The Kalamazoo Regional Chamber of Commerce supports a $20 million discretionary fund for the Kalamazoo/Battle Creek International Airport.

The Federal Aviation Administration approved the Master Plan that sets the future course for the nation's airport development. The plan for the Kalamazoo Battle Creek International Airport was last updated in 1999.

The current building is inadequate for today's flight standards. Electrical and emergency units are reaching capacity. The building itself is showing signs of fatigue. Congestion is a problem during peak times. Departures at the screening checkpoint have seen an increase in wait times, and inbound arrivals have seen similar backups due to extended waiting times for the baggage claim device.

The new terminal design would have additional devices to handle these needs, as well as changing the design of the passenger queues, ticketing areas, and security station to make the building more fully functional and operating to capacity.

The new terminal project will be a significant addition to both economic and business development in the region. Many companies view access to the national air system as a very important factor for selecting a community to do business in.

The airport is a pivotal part of our local economy, despite the shortcomings the airport may face without these proposed upgrades and funding. The current economic and community impacts for the airport include:

• Airport supports 484 direct and indirect jobs
• These jobs generate $19.2 million in personal income
• The airport generates $105.3 million in Gross Regional Product
• The airport generates $175.2 million in total sales output
• The airport accommodates more than 400,000 passengers per year

The Kalamazoo Regional Chamber of Commerce supports the decontamination of Bryant Mill Pond, a former PCB storage site.

PCBs have notable features, such as heat resistance, insulation, and chemical stability. These useful characteristics of PCBs are not found in other substances, and therefore PCBs were widely used in industrial applications. PCBs, however, have been found to have dangerous effects on humans and animals. They had been disposed of in many environmentally unfriendly ways, such as dumping them into lakes that are, quite often, very close to our drinking water.

In late 2006 to early 2007 a coalition of community organizations, municipalities, and citizen stakeholders voiced their opposition to an agreement between Millennium Holdings LLC, Georgia-Pacific Corporation, and the U.S. Environmental Protection Agency which called for dumping PCB laden soil once removed from the Kalamazoo River into the core city of Kalamazoo at the old Allied Paper Mill site (Bryant Mill Pond). Approximately 17,000 Kalamazoo Citizens reside within a one mile radius of this site,about 24 percent of the city's population.

Ultimately, the EPA and Michigan Department of Environmental Quality and the responsible parties rescinded that decision and instead transferred the polluted soil into certified toxic landfill sites in other parts of the state.

There has been no law enacted to stop companies from dumping PCB materials into this site. The problem is that there isn't anything stopping companies from doing something like this again. The Chamber would like to see two things done with this issue:

1. Put a moratorium on importing any additional PCB materials into this already contaminated site
2. Resolve the property's current contamination issues so that it may be reutilized as a community asset

If these steps are taken, Kalamazoo's water resources will remain safe.

But now Michigan businesses face strict new regulations being proposed by MIOSHA, the Michigan Occupational Safety and Health Administration. MIOSHA is considering a rule requiring employers statewide to establish ergonomic standards and regulations that go beyond federal requirements. California is the only state with a mandatory rule and Michigan's proposal would be even stricter.

Senate Bill 843, as proposed by state Senator Alan Sanborn, (R-11) would prohibit MIOSHA from establishing mandatory ergonomic rules or standards. Voluntary guidelines are still allowable.

There are several issues with forced ergonomics reform. First and foremost, there is no national ergonomics standard. Every state could have a different measure of regulation, which could lead to fifty different sets of standards. Also, since ergonomics is not an exact science, and regulations set by the government without clear, measurable guidelines are undesirable.

Washington state grocers, who faced similar ergonomics reform, estimated that it would cost the average grocery store $675,000 to comply with that state's mandates - which were later repealed by voters. Washington's building industry calculated its compliance costs would add an additional $2,400 to the expense of building a $200,000 home.

The issue and development of ergonomics has been shown to be beneficial in the workplace; however, forcing Michigan, a state that already is above the nationwide average in preventing workplace injuries through the use of ergonomics, to endure the strictest standards of any state, is not a measure that would be favorable to business within Michigan.

Senate Bill 843 has been passed by the Senate and now awaits action in the House.

The Kalamazoo Regional Chamber of Commerce actively supports business, particularly small business, and as such the Chamber cannot support the repeal of the Drug Immunity law in Michigan.

Passage of Senate Resolution 134 would amend current law in Michigan, that has allowed us to successfully compete for life science jobs. Current protections do exist for consumers at the federal level. We believe that companies that have made a good faith effort to obtain FDA approval certifying the safety and effectiveness of their pharmaceutical products should not be offset unfairly. The appropriate venue for these penalized types of actions should be at the federal level.

