Training &

Education
Education & Workforce Training Issues
In business today, no competition is tougher than the global race for talent. In every industry, every job sector,
and every part of the world, employers are asking the same question: How are we going to find, train, and retain
the best workers?

Ninety percent of the fastest-growing jobs in America require at least two years of postsecondary education.
Over the next several years, the U.S. Department of Labor predicts there will be roughly four million new job
openings in health care, education, and computer sciences alone. At the same time, nearly seventy eight million
baby boomers are heading toward retirement. Yet, the nation's young people remain unprepared either to replace
those workers or to fill new positions in high-growth areas—today, a third of all students do not finish high
school. Up to half of those who do graduate lack the advanced literacy and math skills they need to succeed in
postsecondary education and the workforce.

Further, given the quickening pace of change in workplace technology and the growing demand for flexible,
highly-skilled employees in all sectors of the economy, not even the most experienced workers can afford to rely
on existing skills. To remain competitive, businesses must invest not just in the preparation and recruitment of
new talent, but also the continuing development of workers at all stages of their careers.
Unless America makes dramatic improvements in education and workforce training, it will pay a terrible price,
risking its place as an economic superpower and its identity as a striving, middle-class democracy.

Developing a Business-Driven Employment and Training System

The purpose of a national employment and training system is to help increase opportunities for individuals to
prepare for and find employment and to provide investment in an educated, skilled, and adaptable workforce able
to meet the needs of employers.

The current employment and training system consists of numerous (often overlapping) programs throughout the
federal government involving multiple federal agencies, each with separate rules and regulations. Typically these
individual programs focus on targeted populations such as displaced workers, welfare recipients, and
economically disadvantaged individuals. For many of these individuals, the services provided are often a critical,
and a last-chance opportunity to reconnect to the workforce. However, the confusion and bureaucracy of the
current system hampers the ability for these individuals to receive the services they need and deters employers
from wanting to participate in meaningful ways.

Efforts must be made to create a more rational employment and training system based upon the following
principles:

• Non-Duplicative and Flexible: To avoid costly duplication, efforts must be made to streamline federal
employment and training programs. In addition, there must be local flexibility in overseeing and
administering programs to maximize efficiencies in the delivery of services and for targeting services to
meet local needs. Flexibility should also be provided in the types of services provided, such as enabling
the provision of incumbent working training based upon career ladder progression or retention and the
use of technology as a strategy to leverage increased learning. Also, training needs to be future focused
and concentrate on transferable skills and lifelong learning.

• Employer Driven: To be relevant and viable, the employment and training system must be driven by the
actual needs of employers based upon accurate and timely local labor market data.
 • Market Oriented: Actual employment and training services should be offered in a fully competitive
environment. Business and training organizations, community based organizations, private and for-profit
training providers, community colleges and other organizations should all have the opportunity to
compete for the ability to provide services. Eligibility to compete should be based on performance in
meeting employer needs for qualified, employable persons and on conformance with professional
standards for employment and training programs. Program design must concentrate on the development
of useful and demonstrated skills and assure assimilation of the trainee directly into the workplace.
Individual trainees should have maximum choice among the eligible employment and training providers
offered.

• Accountable: Performance should be developed to measure the effectiveness of the system in meeting
both the employment needs of individuals as well as the workforce needs of employers and should also
reflect the effectiveness of the local public-private partnerships that comprise the employment and
training system.

Pre-K--12 Education Policy

Introduction
To keep America competitive and strong, the business community must be actively engaged on issues related to
our nation's educational system as a means to ensure an educated citizenry of self-sufficient, lifelong learners
who have the skills needed to thrive in the global workplace, today and in the future. The coordination of
community resources, school support systems, family engagement programs, and classroom teachers' efforts can
diminish the barriers to learning.

Employer engagement must be significant and have the ability to address some of the greatest challenges facing
education in this country. These challenges include the lack of preparation of early learners who enter school for
the first time, the significant learning and education gaps among groups of students, as well as the unacceptable
number of students who never complete a secondary education or have the skills necessary to enter the world of
work or continue on with higher education.

I. Building the Foundation - Early Childhood and Pre-K

Studies by the Federal Reserve Bank of Minnesota reveal that the capacity for developmental skills begins in the
first five years of life. This is the beginning point for a person's creativity, communication, team working,
problem solving, and critical thinking skills. These studies reflect that there is a great need for children to enter
kindergarten prepared to learn. Unfortunately, too few young children today are in fact prepared with these tools.

The U.S. Chamber of Commerce and Tacoma-Pierce County Chamber believe that to begin to address this issue
of maximizing educational effectiveness, while remaining fiscally responsible, there must be far greater
coordination among the existing patchwork of federal, state, local, and private early childhood programs.
Through these efforts, states and localities should strive to provide access to high quality programs for all
children. These programs should include a strong family engagement component to facilitate early literacy
development; should focus on academic preparation; and be held accountable for their performance. Research
shows that lasting benefits of Pre-K programs only persist when staff is professionally prepared and high quality
standards are maintained.

II. Identifying Elements of a Successful K-12 System

The toughest, most important competitive race in the 21st Century worldwide economy will be the global race
for talent and workers. For the American Dream to thrive, it will require economic prosperity and opportunity for
every American—and that requires a quality, rigorous, well-rounded education that prepares our youth for the
challenges of today and tomorrow. To ensure every child receives a quality education, there needs to be a focus
on human talent, effective systems, innovation, and measurement.
 BACKGROUND:
OVERVIEW OF WA STATE’S EDUCATION
In Washington, only 39 percent of the state’s 3.2 million working-age adults (25-64 years old)
hold at least a two-year degree, according to 2000 Census data. The numbers are even worse
for young adults, with 38 percent of Washington’s 25- to 34-year-olds holding degrees. Clearly,
the overall percentage is far below the goal of 60 percent degree attainment. In fact, a 60
percent rate in Washington today would represent nearly 1.9 million degree holders — a
huge increase over the number reflected in the 2000 Census data (about 1.2 million).

However, 865,000 working-age adults — 27 percent of those in the workforce — have already
earned some college credit. By focusing first on these residents, officials and educators
should be able to make relatively rapid progress toward increasing the state’s college-
attainment rates. Also, the table on the next page shows the distribution of Washington’s
degree holders by county. This may help policymakers and other stakeholders pinpoint
specific regions of the state that merit special attention. --

Percentage of Washington counties’ young adults (ages 25-

34) with a two- or four-year degree
1 Whitman 67.8% 21 Wahkiakum 25.3%
2 King 53.2% 22 Skamania 24.8%
3 Garfield 46.0% 23 Stevens 24.7%
4 Kittitas 40.6% 24 Asotin 24.4%
5 Spokane 37.2% 25 Cowlitz 22.5%
6 Whatcom 36.7% 26 Pacific 2 1.8%
7 Thurston 36.6% 27 Douglas 21.4%
8 San Juan 35.2% 28 Klickitat 21.1%
9 Snohomish 34.0% 29 Grays 19.6%
10 Island 33.7% 30 Clallam
Harbor 19.3%
11 Benton 33.6% 31 Lewis 19.1%
12 Lincoln 3 3.2% 32 Grant 18.7%
13 Jefferson 30.6% 33 Yakima 17.9%
14 Clark 30.1% 34 Pend Oreille 17.3%
15 Walla Walla 29.6% 35 Okanogan 16.5%
16 Kitsap 29.4% 36 Adams 16.3%
17 Pierce 28.0% 37 Mason 15.5%
18 Chelan 26.8% 38 Franklin 15.2%
19 Columbia 26.2% 39 Ferry 14.1%
20 Skagit 25.8%
Source: U.S. Census Bureau, 2000

BACKGROUND:
 U.S. CHAMBER POSITION
Statement on Reauthorizing the
No Child Left Behind (NCLB) Act:
Recommendations to Improve and Strengthen the Law
The U.S. Chamber of Commerce—the world's largest business federation representing more than 3 million
businesses and organizations of every size, sector, and region—believes that improving the performance of the
K-12 education system in the United States is necessary to provide a strong foundation for both U.S.
competitiveness and for individuals to succeed in our rapidly changing world. We are committed to working with
all stakeholders on this essential task.

The U.S. Chamber of Commerce views the No Child Left Behind Act as one of the critical tools needed to
transform U.S. education so that all students graduate academically prepared for college, citizenship and the 21st
century workplace. NCLB and related federal, state and local policies and resources must be aligned to ensure
that all students are challenged by a rigorous, well-rounded core curriculum in safe and engaging learning
environments. It also must be supported by policies that bolster U.S. scientific and technological leadership.

We call on Congress to strengthen and improve NCLB provisions and funding, while respecting the fundamental
features of this historic education law that are designed to raise student achievement and close achievement gaps:

• All students proficient in reading and math by 2014;

• Accountability for all groups of students reaching proficiency on annual assessments;
• Public report cards that include data on the performance of each student group;
• Highly qualified teachers in every classroom;
• Options for students in persistently low-performing schools; and
• Identification and intervention in schools that need improvement.

