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From 20-23 August 2006, members of the Canadian Section of the Canada-United States Inter-Parliamentary Group attended the 61st annual meeting of the Midwestern Legislative Conference of the Council of State Governments in Chicago, Illinois. This report summarizes some of the presentations made at the meeting’s plenary and concurrent sessions. UPDATE ON IMPLEMENTATION OF THE WESTERN HEMISPHERE TRAVEL INITIATIVE Colleen Manaher, U.S. Department of Homeland Security · the process currently in place at the shared land border has not changed in at least 17 years; the U.S. does not know who is coming into the United States, how long they will remain there and exactly where they are going · the future land border is about information sharing and information technology; the land border is expected to be seamless and transparent · the U.S. Congress passed the legislation requiring the Western Hemisphere Travel Initiative (WHTI) in December 2004; consequently, the U.S. Departments of Homeland Security and State are required to implement a mandatory system with respect to travel documents · the passport or other approved document will have to indicate identity and nationality · the WHTI is designed to increase border security through more effective and efficient interviews at the border and enhanced reliability of the travel documents used by those entering and re-entering the United States; faster and more standardized border points are expected to result · border security and facilitation are the joint goals · for the land border, the U.S. Departments of Homeland Security and State are working on a low-cost passport alternative: the PASS card; the PASS card is the first step in the development of a trusted traveller program · REAL ID has complications, since it does not help children or U.S. citizens who do not drive, it does not establish citizenship and it has 50 different styles · our countries must leverage technology to develop smarter, more streamlined operations at the border · radio frequency identification (RFID) is being tested; if everyone had RFID, then wait times at the border could be significantly reduced · the United States and Canada must continue to work together and deploy technology at the border that will meet national security, economic and public trust requirements Greg Goatbe, Canada Border Services Agency · the shared border has been a constant focus in the last several decades, especially since the terrorist attacks of 11 September 2001 · the U.S. commitment to a safe, secure and well-functioning border is shared by Canada, and the countries have also been working together on a number of security measures · Canada believes that, recognizing the unique Canadian-American border relationship, a passport or PASS card should not be the only option for crossing the border; those who reside in border communities are unlikely to purchase a passport or a PASS card for spontaneous cross-border travel · Canada supports consideration of a driver’s licence that denotes identity and citizenship as an approved document for purposes of the Western Hemisphere Travel Initiative (WHTI) · our joint success will continue to be linked to effective use of technology · both countries are already experiencing the negative effects of the WHTI, with a reduced number of same-day visits to Canada, changes in the location of conventions, and impacts on tourism and investment · the impacts of the WHTI go beyond the border states and are not limited to tourism; increased border wait times could result in higher costs, which could result in higher prices for consumers and reduced competitiveness with external countries · the impacts of the WHTI also include environmental and health considerations · meetings and dialogue are ongoing between President George Bush and Prime Minister Stephen Harper, between Secretary Michael Chertoff, Secretary of the U.S. Department of Homeland Security, and Minister Stockwell Day, P.C., M.P., Minister for Public Safety, and between U.S. Customs and Border Protection and the Canada Border Services Agency · the Canada Border Services Agency has consulted the provinces/territories about possibilities for other secure documents, including a driver’s licence COOPERATIVE CROSS-BORDER LAW ENFORCEMENT EFFORTS Hon. Monte Kwinter, Minister of Community Safety and Correctional Services, Ontario · safe, accessible, secure communities are a priority for Ontario as they are for other provincial, state and federal governments · Ontario is the province with the most border crossings · Ontario is the largest U.S. trading partner; our joint economic well being depends on an open, accessible border · crime knows no borders and does not respect international boundaries · cooperation between our law enforcement agencies occurs through the Integrated Border Enforcement Teams (IBETs) · terrorism is a global problem, and Canada is as vulnerable as any other country; we must not allow terrorists to dictate how we will live our lives · while Ontario is doing its best to combat terrorism, we are preparing for the worst, whether the emergency is natural or man-made · all levels of government in both countries must work together to protect citizens against terrorists Hon. Wayne Stenehjem, Attorney General of North Dakota · one sign of the extent to which the shared border is porous is the extent to which agricultural producers farm on both sides of the border · cross-border “problems” are related to marijuana, crystal methamphetamine and terrorism · in order to combat crystal methamphetamine, all states and provinces need to enact legislation ESTABLISHING UNIFORM STANDARDS TO REDUCE TRADE BARRIERS · Jane Schweiker, American National Standards Institute · the key challenge is determining the requirements that must be met in order to get your product to market · standards affect trade and market access, procurement and World Trade Organization requirements, among