Letter of support for public-private partnerships addressing Maryland highways

Letter of support for public-private partnerships addressing Maryland highways

March 21, 2019

Mr. Greg Slater, Administrator
Maryland State Highway Administration
707 N. Calvert Street
Baltimore, MD 21202

RE: MDOT SHA P3 Program to address congestion along the I-495 & I-270 corridors

Dear Administrator Slater:

The Greater Washington Board of Trade is the region’s premier business organization and has represented all industry sectors in Greater Washington for 130 years. We strongly support the use of a Public Private Partnership (P3) to finance the Maryland Traffic Relief Plan for I-270 and I-495, as proposed by the Maryland Department of Transportation (MDOT).

Our regional transportation network should be safe, reliable, affordable, and convenient, and this project would help us achieve these goals. The difficulty with which people and cargo move around the region has a large impact on quality of life and economic productivity. Unfortunately, commute times are a major source of stress and productivity loss in Greater Washington. According to INRIX’s 2018 Global Traffic Scorecard, our region is currently the world’s 19th most congested metropolis, with commuters spending 155 hours lost in congestion.

We need a mix of safe, convenient, and clean transportation options and we feel this project is critical to the region’s economic future and quality of life and needs to be part of any comprehensive solution. Priced managed lanes on I-495 and I-270 will reduce congestion delays and allow for an extensive, region-wide, express-bus system on those lanes, as called for in the Metropolitan Washington Council of Governments’ approved “Visualize 2045” long-range plan. The P3 approach appears to be the only viable way to finance an investment of this magnitude.

In closing, we fully support the use of tolls and a Public Private Partnership to deliver priced managed lanes on I-495 and I-270 and will continue to advocate for innovative solutions like this to the daunting transportation challenges facing our region.

Sincerely,

Jack McDougle
President and CEO
Greater Washington Board of Trade

Press Release on Government and Academia Groups Joining Smart Region Movement

Regional leaders sign agreement for smart city tecnology

The agreement to establish the Greater Washington Smart Region Movement was signed by (from left to right) Chuck Bean, Executive Director of the Metropolitan Washington Council of Governments; Jack McDougle, President and CEO of the Greater Washington Board of Trade; Dr. John C. Cavanaugh, President and CEO of the Consortium of Universities of the Washington Metropolitan Area on March 19, 2019.

Greater Washington launches the most comprehensive cross-sector partnership for smart regional growth in the United States

Business, government, and academic communities have formed the Greater Washington Smart Region Movement to create the nation’s leading digitally enabled region.

WASHINGTON, D.C., March 19, 2019—Today, the Greater Washington Board of Trade has entered into an agreement with the Metropolitan Washington Council of Governments (COG) and the Consortium of Universities of the Washington Metropolitan Area to form the Greater Washington Smart Region Movement, the most comprehensive cross-sector partnership for smart regional growth in the United States.

The three founding groups collectively represent hundreds of organizations including governments, companies, investors, nonprofits, and academic institutions. These organizations will contribute in various capacities toward building a trusted, secure, and inclusive digital infrastructure (otherwise known as “smart city” technology) for the public good. This will enable the deployment of smart technologies to drive inclusive economic growth; attract companies, talent, and investment to help diversify the economy; and improve the daily lives of all our citizens.

“Our mission is to be the nation’s leading digitally enabled region,” explained Jack McDougle, president and chief executive officer of the Greater Washington Board of Trade. “We’re pioneering a model that gives everyone a voice but isn’t all talk—we’re focused on outcomes and headed for real, investment-ready projects that are driven by the community’s needs.”

City leaders around the world are embracing smart technology to make their jurisdictions safer, cleaner, more productive, and more livable. This includes a wide range of smart applications, such as public WiFi, air pollution warnings, and smart traffic lights to better manage traffic flow and make the region’s streets safer. A recent study from McKinsey Global Institute found that smart city projects can reduce commute times by 15-20 percent, reduce crime by 30-40 percent, improve emergency response times by 20-35 percent, increase citizen engagement, and help buildings and people use water and energy more efficiently, among many other benefits.

“Cities that choose to embrace smart technologies are better equipped to drive improvements in critical initiatives including public safety, transportation, connectivity, health services, and disaster management,” explains Tony Lewis, board chairman of the Board of Trade and region vice president of Verizon. “The Board of Trade’s partnership with the Council of Governments and the Consortium of Universities is designed to create a productive, competitive environment for industry while driving the very best solutions for meeting the needs of the people.”

“This Smart Region Movement is an exciting opportunity for us to build on our region’s capacity for innovation, make new investments in our infrastructure, and deliver better services to all of our constituents,” said Robert White Jr., COG Board of Directors chair and District of Columbia councilmember. “While we’ve already implemented several smaller-scale smart initiatives, this effort will help us think bigger about our shared needs, reduce taxpayer costs by making joint purchases and working with local businesses, and plan for these technologies to work seamlessly across our jurisdictional borders.”

