The Chamber held its September Board of Directors meeting on Thursday, September 22nd, with Chair of the Board Phil Green, Chairman and Chief Executive Officer, Cullen/Frost Bankers, Inc., welcoming members of the board who attended virtually and in person. Following approval of the July meeting minutes, Phil called upon the Chamber’s President and CEO Richard Perez and Principal Staff to give an update on the progress of the Chamber’s State Legislative Agenda. The Chamber team has been gathering issues for the agenda from members through the Chamber’s Councils and Committees, and the Councils and Committees are continuing to hone issues through early October in preparation of presenting the final document to the Board at the October Board of Directors meeting.
Richard explained that in addition to several issue areas, the Chamber’s State Legislative Agenda has a general business category where we will focus on local control to ensure the state legislature does not remove opportunities for our local elected leaders to control local issues. However, as in past sessions, the Chamber will advocate for the rights of private employers to determine the best and most effective way to operate a successful business. For example, the Chamber will oppose municipal mandates on private-sector employment practices and support regulatory consistency to ensure private employers have consistent regulations across the state, rather than a mix of regulations that may differ across Texas cities or counties.
Jeff Fair, Vice President of Economic Development and Cybersecurity, covered high-level priorities for Aerospace, Cybersecurity, Economic Development, Healthcare and Bioscience, and Hospitality. For Aerospace, there is a holdover from the last session regarding reducing sales, property and inventory tax burdens. Additionally, there are two other priorities focused on air taxis. For Cybersecurity, priorities are focused on securing appropriate funding for after school programs, helping small businesses with cyber resiliency, and streamlined privacy regulatory requirements. For Economic Development, priorities are focused on state-level incentives for business development and recruiting, local economic incentives, and providing incentives for the Texas moving image industry (which is a holdover from the last session). Healthcare and bioscience priorities include increasing funding for training, research, and facilities; workforce growth; and telemedicine. Increasing mental health services is also a carryover priority from the last session. For Tourism and Hospitality, we want to protect the Hotel Occupancy Tax, secure additional funding for the Alamo Master Plan work, and ensure the continuation of the Texas Economic Development and Tourism Office.
Next Katie Ferrier, Vice President of Education and Workforce Development, presented the priorities for Education and Workforce Development. Overarching issues for public education have to do with funding; teacher workforce; and making sure we expand career, technology, and trade programs. For Higher Education, we are still gathering input from our higher education institutions, but we are concerned about funding as it relates to community colleges. We also want to protect credentials of value and expand dual credit, where high school students are attending classes in their high school but also earning college credits. Workforce development will be a huge issue for the entire state, and we are negotiating our strategy and messaging to ensure San Antonio is well represented in those conversations. Katie reinforced the evergreen issue of childcare and early childhood education, where we need to expand access to affordable, high-quality childcare and the possibility of creating employer tax credits for creating that benefit for employees.
Cacie Madrid, Vice President of Public Policy, presented Energy and Sustainability, Transportation, and Water priorities. Energy and Sustainability priorities include a carryover item from last year from CPS Energy for the support of the Municipally Owned Utility business model. Additional priorities focus on supply chain constraints; affordability, reliability and resiliency of the electric grid; and opposition to deadlines such as net zero emissions targets. Transportation priorities include protecting the extension of sunset dates for Prop 1 and Prop 7, so funding sources can be included in the TxDOT and MPO ten-year plans, and advocating for all vehicles contributing to the creation and maintenance of roads and highways. The Chamber is expecting additional legislative items from VIA later in the year. For Water, San Antonio Water System (SAWS) and San Antonio River Authority are currently updating their agendas, and we will bring those issues to the Board at a later date.
Lori Stinson, Vice President of Military Affairs and Leadership Development, presented priorities for Military Affairs, which center around Defense Economic Adjustment Assistance Grant (DEAAG) funding, state recognition of the Camp Bullis Sentinel Landscape, and incentivizing the hiring of veterans into key industries that support both national security and economic development.
Richard concluded the presentation by discussing the Metro 8 State Legislative Agenda priorities which are economic development and workforce development. The Board will also have the opportunity to approve the Metro 8 Legislative Agenda in October.