others · 80% of trade is affected by standards in one way or another · standards systems reflect cultures · standards should be interoperable; without harmonization, standards can be a barrier to cross-border trade · standards can be created by the private sector and then become regulated by regulators · government participation is needed in the development of standards BILATERAL ENERGY TRADE Brenda Kenny, Canadian Energy Pipeline Association · there are new options for energy production and efficiency · there are technologies for improving and protecting the environment · adaptation is required in order to recognize the effects of: o mature and declining supply basins o growing demand o geo-politics o changing weather patterns o public expectations that energy be reliable, affordable and clean · an energy policy framework is needed, and key energy policy questions are: o what policy and regulatory changes are required to improve energy efficiency, increase supply and allow for the timely construction of energy infrastructure? o what has to be done in order to develop a globally competitive investment climate in Canada and the United States? o how do we provide citizens with the information they need to make more informed decisions about how they choose to use energy in their daily lives? o how do we increase the availability of skilled personnel and ensure access to material required for the development of energy projects? · the benefits of an energy policy framework include: o provide a stable investment climate o create a competitive fiscal environment o clarify and enforce jurisdictional roles o guide spending priorities o create a policy context for regulatory reform o help shape climate change and environmental policy o provide energy choice to North Americans · regulatory policy actions include: o simplify and coordinate environmental assessments o for large new infrastructure, establish a “Major Projects Office” to provide timely project review o separate “show stoppers” from “routine mitigation” o ensure adequate regulatory agency capacity · in terms of people and materials, the following needs exist: o develop Aboriginal consultation guidelines o improve access to funding for business start-ups o improve land-use planning guidelines o increase investments in Human Resources and Social Development Canada’s Sectoral Partnerships Initiative o eliminate barriers to the free movement of material and equipment · in terms of competitive fiscal regimes, the focus should be: o improve pipeline system capital cost allowance rates o mitigate climate change-related risks · in terms of innovating, the following considerations exist: o invest, encourage, provide tax incentives and promote best practices o adopt a conservation ethic o from a geo-political perspective, think “invisible borders” o ensure that policy contributes to public expectations for reliable, affordable and clean energy David Sykuta, Illinois Petroleum Council · Canada is, by far, the United States’ largest energy trading partner · the lifestyle in the United States depends on trading partners · we need to develop all sources of energy in all countries · while energy conservation is important, economic growth is linked to rising energy demand · energy security and proximity are important · the United States depends on Canada to meet its energy demand; we are partners whether we like it or not HEALTH DISPARITIES · during an informal discussion on health disparities, points included: o health disparities have impacts on the individual, the family, communities and the economy o Type II diabetes in children is rising, as are obesity and preventable diseases related to diet o we need to focus on prevention and education rather than on the treatment of symptoms o health care professionals should take health services “to the people,” and provide health fairs, screening, etc. o data are needed at the beginning and at the end of a program to assess its effectiveness o innovative approaches should be used; for example, hairstylists could be educated to talk to their clients about the importance of breast cancer screening, have preachers mention health issues during sermons, etc. THE ECONOMY: PROSPECTS FOR 2007 AND BEYOND Diane Swonk, Mesirow Financial · the U.S. economy is at a turning point; after more than two years of better-than-trend growth, growth is slowing · growth is slowing because of such factors as higher property taxes, gasoline prices and interest rates · after the terrorist attacks of 11 September 2001, instances of corporate malfeasance and the bursting of the dotcom bubble, the U.S. economy was bruised but not beaten · the United States is experiencing manufacturing job losses · today, a college degree is needed in order to remain part of the middle class, and the chance that you will rise from the middle class is equal to the chance that you will fall from the middle class; a graduate degree is needed in order to move into the upper class · many Americans are reducing their discretionary spending; most consumers are price-sensitive and are making tradeoffs · American consumer confidence is at its lowest level since Hurricane Katrina · although more Americans are employed and aggregate income is growing, they are not confident about the economy · the economy “feels better” to the U.S. Federal Reserve than it does to consumers/voters THE FUTURE OF MANUFACTURING William Strauss, Federal Reserve Bank of Chicago · manufacturing employment as a share of national employment has been falling for more than five decades, although the number of jobs in manufacturing has been relatively stable over the period, with average growth of 0.1% per year since 1947, compared to service sector employment growth averaging 2.5% per year · while manufacturing employment growth has been relatively stable since 1947, manufacturing output has increased by an average of 3.7% per year over the period; this increase in output reflects strong