Response to the Gathering Storm Report

1. Response to the Gathering Storm Report Paul J. Kostek VP Career Activities 2 September 2007

2. Agenda • Legislative Response • Presidential Response • Congressional Hearings

3. Gathering Storm Recommendations • Ensure that the United States is the premier place in the world for innovation • Sustain and strengthen America’s commitment to long term basic research • Increase America’s talent pool by improving K-12 math and science education • Develop, recruit and retain top students, scientists and engineers from US and abroad

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

5. COMPETE • The first legislation addressing the Gathering Storm Report to be implemented is: • HR 2272 America Creating Opportunities to Meaningfully Promote Excellence in Technology, Education, and Science Act (COMPETES) • Signed by the President in August

6. Details • Increased STEM spending • Recruiting more STEM teachers • Refining skills of current teachers • Improving STEM programs • Providing access to lab and hands-on science experiences

7. COMPETE Titles • OSTP • NASA • NIST • NOAA • DoEnergy • DoEducation • NSF • General Provisions – Sec Commerce

8. Agencies Receiving Funds • NSF Education and Human Resources Directorate • Noyce Scholarship – recruitment of STEM majors to teaching • Department of Education funding • Development and implementation of college courses to a concurrent STEM and teaching certification • Department of Energy • Use staff of national labs to as a resource to provide support, mentoring and hands-on experience for teachers and students

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

10. Pending Leg cont • Comprehensive Immigration Reform Proposals • HR 1645 – STRIVE Act • Reps Luis Gutierrez (D-IL-04) and Jeff Flake (R-AZ-06) • Introduced – 27 March 2007, Referred to Judiciary and Homeland Security • S 1639 – Border Security, Economic Opportunity and Immigration Reform Act • Sen Edward Kennedy (D-MA) • Introduced – 18 June 2007 • Cloture vote defeated (46-53) – 28 June

11. Pending Leg cont • Key High Tech Immigration Reform Proposals • S 1035 – H-1B and L-1 Visa Fraud and Abuse Prevention Act • Sens Durbin (D-IL) and Grassley (R-IA) • Introduced – 29 March 2007 • S 1083 – Securing Knowledge, Innovation and Leadership (SKIL) Act • Sen John Cornyn (R-TX) • Introduced – 10 April 2007 • HR 1930 – Securing Knowledge, Innovation and Leadership (SKIL) Act • Rep John Shadegg (R-AZ-03) • Introduced – 4 June 2007, Referred to House Judiciary Committee • HR 2538 – Defend the American Dream Act • Rep Bill Pascrell (D-NJ-08) • Introduced – 24 May 2007

12. President’s Initiative • President’s American Competitiveness Initiative • Purposes - To strengthen America’s economy and global leadership by encouraging entrepreneurship and innovation. • Research and Development – To generate the knowledge and tools needed to create new technologies by increasing Federal support for research and development in the physical sciences and engineering and by modernizing and making permanent the Research & Development Tax Credit • Education and Training – To strengthen America’s knowledge-based, innovation-driven economy by improving K-12 math, science and technology education and the teaching of key analytical, technical and problem-solving skills • Immigration Reform – To help attract and retain the best and brightest high-skilled workers from around the world in order to increase productivity, improve international competitiveness and create high-paying jobs in the United States. • Pro-Growth Economic Policies – To help cultivate a culture of entrepreneurship and innovation by reducing taxes and regulatory burdens and by strengthening protections for intellectual property. • Cost Estimate - $5.9 billion in FY 2007 and more than $136 billion over ten years

13. Congressional Hearings • Workforce Globalization and Off-shoring Hearings • House Science and Technology Committee • Hearings on the Globalization of R&D and Innovation • 12 June 2007 • Series of 4 hearings being organized by Ron Hira

14. What’s Happened Before? • 1989 NSF Future Scarcities of Engineers and Scientists • Lead to similar push – by 1991 the Peace Dividend kicked-in and engineering unemployment grew • Congress spent more time investigating NSF than passing legislation • Difference this time – Globalization

15. What Others Think • Succeeding in the Global Economy A New Policy Agenda for the American Worker – Authors: Aldonas/Lawrence/Slaughter – Sponsor The Financial Services Forum • Calls for a new policy agenda with innovations to facilitate adjustment by workers, communities and firms

16. Adjustment Policies - Individuals • Combine Unemployment insurance and current Trade Adjustment Assistance program into a single Integrated Adjustment Assistance program • Wage insurance • Portability of health insurance • Assistance with geographic relocation or establishing a new business • retraining

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

18. Adjustment Policies- Communities • Federal insurance to allow communities to insure their tax base against sudden economic dislocation • Identify certain communities facing pressures from international competition as Global Economic Development Platforms eligible for trade preferences, tax benefits and federal financing

19. Adjustment Policies - Firms • Allow credit against income taxes for the marginal increase in expenses incurred in extending internal education and training facilities to workers outside the firm and students at local community colleges • Expand programs for certification under international standards (lean and quality) • Safeguards in trade agreements to provide time and incentive to respond to international competition

20. Conclusion • COMPETES is a step in the direction to address issues raised in the Gathering Storm report • We still need to address what happens to engineers and scientists in the marketplace and maintaining their competitiveness

21. Resources • Succeeding in the Global Economy available at: www.financialservicesforum.org • IEEE-USA Website – ieeeusa.org