Next, City Manager Erik Walsh and Airport Director Jesus Saenz provided an update on the state of the airport. Erik mentioned that activity is up at the airport as a result of the resurgence of the airline industry and the growth of San Antonio. The airport team is implementing last year’s strategic development plan that lays out what growth looks like over the next 20 years, while also focusing on the next three – eight years. Erik reminded the Board that this is not going to be a small project, but by the end of the year, we should have cost estimates and an idea of the layout of Terminal C, as well as a potential new entry into the airport. Jesus spoke about the work to expand gates at the airport and the importance of focusing on the passenger and delivering the service people are expecting. He confirmed that there is room at our current airport to expand and the design of the building will be key. The plan is to double the footprint of Terminals A and B and the Terminal C Central Processor. Environmental approvals will happen in 2023 and construction will start in 2024 with a 2028 estimated completion date.
Erik also gave a brief update on the unified Development Code, mentioning that they have gathered stakeholder input and are going through council and committee right now. They are expecting a formal briefing October 19 and City Council adoption November 3. The City is also currently developing their state and federal legislative agendas and updating economic development policy. Finally, Erik is looking forward to sharing the results of the City’s most recent Community Survey, which will be released soon.
Following Erik’s remarks, Richard provided his President’s Update, sharing that Santos Alarcon, the Chamber’s Vice President of Finance, has accepted a position with another company and will be leaving the Chamber this week. He thanked Santos for his hard work and service over the last year. He also mentioned that the Chamber has hired a new Receptionist, Nelly Santos, who is doing a great job at our downtown office. Richard reported that the Chamber Staff has made significant and important progress on our Strategic Plan and that we look forward to briefing the Board on the plan in the next 30 – 45 days.
Richard also highlighted an audit letter from the Chamber’s San Antonio Foundation for Free Enterprise, which is a foundation that was founded in the 70’s when our Military men and women were returning from the Vietnam War. The Chamber created the Foundation to raise money to tell the story of military affairs and to help returning military feel welcome. The Foundation has historically been education-focused and has been defunct for several years; however, we are currently looking to rejuvenate it.
Richard then called on Lori Stinson to provide a Military Affairs Update, and Lori discussed the Defense Community Infrastructure Program Grant, which is $60 million that is available for communities for infrastructure support. We have applied for grant money several times and have not received it, so we are currently working with stakeholders to discuss past proposals to see where we have fallen short. Lori also mentioned that through the Military Affairs Council, the Chamber was able to highlight the Martindale Army Heliport, which is located in San Antonio and part of the Texas Army National Guard, and their important support of our military missions.
Richard also updated the Board on the Deferred Action for Childhood Arrivals (DACA), which is a program that protects young people who came to the United States when they were children and allows them to go to school and work legally. There is a current lawsuit against the program in the 5th Circuit of Appeals in New Orleans, and a ruling is imminent. We believe DACA will be ruled illegal, and that young people will not be able to work and go to school after their current permits expire. There are currently 101,000 DACA recipients in Texas, and our need for their talent is real. Once the ruling comes out, there will be a small window of opportunity for Congress to act, and we will ask our members to help us advocate for a solution for DACA recipients.
Next Richard reported on the City’s Energy Benchmarking Ordinance and reminded the Board that in November, businesses with buildings that are 50,000 square feet or more will be asked to complete EPA forms to show energy use. The first two years of the program will be voluntary and will become mandatory after that. We are advocating for voluntary for everyone, always. The Chamber has sent letters to business owners with buildings of 50,000 square feet and more and is holding meetings today and in two weeks to discuss further action and what the business community can do to help.
Richard also mentioned that last week, City Council voted to give CPS residential and commercial customers 12.6% of their July bill back as credit. Businesses and consumers will have the option of giving their credit to the REAP program to assist low income customers and with weatherization efforts. More information will be available in November. Richard provided an update on the SAWS 5-year plan and the estimated growth in our community. While there is a perception that San Antonio is water poor, we are well poised for future growth and our water sources are secure. Finally, he discussed the uptick in unionization happening across the country and that the Chamber is tracking that activity.