for political candicacy.

ACCELERATE ECONOMIC VALUE The use of economic multipliers, quantifies the cumulative “ripple effects” of economic activity via job creation.

Texas high job growth sectors.

Financial Services

Computer Technology

Engineering

Healthcare

Skilled Trades

A 10,000-job sample from job creation in high growth sectors demonstrates the economic impact. Aggregated multipliers representing these jobs provide the model’s employment and earnings multipliers. Many more jobs may be created!

1 235 4

Number of New Primary Jobs 10,000

Primary Wage Rate Paid (hourly) $29.53

Total Direct Payroll $590,639,650

Total Payroll $1,057,289,954

Total Jobs 21,397

Calculated Indirect Jobs Created 11,397

Calculated Indirect Wage Rate Paid (hourly) $19.69

Texas Values

Personal Income $740,102,968.00

Disposable Personal Income $625,461,018.00

Net Personal Consumption Expenditures $584,430,775.00

Deposit Potential for Area Financial Institutions $91,359,006.00

High growth sector aggregated multipliers used to model results. Personal income = total payroll less estimated leakage. Disposable personal income = personal income less personal tax and nontax payments. Net personal consumption expenditures = disposable personal income less personal savings, interest, and personal transfer payments. Deposit potential = personal savings rate less deposit leakage estimate with turnover (reserve requirement ratio). Financial inputs specific to Texas, including wage levels and industry priorities, are from the Texas Association of Business.

Accelerate Workforce ImpactsMore College GraduatesTAB is the leading business organization in the state promoting the Texas Higher Education Coordinating Board’s new initiative 60 x 30. A goal of 60 percent of high school graduates enrolled (and graduated, in the example below), in higher education, by the year 2030.

The earnings differential between the two is significant over a 45-year work life – reaching into the tens of billions of dollars.

College Degree

High School Degree

Number of students 1,000 1,000

Annual earnings $56,665 $30,627

Earnings Comparison College vs. HS graduate

$56,665,000 $30,627,000

Number of years in career 45 45

Lifetime Earnings $2,549,925,000 $1,378,215,000

% Value-addedGraduates

# Value-addedGraduates

$ Value ofGraduates

TAB's Influence on Additional GraduatesStated as the Percent of Influence TAB Contributed to Value

10% 28,097 $32,921,770,212

20% 56,194 $65,843,540,424

30% 84,292 $98,765,310,636

40% 112,389 $131,687,080,848

50% 140,486 $164,608,851,060

Additional College Graduates (per 1, 000)

Graduates Expected with TAB’s Assistance 1,966,800

Graduates Expected without TAB’s Assistance 1,685,828

Value-added number of graduates 280,972

Based on U.S. Census data, and using the average annual earnings of high school graduates and college graduates

Impact of 1,000 additional college graduates in lifetime earnings $1,171,710,000

For more information or to invest in the Initiative contact:

Bill Hammond, TAB CEO, 512-637-7701, bhammond@txbiz.org

Chris Wallace, TAB President, 512-477-1006, cwallace@txbiz.org

Jay Werth, Campaign Manager, 512-360-8532, jwerth@txbiz.org

TAB is a membership based, 501(c)6 organization with an accompanying 501(c) 3,

Texas Association of Business and Chambers of Commerce Foundation.