The founding organizations will now engage in a comprehensive planning process over the next several months. Through this process, they will work with local jurisdictions to define the operations and governance structure needed to objectively prioritize projects, secure funding, select suppliers, and ensure outcomes for citizens. These investments will be planned to narrow the digital divide and ensure that all communities benefit.

“When a city becomes a hard place to live because infrastructure and municipal services are overburdened, the consequences are not felt equally. Many can and will pay a premium to get around those barriers, and those who cannot pay get squeezed out,” explains Rosie Allen-Herring, president and chief executive officer of the United Way of the National Capital Area. “We care about making Greater Washington a smart region because it can level the playing field to make it easier for all people to get to work, access the internet, and live in a safe neighborhood.”

Greater Washington’s technology sector has grown in recent years, earning the region a reputation as an emerging technology hub. The Greater Washington Smart Region Movement aims to support that trend and drive solutions to long-term development challenges.

John Garvey, chair of the Consortium of Universities and president of the Catholic University of America, explained, “We have a tremendous opportunity to demonstrate to the rest of the country—and to the rest of the world—that the academic community can work with the regional businesses and governments to ensure that the necessary and prepared talent is present and available to meet the needs of a smart region.”

“I am very pleased to see this broad scale public-private initiative across Greater Washington to create a smart region,” said Dr. Sokwoo Rhee, associate director for Cyber-Physical Systems Innovation at the National Institute of Standards and Technology (NIST) and leader of the Global City Teams Challenge (GCTC) for SMART Cities/Regions. “This team’s comprehensive vision, coupled with their determination to collaborate across the public sector, private sector, and academia is well aligned with the goal of the Global City Teams Challenge (GCTC) program to encourage collaboration between local governments and technology innovators at scale.”

***

Media Contacts

Lindsey Longendyke
Communications Director
Greater Washington Board of Trade
(980) 322-9904
LindseyLongendyke@bot.org

Steve Kania
Communications Manager
Metropolitan Washington Council of Governments
(202) 962-3249
skania@mwcog.org

Sally Kram
Director of Public and Governmental Affairs
Consortium of Universities of the Washington Metropolitan Area
(202) 331-8080 x160
kram@consortium.org

About the Greater Washington Board of Trade

The Greater Washington Board of Trade is the region’s premier business organization and has represented all industry sectors in the District of Columbia, suburban Maryland and Northern Virginia for 130 years. Pro-business and non-partisan, the Board of Trade uses its tremendous convening power to strengthen our regional economy. It is focused on advancing technology and innovation in the region to drive inclusive economic growth and livability.
www.bot.org

About the Metropolitan Washington Council of Governments

The Metropolitan Washington Council of Governments is an independent, nonprofit association where area leaders address regional issues affecting the District of Columbia, suburban Maryland, and Northern Virginia. COG’s membership is comprised of more than 300 elected officials from 24 local governments, the Maryland and Virginia state legislatures, and U.S. Congress.
www.mwcog.org

About the Consortium of Universities of the Washington Metropolitan Area

The Consortium of Universities of the Washington Metropolitan Area consists of seventeen colleges and universities in the District of Columbia and contiguous counties in Maryland and Virginia that serve nearly 290,000 students.  Consortium colleges and universities represent every sector of nonprofit higher education, creating strength through its diversity of institutions. www.consortium.org

Letter of support for 5G deployment in the District

March 15, 2019

Public Space Committee
D.C. Dept. of Transportation
55 M Street, SE, Suite 400
Washington, D.C. 20003

VIA EMAIL: publicspace.committee@dc.gov

 

Dear Members of the Public Space Committee:

The Greater Washington Board of Trade, the region’s oldest business organization, urges you to approve 5G small cell deployment in the District.

5G is a game-changer. It can deliver data rates as high as 1 gigabit per second, as much as 20 times faster than 4G. Small cells are necessary to meet rising demand for data, which is projected to grow 7x by 2021.

But the implications of super-fast data go way beyond streaming videos and Snapchat filters. Just as 4G made innovative new business models like Uber and Lyft possible, 5G will unlock a new universe of services and capabilities.

A powerful example is autonomous vehicles. For cars to drive themselves, they require a super-fast cellular data network. With 5G, self-driving cars could become a reality. While we’d all like the convenience, the most important advantage is that this technology can save lives. Human choice is linked to 94 percent of serious traffic accidents; there were over 37,400 lives lost on US roads in 2016. The United States Department of Transportation estimates that over 80 percent of non-impaired incidents could be mitigated by the implementation of connected vehicle technology, which includes any vehicle with wireless connectivity capabilities.

This technology will provide enormous benefits for people and our economy safely and with little disruption to our physical spaces. The federal government has thoroughly evaluated this technology and has found that it is safe for the public. 5G small cell hardware can be inconspicuously installed in existing infrastructure such as utility poles and streetlights to blend in seamlessly with the area’s historic neighborhoods.

Overall, 5G technology is a critical step in taking advantage of 21st century economic opportunities and bringing the D.C. region to the forefront of technological progress. Thank you for considering this opportunity.