FOCUS ON COLLEGE AND WORKPLACE READINESS

• Provide incentives for states to raise academic standards and improve assessments to align
them with college and workplace expectations. These incentives should enable states to:
o Improve state standards and assessments regularly, with input from business and
higher education, so that students graduate from high school having demonstrated
proficiency on assessments of the core knowledge, advanced problem-solving skills,
and critical thinking capacities needed to succeed in both postsecondary education
and the workplace.
o Develop state consortia to collaborate on the development of standards and
assessments benchmarked to the best in the world.
o Reform secondary schools and hold them accountable for increasing the graduation
rate, using the common definition adopted by the nation's governors, and graduating
students who are ready for college and work.
• Increase opportunities for high school students to participate in Advanced Placement,
International Baccalaureate, honors and appropriate industry-recognized certification
courses.
o Augment middle and high school curriculum with differential instruction that
accelerates literacy development for struggling older readers so that all high school
students can participate and achieve in these courses.

EMPHASIZE SCIENCE, TECHNOLOGY, ENGINEERING AND MATH (STEM)

 • Increase and align STEM funding with the goals of NCLB and require rigorous program
evaluation.
• Focus funding on scaling up programs to improve teaching and learning, such as Math Now
and Math and Science Partnerships.
• Add science to the adequate yearly progress (AYP) accountability system and support state
participation in National Assessment of Educational Progress (NAEP) science assessments.

ENHANCE DATA-DRIVEN DECISION MAKING

• Based on commitments from states, provide resources to develop statewide data systems
that offer timely and accurate collection, analysis and use of high quality longitudinal data
that align to district systems to inform decision making and ultimately to improve teacher
effectiveness and student achievement.
• Provide educator training on the use of data to differentiate instruction for students,
especially for those who are not yet proficient and those who are more advanced.

INCREASE TEACHER AND PRINCIPAL EFFECTIVENESS

• Shift current definition of "highly qualified teachers" to a focus on "highly effective

teachers."
• Focus resources on supporting and rewarding both teacher and principal effectiveness at
improving student achievement by funding programs that:
o Align preparation, recruitment, induction, retention and professional development
with the knowledge and skills needed to improve student performance and to enable
all students to graduate from high school ready for postsecondary education and the
workplace.
o Require the institutions and other entities that receive funding for these purposes to
evaluate their impact on increased educator effectiveness.
o Institute performance- and market-based pay programs that: reward educators
whose performance contributes to substantial growth in student achievement,
attract and retain effective math and science teachers and adjunct faculty, and draw
effective teachers and leaders to high-need schools.
o Develop evaluation systems based principally on improved student performance.
o Implement policies and practices to quickly and fairly remove ineffective educators.

STRENGTHEN AND REFINE ACCOUNTABILITY

• Amend the NCLB accountability system to:

o Provide guidance on ways that States can differentiate among districts and schools
that are close to or far from making adequate yearly progress, and ensure that
resources for improvement focus on those with the highest concentrations of
underperforming students.
o Permit states to use rigorous measures of year-to-year growth in student academic
achievement and other methods verified by the Secretary that are consistent with
the goal of all students reaching proficiency in reading, math and science.
o Close loopholes that allow states to use statistical means to "game" the
accountability system and undermine the intent of school restructuring.
o Require districts to provide parents with timely and easily understood information on
their options and allow them to choose either supplemental education services or
moving to a higher performing public school.
• Fund development of better assessments for special education students and English
language learners.

INVEST IN SCHOOL IMPROVEMENT AND ENCOURAGE INNOVATION

 • Increase capacity of states and other entities to better assist schools that need help making
adequate yearly progress (AYP) and that are facing corrective action and/or restructuring.
• Target funding, assistance and distribution of effective educators to high-need schools.
• Continue support for innovation, such as charter schools, diverse provider models and
techniques that effectively integrate technology into appropriate aspects of teaching,
learning and management.
• Fund research and development on promising ways to improve school and student
performance.

U.S. Chamber Joins Forces with NEA & NAM on Tough Choices Education Reform Initiative

WASHINGTON, D.C.—The U.S. Chamber of Commerce today joined forces with the nation’s largest teachers’
union and the National Association of Manufacturers to ask states to give a fair trial to the education reform
initiatives outlined in Tough Choices or Tough Times, the report of the New Commission on the Skills of the
American Workforce.

“The U.S. Chamber doesn’t agree with every detail of the recommendations in the report,” said Arthur Rothkopf,
senior vice president at the U.S. Chamber. “But the case it makes for revolutionary change is compelling and
urgent, and we do believe the proposals deserve serious attention.”

The touchstone of the Tough Choices report is its insistence that we recruit high quality teachers just as other
leading countries do right now. Additional recommendations outlined in the report include: revamping the high
school-college transition; reallocating funds to high priority strategies for improving system performance;
redesigning how schools are funded and managed; and other needed improvements.

The National Center on Education and the Economy, sponsor of the New Commission on the Skills of the
American Workforce, is assembling a consortium of states interested in implementing key aspects of Tough
Choices. Six states—Arizona, Delaware, Massachusetts, New Hampshire, New Mexico and Utah—have already
committed to using the framework provided in the report as the basis of their own reform plans. These states
intend to demonstrate that we can leapfrog from where we are to complete, powerful instructional systems that
can vault the U.S. to the top international rankings in a relatively short time.

“I am proud to link with others here today on the “Tough Choices” agenda,” continued Rothkopf. “We’ll
continue to talk with one another about the future of public education in the U.S. and the concrete steps we can
take to make sure that the country once again has the best educated workforce in the world.”

The Institute for a Competitive Workforce (ICW) promotes high educational standards and effective workforce
training systems so that they are aligned with each other and with today’s rigorous business demands.

The U.S. Chamber is the world's largest business federation representing more than 3 million businesses and
organizations of every size, sector, and region.
 Background:
U.S. Dept. of Education
US Department of Education Budget Proposal

The U.S. Department of Education's FY 2010 $46.7 billion budget proposal will advance President Obama's
agenda to reform the nation's schools while making fiscally responsible decisions to cut ineffective programs and
unnecessary personnel, U.S. Secretary of Education Arne Duncan said in releasing the budget today.

"This budget makes tough decisions, investing in the programs that will deliver results in student learning while
ending ones that aren't working," Duncan said. "It will give educators the resources they need to turn around the
schools in the most trouble, and it will build a foundation for success in school for our youngest citizens."

The Secretary added that the proposed budget will abolish funding for 12 programs that research has found to be
ineffective, saving $550 million. It also will cut 10 positions in the U.S. Department of Education's regional
offices so that resources can be redirected to the Obama administration's agenda to reform schools.

The Department's FY 2010 proposed budget will build on the investments already made in the American
Recovery and Reinvestment Act (ARRA) to improve teacher effectiveness, turn around struggling schools, and
give preschoolers the skills they need to prepare for kindergarten. Specifically, the budget will:

• Provide $1.5 billion for Title I School Improvement Grants to give states and school districts resources to
create and implement comprehensive, research-based plans for the growing numbers of schools identified
for improvement, corrective action, or restructuring. The money in the FY 2010 budget proposal will be
in addition to the $3 billion available for the program in FY 2009 and FY 2010 through the ARRA.
• Allocate $517 million to the Teacher Incentive Fund, which stimulates state and local work to improve
the education workforce, with an emphasis on rewarding principals, teachers, and other school personnel
who raise student achievement, close achievement gaps, and work in hard-to-staff schools. The program
received $200 million in the ARRA and $97 million in FY 2009.
• Create new programs that ensure students are prepared to enter school, including $500 million for Title I
Early Childhood Grants, which will encourage districts to spend money under the ARRA to start or
expand preschool programs, and the $300 million for the Early Learning Challenge Fund, which will help
states create or refine systems for rating and improving the quality of preschool education.

The Secretary noted that the FY 2010 proposed budget will dramatically increase the federal government's
commitment to making college affordable and accessible to all students. In February, the Department announced
that it would increase the maximum award under the federal Pell Grant program to $5,550 for FY 2010 and
would guarantee that the grant would increase by the rate of inflation plus one percent in future years.

The Department also is committed to improving the reliability, stability, and efficiency of college loans by
providing those loans directly from the federal government through the same electronic system that colleges use
for Pell Grants. The changes would produce $4 billion in savings by reducing entitlement subsidies currently
paid to banks and private companies.
Education Secretary Launches National Discussion on Education Reform

U.S. Secretary of Education Arne Duncan will travel to 15 or more states in the coming months to solicit
feedback from a broad group of stakeholders around federal education policy in anticipation of the
reauthorization of the Elementary and Secondary Education Act. The tour will gather input on the Obama
administration's education agenda, including early childhood, higher standards, teacher quality, workforce
development, and higher education.

The tour, "Listening and Learning: A Conversation About Education Reform," officially began today with three
events in West Virginia. In the morning, Duncan met with parents and primary school teachers at Bunker Hill
Elementary School in Bunker Hill. Duncan then visited Eagle School in Martinsburg where he had lunch with
students and met with middle school teachers and administrators.

In the afternoon, Duncan held a town hall meeting at Blue Ridge Community and Technical College with
students, instructors, administrators and area employers.

Duncan said that the primary purpose of the Listening and Learning tour is to, "Have a national dialogue about
how to best deliver a complete and competitive education to all children—from cradle through career. We want
to hear directly from people in the classroom about how the federal government can support educators, school
districts and states to drive education reform. Before crafting education law in Washington, we want to hear from
people across America—parents, teachers and administrators—about the everyday issues and challenges in our
schools that need our national attention and support."

Other states targeted for potential events include Michigan, Vermont, California, Montana, Wyoming, New
Jersey, Tennessee, North Carolina, Washington D.C., Ohio, Indiana, Florida, Utah, and Alaska. Additional states
and events may be added during the course of the tour.