The Kalamazoo Regional Chamber of Commerce joins with the Michigan Chamber of Commerce in vocal opposition to this legislation due to the damage it would cause small and large business alike. The resolution, if it were passed, would technically allow action against the FDA, but the real issue is the exposure to litigation for smaller companies that provide the FDA with sampling and testing for certain drugs that the FDA later approves.

The effect the legislation would have on our already struggling economy would be crippling. Michigan has been searching for a profitable industry to offset the struggling automobile sector, and to date the life-science industry has been the best economic option available.

The impacts of this legislation are not limited to only large pharmaceutical companies. The companies with the most to lose with the least resources to meet this challenge are the small businesses that help Michigan's economy stay afloat. If Senate Resolution 134 were passed, there would be a surge in class action lawsuits that would send countless businesses into a downward spiral that many would likely be unable to recover from.

Michigan ranks 48 out of 50 in terms of the health of its economy. Making it harder to do business in this state for one of our most important growing economic segments is not wise policy. It discourages new investment and encourages existing firms to seek a friendlier legal climate elsewhere.

The Kalamazoo Regional Chamber of Commerce supports obtaining the necessary funding to finish widening Interstate 94 from 4 to 6 lanes. The funding would come directly from the local, state, and federal sources to finish the widening from 12th Street to Sprinkle Road in Kalamazoo County. The funding is needed quickly due to the bottleneck that is impacting this portion of the highway.

I-94 has been recognized as a major route of trade and commerce throughout the state of Michigan. I-94 serves as the transportation corridor for 8 major metro areas in Michigan and it provides highway access to more than 3.1 million residents in these communities (31.3 percent of Michigan's population.) I-94 is a key link between Detroit and Chicago and is also a central link for the NAFTA corridor. Almost 10 percent of our nation's exports come from Detroit and the surrounding metropolitan areas, linked by I-94.

The Michigan Department of Transportation has predicted serious issues will arise in the next few years if a long-term solution is not implemented. There are several reasons for this problem:

• Capacity Ratios - The highway has exceeded its acceptable capacity ratio. On 2-lane segments, Monday through Friday the volume versus capacity ratio is 0.8 for 3 hours a day (more than 0.8 is considered congested and will cause traffic slow-downs and backups.) In contrast, with 3 lanes Monday through Friday, the volume capacity ratio at its very highest is 0.61.
• Level of Service - For 2 lanes on Monday through Friday, the level of service drops to a D for 3 hours a day (this level and below is considered congested and causes slow downs and back ups to occur.) In comparison, for 3 lanes, the level of service never drops below A in the entire 7-day analysis.
• Safety - Because stage 1 of the widening is already complete, some new problems have arisen in terms of safety. By not getting the funding and completing stages 2 and 3, there are areas where three lanes reduce to two lanes (choke points), and there is an anticipated 30 percent increase in rear-end and side-swipe crashes.

I-94 is important to business and trade. I-94 has been recognized as part of the NAFTA corridor and, as such, the Detroit/Windsor border crossings handle more than one-third of all trade volume between the U.S. and Canada, and the largest part of the Mexican-Canadian trade as well. Without relieving the current congestion on I-94, the vital flow of this trade could be jeopardized.

Securing the funding for the project is a challenge. Stage one of the widening cost $87.2 million from a variety of sources: the majority from the Federal Highway Administration, matching funds from MDOT, and the rest from local municipalities. The cost to finish the final two stages of the project is approximately $140 million.

• MBT Surcharge
  The Kalamazoo Regional Chamber of Commerce fully supports the repeal of the Michigan Business Tax (MBT) Surcharge.

  The MBT surcharge was created in order to replace the Single Business Tax, a complicated piece of legislation that disincentivized capital investment and employment; however, the MBT has proven itself to be even more problematic for many businesses in Michigan. The Michigan Chamber of Commerce polled its member, and the results of the poll showed several things:

  • 80 percent of respondents in the poll indicated their tax burden is higher now with the MBT surcharge than it was under the SBT
  • 30 percent of those respondents said the increase was over 100 percent.
  • 11 percent of those polled said the increase in taxes was over 300 percent.
  • When asked how job providers plan to react to their increased tax liability:
  • 31 percent said they would delay or cancel wage or salary increases.
  • 24 percent said they would delay or cancel capital investment.
  • 15 percent said they would cancel their plans or relocate their Michigan facilities.
  • 14 percent said they would lay off employees.
  • The remaining 16 percent said they would just absorb the cost.

  Despite many good intentions, the MBT is already proving to be a complicated, harmful tax to business in Michigan. More than 60 percent of respondents said the MBT is more complicated than the SBT and 80 percent said they are now worse off than they were before its implementation.

  The results of this members-only poll, including member comments (unattributed), are available on the Michigan Chamber's website at www.michamber.com. Approximately 690 Michigan Chamber members participated in this poll, which was conducted March 8 through April 28, 2008. Respondents included company presidents, CEOs, senior executives and business owners from across the state.