 

Sincerely,

Jack McDougle
President and CEO
Greater Washington Board of Trade

Letter of support for Arlington County’s performance agreement with Amazon

March 15, 2019

The Honorable Christian Dorsey
Chair, Arlington County Board
Ellen M. Bozman Government Center
2100 Clarendon Boulevard, Suite 300
Arlington, VA 22201

Delivered via email: Countyboard@arlingtonva.us

Dear Chair Dorsey,

With the long-term interests of Northern Virginia and the entire region in mind, the Greater Washington Board of Trade encourages the Arlington County Board to approve the County’s performance agreement with Amazon for their new headquarters.

The agreement is good for residents and all types of businesses, from restaurants to retail stores to construction companies, because it helps to make our economy more robust and resilient while catalyzing essential investments in our infrastructure.

Not only will thousands of new, high-paying technology jobs benefit our highly educated workforce, grow our tax base, and give our local small businesses a boost, they will help to diversify our economy and make us more resilient to political turbulence. The recent prolonged government shutdown is a grim reminder that we can no longer rely on just government jobs in our region. In fact, many of the office buildings in Crystal City sit vacant after Base Realignment and Closure (BRAC) cost the area thousands of jobs. In the long-run, over-reliance on government dollars has slowed our economic growth.

Amazon’s presence also helps to support Greater Washington’s reputation as an emerging hub for innovation, which benefits our entire technology sector. Other, smaller technology companies have told us that the Amazon deal will actually make it easier for them to attract and retain talent who otherwise may be drawn to Silicon Valley, Austin, or New York.

Further, the State’s incentive package will invest $195 million for new or improved transportation infrastructure throughout Arlington and Alexandria, serving all residents in these diverse, growing communities. Arlington County’s long-term plans include a projected commitment of $7 million per year for new and preserved affordable housing units, helping increase affordable housing in the county.

Amazon’s headquarters will make our economy stronger and provide tangible benefits for the people of Arlington. I encourage the County Board to approve the performance agreement for the Amazon headquarters.

Thank you for your attention and continued hard work in making Arlington a great place to live, work, and visit.

Sincerely,

Jack McDougle
President and CEO
Greater Washington Board of Trade

cc:

The Hon. Erik Gutshall

The Hon. Libby Garvey

The Hon. Katie Cristol

The Hon. Matt de Ferranti

Demystifying the Smart Region with Tom Touchet

Tom Touchet is the CEO of Smart City Media and a leading expert on how technology can revolutionize urban life. Tom’s long and impressive career in media includes producing NBC’s Today Show when it was the most profitable show in network television history and creating a New York City payphone pilot that Google recently valued as potentially more than a $100 billion market.

Today, he and his team at Smart City Media are helping cities across the country provide free Wi-Fi and digitally broadcast information to residents and visitors. He’s also an invaluable partner to the Board of Trade as we explore what smart innovation can do for Greater Washington.

The Board of Trade’s vision for a more connected, livable, sustainable, and inclusive region is exciting, but it can also raise a lot of questions. I spoke with Tom to get some answers.

 

Lindsey: It seems like everyone has their own unique definition of a “smart city.” How do you define it?

Tom: Smart cities use all types of sensors and have all sorts of programs. But at a basic level, a smart city is one that is strategically going out, collecting data, learning from that data, and making more intelligent decisions that benefit the people who live there. It’s about using technology to collect data, but then translating that data into something more like wisdom.

Lindsey: Why is this an important concept for Greater Washington? What are the benefits?

Tom: There are a bunch of reasons to do this. For example, smart cities are more competitive because they can be more productive and drive more revenue for the companies doing business there. But that’s not the most important reason.

The overriding reason is that it can helpfully lift all communities and neighborhoods. Everything else is why you should do it, but this is why you have to do it—because otherwise, disadvantaged neighborhoods are only going to fall further behind.

We all have these pocket computers that we walk around with. We have these digital systems that we can deploy across infrastructure. If we don’t use these things to help everyone make their lives a little easier, we’re fundamentally missing the most important piece of what a smart city is. And it has the capability to do that.

Lindsey: Tell me more about that. Being inclusive of everyone in the region is really important to the Board of Trade. How can smart city technology make our region more inclusive?

Tom: There’s a Harvard study that says the single most important factor in someone’s economic movement—more important than someone’s zip code, more important than if they grew up in a two-parent family, more important than whether they go to college—is whether their transportation needs are met. It’s all about whether someone can get where they need to go, from point A to point B. And a smart city can help them get there more easily and efficiently. And this really matters because a low-income person is under a lot of stress just getting their kid to childcare and putting food on the table—it’s a real problem if their transportation options are bad or difficult to navigate. Better mobility can make a profound difference.

And let’s say you make it easier for a low-income community to get around, for those people to quickly and easily access other areas. Think about what that means for the whole economy, if everyone is more connected and can be more productive.

Lindsey: But what does that look like? If I’m struggling financially, how does smart city tech improve my mobility and change my life?

Tom: Something that’s commonly misunderstood is that almost everyone has a smart phone, but not everyone can consistently connect. Getting the device isn’t that big of a challenge, but Wi-Fi is expensive, data plans are expensive.