productivity growth in the manufacturing sector – particularly in the last 25 years – resulting from more hours of work, technology, etc.; what took 1,000 workers to produce in 1950 now takes 200 workers · strong productivity growth has allowed the manufacturing sector to grow more quickly than the overall economy · productivity in the durable manufacturing sector has been stronger than in the non-durable manufacturing sector · while manufacturing is more cyclical, profits in the manufacturing sector have out-performed returns in non-financial corporate businesses · manufacturing employees have experienced significant employment declines in recent years, as have employees in many other sectors; when changes in non-farm employment are considered, the most recent manufacturing employment declines are not unprecedented · the U.S. economy has experienced a number of shocks in recent years that have hampered the economic expansion, including: o the collapse in the equity market that started in early 2000 o rising energy prices o the 11 September 2001 terrorist attacks o the instances of corporate malfeasance beginning in late 2001 o the war with Afghanistan beginning in late 2001 o the geo-political uncertainties regarding Iraq that started in summer 2002 o the Gulf Coast hurricanes in 2005 · the United States is maintaining its commitment to research and development, and an increasing share of this research and development is being done by the private sector; of private-sector research and development, 60% is being done by the manufacturing sector · the United States is producing more in the farm sector than at any time in history, with 2% of employment devoted to farming · the main conclusions regarding manufacturing are: o manufacturing output in the United States has never been higher o the success in the manufacturing sector has been driven by productivity o manufacturing employment has shown little change over the past six decades o the most recent decline in the manufacturing sector was cyclical rather than structural o profits in the manufacturing sector have outperformed profits for the rest of the United States o the trends that have characterized the manufacturing sector for the past six decades suggest that the sector’s future will include ever-increasing output with manufacturing employment representing a smaller share of total U.S. employment Bill Canis, National Association of Manufacturers · the manufacturing sector is the pillar of the U.S. economy · the manufacturing sector is facing important challenges, including: o cost pressures and limited pricing power o workforce retirements and poor education, resulting in skills shortages · structural costs are making it more difficult to manufacture from a U.S. base; important considerations in this regard are: taxes; regulation; energy costs; pension and health benefits; and tort litigation · the excess burden of “overhead costs” on U.S. manufacturers harms American competitiveness · the United States is not keeping pace with declining corporate tax rates worldwide · actions to address accelerating manufacturing cost pressures might occur with respect to: o tax policy o regulatory reform o legal reform o health care and pension reforms o energy supply and efficiency incentives Ron Bullock, Bison Gear and Engineering · innovate or evaporate · health care costs are rising · the education system is inadequate, particularly in the areas of science, technology, engineering and math (STEM) · Beijing, Bangalore and Bridgeport are now neighbours from the perspective of global competition · China is targeting U.S. manufacturing jobs · key trends of importance to the business community include: o the worker gap – while the U.S. native-born workforce grew by 44% over the last two decades, it will grow by 0% over the next two decades o the stagnation of educational achievement – the U.S. no longer leads the world in the rate of college completion, and a skilled workforce is required to support innovation o the demand for skilled workers exceeds the supply of skilled workers – jobs requiring at least a two-year degree are expected to grow at a rate of 40%, and labour shortages are likely to be the most severe in the math, science and technology fields · U.S. competitiveness will be severely affected by low education levels in the workforce · 50% of people employed in science, technology, engineering and math careers, and 67% of teachers in these fields, will be retiring in the next decade · the National Science Board Commission on 21st Century STEM Education has been empanelled · the National Summit on Competitiveness yielded three recommendations: o revitalize fundamental research – increase federal funding by 10% annually over the next seven years with a focus on physical sciences, engineering and math, and allocate more than 8% of Federal Research Agency funding to discretionary high-risk, high-return research o expand the innovation talent pool – by 2015, double the number of STEM baccalaureate graduates from 200,000 to 400,000, dramatically increase and improve kindergarten-grade 12 math and science teachers, reform U.S. immigration policies and provide incentives for public/private partnerships to encourage U.S. students at all levels to pursue STEM careers o lead the world in the development and deployment of advanced technologies – provide focused and sustained federal funding to address national security and assure continued U.S. leadership in nanotechnology, high-performance computing and energy technologies o the American Competitiveness Initiative was announced as part of President Bush’s State of the Union Address in 2006; the initiative includes new federal research and development funding as well as research and development tax incentives SAVING SMALL-TOWN AMERICA Bill Kurtis, Kurtis Productions, Ltd. · we need people who can see their way through problems and who can keep their eye on the prize · we need to look back on President