Jim Searcy, executive director of the Economic Development Association of Alabama (EDAA), recently spoke to the Birmingham Business Alliance’s (BBA) Governmental Affairs Committee about EDAA’s legislative priorities, workforce and the importance of the 2020 Census. After his visit to the BBA, we caught up with him to share further thoughts on these topics and more.

Birmingham Business Alliance (BBA): What are EDAA’s legislative priorities in 2020?

Jim Searcy: Both the Jobs Act and the Growing Alabama Tax Credit are set to “sunset” this year. Both pieces of legislation provide incentives that are critical to Alabama’s continued economic development success. The Jobs Act is a sustainable “pay as you go” incentive that has proven very effective in the recruitment of new investment to Alabama and the expansion of existing industry.

The Growing Alabama Tax Credit has created a mechanism for local economic development agencies and organizations to more efficiently invest in site development and improving infrastructure as a means of becoming more economically competitive.

In addition to ensuring these programs are extended, EDAA is committed to ensuring the caps on these programs are increased. Both the Jobs Act and the Growing Alabama Tax Credit have demonstrated their effectiveness and remain essential tools for economic developers in their efforts to improve the state’s economy.

The Historic Preservation Tax Credit (HPTC) has proven to be an excellent tool for economic and community development. EDAA is committed to making this credit permanent. The HPTC has had a dramatic impact on communities of all sizes and in all parts of the state.

BBA: How do economic development and public policy intersect?

JS: Successful economic development efforts create wealth in communities which provides resources to communities. Those resources can be utilized when implementing successful public policies to improve education, public safety, recreational opportunities and a host of other enhancements that improve the quality of life for the public. Additionally, the growth fostered by a robust economy creates opportunities for creativity in addressing a community’s future needs.

A solid economic foundation leads to a more stable community and the ability to address public policy proactively. In too many instances public policy is dictated by a lack of resources or the necessity of addressing chronic problems. Effective economic development can provide a community’s leadership with the ability to implement a vision for the future and be proactive in policy formation.

BBA: You said that work at the local level drives economic development. Why is that?

JS: Companies don’t locate in states. Companies locate in communities. Alabama has a very effective economic development agency in the Alabama Department of Commerce. Their objective is to have a prospective company consider Alabama as a location for their operation. However, ultimately the company decides to locate in a city or town in Alabama. Consequently, the local economic development organization and the community’s leadership is responsible for their community’s viability as the optimum location.

Economic development is a process rather than an event and preparation to be successful is an essential part of the process. Possessing developed industrial and commercial sites, adequate transportation infrastructure and a highly trained workforce are critical to economic development success. All these variables are controlled at the local level and without vision, leadership and commitment, efforts to attract and expand an economic base is challenging.

BBA: You mentioned that the biggest economic development impediment in Alabama is workforce. Why is that, and what can be done to solve that problem?

JS: The availability of a quality workforce has always been a driving force in a company’s decision to locate a facility. This is true regardless of the industrial sector. With record unemployment, the ability to quantify the presence of a skilled workforce is essential to any local development effort. Alabama is not unique in its challenges to provide a quality workforce. The issue is prevalent throughout the country. However, Alabama is aggressively working to address this issue.

Alabama’s worker training agency, AIDT, is recognized as one of the best in the country and much of Alabama’s success can be traced directly to their efforts. Given the current labor market, it is incumbent upon Alabama to demonstrate the ability to provide a “pipeline” of workers with sufficient skills and abilities to meet the demands of today’s economy and the economy of the future. Establishing Regional Workforce Councils, adapting K-12 curriculum to better address the needs of industry and identifying creative approaches to improve Alabama’s worker participation rates are necessary efforts to confront this issue.

BBA: The Census is an example of when public policy and economic development intersect. Why is the Census so vitally important in 2020? Why are the stakes higher?

JS: Alabama faces the prospect of experiencing a significant reduction in the allocation of federal funds that would impact transportation, health care, education and a host of other variables crucial to Alabama communities. Additionally, a substandard response to the Census could impact Alabama’s representation in Washington, D.C. – in addition to the negative economic ramifications, an undercount of Alabama’s population could result in a loss of a Congressional seat.

It is imperative that we increase participation significantly in 2020. As a state, we have struggled in past decades to obtain an accurate count. Our failure to fully participate in past Censuses has been troublesome. The potential for economic harm and a loss of political representation makes the 2020 Census critical for every Alabamian.