So, how do you get to where you need to go? What is your process?

Lindsey: I look up where I need to go in Google maps, it gives me directions and travel time estimates for walking, taking a car, using the Metro, and then I make a choice…

Tom: Right. That’s a convenience you have because you’re connected. A big part of building a smart city is getting all people connected, and that’s why a lot of cities are launching free public Wi-Fi. And 5G is just around the corner. The next step is to explore new applications that let residents navigate all the major transit options without having to download a dozen apps. And then eventually this new application, because it’s reading what’s happening in the city in real-time, can direct people around crowded streets or Metro delays or whatever else would have made that journey difficult.

In other words, inclusivity needs to focus on connectivity. Being connected means having access to valuable real-time information, which helps people do things like cleanly and efficiently navigate transportation options.

Living in the digital age, that connectivity is vital because the same economic reasons we all needed to travel efficiently now hold true for all aspects of society: true economic empowerment now requires connectivity for telecommuting, tele-health care, online education, access to e-services, and so much more.

Lindsey: This feels like a huge transformation. What comes first?

Tom: Ultimately this is all about serving people, so getting feedback from those people at this stage is really important. We know what companies want in general, and we know what governments want in general. But we really need to find out what the people who live and work here want and need—what is going to make their lives better? We already know we need to fix the traffic problem, but what else?

Citizens tend to have groups that represent them, like nonprofit groups, and those groups need to be at the table. The Board of Trade is doing a great job at making sure they are.

Lindsey: As you’ve just alluded to, this is going to take a huge coalition to pull off. Can you say more on the roles that governments, businesses, nonprofits, and other groups will play?

Tom: Governments typically set the structure of a smart city program based on the needs of the people, and like I mentioned, nonprofit groups are great sources of information in that area. Governments already routinely work with nonprofit organizations in the community for this reason. Academic institutions are also important because they can help propel the learning and iteration that needs to happen—and that’s one of Greater Washington’s biggest assets. Other than maybe Boston, I’m not sure what other city can compete with our academic community.

Meanwhile, businesses need to make the business model work. That’s their job. This isn’t charity work, so there has to be a business outcome.

But we already know that connectivity, data analytics, improved services, and all the other components of a smart city have a positive return. People sometimes think that it’s scary, but really it’s a bunch of different business cases that have been proven over time, and people have made tons of money on these business cases. Don’t tell me people haven’t made money on mobile, or digital retail, or lighting, because of course they have.

The difference now is that the Board of Trade is creating a bigger marketplace for governments, companies, and communities, where companies participate for the benefit of the region, instead of companies one-by-one going out and using the city as real estate for some project. The smart region vision takes an old model that’s profit-driven and flips it so that it’s community-driven, but the profit is still there for the private sector players.

Lindsey: OK, last question. In five years, how would you know that Greater Washington has been successful? What would need to happen for you to say, “Yes, this is a smart region”?

Tom: Zero traffic. Even at rush hour!

OK… that might be a little optimistic. I’ll settle for the DC area being known globally as the successful template for leveraging technology to drive inclusive economic growth. That’s very doable with this road map.

How Technology Can Make Metropolitan Life Easier—And Why We Should Invest

Technology has many uses, but one use is particularly ubiquitous in our daily lives: it makes things easier. Want to order a pizza? Once upon a time, you had to find a phone book, look up the number for your local pizzeria, dial the number, and have a conversation with the exhausted employee on the other end. Today, “Hey Alexa, order me a pizza” does the job.

Technology has revolutionized how we do dozens of mundane, everyday activities by making them incredibly easy. Need a ride? Uber and Lyft can have a car outside your door in minutes. Splitting the tab? Venmo eliminates the need for cash. Tracking your exercise? Slap on a Fitbit. Lost? Pull up a GPS-enabled map with a voice telling you where to go. Need a very specific type of insecticide for your struggling hibiscus plant? Order it within a minute on the Amazon app.

The question that we should all be asking: how can technology make our region easier and smarter?

Technology can boost livability

We often use the term ‘livability’ to describe the ease with which someone can enjoy a good quality of life. In a highly-livable area, it is easy for the average worker to get to where they need to go, find affordable and quality housing, access municipal services, and so on.

But as metropolitan populations get bigger, life can get harder. Time stuck in traffic goes up. Ambulances and police take longer to respond. Good housing is harder to afford. Lines and processing times get longer at municipal offices.

Fortunately, we are living in an era of unprecedented technological advancement. All around the world, companies are partnering with local governments, academic institutions, and civil organizations to design and deploy smart city tech that makes urban life easier, despite high density. There is no silver-bullet solution that makes a city smart; rather, a thoughtfully-considered and responsibly-deployed collection of technologies and innovative practices work together to revolutionize urban life.