Duncan wants to insure that he visits a mix of rural, urban, suburban and ethnically diverse districts and hears
from a broad range of stakeholders, including students, parents, teachers, administrators and community and
business leaders. Specific events will vary from small group private meetings to large public forums.

The meetings and events will be taped and reports and video summaries will be published on the department's
website. Duncan said the tour will "Help launch an open, honest conversation about education reform, because
this issue touches everybody in America.

"Education is not just an economic issue. It's a moral issue. It's the civil rights issue of our generation. We have
an obligation to give every child in America an education that helps them succeed in their career and fulfill their
role as active and involved citizens," he said.
HEALTH CARE
Providing Health Care and Retirement Security for Every American
Skyrocketing health care costs are stifling the economy and financially devastating hardworking Americans.

A healthy workforce is the backbone of a strong economy, but spiraling health care costs curb the
competitiveness of U.S. businesses and constrain tight family budgets. Unless we deal with this problem, more
companies and families will be forced to drop coverage.

Employers drive innovation in health benefits, thereby making market-driven health reforms the best
approach to reducing costs, while promoting efficiency, wellness, and quality of care.

To reignite and sustain economic growth, we must increase access to affordable health care coverage,
improve efficiency, and realign the system to focus on keeping people healthy.

The Tacoma-Pierce County Chamber has pushed for health care reform that will allow for packages that will
benefit employers and employees and lower cost by making the health care system more efficient through
initiatives and technology. Specifically:

• Allow a more limited basic health care package available for use by small business for their work force.
• Ensure health care access at affordable levels by rewarding quality, efficiency and transparency.
• Support the use of health information technology, such as electronic health records and electronic
prescribing, as a way to reduce costs and improve efficiency.
 BACKGROUND: U.S. CHAMBER REFORM AGENDA
The Chamber's health care reform agenda has five main elements:

• Increased Access: Strengthen employer-sponsored health insurance and make it more available-and
affordable-to every worker. We support leveling the playing field for individual consumers, families, and
small businesses to purchase coverage while protecting the benefits of a uniform federal regulatory
system (ERISA).
• Health Information Technology (IT): Promoting and ensuring widespread adoption of interoperable
Health IT-including electronic prescriptions and use of computerized systems to store medical records-
will improve quality, lower costs, reduce medical errors, and help patients and doctors make better
medical decisions.
• Prevention and Wellness: Incentivizing individuals and businesses to live healthier lifestyles could avert
40 million cases of chronic diseases and reduce health care costs by more than $1 trillion (Milken
Institute).
• Consumer-Focused Health Care: Congress should make account-based plans more attractive to small
businesses by increasing flexibility and improving the transparency of cost and quality data so that
Americans can shop smart for the best care.
• Medical Liability Reform: The Chamber supports health courts and other medical liability reforms that
ensure fair damage awards, eliminate frivolous lawsuits, and lower the costs of health care in the United
States.
Reforming Health Care
How a government-run plan could fit -- or not

Monday, April 27, 2009

OF THE many possible issues that could snarl health-care reform, one of the biggest is whether the measure
should include a government-run health plan to compete with private insurers. The public plan has become an
unfortunate litmus test for both sides. The opposition to a public plan option is understandable; conservatives,
health insurers, health-care providers and others see it as a slippery step down the slope to a single-payer system
because, they contend, the government's built-in advantages will allow it to unfairly squash competitors.

For liberals, labor unions and others pushing to make health care available to all Americans, however, the
fixation on a public plan is bizarre and counterproductive. Their position elevates the public plan way out of
proportion to its importance in fixing health care. It is entirely possible to imagine effective health-care reform --
changes that would expand coverage and help control costs -- without a public option.

President Obama has said that he favors a public option but has been sketchy on details. His nominee for
secretary of health and human services, Kathleen Sebelius, said that she wants a public plan to "challenge private
insurers to compete on cost and quality" but "recognizes the importance of a level playing field between plans
and ensuring that private insurance plans are not disadvantaged."

The argument for a public plan is that, without the need to extensively market itself or make a profit, it would do
a better job of providing good health care at a reasonable cost, setting an important benchmark against which
private insurers would be forced to compete. Even in a system where insurers are required to take all applicants,
public plan advocates argue, incentives will remain for private plans to discourage the less healthy from signing
up; a public plan is a necessary backstop. Moreover, if the playing field is level, public plan advocates argue,
private insurers -- and those who extol the virtues of a competitive marketplace -- should have nothing to fear.

We disagree.

It is difficult to imagine a truly level playing field that would simultaneously produce benefits from a
government-run system. While prescription drugs are not a perfect comparison, the experience of competing
plans in the Medicare prescription drug arena suggests that a government-run option is not essential to energize a
competitive system that has turned out to cost less than expected.

Insurers and private companies have been at least as innovative as the federal government in recent years in
finding ways to provide quality care at lower costs. Medicare keeps costs under control in part because of its
800-pound-gorilla capacity to dictate prices -- in effect, to force the private sector to subsidize it. Such power, if
exercised in a public health option, eventually would produce a single-payer system; if that's where the country
wants to go, it should do so explicitly, not by default. If the chief advantage of a public option is to set a
benchmark for private competitors, that could be achieved in other ways, for example, by providing for the entry
of a public plan in case the private marketplace did not perform as expected.

Maybe we're wrong. Maybe it's possible to design a public option that aids consumers without undermining
competition. If so, we certainly wouldn't oppose a program that included a public component. But it would be a
huge mistake for the left to torpedo reform over this question.
Health Care Reforms We Can All Agree On

By Tom Donohue, President and CEO, U.S. Chamber of Commerce

March 10, 2009

A few weeks ago in this space, I warned about backdoor attempts to move toward a government-run health care
system and the need to debate all reforms openly and honestly. After all, health care spending represents about
16% of our economy. Any successful attempt to reduce costs, improve service, and expand coverage will require
broad consensus.

There are some things we should all be able to agree on--and implement right away. The business community, for
example, strongly supports efforts to create an efficient, evidence-based, and patient-centered system where
patient coordination, positive outcomes, and prevention and wellness are embraced and rewarded. In fact, we're
already doing it. I conveyed these messages last week at the White House summit on health care reform.

Business investment in wellness and prevention has increased significantly in the past decade. More and more
companies are offering on-site fitness centers, weight management, flu prevention, mammography vans, nutrition
seminars, and health risk assessments.

And it's not just Fortune 500 companies that are getting involved. The health care costs of Lincoln Industries, a
small manufacturer in Nebraska, are 50% below the national average in part because it has implemented
mandatory quarterly health screenings, offers free on-site, on-the-clock tobacco cessation and weight
management programs, and ties wellness objectives to overall performance and pay.

When employees do access the health care system, employers want their care to be coordinated and effectively
managed across the entire continuum. IBM employees select a personal physician who is responsible for
coordinating their preventive care, primary care, acute care, chronic care, and end-of-life care. Under this model,
doctors, nurses, hospitals, and other health care providers actually talk to each other--imagine that!

Rewarding high performance is another way businesses are driving health care change. Some employers have
chosen a single high-performing provider network to handle specific conditions or diseases. If we want a system
focused on keeping people healthy--and when they do get sick, rewarding positive outcomes--then we need to
scrap a transaction-based reimbursement method and adopt a pay-for-performance model.

The employer community has been at the center of our health care system for decades. No group is more greatly
impacted by the explosion in costs and the inadequate delivery of care. And no group is more committed to
bringing about comprehensive change. What we don't need is a government-run system that imposes steep tax
increases and crushing burdens on businesses and families, especially during this severe recession.
Healthcare groups join Obama at negotiating table
Such a collaboration aiming to find solutions to high insurance costs is 'unprecedented,' observers say.
By Noam N. Levey – LA Times

May 12, 2009

Reporting from Washington — Welcoming leaders of the hospital, drug and insurance industries to the White
House on Monday, President Obama trumpeted their pledge to work together to contain the nation's skyrocketing
healthcare tab.

But as the president was celebrating the collaboration among industry groups responsible for derailing previous
healthcare overhaul campaigns, it became apparent that the carefully tended effort was about to face its biggest
test.

Lawmakers on Capitol Hill plan to introduce legislation in the next few months to reshape the nation's troubled
healthcare system. That is expected to kick off an intense struggle as industry groups fight to protect their profits
amid efforts to squeeze the cost of delivering healthcare and to increase regulation on drug companies, insurers
and others.

"Healthcare's legendary interest groups have stayed at the table in ways that are unprecedented historically," said
Drew Altman, a healthcare policy expert who heads the nonprofit Henry J. Kaiser Family Foundation. "As this
debate enters a new phase, the big question is whether they will still be there." Legions of healthcare leaders
have been at work for months to assure they will remain part of negotiations.

Consumer groups and insurers, doctors and pharmaceutical companies, labor unions and business groups have
been meeting in congressional chambers and conference rooms in Washington to advance the campaign to
revamp the healthcare system.

Since September, Sen. Edward M. Kennedy (D-Mass.), who is helping lead the effort, has convened twice-
weekly meetings to bring together healthcare industry groups as he develops legislation.

An initiative spearheaded by Families USA, a leading consumer group, employed a professional mediator to help
historically antagonistic groups build agreement and what some strategists call an "aura of inevitability" around
the current healthcare push.

