Response to the Gathering Storm Report

Paul J. Kostek

VP Career Activities

2 September 2007

Agenda

Legislative Response Presidential Response Congressional Hearings

Gathering Storm Recommendations

Ensure that the United States is the premier place in the world for innovation

Sustain and strengthen America’s commitment to long term basic research

Increase America’s talent pool by improving K-12 math and science education

Develop, recruit and retain top students, scientists and engineers from US and abroad

Legislation

Key Innovation and Competitiveness Bills HR 2272 - 21st Century Competitiveness Act Rep Bart Gordon (D-TN-06) Passed House – 21 May 2007 S 761 - America Competes Act Sen Harry Reid (D-NV) Passed Senate – 25 April 2007 (88-8) Conference completed on 7/31/07 Signed by President on August 7

COMPETE

The first legislation addressing the Gathering Storm Report to be implemented is: HR 2272 America Creating

Opportunities to Meaningfully Promote Excellence in Technology, Education, and Science Act (COMPETES)

Signed by the President in August

Details

Increased STEM spending Recruiting more STEM teachers Refining skills of current teachers Improving STEM programs Providing access to lab and hands-on

science experiences

COMPETE Titles

OSTP NASA NIST NOAA DoEnergy DoEducation NSF General Provisions – Sec Commerce

Agencies Receiving Funds

NSF Education and Human Resources Directorate Noyce Scholarship – recruitment of STEM majors to

teaching Department of Education funding

Development and implementation of college courses to a concurrent STEM and teaching certification

Department of Energy Use staff of national labs to as a resource to provide

support, mentoring and hands-on experience for teachers and students

Pending Leg

Key Education and Training Bills HR 362 – 10,000 Teachers, 10 Million Minds Math and Science Scholarship Act Rep Bart Gordon (D-TN-06) Passed House – 25 April 2007 FY 08 Appropriations Bills HR 2559 – Temporary Extension of programs under the Higher Education Act Rep George Miller (D-CA-07) Passed House – 7 June 2007 S 1704 – Temporary Extension of programs under the Higher Education Act Sen Edward Kennedy (D-M) Passed Senate – 27 June 2007 Cleared for the White House HR 244 – Technology Training and Investment Now (Train) Act Rep Jerry Weller (R-IL-11) Introduced – 5 January 2007, Referred to Ways and Means Tax credit for ICT education and training

Pending Leg cont

Comprehensive Immigration Reform Proposals HR 1645 – STRIVE Act Reps Luis Gutierrez (D-IL-04) and Jeff Flake (R-

AZ-06) Introduced – 27 March 2007, Referred to Judiciary

and Homeland Security S 1639 – Border Security, Economic Opportunity

and Immigration Reform Act Sen Edward Kennedy (D-MA) Introduced – 18 June 2007 Cloture vote defeated (46-53) – 28 June

Pending Leg cont

Key High Tech Immigration Reform Proposals S 1035 – H-1B and L-1 Visa Fraud and Abuse Prevention Act Sens Durbin (D-IL) and Grassley (R-IA) Introduced – 29 March 2007 S 1083 – Securing Knowledge, Innovation and Leadership (SKIL)

Act Sen John Cornyn (R-TX) Introduced – 10 April 2007 HR 1930 – Securing Knowledge, Innovation and Leadership (SKIL)

Act Rep John Shadegg (R-AZ-03) Introduced – 4 June 2007, Referred to House Judiciary Committee HR 2538 – Defend the American Dream Act Rep Bill Pascrell (D-NJ-08) Introduced – 24 May 2007

President’s Initiative

President’s American Competitiveness Initiative Purposes - To strengthen America’s economy and global leadership by encouraging

entrepreneurship and innovation. Research and Development – To generate the knowledge and tools needed to create

new technologies by increasing Federal support for research and development in the physical sciences and engineering and by modernizing and making permanent the Research & Development Tax Credit

Education and Training – To strengthen America’s knowledge-based, innovation-driven economy by improving K-12 math, science and technology education and the teaching of key analytical, technical and problem-solving skills

Immigration Reform – To help attract and retain the best and brightest high-skilled workers from around the world in order to increase productivity, improve international competitiveness and create high-paying jobs in the United States.

Pro-Growth Economic Policies – To help cultivate a culture of entrepreneurship and innovation by reducing taxes and regulatory burdens and by strengthening protections for intellectual property.

Cost Estimate - $5.9 billion in FY 2007 and more than $136 billion over ten years

Congressional Hearings

Workforce Globalization and Off-shoring Hearings

House Science and Technology Committee

Hearings on the Globalization of R&D and Innovation

12 June 2007 Series of 4 hearings being organized by

Ron Hira

What’s Happened Before?

1989 NSF Future Scarcities of Engineers and Scientists Lead to similar push – by 1991 the

Peace Dividend kicked-in and engineering unemployment grew

Congress spent more time investigating NSF than passing legislation

Difference this time – Globalization

What Others Think

Succeeding in the Global Economy A New Policy Agenda for the American Worker – Authors: Aldonas/Lawrence/Slaughter – Sponsor The Financial Services Forum

Calls for a new policy agenda with innovations to facilitate adjustment by workers, communities and firms

Adjustment Policies - Individuals

Combine Unemployment insurance and current Trade Adjustment Assistance program into a single Integrated Adjustment Assistance program

Wage insurance Portability of health insurance Assistance with geographic relocation or

establishing a new business retraining

Adjustment Policies - Individuals

Congress should allow individuals to deduct from their gross income for tax purposes the full cost of education and training expenses even when directed at preparation for an entirely new career

Adjustment Policies- Communities

Federal insurance to allow communities to insure their tax base against sudden economic dislocation

Identify certain communities facing pressures from international competition as Global Economic Development Platforms eligible for trade preferences, tax benefits and federal financing

Adjustment Policies - Firms

Allow credit against income taxes for the marginal increase in expenses incurred in extending internal education and training facilities to workers outside the firm and students at local community colleges

Expand programs for certification under international standards (lean and quality)

Safeguards in trade agreements to provide time and incentive to respond to international competition

Conclusion

COMPETES is a step in the direction to address issues raised in the Gathering Storm report

We still need to address what happens to engineers and scientists in the marketplace and maintaining their competitiveness

Resources

Succeeding in the Global Economy available at: www.financialservicesforum.org

IEEE-USA Website – ieeeusa.org