After studying cities with smart projects all around the world, McKinsey identified many compelling benefits for residents, including the following:

Better transportation

Smart city technology has the potential to cut commuting time by 15-20 percent. Sensors on public transit systems can predict maintenance needs before a breakdown and track usage so that managers can make better planning decisions. Intelligent syncing of traffic signals can keep traffic flowing. Smart parking apps can point drivers directly to an open spot. City-wide Wi-Fi can get more people online, giving them access to GPS-enabled maps, ride sharing, and other modern mobility tools.

Greener living

Residents want clean air and water, and they increasingly care about their community’s impact on the climate. Commercial and residential buildings can now use sensors to heat, cool, and light only rooms that have people in them so that we stop wasting energy on empty spaces (and save money). The transportation improvements mentioned above can also reduce emissions and air pollution. Smart water metering can identify where water is being wasted, potentially due to leaky pipes. This all adds up to a region that uses its resources more efficiently and creates as little pollution as possible.

More affordable housing

To keep housing costs reasonable, it is critical that housing supply keep pace with demand. While housing supply is mostly determined by zoning laws and the appetites of developers, digitizing and automating land-use permitting processes can speed up development. Open-source databases have also been used to identify idle land in city centers that could be put to better use.

More responsive government

Need to report graffiti or a pothole? Want to voice your support for a piece of legislation under consideration? There’s an app for that. Some cities are turning to apps to enable two-way communication with residents. Meanwhile, small businesses can save time when municipal agencies digitize processes for permitting, tax filing, and licensing.

Safer streets and neighborhoods

Smart city technology can reduce crime by 30-40 percent and improve emergency response time by 20-35 percent. Gunshot detection can improve police response times and ultimately decrease gun violence. Predictive policing and real-time crime mapping can more effectively direct police to where they are needed. Intelligent traffic signals can create clear paths for ambulances and other first responders. (Note that some surveillance technologies used by law enforcement can raise concerns regarding civil liberties. Engagement with the community during design and implementation is essential.)

Why livability matters

Smart cities are inherently more productive, making them great places to do business. (Just imagine if your employees spent 20 percent less time stuck in traffic!) They are also more attractive places to live, making it easier to recruit and retain talent. Importantly, smart city solutions can help to reduce inequality and make the local economy more inclusive. This is because easy access to jobs, housing, and amenities no longer comes at a premium.

We believe that Greater Washington has the potential to be the first smart region in the country, and that these investments are critical to our long-term prosperity. Infusing our infrastructure and municipal agencies with new technology is a huge undertaking that will require participation from a very wide range of stakeholders. Success will also depend on a supportive and comprehensive policy framework that address non-technological pieces of the livability puzzle, such as zoning and public investment.

Progress will not happen overnight, but adopting a common vision for a more livable and inclusive region can happen today, and this is only the beginning of what’s possible.

The Shutdown is Finally Over. How Can We Build Resilience?

The federal government is finally resuming normal operations after a jaw-dropping 35 days of political gridlock and dysfunction. We cannot yet quantify the full extent of the economic and psychological damage caused by the shutdown, but we know that it’s big, especially in Greater Washington. (For examples of how area companies and workers have been impacted, read our press release.)

Shutting down parts of the federal government is a bad policy-making tool, yet it’s a reality in Washington that happens occasionally. The key to building resilience for the regional economy is diversification, meaning we need more economic growth in new sectors. Diversification can also help solve longstanding development challenges and make Greater Washington more globally competitive and a better place for everyone to live and work.

The Consequences of Lopsided Prosperity

Greater Washington is prosperous. At $530 billion, it has the fifth largest gross domestic product (GDP) of all metropolitan regions in the United States.

The problem is that nearly two thirds of the region’s GDP is generated by the government, professional services, finance, and real estate. Every other business activity combined–from manufacturing to hospitality to retail–makes up only one third of our economy.

Overdependence on a few sectors has a negative impact on our growth. According to Brookings, the region ranked only 76 out of the top 100 metropolitan regions in economic growth between 2011 and 2016. The Metropolitan Washington Council of Governments expects that job growth will outpace the national average over the next 30 years, which is good news, but we believe that the 1.1 million new jobs they anticipate still falls short of the region’s potential and need.

Growth in government spending has grown at the same pace as private sector growth in the Washington Metropolitan Area since 2001. (Source: Bureau of Economic Analysis, 2017)

Slow and lopsided economic growth limits the funds that can be invested in new infrastructure, amenities, and services, which in turn prevents the region from reaching its full potential as a world-class metropolitan area.

Three Ways to Encourage Economic Diversification

Fortunately, we are seeing momentum, especially in the technology sector. Micron and Amazon announced last year that they will make multi-billion-dollar investments in the region, while Virginia Tech unveiled plans for its Innovation Campus in Alexandria, Virginia.

This is a good sign, but we must resist the urge to get comfortable. There are important actions that we must take to encourage further growth in technology and other sectors.

First, Greater Washington must be highly livable, meaning it cannot be an insurmountable challenge for workers to enjoy a good quality of life. Second, our economy must be inclusive, with jobs for people of different socioeconomic and educational backgrounds. This would give more people a chance to make a good living while expanding our workforce pipeline.