Johnson’s Great Society plan · towns can be categorized in the following way: o mule towns – status quo o mole towns – have a fear of failure rather than a thirst for success o jackal towns – deride other communities and will stand by and watch others fail o eagle towns – look forward rather than back, with an eye on the prize · moving forward, it is important to have a plan and a leader; the leader should enlist allies, observe opponents in order to identify their strengths and weaknesses, and lead by example · outsourcing and decentralization are driving some businesses into rural areas · small towns have a lower cost of living and of doing business as well as a higher quality of life HELPING CHILDREN MEET EDUCATIONAL STANDARDS Paul Ruiz, The Education Trust, Inc. · after more than a decade of fairly flat achievement and stagnant or growing gaps in elementary schools, reading and math scores are improving and gaps among ethnic groups are diminishing · in high schools, there is a downward trend in performance in reading and writing; these problems are not limited to high-poverty and high-minority schools · students grow more in grades 5 to 8 than they do in grades 9 to 12 · youngsters enter school with different depths and breadths of knowledge, and these gaps widen once they are in school · gaps begin before children reach the schoolhouse door, but rather than organizing the education system to ameliorate this problem, the problem is exacerbated by giving less in school to those students who arrive with less · perhaps there is a need to advocate the most for those who have the least voice · in kindergarten-grade 12 and continuing into high school, less per student is spent in the institutions where most low-income students start · educators make choices about what to expect of whom; students in poor schools receive an “A” for work that would earn a “C” in affluent schools · educators make choices about what to teach to whom; for example, fewer Latino students than white students are enrolled in algebra in grade 8 · educators make choices about who teaches whom; more classes in high-poverty, high-minority schools are taught by out-of-field teachers, and poor and minority students get more inexperienced teachers · kids who arrive in school a little behind leave school a lot behind · priorities moving forward should include: o do not be bashful about pressing for all students to graduate from high school “college ready” – 75% of new job growth requires some level of post-secondary training o add your voice to the movement to make the “college prep” curriculum the default curriculum for all students – the biggest predictor of post-high-school success is the quality and intensity of the high school curriculum o recognize that getting all students in courses with the right labels is not enough – the focus should be on defining the curriculum, rather than on the name or label of the course, and it should be recognized that students can do no better than the assignments that they are given o realize that good teachers matter a lot – all students should have their fair share of quality teachers · four concrete actions that higher education can take are: o help to build the data systems needed to understand teacher effectiveness and how it is distributed o help to understand the practices and characteristics of teachers who produce strong learning gains for students o help to produce more teachers with the commitment and skills to teach all students to high levels o help to ensure that students in high-poverty and high-minority schools get the teachers they need in order to succeed · leadership matters, and student success must become a higher priority for all academic units THE URBAN HEARTLAND: THE FUTURE OF THE METRO MIDWEST John Austin, Michigan State Board of Education · the heartland is an important region, and contains nearly 25% of the population of Canada and the United States · economic activity occurs across state and international borders · the Midwest region is home to significant corporate decision making as well as research and development centres; it is also home to perhaps the largest concentration and scale of research universities in the world · the heartland economy has high shares of employment in manufacturing, finance, and education and health services · rural depopulation is occurring, and the heartland pattern of scattered manufacturing communities amidst farms is giving way to larger metropolitan areas and talent centres · the population growth in each of the Midwestern states lags the U.S. national average; the same is true for all heartland provinces except Ontario · strong, dynamic, attractive metropolitan communities are: talent magnets; migration meccas; globally connected; and centres of knowledge creation, innovation and entrepreneurship · urbanized areas in the Midwest are the engines of growth for the region · educated workers are often drawn to places with: o job opportunities o vibrant and distinctive cities/towns/downtowns o plentiful amenities o a positive, tolerant culture that embraces diversity · the heartland region produces a significant amount of talent, particularly in the fields of science and engineering; talent translates into growing incomes; nevertheless, most heartland states are experiencing high out-migration of young, single, educated workers · even though Canada is an immigrant gateway, it is suffering from a “brain drain” of its homegrown talent across the border · a key driver to Canada’s growth is immigration · the heartland region has a disproportionate share of under-educated and unprepared adults in the workforce · new knowledge creation is not fuelling entrepreneurial activity in the heartland region; talent and finance density are needed in order to reap the benefits · of the nation’s largest metropolitan areas, only one heartland metropolitan area is among the most creative, while five are among the least creative · in terms of urban heartland