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JULY 2004

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OKLAHOMA SPOTLIGHT



Governor Henry Pushes
for Continued Reform

    Asked what kind of role he likes to take in corporate prospect negotiations, Gov. Brad Henry tells Site Selection, "I take a very hands-on approach in economic development, and that can entail a number of things depending on the situation." He says Vanguard's move to Tulsa "involved intensive discussions and negotiations with the corporation. In such instances, my bottom-line goal is to get across the business-friendly climate of Oklahoma, to convey what makes this great state so favorable for investment."
      Henry cites other examples of his involvement: American Airlines, Boeing, Michelin North America, Good-year, Quad Graphics, Cardinal Glass, all of which have announced substantial recent investment in Oklahoma. Although he calls the state "an easy sell" in part because of its low-cost business climate, Gov. Henry wants to encourage more such corporate conversations through other means as well.
      One positive trend helping those efforts is the regional collaboration taking shape through the 20-county Tulsa Area Partnership and the recently formed 10-county Greater Oklahoma City Partnership. Combined, the two metros contain the state's five fastest-growing counties as well as two of the shortest average commute times in the nation for cities with a population above 250,000.
      Another collaborative effort was the 100-plus-member Economic Development Generating Excellence (EDGE) project, which formed in August 2003 and recently issued a number of recommendations for improving the state's economic development.
      "A number of the EDGE recommendations already have been implemented," says Henry. "This year, for example, lawmakers enacted an EDGE initiative to fund a backlog of endowed chairs for higher education." In November, Oklahoma voters will decide on several EDGE proposals, including a tobacco tax increase for major health care initiatives and the elimination of the capital gains tax on Oklahoma-held property held for five years or longer.
      During the spring 2004 legislative session, ended May 28, Henry pushed for a pay raise for teachers, workers' comp reform and tort reform. Asked if it was difficult to shepherd all those initiatives at once, he says, "There are always challenges in the legislative process that necessitate intense negotiations to reach a consensus. Thankfully, difficulties do not inevitably mean impossibilities."
      The workers' comp reform measure did not come to pass, but Henry has appointed a task force on this "complex issue," and is confident that panel's analysis will produce "solid recommendations for the Legislature to take up next session." Asked which of the three reforms he hears the most about from corporate executives, he says, "All three are important and of obvious interest to business, but what I hear time and time again from corporate executives are questions about education and health care. Business leaders recognize that a strong education system and accessible health care promote economic development in a myriad of ways. That is why I have made both issues top legislative priorities."
      But industry attraction is always a leading priority too, and Henry says the aerospace, food and logistics industries continue to view Oklahoma with more than passing interest.


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