Senate Finance Committee Chairman Max Baucus (D-Mont.), who is also writing healthcare legislation, is
hosting round-tables too. So numerous have these "stakeholder" meetings been this year that lobbyists have
joked they have little time to do anything but meet.

The groups, some of which have battled one another for decades, have bought ads together to promote a
healthcare overhaul and have produced manifestoes endorsing universal healthcare and other goals.

"This is just an enormous change," said Ken Thorpe, a health economist at Emory University in Atlanta who
worked on the Clinton administration's failed health campaign in the 1990s.

Back then the mood was negative and skeptical, said Thorpe, who is now advising congressional Democrats on
healthcare legislation. "Now, there is a tremendous sense of momentum. People don't want to give up."

According to Thorpe and other experts, the meetings have helped keep industry groups engaged, rather than
fomenting opposition.

Insurers helped sink the Clinton administration's health plan with the “Harry and Louise” ads, in which a
fictitious couple fretted that the government would soon make healthcare decisions for them.

This year no major industry group has paid for any advertising attacking the health campaign being pushed by
the Obama administration. Insurers, drug makers and other industries have their own reasons for staying at the
table. Many industry leaders believe that if they leave, lawmakers may punish them.

"If you don't get in this game, then . . . you're on the menu," quipped U.S. Chamber of Commerce President Tom
Donohue at a recent healthcare forum at the White House.

The agreement touted Monday by Obama grew out of an effort begun last year by the Service Employees
International Union, a leading labor group and powerful force in healthcare politics. Dennis Rivera, head of
SEIU's healthcare effort, met with insurance executives and hospital leaders.

The efforts to forge an agreement, undertaken in strict secrecy to prevent leaks, intensified in recent weeks,
according to people familiar with the process.

Leaders of the American Hospital Assn., the American Medical Assn., America's Health Insurance Plans,
Pharmaceutical Research and Manufacturers of America and the Advanced Medical Technology Assn. got
involved to draft a letter that would set out the groups' commitment to reining in costs.

The White House disclosed the letter over the weekend, after a week in which Republican opponents of the
administration's healthcare agenda seemed to be gaining traction.

In the letter, the groups outlined steps, such as simplified billing and greater collaboration among healthcare
providers, that they said could help save more than $2 trillion over the next decade.

Obama praised the letter Monday: "It's a recognition that the fictional television couple Harry and Louise, who
became the iconic faces of those who opposed healthcare reform in the '90s, desperately need healthcare reform
in 2009."

But it remains unclear whether the harmony will last.

Insurance industry leaders have already rebelled at the administration's proposal to pare federal spending on the
Medicare Advantage program, under which private insurers contract with the federal government to provide
health coverage to seniors.

And on Monday, House Energy and Commerce Committee Chairman Henry A. Waxman (D-Beverly Hills), who
is helping develop healthcare legislation, said he was skeptical about the industry proffer. "I still would like to
see a more concrete proposal," he said.

Richard Kirsch, who heads the consumer group Health Care for America Now, said he too was unconvinced that
industry leaders would remain at the negotiating table.

"We're glad that these groups say they are willing," he said. "But when Congress and the president say you have
to give this up, will they say, 'I didn't mean it there, and I didn't mean it there'? "
MILITARY
AFFAIRS
Michael B. Donley Biography

MICHAEL B. DONLEY

Mr. Michael B. Donley is the Secretary of the Air Force,

Washington, D.C. He is the 22nd Secretary and was
confirmed Oct. 2, 2008. He is responsible for the affairs of
the Department of the Air Force, including the organizing,
training, equipping and providing for the welfare of its more
than 300,000 men and women on active duty, 180,000
members of the Air National Guard and the Air Force
Reserve, 160,000 civilians, and their families. He also
oversees the Air Force's annual budget of approximately
$110 billion.

Mr. Donley has 30 years of experience in the national security community, including service in the
Senate, White House and the Pentagon. Prior to assuming his current position, Mr. Donley served
as the Director of Administration and Management in the Office of the Secretary of Defense. He
oversaw organizational and management planning for the Department of Defense and all
administration, facility, information technology and
security matters for the Pentagon.

From 1996 to 2005, Mr. Donley was a Senior Vice President at Hicks and Associates, Inc., a
subsidiary of Science Applications International Corporation, and a consultant to DOD and the
State Department on national security matters. From 1993 to 1996, he was Senior Fellow at the
Institute for Defense Analyses. During this period he was a Senior Consultant to the Commission
on Roles and Missions of the Armed Forces and participated in two studies on the organization of
the Joint Staff and the Office of the Chairman, JCS. Prior to this position, he served as the Acting
Secretary of the Air Force for seven months, and from 1989 to 1993 he was the Assistant
Secretary of the Air Force (Financial Management and Comptroller).

Mr. Donley supported two Presidents and five National Security Advisers during his service at the
National Security Council from 1984 to 1989. As Deputy Executive Secretary he oversaw the
White House Situation Room and chaired interagency committees on crisis management
procedures and continuity of government. Earlier, as Director of Defense Programs, Mr. Donley
was the NSC representative to the Defense Resources Board, and coordinated the President's
quarterly meetings with the Joint Chiefs of Staff. He conceived and organized the President's Blue
Ribbon Commission on Defense Management (the Packard Commission), coordinated White House
policy on the Goldwater-Nichols DOD Reorganization Act of 1986, and wrote the National Security
Strategy for President Reagan's second term. He was also a Professional Staff Member on the
Senate Armed Services Committee from 1981 to 1984.

Mr. Donley served in the U.S. Army from 1972 to 1975 with the XVIIIth Airborne Corps and 5th
Special Forces Group (Airborne), attending the Army's Intelligence and Airborne Schools and the
Defense Language Institute. Mr. Donley earned both Bachelor of Arts and Master of Arts degrees
in international relations from the University of Southern California. He also attended the Senior
Executives in National Security program at Harvard University.

EDUCATION
1972 U.S. Army Intelligence School, Fort Huachuca, Ariz.
1973 Defense Language Institute, Monterey, Calif.
1974 U.S. Army Airborne School, Fort Benning, Ga.
1977 Bachelor of Arts degree in international relations, University of Southern California, Los
Angeles
1978 Master of Arts degree in international relations, University of Southern California, Los
Angeles
1986 Senior Executives in National Security program, John F. Kennedy School of Government,
Harvard University, Cambridge, Mass.

CAREER CHRONOLOGY
1. 1972 - 1975, U.S. Army, XVIIIth Airborne Corps and 5th Special Forces Group (Airborne), Fort
Bragg, N.C.
2. 1978 - 1979, Editor, National Security Record, Heritage Foundation, Washington, D.C.
3. 1979 - 1981, Legislative Assistant, U.S. Senate, Washington, D.C.
4. 1981 -1984, Professional Staff Member, Senate Armed Services Committee, Washington, D.C.
5. 1984 - 1987, Director of Defense Programs, National Security Council, the White House,
Washington, D.C.
6. 1987 - 1989, Deputy Executive Secretary, National Security Council, the White House,
Washington, D.C.
7. 1989 - 1993, Assistant Secretary of the Air Force (Financial Management and Comptroller),
Washington, D.C.
8. 1993, Acting Secretary of the Air Force, Washington, D.C.
9. 1993 - 1996, Senior Fellow at the Institute for Defense Analyses, Alexandria, Va.
10. 1996 - 2005, Senior Vice President at Hicks and Associates, Inc., a subsidiary of Science
Applications International Corporation, McLean, Va.
11. 2005 - 2008, Director of Administration and Management, Office of the Secretary of Defense,
Washington, D.C.
12. 2008 - present, Secretary of the Air Force, Washington, D.C.
BACKGROUND: McChord Air Force Base Clear Zone
Property Acquisition

The purpose of the project is to acquire fee-simple title or development rights to parcels of land located within
the Clear Zone (CZ) north of McChord Air Force Base’s runway. The CZ is a 3,000’x 3,000’ area off the end of
the runway, shown to have a significantly greater risk of aircraft accident than other areas in the vicinity of the
airport. Incompatible land uses in this area are considered an encroachment on military operations. The Air
Force has prioritized acquisition preferences based on potential interference with air operations and greatest
impact on preventing Clear Zone encroachment. Maintaining the military value of McChord is in the long-term
interest of the community, the State and the nation. Accordingly, local, State and Federal partners are working
together to protect both the base and the surrounding community by providing resources to remove and prevent
Clear-Zone encroachments.

McChord Clear Zone Acquisition Funding Sources

Total funding for the project to date has come from a variety of sources. Federal support has come from the
Department of Defense’s Readiness and Environmental Protection Initiative, as well as base operating funds
from McChord. The State of Washington has provided funding through the Military Communities Infrastructure
Projects program. Local governments have invested general-fund dollars into the project. In addition, Pierce
County is providing staff time and administrative oversight to coordinate the negotiation, due-diligence,
purchase, demolition where necessary, and transfer of property to military ownership.