economic growth, the focus should perhaps be: o create the new – learning, research and innovation o invite in – open the door to ideas, people and trade o build out – connect to the world o link up – as a region and within metropolitan areas for synergy and strength URBAN COMMUNITIES IN RURAL AMERICA: WHERE TOWN AND COUNTRY MEET Mark Drabenstott, Federal Reserve Bank of Kansas City · rural regions must re-invent their economies; rather than focus on agriculture or industrial commodities, they must focus on innovation · globalizing markets leave an uneven economic landscape · much of the Midwest is falling behind the rest of the U.S. in terms of competitiveness · in small, non-metropolitan areas, there is a need to partner in order to reach critical mass · job gains are focused in metropolitan areas, but other regions fare better in income; moreover, many rural areas outperform the metropolitan average in terms of job growth · globalization has made regions the unit of development, and it takes critical mass to muster a team; in terms of critical mass, it is important to identify what is required in order to build sufficient capital and scale to: access key markets; adapt essential technologies; and capitalize crucial public and private investments · globalization has changed the drivers of success; rather than a focus on low cost, the focus should be innovation and entrepreneurship · the economic development challenge is the vigorous pursuit of a region’s competitive edge in rapidly changing global markets · in terms of what the Midwest must do to “win,” consider: o understand the Midwest’s economic assets – what is the region’s competitive edge and how should the public, private and not-for-profit sectors be aligned in order to seize it o grow more entrepreneurs – places that grow more entrepreneurs have stronger economic growth o fuel innovation – focus on research and innovation capacity o craft a great strategy – exploit assets to seize markets · competitive advantage can be obtained in one of three ways: o the stay and fight strategy – do what you are doing now, but do it better o the middle-road strategy – move up the value ladder o the “pioneer” discovery strategy – do “better” things Tom Daniels, University of Pennsylvania · the trade and federal budgetary deficits must be reversed since the U.S. is becoming less competitive as it continues to borrow · land-use planning is critical · “smart growth” issues include: o economic growth o environmental protection (anti-sprawl) o affordable and efficient public services o social integration o economic, environmental and social sustainability · there are three coordinated techniques that might be used: o agricultural zoning o urban growth boundaries o the purchase of conservation easements (development rights) · funding options for the purchase of conservation easements include: o pay-as-you-go o bonds o dedicated taxes o mitigation payments 2006 ELECTIONS DEBATE Donna Brazile, Brazile and Associates, LLC · the fundamental decision that will be made by voters is whether to stay the course or to move forward in a new direction · the election is a referendum on President Bush’s leadership and a “rubber stamp” U.S. Congress · the Democrats believe that the wind is behind them rather than in front of them · although the Democrats have great candidates and have done well in their fundraising, the Republicans are a formidable opponent · a majority of Americans believe that the country is headed in the wrong direction · the Democrats need to focus some of their efforts on independents and disaffected Republicans Rich Galen, Mullings.com · while it looks like 2006 will be a very good year for Democrats, the election is likely to be close but the Democrats are unlikely to win the House of Representatives · regarding polls, it is important to remember that the election is not being held on the day that the poll is taken; things can change quickly · Governors make better Presidential candidates than do Senators since they are used to running a large organization FROM CONFLICT TO CONSENSUS: LEADING THROUGH COLLABORATION Lana Oleen, Former Senate Majority Leader for Kansas and Roger Moe, Former Senate Majority Leader for Minnesota · there is a growing recognition that the government cannot solve all problems · a legislator’s job is increasingly difficult · resources are diminishing while needs and pressures are growing · citizens are increasingly interactive with legislators · legislators must be policy makers, problem solvers, power brokers, advocates, facilitative leaders and consensus builders · to be an effective convenor, a legislator should: o be inclusive o meet in a place that is perceived to be independent o be impartial o establish the purpose of the process o direct, rather than dominate, discussions o keep people working together o demonstrate ongoing visible commitment o ensure that there is an outcome LEADERSHIP LESSONS FROM ABRAHAM LINCOLN Doris Kearns Goodwin, Author · Abraham Lincoln felt that your reputation can outlive your earthly existence; consequently, you should live your life with some event or circumstance that leads people to talk about you after you are gone · Abraham Lincoln put his personal differences aside and built a team with the best possible qualities and qualifications, even if the individuals selected included his opponents · Abraham Lincoln built a team with people whose strengths were complementary · Abraham Lincoln had the ability to understand and empathize with other points of view · in Abraham Lincoln’s view, the path to success was sufficiently broad that two people could walk abreast; consequently, he shared credit for successes; however, he also took responsibility for the failure of his subordinates · Abraham Lincoln thought that it was okay to change your mind since – hopefully – people are smarter today than they were yesterday Respectfully submitted,
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