There are many ways to achieve greater livability and inclusivity, but here are three tactics that we are thinking about:

  1. Get smart with digital infrastructure. As our region gets bigger, our infrastructure, amenities, and natural resources become strained. Innovative, smart city technology can help us operate more efficiently. For residents, this can result in a wide range of benefits including shorter commutes, faster response times from police, cleaner air, or better housing. Cities at the forefront of this trend are likely to be better places to live relative to cities that fail to take advantage of what digital infrastructure has to offer.
  2. Increase variety of workforce development programs. A recent study by LinkedIn found that Greater Washington has an overabundance of trained workers in fields like politics, economics, communications, and law, but a scarcity of trained workers in other fields, such as healthcare, retail, and manufacturing. This indicates that there is room for improvement in how our training and education programs prepare local workers for the jobs available here. Closing this skills gap will help more people increase their personal prosperity and grow industries that are struggling to fill open positions.
  3. Develop housing and transportation options that benefit all our citizens. For area residents who can’t afford a car, their employment options are limited to where they can get to with public transit. In Greater Washington, that can cut down someone’s options by as much as 92% if the goal is to maintain a commute of 45 minutes or less. Improved public transportation can connect more workers to the jobs that need them. Meanwhile, workers should be able to afford housing near where they work, and this would take pressure off our transportation systems.

Greater Washington’s lopsided economy is a liability, but common-sense solutions focused on making the region more livable and inclusive can lead to a healthier mix of prosperous industries. Real change will take time, but we can start by thinking outside the government box.

 

America’s Longest Government Shutdown Punishes D.C.-area Businesses and Workers

Economic shocks are felt throughout the region as the government holds back pay for contractors and nearly 150,000 federal workers.

 

PRESS RELEASE, WASHINGTON, D.C.—The federal government shutdown, now the longest in our nation’s history, is putting unsustainable financial strain on contractors and the households of nearly 150,000 federal workers in the region, as well as the local businesses that serve them. In response, 24 business organizations strongly urge the President and congressional leaders to reopen the federal government as soon as possible. (Scroll down for full list.)

“The companies we represent as membership and civic organizations are proud to serve the federal government, its employees and contractors. We are eager to get back to work,” said Anthony Williams, chief executive officer and executive director of the Federal City Council. “Over 300,000 Washingtonians work directly for the federal government. Thousands more work in the service sector, relying on those workers to be customers for dry cleaning, taxis or gym classes. The impact of a federal shutdown spreads far and wide within our community.”

With the spending patterns of so many area workers disrupted, restaurants are taking a hit. Kathy Hollinger, president and chief executive officer of the Restaurant Association Metropolitan Washington, said, “The impact of the shutdown is severe and far reaching. Our local business community and economy are directly impacted by this furlough, and our local restaurants have reported a twenty percent average decrease in sales with some losing as much as sixty percent in sales.”

Companies that operate and manage apartment and office buildings across the region are concerned about their tenants and residents. “As with previous shutdowns, many of our members are supporting their apartment building residents who have been furloughed by offering a variety of options, including waiving fees for late rental payment and deferring charges,” said Margaret “Peggy” Jeffers, executive vice president of the Apartment and Office Building Association of Metropolitan Washington. “For office building owners and managers who lease space to Federal agencies and government contractors, the uncertainty of payment will soon become a substantial hardship which will have a ripple effect across the property management industry. Small businesses that lease space in and around our office buildings are already suffering – businesses which range from cafes and restaurants to parking lots and dry cleaners.”

Restaurants and property management companies are only two examples of the many types of companies that are seeing their cash flows dwindle. The impacts of the government shutdown reach most corners of our economy, directly or indirectly.

“From transportation providers and ride share companies to retailers of all sizes, the effect is noticeable,” explains Vincent B. Orange, president and chief executive officer of the DC Chamber of Commerce. “Those that participate in the federal procurement process, including non-profit service organizations, are waiting to receive federal grants or contract payments and are now trying to think of innovative ways to earn and recover those dollars. These local firms use resources to pay staff, provide social services and research and keep their doors open. The insecurity that this shutdown has caused, coupled with the loss of productivity and revenue, impacts the business community as a whole.”

Destination DC, the official destination marketing organization for the nation’s capital, is continuing to encourage business and leisure travel with its “DC is Open” campaign. Elliott Ferguson, president and CEO of Destination DC, said, “The reality is that the longer the shutdown continues, the more we have to counteract a negative perception about Washington, DC, especially globally. Business travel related to government work is impacted, as are the experiences of those coming to visit some of our nation’s greatest cultural institutions. Tourism is a $7.5 billion industry for Washington, DC, so the shutdown has potentially serious economic ramifications.”

The impacts of the shutdown stretch from the District into Maryland and Virginia. “Approximately 172,000 Maryland residents are currently impacted by the shutdown,” explained Christine Ross, president & CEO of the Maryland Chamber of Commerce. “Each bi-weekly payroll for which these residents are not paid results in $778 million of lost wages.”