Summary of Clear-Zone Funding by Year

Clear-Zone Project Funding

2007 2008 2009 Total
Pierce County $ 250,000 $ 500,000 $ 300,000 $ 1,050,000
Department of Defense (Air Force - REPI) $ 250,000 $ 1,080,000 $ 1,700,000 $ 3,030,000
Air Force (McChord) $ 250,000 $ 250,000
Washington State (MCIP) $ 261,000 $ 580,000 $ 841,000
City of Tacoma $ 150,000 $ 150,000
Lakewood (In-Kind) $ 30,300 $ 30,300

Total $ 791,300 $ 2,310,000 $ 2,250,000 $ 5,351,300

McChord Clear Zone Acquisition Status

The Clear Zone is located in a highly desirable location for industrial development, nestled near the interchange
of Interstate-5 and State Route-512, which results in land values of around $6 per square foot. The total value of
all privately-held property within the clear zone was appraised at approximately $55 million in early 2007.
Properties are being acquired only from willing sellers (no eminent domain), in order of Air Force priority and as
they become available for sale There are a total of 36 privately owned parcels within the Clear Zone, as well a
number of condominium storage units. To date, four parcels of about an acre apiece have been purchased,
including the only residential property within the Clear Zone. Negotiations are underway for an additional four
properties, and more purchases will be pursued as funding becomes available.
Improving Care for Wounded Warriors:
Warrior Care and Transition Program
 As long as I am Secretary of Defense, I will continue to work to improve
treatment and care for every single wounded warrior.

Secretary of Defense Robert M.

Gates, Senate Armed Services Committee
hearing, 27 January 2009

Introduction that allows assigned members to heal and

The transformation of U.S. Army Warrior
Care began in April 2007 with the
development of the Army Medical Action Plan
(AMAP), which outlined an organizational and
cultural shift in how the Army cares for its
wounded, ill and injured Soldiers. Over the
past 22 months, the AMAP has evolved into
the Army Warrior Care and Transition
Program (WCTP), fully integrating Warrior
Care into institutional processes across the
Army, and achieving many of the Army’s
goals for enhancing care and improving the
transition of wounded warriors back to duty
or into civilian life as productive veterans.
Ongoing Efforts
Warrior Transition Units. At the heart of the
Warrior Care and Transition Program is the
successful establishment of 36 Warrior
Transition Units (WTUs) at major Army
installations worldwide, and nine
Community Based Warrior Transition Units
(CBWTUs) located regionally around the
United States. These units replace the Medical
Holdover (MHO) system of the past and
provide holistic care and leadership to
Soldiers who are expected to require six
months of rehabilitative treatment, and/or need
complex medical case management. While a
WTU closely resembles a “line” Army unit, with
a professional cadre and integrated Army
processes that build on the Army’s strength
of unit
transition.
This mission is being accomplished
largely through the Army’s commitment to
robustly staff and resource the units. There are
more than 3,600 permanent cadre and staff
overseeing a current population of 10,000
wounded, ill and injured Soldiers. Each
assigned Warrior in Transition (WT) receives a
“triad of care,” consisting of a Primary Care
Manager, a Nurse Case Manager and a squad
leader, to direct and supervise the
individual healing process. To date, more
than 22,000 WTs have progressed through the
WTU structure, and assignment times are
becoming shorter as enhancements and
refinements are made to the program.
Army Wounded Warrior Program. Since
2004, the Army’s Wounded Warrior (AW2)
program has been supporting the most
severely wounded and injured Soldiers—
those who have, or are expected to receive, an
Army disability rating of at least 30 percent in
one or more specific categories, or a combined
rating of 50 percent or greater for conditions
that are the result of combat, or are combat-
related.

cohesion and teamwork, its singular mission is

to provide comprehensive care management

Those Soldiers qualifying for the program
are assigned an AW2 Advocate who provides
personalized assistance with day-to-day
issues that confront healing warriors and their
families, including benefits counseling,
educational opportunities, and financial
and career counseling. Currently, AW2
assists and advocates for more than 3,300
severely wounded Soldiers and their
families, wherever they are, for as long as it
takes—including after retirement or
separation from the Army.
Comprehensive Transition Plan. In
March 2008, the U.S. Army Medical
Command (MEDCOM) launched the
Comprehensive Transition Plan initiative for
WTs. Instead of focusing solely on the injury
or illness, the Comprehensive Transition Plan
fosters a holistic approach to a WT’s
rehabilitation and transition. This is
accomplished through the collaboration of a
multidisciplinary team of physicians, case
managers, specialty care providers and
occupational therapists. Together with the
Soldier, they develop individually tailored
goals that emphasize the transition phase to
civilian life or return to duty. Goals are set
and the transition plan developed within one
month of the Soldier’s arrival at the WTU.
Behavioral Health Care. The demand for
behavioral health services has increased as
more Soldiers are diagnosed with Post
Traumatic Stress Disorder (PTSD) and
Traumatic Brain Injury (TBI).To meet this
demand, the Army has hired an additional
250 behavioral health specialists to date,
and is seeking to add more throughout its
military treatment facilities. It has also
implemented Army-wide specialized
24
behavioral health awareness training, such as
the Ask-Care-Escort (ACE) program, which
helps Soldiers and family members recognize
the symptoms of PTSD and TBI and feel
confident in taking action to receive the care
and support they need.
For wounded warriors, MEDCOM has
developed a Risk Assessment and Mitigation
program to identify at-risk WTs and provide the
necessary attention and intervention.
Additionally, the Army, in conjunction with
the other services, has provided subject
matter expertise to the newly created
Defense Center of Excellence (DCOE) for
Psychological Health and Traumatic Brain
Injury, which ensures a joint-service approach
to the behavioral health challenge.
Physical Disability Evaluation System.
The Medical Evaluation Board (MEB) and
Physical Evaluation Board (PEB) processes
have been streamlined and paperwork
requirements reduced to more efficiently move
a Soldier’s disability package through the
adjudication process. Additionally,
collaboration between the Department of
Defense (DoD) and the Department of
Veterans Affairs (VA) ensures that WTU
Soldiers have priority processing by the
Veterans Health Administration (VHA) and
Veterans Benefits Administration (VBA) 90
days prior to separating so they can receive
their VA benefits and health care
immediately upon discharge.
General Frederick M. Franks, Jr., USA Ret.,
has been leading an Army task force to
research and recommend improvements to
the MEB/PEB process. His findings, recently
delivered to the Secretary of the Army,
recommended that DoD and VA eliminate
dual adjudication from the current system and
transition to a comprehensive process focusing
on rehabilitation and transition back to either
uniformed service or civilian life that
promotes resilience, self-reliance, construction projects, including the
reeducation and employment, while development of Warrior Transition complexes
ensuring enduring benefits for the Soldier that will serve both WTs and their families. To
and family. date, nearly $500 million dollars have

Ombudsman Assistance. In March 2007,

Army MEDCOM established the Ombudsman
Program to ensure the new Warrior Care
process stayed responsive to Soldiers and
families. There are currently 56 ombudsmen
at 31 sites, usually colocated with a military
treatment facility (MTF). Ombudsmen are
chosen for their extensive military medical
experience, and many have previously served
as sergeants major within Army medical units.
In addition to investigating complaints and
resolving issues with local agencies,
ombudsmen advocate for Soldiers and
families faced with the complex, often
overwhelming challenges related to their
health care and transition, such as physical
disability processing, reserve component
medical retention, transition to the VA, and
pay issues.

Soldier and Family Assistance Centers. On

15 June 2007, U.S. Army Installation
Management Command (IMCOM) assumed the
mission to establish and operate Soldier and
Family Assistance Centers (SFACs) as part of
the AMAP. SFACs are designed to broaden
Warrior Care to include the particular needs
of family members who are caring for a WT.
There are currently 33 SFACs located on WTU
installations, with permanent staffs ranging
from five to 13 employees, depending on the
WTU population. SFACs provide specialized
family support services such as legal
assistance, pastoral care, travel claims,
lodging assistance for non-Invitational Travel
Orders (ITO) family members, vehicle
registration, translations and many others.

Warrior Transition Complex Construction.

The Army continues to work with DoD
leadership and Congress to fund military
been either spent or obligated to improve the
accessibility and quality of Wounded Warrior
barracks. On 9 January 2009, the Army Corps
of Engineers broke ground at Fort Riley,
Kansas, to begin construction on the first
Warrior Transition Complex specifically
designed to provide care and support to WTs
and their families in a fully accessible and
campus-like setting. It is anticipated that
construction will take about a year to
complete.
New Initiatives
Healing “close to home.” Based on recent
guidance from the Secretary of the Army,
WCTP planners are refining the entry and
exit criteria for assignment to a WTU, with a
goal of allowing each Soldier undergoing
recovery and rehabilitation to do so at the
location closest to his or her home or
primary support network. This is especially
important for reserve component Soldiers
whose families are located far from active
duty Army installations. Clinical care
requirements will remain the primary
determinant of assignment, but the revised
policy enables those reserve component
Soldiers who do not require the level of medical
care management provided by an active
duty WTU to heal and transition closest to
their hometown, under the management of a
community-based WTU.
DoD–VA Disability Evaluation Pilot. The
Disability Evaluation System pilot program is
designed to assist wounded servicemembers
by improving the efficiency and effectiveness
of completing disability determinations.
Central to this effort is the use by both
DoD and VA of a single medical
examination with which to make
determinations.
DoD Recovery Care Program. In
December 2008, the Army Wounded Warrior
Program became responsible for the Army’s
support of the Defense Recovery Care
Program, which was directed by the 2008
National Defense Authorization Act. The
program calls for
dedicated Recovery Care Coordinators
(RCCs), much like the already-established
AW2 Advocates, to help manage the care of
Soldiers whose injuries will likely preclude
continued military service. In addition, RCCs
help facilitate a seamless case management
handoff for Soldiers transitioning from the
military to the VA health system. AW2 and the
Army are currently in the process of identifying
the necessary personnel and other resources
to meet these new responsibilities.
Future challenges
Nationwide shortages of specialized
physicians, nurses and behavioral health
professionals impact the ability of both
26
civilian and military health systems to recruit
and retain needed clinical staff. Particular
challenges arise because behavioral health
resources are at critical levels in both the
direct care system and the TRICARE network.
Army health care planners anticipate that
demand for these services will continue to
increase as greater numbers of Soldiers
experience multiple deployments, and
medical professionals develop more
effective PTSD and TBI identification and
diagnosis processes.