  State Representative Dan Acciavatti (R-32, Chesterfield/House Bill 5627) and State Senators Mark Jansen (R-Grand Rapids/Senate Bill 1242) and Jud Gilbert (R-Algonac/Senate Bill 1230) have introduced legislation to repeal the surcharge. We urge you to contact your legislators and ask them to support these bills.

  • Part-Time Legislature
    A proposal supported by the Michigan Chamber of Commerce that would allow lawmakers to serve a total of 12 years in either the House or Senate or a combination of 12 years in both branches. Current term limits allow House members to serve a total of 6 years or three two-year terms. Senators can serve for a total of 8 years or two four-year terms. The new limits would hypothetically permit a lawmaker to remain in the Senate or the House for 12 years, promoting the long-term establishment of voter relationships. The new proposal also addresses the issue of absent lawmakers. For each missed vote, a dock in pay will be imposed. Further, lawmakers would be banned from becoming lobbyists for at least two years after their terms are completed.
  • Sinking Fund
    The Kalamazoo Regional Chamber of Commerce is committed to the reform of Michigan's public education system. When Proposal A was overwhelmingly approved by Michigan voters in 1994, the State Constitution was successfully amended to provide for permanent property tax relief and school finance reform.
    
    Although it has its flaws, Proposal A has served the state well, and from 1994 through 2007, Michigan saw a period of stable enrollment and low inflation. Furthermore, school operating revenues increased 79 percent and revenue from school infrastructure taxes (debt, building and sinking funds) grew 234 percent.
    
    House Bill 4313, which would allow school districts to use sinking fund taxes for a seemingly unlimited variety of purposes, is a back-track on Proposal A. Representative Larry DeShazor argues that this bill may appear to remove restrictions on district spending, but in essence it enables continued avoidance of addressing key cost containment issues that school districts need desperately to address.
    
    Our commitment to the health of Kalamazoo's business community depends on our commitment to public education. While we have an established record of supporting other funding measures for the effective operating of local schools we feel this proposal does not meet that test. As supporters of school finance reform, the Chamber, along with the Michigan Chamber of Commerce, is unsupportive of H.B. 4313's sinking fund legislation.
  • Spending Restraint Amdt.
    The Kalamazoo Chamber is in support of an amendment, as proposed by State Senator John Pappageorge. The amendment, Joint Resolution E, is a Constitutional amendment to restrain annual state spending.

    The resolution, if passed, would limit state spending to 96 percent of available revenues (as determined at the state's January revenue estimating conference). The extra 4 percent would be deposited into the state's rainy day fund.

    For most states, perhaps, the bill would not be necessary and simply looked at as common sense. In Michigan, however, there is unease and concern from citizens and legislators regarding the 2007 budget impasse that resulted in the temporary shutdown of the Michigan government.

    The approval of Resolution E would result in a positive impact on the state budget's cash flow. If 4.0 percent of estimated revenue were set aside, a significant pool of revenue could be used to lessen the amount of short-term borrowing that the State currently undertakes for cash flow needs.

    The other potential impact on the State budget of Resolution E is that reserve funds would be available if actual revenue collections fell below the consensus revenue estimate. Under current law, if this situation occurs, the GF/GP and SAF budgets are in deficit. The passage of Resolution E would eliminate this deficit by using the 4.0 percent of revenue not appropriated to cover the potential shortfall in actual revenue collections.

    The resolution would need to be approved by a two-thirds majority in each of the House and Senate, at which point voters would have the opportunity to vote on the amendment at a regularly scheduled, or special, election.

  • Two-Tiered Funding
    The Kalamazoo Chamber fully supports the cleanliness and retention of our Great Lakes. In June of 2008, several bills were passed through Michigan's House and Senate regarding one of our nation's single greatest natural resources: The Great Lakes. The Great Lakes make up 90 percent of the freshwater in our nation and 20 percent of the world's freshwater. Our state legislators, along with the legislators and governors of the seven other states that border the Great Lakes, passed the bills and sent the St. Lawrence River Basin Water Resources Compact to the U.S. Congress.

    The compact would prevent remote states or countries from tapping into the lakes, except for the rarest of exceptions. It would also require the Great Lakes states to regulate their own large-scale water uses and to promote conservation.

    The St. Lawrence River Basin Water Resources Compact is an interstate bill, and as such it needs the approval of Congress along with a signature from the President in order to go into full effect. On August 4th, the United States Senate passed the bill unanimously. Debbie Stabenow, one of the two U.S. Senators representing Michigan, had this to say about the accomplishment:

    The compact, now in the U.S. House, is expected to be voted on before the end of September. If it is passed, it would go to the President for his signature and then be enacted fully into law.