“As the government shutdown continues, we hear from our members that the adverse consequences continue to grow in Maryland,” said Georgette “Gigi” Godwin, president and chief executive officer of the Montgomery County Chamber of Commerce. “Small businesses are unable to receive assistance from the SBA. Grants, contracts, and payments for work already performed continue to be delayed. Federal rulemakings are at a standstill and hundreds of thousands of federal employees and contractors go without pay.”

“Businesses across Northern Virginia partner with the federal government and the contracting community every day to serve our nation and support our economy,” said Julie Coons, president and chief executive officer of the Northern Virginia Chamber of Commerce. “While the shutdown is particularly harmful to our region’s government contracting community and its workforce of roughly 375,000, it is hard to find an industry in Northern Virginia that is not impacted by the prolonged shutdown. Northern Virginia’s economy is a highlight in our region and beyond – as our businesses continue to weather this uncertainty, the impact will unfortunately extend beyond just our region.”

Though the Metropolitan Washington area has the highest concentration of federal workers of any metropolitan area, the government shutdown is inflicting serious costs on the entire country.  Anthony Williams explains, “The national economy will lose billions of dollars as a result of this shutdown. Taxpayers can no longer rely on the services—like their parks and museums—that they fund with their hard-earned dollars. Critical upkeep and maintenance can’t be completed, which leads to higher costs down the road. Food is going uninspected. Air traffic controllers and TSA employees are operating under stress without pay. The longer this shutdown lingers, the more of a threat it poses to our nation’s economy.”

Companies at all stages of growth rely on federal government services that have no substitute. Jack McDougle, president and chief executive officer of the Greater Washington Board of Trade, said, “From small business loans to permits to data, the federal government provides a wide range of benefits that help American companies succeed. Our economy depends on the cooperation of the private and public sectors, and when one ceases to function, the other can’t continue business as usual.”

***

Area Business Organizations Urging the Federal Government to Reopen Now

Apartment and Office Building Association of Metropolitan Washington
Arlington Chamber of Commerce
Central Fairfax Chamber of Commerce
Central Maryland Chamber
DC Building Industry Association
DC Chamber of Commerce
Destination DC
Falls Church Chamber of Commerce
Federal City Council
Gaithersburg-Germantown Chamber
Greater Bethesda Chamber of Commerce
Greater Reston Chamber of Commerce
Greater Silver Spring Chamber of Commerce
Greater Washington Board of Trade
Greater Washington Hispanic Chamber of Commerce
Hotel Association of Washington, D.C.
Loudoun Chamber of Commerce
Maryland Chamber of Commerce
Montgomery County Chamber of Commerce
Mount Vernon Lee Chamber of Commerce
Northern Virginia Chamber of Commerce
Prince George’s Chamber of Commerce
Prince William Chamber
Restaurant Association Metropolitan Washington

Press Contacts:

Lindsey Longendyke
Communications Director
Greater Washington Board of Trade
980-322-9904
lindseylongendyke@bot.org

Kevin Clinton
Chief Operating Officer
Federal City Council
kclinton@federalcitycouncil.org

Danielle Davis
Director of Communications
Destination DC
202.789.7046
danielle@washington.org

Holly Hicks Dougherty
Executive Director
Mount Vernon Lee Chamber of Commerce
hollydougherty@mtvernon-leechamber.org

Akidah H. Felder
Director of Communications
Apartment and Office Building Association of Metropolitan Washington
202.296.3390 ext 241
AFelder@aoba-metro.org

Elaine Gilligan
Director, Marketing & Communications
Northern Virginia Chamber of Commerce
703.752.7521
egilligan@novachamber.org

Ginanne M. Italiano, IOM
President & CEO
The Greater Bethesda Chamber of Commerce
(301) 652-4900
gitaliano@greaterbethesdachamber.org

Raj Kudchadkar, J.D., M.P.P.
President and CEO
Central Maryland Chamber
raj@centralmarylandchamber.org

Eden Raskin Jenkins
Member Services Director & Policy Advisor
Restaurant Association Metropolitan Washington
media@ramw.org

Erika Wadlington
Director, Public Policy and Programs
DC Chamber of Commerce
ewadlington@dcchamber.org

Statement on the Federal Government Shutdown

From Jack McDougle, President & CEO of the Board of Trade:

“Not only is the government shutdown ineffective policy-making, it’s also hurting the region. Over 300,000 people in the area work for the federal government, and many of them are now missing a paycheck, with no reassurance from federal leaders when that paycheck will come. This is tough on those families, and it’s tough on the local businesses that rely on the daily spending of federal workers. It’s also discouraging tourists from visiting and spending their money here. This all adds up to enormous costs; when the government shut down in 2013, the D.C. area lost about $400 million of economic activity per week. Many of our member companies, large and small, are impacted. The Board of Trade urges members of Congress and the President to work together to reopen the government as quickly as possible.”

 

For press inquiries, contact Lindsey Longendyke, Communications Director, at lindseylongendyke@bot.org or 980-322-9904.