Conclusion

In his 27 January 2009 testimony before

Congress, Secretary of Defense Robert M.
Gates reaffirmed his commitment to caring
for the men and women of the armed forces
who have become wounded, ill or injured in
service to their country. Over the past two
years, the Army has made tremendous
progress in transforming how it provides
health care to its Soldiers, with improvements
impacting every aspect of the continuum of
care. The Warrior Care and Transition Program
is an example of the strong commitment by
the Army to adapt and improve its ability to
provide the best care possible to its wounded,
ill and injured warriors.
 Key Points

The Warrior Care and Transition Program (WCTP) represents a transformation in the way
the
Army cares for its wounded, ill and injured Soldiers and their families.

•
Warrior Transition Units (WTUs) are the primary means the Army uses to
provide holistic health care and transition services for assigned Warriors in
Transition.
Over the past 22 months, the Army has introduced a series of WCTP enhancements, to
•

include:
οestablishing the Comprehensive Transition Plan initiative;

ο increasing behavioral health services capacity;

ο improving the physical disability evaluation system;

ο implementing an Ombudsman assistance program;

ο fielding Soldier and Family Assistance Centers; and

garnering resources for Warrior Transition Complexes.

ο

•
New WTU assignment criteria allow reserve component Soldiers to heal closer to home.

•
On 9 January 2009, at Fort Riley, Kansas, the Army Corps of Engineers broke
ground for the first Warrior Transition Complex designed specifically for Warriors
in Transition.
The ongoing Department of Defense (DoD)–Department of Veterans Affairs (VA)
Disability
Evaluation Pilot Program seeks to develop a single medical disability examination
conducted by the VA and accepted by DoD.
The Army Wounded Warrior Program (AW2) is responsible for implementing the Defense
Recovery Care Program and fielding Recovery Care Coordinators for the Army.

COMMISSION AGENDA
Port of Tacoma – Sustainable Development
 Item No. ___________

DATE: April 29, 2009 Meeting of 05/07/09

TO: Port Commissioners

FROM: Robert Brenner, Environmental Program Manager

SUBJECT: General Business Briefing on the Lower Puyallup River Executive Task Force by
Harold Smelt, Pierce County Public Works, Surface Water Management.

A.BACKGROUND
On May 7, 2009, Mr. Harold Smelt, Surface Water Management Manager, Pierce County, will
brief the Commission on the work of the Lower Puyallup River Executive Task Force. No
action will be requested.

Floodplains are mapped by the Federal Emergency Management Agency (FEMA), which are
used by local jurisdictions to administer floodplain management ordinances. FEMA’s most
recent floodplain maps for the Lower Puyallup River were published in 2007, updating maps
that were published in 1987. Hydrologic and hydraulic analyses for the new maps were
initiated in 2002. The new analyses estimated 100-year flood elevations that were higher than
those on the 1987 maps, largely because of sediment deposition in the channel of the Puyallup
River, which raises the elevation of the river bottom. With the higher flood elevations, existing
levees along the Lower Puyallup do not provide the 3 feet of freeboard required under FEMA’s
design criteria for levees, so the levees could no longer be accredited as providing 100-year
flood protection. Thus, under FEMA guidelines, the new floodplain maps were developed as
though there were no levees. The result is a much broader floodplain than delineated in 1987.

B.UPDATE ON TASK FORCE EFFORTS

In 2008, Pierce County, as lead agency, organized the Lower Puyallup River Executive Task
Force. In the Task Force, the Port of Tacoma is represented by Commissioner R. Ted Bottiger,
supported by Environmental Project Manager Robert Brenner.

Prior to organizing the Task Force, Pierce County completed a Phase 1 economic analysis at a
cost of $800,000. The economic analysis quantified anticipated losses that would likely occur
in a 100-year flood event and justified future federal funding of a long-term solution. The
analysis additionally provides a basis for the consideration of alternatives.

The alternatives being considered include a combination of improvements to existing levees,

construction of new setback levees or bypass channels, upstream improvements, changes to
land use regulations, and selective river dredging. The County estimates that it could cost as
much as $140 million to implement new flood protection measures along the lower Puyallup
River that will protect people, property, and the environment.
 Commission Meeting of 05/07/09

General Business Briefing on Lower Puyallup River Executive Task

Force Page 2

The Task Force will continue to meet on an as-needed basis when products requested in
earlier meetings are ready for the group’s review until desired alternatives are selected for
implementation. The Port’s continued participation in the Lower Puyallup River Executive
Task Force keeps the Port informed of important regional environmental issues and ensures
that the interests of the Port and our customers are represented.

c: Sue Mauermann, Director, Environmental Programs

Ft. Lewis Projects

09-03-17

Regional Logistics Support Complex, under $150M This will construct 2 extra large
Tactical Equipment Maintenance Facilities, storage, Command and Control Battalion
Headquarters, and training facilities into one central location whereas they
currently are located in 17 different locations around Fort Lewis. 50% of these
17 locations are on the list for demolition. Currently Long Range.

42nd MP Brigade Complex, under $100M

This will construct a Brigade Headquarters, 2 Battalion Headquarters, 10 Company

Headquarters, Tactical Equipment Maintenance Facility, and 300 Unaccompanied
Personnel Housing space barracks. Soldiers are currently housed in 1950's
barracks along with Headquarters and Company Operations. Currently Long Range

Operational Readiness Training Complex (ORTC), under $500M This will construct a
Brigade ORTC with 6 Battalions for MOB/DEMOB, Annual Training, and Warrior Forge.
Current facilities are World War 2 wood. Currently Long Range

3-2 SBCT Brigade Headquarters, Battalion Headquarters, and Company Headquarters,

under $150M This will construct a Brigade Headquarters, 3 Battalion Headquarters,
and 24 Company Headquarters to the Army standard for a SBCT. Current facilities
are one third of authorized size. Currently Long Range

Joint Base Connector, under $50M

This will construct a four lane road including access control point and overpass
over the county road to allow unimpeded access between Fort Lewis and McChord
AFB. This will remove vehicles off of I-5 going between the two installations.
Currently Long Range

Joint Base Access Road, Phase 1, under $10M This will construct a 4 lane (one
Combat Vehicle lane and one POV lane each direction) road with bike lanes from
the existing East Lincoln Drive to the signalized intersection at the McChord AFB
access control point. This will include upgrading the existing signal system.
This will allow joint base traffic and remove vehicles from I-5 going between
Fort Lewis and McChord AFB. Currently Long Range

North Fort Vehicle Wash Facility, under $10M This will upgrade the existing 11
station wash area to 20 stations and add recycling of the wash water. This will
reduce the waste water load at the Solo Point Wastewater Treatment Plant and to
conserve water. This is the only Centralized Vehicle Wash Facility that still
discharges to the sanitary system. Currently Long Range

Joint Base Connection Road, Phase 2, under $10M This will construct a 4 lane (one
Combat Vehicle lane and one POV lane each direction) road with bike lanes on
Transmission Line Road (currently 2 lanes) from its connection to Jackson Avenue
to East Lincoln Drive following the existing Combat Vehicle Trail. Currently
Long Range

Fort Lewis Road Network - N. Gate Steilacoom Road, under $10M This will construct
a three lane road with bike lanes from the East Drive connection to DuPont
Steilacoom Road to the North Gate Road connection to Lakewood. This would also
provide turning lanes off and onto Steilacoom Road and a traffic signal,
providing that Pierce County would approve these additions. These two roads also
provide traffic for the public from Lakewood to go around the Fort Lewis
cantonment area by DuPont Steilacoom and vice versa. This also has the potential
to reduce the traffic having to go through Steilacoom. Adding the bike lanes
would provide a safe bicycling lane instead of having to encroach into the
driving lanes and help provide alternative vehicle access to Fort Lewis or
surrounding communities.
BACKGROUND: LATEST MILITARY
INFORMATION
Lawmakers Want More C-17s: The House Appropriations Committee has included funds for an
additional eight C-17 airlifters in its version of the Fiscal 2009 defense supplemental bill now
before Congress, and a bipartisan group of 19 Senators have petitioned Senate appropriators to up
the number to 15.

The lawmakers oppose Pentagon plans to limit production to just 205 aircraft. Sen. Kit Bond (R-
Mo.) calls ending the C-17 line "a dangerous gamble," in a May 12 joint statement with Sen. Barbara Boxer (D-Calif.),
who states that Congressional support for additional C-17s "remains high." Bond, Boxer, and 17 colleagues note in their
May 12 letter to the chairman and ranking member of the Senate Appropriation Committee that the strategic airlifter "now
also provides tactical airlift to less than ideal runways under tremendous stress and weight loads," making it an "ideal
platform" for irregular warfare operations.

That, they write, makes it "highly compatible" in DOD efforts to rebalance the defense budget to meet IW demands. They
also point out that the Pentagon has yet to complete several mobility studies that would "give policy-makers important
insight into future strategic and tactical airlift needs." Senate defense authorizers also have criticized the Pentagon's C-17
plan.

Army Cedes "Last Tactical Mile": In comments to reporters May 12, Army Chief of Staff Gen. George Casey said that
the capability to resupply soldiers at forward locations via airlift is still valid but soldiers "do not have to fly the planes."
Last year, the Office of the Secretary of Defense sided with the Army in a brief turf war with the Air Force over this "last
tactical mile" supply mission.

However, in the Fiscal 2010 defense budget proposal, OSD cut the planned buy of 78 C-27 Joint Cargo Aircraft down to
38 and shifted the entire program to the Air Force. Casey also told the reporters, according to a report in The Hill, that
flying fixed-wing aircraft, presumably like the elderly C-23s that the C-27s were to replace, "is not our core competency."

National Guard officials already are concerned that Army Guard units that fly the C-23s, both for national security and
state missions, are going to be left without aircraft, since the C-23s may last another five years at best. A larger concern,
according to Lt. Gen. Harry Wyatt III, Air National Guard director, is that OSD cut the number of C-27s. He told
lawmakers earlier this month that the "color of service flying the airplane" matters less than filling the requirement, which
currently is set at 78 aircraft. There is also fear that some Air Guard units that banked on getting the JCA aircraft to
replace flying missions lost to BRAC 2005 will now not receive the new intratheater airlifter. For example, Ohio's
Congressional delegation has sent letters to Defense Secretary Robert Gates, citing their concerns about the Air Guard's
179th Airlift Wing, reports the Mansfield News Journal. Source: Airforce-magazine.com, May 114, 2009
 DRAFT 02-19-09
BACKGROUND: PUGET SOUND REGIONAL STUDY
PSRC Officers •Washington State has the 7th highest defense personnel population in the
Deputy Mayor Sue Singer nation. Our installations in just the Puget Sound region directly support
over 125,000 jobs and provide more that $3 billion in total payroll.
City of Auburn
PSRC President
•The Puget Sound region has a significant defense contracting
presence. In 2006, defense contracting activity in the Puget Sound
Mayor Ray region (both base- and non-base related) totaled $3.7 billion,
Stephanson City including $350 million per year to local bases.
of Everett
•Washington is twelfth in the nation in population of veterans, with more
PSRC Vice President than 640,000 residing throughout Washington.
Chair, Operations Committee In order to understand how the region can better support the military
presence, the Prosperity Partnership convened a military cluster working
Councilmember John
Chelminiak City of group last summer. The group included over 30 representatives from the
Belevue service branches in the region, government, non-profit, and the private
Chair, Economic
sector. They identified four main initiatives, which guided the selection of
Development District specific action items and implementation strategies:
Deputy Mayor Mike
Lonergan
1.Support the military mission in Washington and at each facility.
2.Enhance employment opportunities for military spouses and veterans.
City of Tacoma 3.Improve education opportunities for military personnel, spouses and
Chair, Growth Management
children.
Policy Board 4.Use business attraction, retention and expansion strategies to expand
Councilmember Julia the region’s military industry cluster.
Patterson King County
The strategy group also identified the need for a permanent military
Chair, Transportation Policy working group. This group will provide a forum for coordination of solutions
Board
to support the military presence and mission in Washington. This includes
Bob Drewel support for installations and the units based in the state as well as armed
PSRC Executive Director forces members and their families, retirees, and veterans. The group will
be tasked with the following:
Military Working Group
Co-Chairs 1.Generating and promoting an annual legislative agenda.
2.Addressing encroachment in a comprehensive and base-specific
Carol Evanoff manner.
Resident Director, Lockheed 3.Raising awareness of the benefits provided by the State’s military
Martin presence through a coordinated communications strategy.
Rear Admiral James By further integrating the military with the communities that support
Symonds Commander,
Navy Region Northwest them, the Puget Sound area can ensure the ongoing health of the region’s
military presence and the economic cluster it provides.

For more information, contact Chris Strow at: 206-971-3051 or

cstrow@psrc.org.
Introduction............................................................................................... .......................... 2

Military Cluster Stratgegy Development Process........................................... .................... 2

Issues, Challenges, and Opportunities........................................................................ ....... 5

Initiatives......................................................................................................................... ..... 8

Initiative IUnderstand and Support the Military Mission in Washington

State and 9

Initiative II Enhance Employment Opportunities for Military Spouses 18

and Veterans.....................................................................................................
Initiative III Improve Education Opportunities for Military Personnel, ..23
Spouses, and Children
Initiative IVUse Business Attraction, Retention, and Expansion Strategies
to Expand the
Region’s Defense Contracting Industry...................................... 27
Appendix: Supporting Data And Analysis..................................................................... ...... A-1
 DRAFT 02-19-09

INTRODUCTION
In early 2008, the Prosperity Partnership convened a 38 member Working
Group with representation by each branch of the military with operations in
the Puget Sound; regional economic development entities; federal, state,
and local governments; the private sector; and members of the workforce
development, research, and environmental communities that make
important contributions to the Puget Sound’s Military cluster. This diverse
group of agency staff, elected officials, business owners, educators, economic
development practitioners, and others collaborated to analyze the strengths,
challenges, and opportunities within this broad sector, and to develop major
initiatives and strategies to facilitate economic growth in the industry.

The State of Washington ranks seventh in the nation for the number of
military personnel claiming residence in the state. With the majority of those
personnel located at the installations in the Puget Sound region, it is clear
that the military plays a significant role in the region’s economy. When
defining the military cluster as the combined impact of the military
installations, as well as the network of contractors and subcontractors that
support the military and work on Department of Defense contracts, the
significance of that role increases. This regional strategy is designed to
proactively ensure the ongoing health of the region’s military cluster,
including the bases themselves and the private sector enterprises that
support them and play a role in national defense contracting.

Economic Contributions
The military presence in the Puget Sound Region includes major bases for
the Army (Fort Lewis), Navy (Naval Base Kitsap and Naval Base Everett), and
Air Force (McChord Air Force Base), as well as installations for the Washington
National Guard and Coast Guard. Collectively, these installations directly
support over 125,000 jobs in the region (more than 60,000 of which are held
by non-military personnel) and provide more than $3.7 billion annually in
total payroll.

In addition to economic activity generated by the operation of these

bases, a wide range of Department of Defense contracts support many
private sector contractors and subcontractors in the region. In 2006, defense
contracting activity in the Puget Sound Region (both base- and non-base-
related) totaled $3.7 billion.

The region’s bases and defense contractors also have significant workforce
impacts by attracting skilled employees to the region and providing
specialized training opportunities that can later be applied in industries not
necessarily related to the military.

Community Contributions
In addition to direct economic impacts generated by the armed forces,
communities throughout the region benefit from the contributions of
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military personnel, their families, and veterans. There are more than
45,000 active military personnel stationed in the region, and over 65,000
military dependents, including working spouses and schoolchildren. There
are also more than 640,000 veterans who have settled throughout the
State of Washington. The smooth and productive integration of current
and retired military members and their families in our region is critical to
strengthening the health of military families and the communities where
they live, work, go to school, and volunteer.

MILITARY CLUSTER STRATGEGY DEVELOPMENT PROCESS

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The Prosperity Partnership’s Military Cluster the majority of supporting
Working Group met four times between July materials, data analysis, and
and September 2008. Over the course of base research focuses on this
these meetings and subsequent dialogue, area. However, it quickly
the Working Group identified and became clear that
evaluated key issues related to the military relationships and
in the region. Members reviewed analytic interconnections within the
materials and developed an actionable military cluster extend beyond
Strategy to enhance the health of the the Puget Sound Region to
region’s military presence and maximize the installations, businesses, and
cluster’s economic contributions. organizations throughout the
State. The Working Group
Working Group membership included a agreed that the final Military
wide range of stakeholders, including Cluster Strategy would adopt a
representatives of each branch of the statewide perspective and
military with operations in the Puget that collaboration with
Sound area; regional economic development interested stakeholders and
entities; federal, state, and local decision makers from outside
governments; the private sector; and the region would be solicited.
members of the workforce development, This operating principle is
research, and environmental communities. reflected in several Cluster
A roster is presented on page 4. The group Initiatives, particularly Initiative
was led by co-chairs Carol Evanoff, the I, which establishes a
Resident Director of Lockheed Martin’s Permanent Military Working
Strategic Weapons Facility Pacific for the Group with statewide
Fleet Ballistic Missile Program, and Rear membership.
Admiral James Symonds, Commander of
the Navy Region Northwest. Staff of the
Puget Sound Regional Council and Berk &
As s o c i a te s c o n t ri b u t e d a n a l y ti c
ma t e r i a l s , meeting facilitation, and
strategy development support.

Operating Principles
As the Working Group began to tackle the
wide range of challenges and opportunities
associated with the region’s military cluster
the following Operating Principles were
agreed upon to focus discussion and
s t r a t e g y development.