Five Big Ideas from the Capital Region Transportation Forum

In late November, the Board of Trade teamed up with the Greater Washington Partnership to host the 2018 Capital Region Transportation Forum. Here are five big ideas from the conversations on stage:

1. You can’t fight poverty without fixing transportation.

Poverty is complex, but according to a study cited by Virginia transportation secretary Shannon Valentine, a family’s ability to rise from poverty is most impacted by their access to transportation. Valentine explained that the area can have world-class schools and abundant jobs, but if residents can’t physically get to them, they will be left behind.

The Capital Region Blueprint on Regional Mobility, released by the Greater Washington Partnership at the forum, claims that residents traveling by transit can get to just 8 percent of the jobs they could get to by car within 45 minutes of their home. That’s not good enough. Greater Washington must treat transportation as a core social issue to reverse longstanding economic inequities across the region.

Left to right: Beth Osborne, President, Transportation for America; Shannon Valentine, Secretary of Transportation, Virginia; Pete Rahn, Secretary, Maryland Department of Transportation; Jeff Marootian, Director, District Department of Transportation

2. We need to think in systems, not projects.

Building the purple line. Rebuilding the American Legion Bridge. Connecting the VRE and the MARC trains. These are just a few of the large and expensive transportation projects named on stage.

These and other projects are important, but speakers stressed the need for leaders to step back and think of the entire system. This can challenge states’ transportation departments, which are usually “project factories,” according to Pete Rahn, Maryland’s transportation head.

Valentine noted that Virginia is attempting to shift away from a project-based approach in allocating $15 billion of investment. She described looking across all modes of transportation and thinking holistically about connecting high-traffic sites.

But transportation departments can’t work alone. Government agencies responsible for scouting sites for schools, neighborhoods, and other important community amenities need to think ahead about accessibility and, ideally, consult with the department of transportation before breaking ground. Building a school on comparably cheap land that’s removed from bus and Metro lines won’t save the community money in the long-run.

Jeff Marootian, director of the District Department of Transportation, put these new operational models in the context of our changing times, saying, “We need to think about innovation not just with respect to technology but innovation with respect to process.”

3. People want seamless mobility services

Thinking in systems is inherently more customer-centric, especially as travelers and commuters embrace new and mixed modes of transportation. Without thoughtful integration, getting from point A to point B could require several points of payment, access cards, or apps—which can inhibit travelers from pursuing the fastest, most cost-effective, and most sustainable route.

In a panel discussion on innovation and disruption, Uber’s public policy manager, Nick Zabriskie, described a digital overlay that would connect its service to public transportation. Zabriskie acknowledged that a car might not always be the best solution for customers, and a digital interface that displays all option could help users choose the best course.

Left to right: Jay Rogers, CEO and Co-Founder, Local Motors; Stephen Taylor,General Manager, Mid-Atlantic, Lyft; Nick Zabriskie, Public Policy Manager, Mid-Atlantic, Uber

4. There’s a market for $40 toll lanes

When the I-66 express lanes opened in December 2017, they were met with widespread alarm over $40 tolls at peak rush hour. There were accusations of price gauging and #highwayrobbery trended on Twitter. Many asked, “Who would pay that?”

But a year later, there is a clear market for the express lanes. Jennifer Aument, North America general manager for Transurban, shared that a typical customer is a working parent who uses the express lanes when needed to help manage their busy life. This demographic is more likely than others to use convenience services like grocery home delivery.

Nicholas Donohue from the Virginia Department of Transportation explained that paying a $40 toll won’t be an everyday choice for most people, but it’s an option that people are glad to have when they are in a pinch. (His example was picking his mother-in-law up from the airport!)

Left to right: Jennifer Aument, President, Transurban North America; Nicholas Donohue, Deputy Secretary and Director of the Office of Intermodal Planning and Investment, Virginia Department of Transportation; Gregory Slater, Administrator, Maryland State Highway Administration

If planned correctly, these toll lanes can benefit more than just the affluent drivers who can afford them. The Partnership offers six principles for “performance-driven tolling,” including that revenues be reinvested in the wider transportation network.

5. Public-private partnerships work when everyone plays to their strengths

Partnerships between government agencies, private sector companies, and investors can make it possible to successfully design, finance, and build the infrastructure Greater Washington needs on a much shorter time scale. However, there’s a right and a wrong way to structure a public-private partnership, or P3. The right structure will allow each entity to do what it does best.

Governments are accountable to their citizens and are not profit-driven. Therefore, their role should be to keep the needs of the community at the heart of the project. They should ensure environmental impacts are understood and mitigated, and that the benefits of infrastructural projects are inclusive of the whole community.

The private sector, on the other hand, is often a driving force for innovation and efficiency. That’s why several panelists held the opinion that governments should be clear about the problem they want to solve but let the private sector develop and propose solutions without heavy interference. Gregory Slater of the Maryland State Highway Administration shared that his department received simple but highly effective proposals from the private sector for a $100 million investment in 1-270 by simply asking, “Who can move the most, the furthest, the fastest?” He said, “It’s amazing what you can do when you don’t tell people what to do.”

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