Geographic Scope. The Working Group’s charge

through the Prosperity Partnership
framework was to focus on military
activity in the four-county Central Puget
Sound Region, consisting of King, Kitsap,
Pierce, and Snohomish counties. As a result,

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Additional Acknowledgements

We wish to recognize the

contributions of the following
individuals who, in addition to
the members of the Working
Group, participated in meetings,
provided data, reviewed
documents, and made other
contributions to the planning
effort:

• Navdeep Anila, Office of

United
States Senator Maria
Cantwell
• Tom Danaher, Public Affairs
Officer, Naval Base Kitsap
• Linda Danforth, District
Director, Office of
Congressman Adam Smith
• Captain T J Dargan, Chief of
Staff, Naval Base Kitsap
• Nick Demerice, Managing
Director, Community and
Financial Assistance,
Community Trade and
Economic Development
• Commander Tom Hinman
(Ret.),
Military Advisory Board,
Hire
America’s Heroes

• Ralph Ibarra, Special

Projects Coordinator, WA
State Department of
Veterans Affairs
• Bud McKay, Public Affairs
Officer, McChord Air Force
base
• J.C. Matthews, Public Affairs
Officer, Fort Lewis
• John Norgren, Legislative
Liaison and
Community Relations, Fort
Lewis
• Erin Nielsen, Program
Manager, Washington
State Procurement
Technical Assistance
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 DRAFT 02-19-09
Military Cluster Working Group Roster

Co-Chair – Carol Evanoff, Resident Director, Lockheed Martin, Strategic Weapons

Facility Pacific for the Fleet Ballistic Missile Program

Co-Chair – Rear Admiral James Symonds, Commander, Navy Region Northwest

Kim Abel, former Mayor, City of Port Orchard

Alfie Alvarado-Ramos, Deputy Director, WA State Department of Veterans Affairs

Sheila Babb, Deputy State Director, Office of Senator Patty Murray

Brice Barrett, Executive Director, Pacific Northwest Defense Coalition

Gary Brackett, Manager, Business and Trade Development, Tacoma-Pierce County

Chamber of Commerce Ryan Dumm, District Representative, Office of Norm Dicks

Chris Elwell, Executive Secretary, Seattle/King County Building and Construction

Trades Council, AFL-CIO Jan Marie Ferrell, Deputy Director, WA State
Community, Trade, and Economic Development

Lloyd Hara, Commissioner, Port of Seattle

Colonel Shane Hershman, Joint Base Director, McChord Air Force Base

Sally Hintz, Northwest Washington Director, Office of Senator Maria Cantwell

Richard Huling, Public Affairs Officer, Naval Station Everett

Captain Robert Klapproth, United State Coast Guard

Thomas Knight, Deputy Garrison Commander, Fort Lewis

Donald Leingang, Executive Director, USO Puget Sound

Dr. Ellen Lettvin, Assistant Director, University of Washington Applied Physics Lab

RDML John Lockwood (Ret.), Director, Marketing and Business

Development, Todd Shipyards Pat McClain, Government Affairs, City of
Everett

Bill McMeekin, Executive Vice President, Extended Learning, Pierce College District

Wendy Miles, Director of Military and Continuing Education, Olympic College

Commander Louis Mueller, Acting Executive Officer, Naval Station Everett

Dick Muri, Councilmember, Pierce County

Jim Nall, Executive Director, Paladin

Colonel Rick Patterson (Ret.), Deputy Chief of Staff, WA State Military Department

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Commander Christopher Philips, Commanding Officer, Navy Recruiting District
Seattle

Michelle Power, VA Puget Sound

Troy Quick, LMMS Program Manager, Lockheed Martin

Paul Roberts, Councilmember, City of Everett

Jay Rodne, State Representative, Washington State Legislature

Caldie Rodgers, President/CEO, Marysville-Tulalip Chamber of Commerce

Mark San Souci, Regional Liaison for Military Families Northwest, Defense-State
Liaison Office

Lenny Simpson, Manager of Service Delivery-Adult, Workforce Development

Council Snohomish County Louise Stanton-Masten, President/CEO, Everett Area
Chamber of Commerce

Bill Stewart, Executive Director, Kitsap Economic Development Alliance

Dwight Thompson, Mayor Pro Tempore, City of Lake Forest Park

Chris Townsend, Special Assistant to the Director, Puget Sound Partnership

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19-09

Mission Support. The Working Group determined that as an overarching goal,

the Military Cluster S trate gy mu st provide mission support for the mili tary
pre sen ce in the re gion. Mission sup port includes any activity that makes
it easier for the military to achieve strategic national defense objectives
and for individual bases to play their expected roles.

A key component of mission support is strengthening the relationship

between military installations and their host communities. The importance
of community relations is a distinguishing characteristic of the military
cluster not found in other economic clusters. On one level, the quality of
base- community relationships affects local policy decisions that impact
current military operations, as well as future base location and investment
decisions. The health of base-community relationships also has a direct
impact on the quality of life of military personnel and their families, and
ultimately impacts retention rates for military personnel. A repeated theme,
reflected in the strong focus of this Strategy on providing support to military
personnel and their families, is that individual retention decisions get made
“at the kitchen table.” Enhancing the well-being of military families is key
to retaining the region’s bases and the contributions they make to our
economy and overall community health.

Base Realignment and Closure (BRAC). The Working Group chose to not directly
address BRAC issues. Military personnel are restricted from discussing the
topic. The civilian Working Group members noted that the best way to
prepare for future BRAC rounds would be to focus on collaborative efforts
to ensure ongoing support of the military cluster in our region. The group
noted that many of the specific strategies proposed in this document will
help proactively prepare the region for any future BRAC deliberations

ISSUES, CHALLENGES, AND OPPORTUNITIES

The Strategy Map on page 7 illustrates how dollars and workforce flow through
the military cluster and identifies related issues that affect these economic
interactions. Background research and analysis (presented in the Appendix of
this report), together with discussion by the Working Group and with other
key stakeholders, helped the Working Group to better understand the
challenges and opportunities faced by the region, and to translate these
issues into the four action-oriented Initiatives presented beginning on page 8.

Issues, Challenges, and Opportunities Related to the Puget Sound

Community
General Awareness of Military Cluster Benefits and Challenges. In initial meetings,
Working Group members enumerated a broad range of economic and
community benefits the military cluster brings to the Puget Sound Region,
along with a host of challenges the military faces in the region. There was
general agreement that many communities and stakeholders not in the

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room are not as aware of military-related benefits, issues, and challenges. To
address this challenge, outreach and communications Strategies were
developed to increase general awareness of military issues in the community.

Encroachment. The encroachment of non-military development into areas

surrounding military installations is a major challenge for military operations
in the region. Encroachment often impacts the ability of military installations
to continue efficient operations and meet long-term strategic objectives. This
is an issue that will be ongoing as long as the region’s population and
economy continues to grow. The Working Group prioritized Strategies that
proactively address encroachment and other factors that infringe on the
ability of individual bases to fulfill their missions.

Employment and Education Opportunities for Military Personnel and their Families. When
military families locate in a new community, they frequently encounter
challenges in transitioning spouses into new jobs and children into local
schools. The Working Group identified Strategies to better facilitate the
transfer of professional certifications and education requirements between
states, better allowing for families of military members to quickly integrate
into their new community.

Professional and educational success will enhance these families’ quality of

life and support the retention of personnel in the region’s military.
Similarly, legislation is called for that addresses employment challenges
for Reservists and Guard members, and for veterans seeking to transfer
military skills and experience into the civilian work world.

A key Strategy involves building on the Military Family Friendly Employment

Partnership, which has been active in Snohomish County since September,
2007. The Partnership helps military family members find employment and
helps local employers tap into a well-qualified workforce pool.

Issues, Challenges, and Opportunities Related to the Puget Sound Economy

Opportunities to Increase Contracting Activity. According to 2005 data, Washington
State ranked 7th in the nation in terms of the number of military
personnel. However, in terms of overall Department of Defense (DoD)
procurement, Washington State ranked 19th nationwide in FY 2006. This
difference in ranking indicates that the State’s firms are not capturing a
proportionate share of non-base-related national defense contracts. This may
constitute a growth opportunity for Washington State’s economy.

Complex Defense Contracting System. The procurement process for Department

of Defense contracts is extremely complex, particularly for smaller
businesses and subcontractors without the resources to dedicate in-house
staff for contract applications. In addition, the network of support
organizations that provide technical assistance for procurement activities is

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dispersed and stretched thin. As a result of these challenges, many
businesses do not pursue defense contracts and many are not aware of the
business opportunities available. The Working Group developed Strategies to
better coordinate support organizations, including the region’s Procurement
Technology Assistance Centers and economic development and workforce
development entities; expand awareness of contracting opportunities;
provide more technical assistance and training in procurement processes;
and create more centralized points of contact for defense contracting activity
in the region.

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7
INITIATIVES
The following pages present four Initiatives developed by the Working Group
to enhance the workings of the Puget Sound’s military cluster. The Initiatives
are:

1. Understand and Support the Military Mission in Washington State and

at Individual Bases

2. Enhance Employment Opportunities for Military Spouses and

Veterans

3. Improve Education Opportunities for Military Personnel, Spouses, and

Children

4. Use Business Attraction, Retention, and Expansion Strategies to Expand

the Region’s Defense Contracting Industry

Each Initiative identifies a Champion or Co-Champions who will serve as the

point persons for the effort. The Permanent Statewide Military Working
Group formed in Initiative I will function as the primary coordinating body
overseeing efforts organized under the four Initiatives.

Each Initiative consists of multiple supporting Strategies that are designed to

be action- and results- oriented, each with identified leads, timelines for
completion, and resource requirements. Many Strategies or groups of
related Strategies incorporate reporting requirements to the Permanent
Working Group to maintain coordination across the region and assure
accountability for accomplishing these tasks as agreed upon.