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AIA Urges Congress to Pass Permanent Research and Development Tax Credit Legislation

"Aerospace and aviation generate productivity equal to nearly 15 percent
of the nation's gross domestic product and support approximately 11 million
domestic jobs," Douglass said.

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) and veteran Senate
appropriator Barbara Mikulski (D-Md.counties.

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Although
the standard R and D credit equals 20 percent, the aerospace industry has
traditionally qualified only for an "alternative credit" of less than four
percent, an anomaly based on an outdated base period of defense spending from
1984 to 1988. A 2001 study
by the General Accounting Office found that the R and D tax credit, which
Congress has renewed 13 times since 1981, stimulated one-third of real
economic growth in the U. Voters sent a strong and unequivocal message that they
value their local services and want their State leaders and elected
officials to do the same.

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Congress should therefore
act on the conclusions of its own investigative agency by passing S.cacities.

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industries produce the world 's
most reliable aerospace systems and subsystems, we face a trans-Atlantic
marketplace in which government entities underwrite approximately 30 percent
of Europe's civil aeronautics R and D.
Thanks to the close partnership the LOCAL Coalition crafted last
year between the Governor, legislature and our allies in local
government and public safety, voters approved Proposition 1A by a
resounding 83%.

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AFGE Applauds Bipartisan Privatization Reform Package

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1736, correct
this inequity by mandating Alternative Incremental Research Credit rates and a
new elective alternative credit formula.org
League: www.

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Two pending bipartisan bills in Congress, S. during the late 1990s.

Joint Local Government Statement in Response to Governor's Press Conference on Pension Reform

Working
together, we can reach a solution to this complex and important issue. We believe that such a partnership between
the State and local government can yield similar strong results in a
pension reform solution that is fair to employees and taxpayers.

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The tax credit expires on December 31, 2005, and according to AIA
President and CEO John Douglass, a permanent renewal of the benefit would spur
innovation and create jobs in all segments of the aerospace industry.
American aerospace and aviation workers would benefit dramatically from
the long-term investment incentives created by R and D tax credit . It
is our goal to continue the strong and productive partnership we have
developed with him.

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ARLINGTON, Va.627 and H.

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) for their provision in the subcommittee
markup of the FY06 bill that would allow a federal employees to compete for
his or her job, if it were up for privatization or contracting-out review. No one can deny that the Bond-Mikulski reform package is
all about promoting competition for the American people and producing savings
for the taxpayers.

CSAC and the League have been working tirelessly on pension reform
proposals since the Governor announced his initiative.

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Tabling the
initiative allows more time for all concerned parties to help shape an
effective solution; one that protects dedicated public employees and
California taxpayers. We embrace
the need for reform and will continue to work closely with the
Governor's Office and Legislature to achieve this reform.

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, The Aerospace Industries
Association of America, the nation's largest organization of national defense,
space and civil aviation manufacturers, is urging Congress today to pass
bipartisan legislation to extend the federal research and development tax
credit on a permanent basis.
The Bond-Mikulski package would ensure that, in all federal agencies for
functions of ten or more employees:
* Federal employees can compete in defense of their jobs before their
work is given to contractors;
* Federal employees can submit their most competitive bids (Most
Efficient Organization, MEO, plans); and
* Contractors must at least promise savings sufficient to offset the
presumed costs of conducting often expensive privatization reviews.
"AFGE has been at the forefront of working with Congress to ensure that
the privatization process is level and just ," Gage added.

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R.
Finally, Douglass maintained that a permanent extension of the federal R
and D tax credit would recognize the central role of the manufacturing
community in pioneering cost-efficient and innovative products. 627 and
H.R. "It is a big
win for taxpayers and all Americans who depend on the federal government for
important services.

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"America's economic growth and national
security depend extensively on the work of companies in many segments of
applied research that would advance under a permanent federal R and D tax
credit, including space-based communications, air transportation , and military
operations. This year, we are
confident we can have the same success on pension reform.org

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It
speaks volume for AFGE's efforts that the Senate Subcommittee has, on a
bipartisan basis, already begun that effort. Last year, by working together, we were able to
bring all parties together to pass monumental reform that protects
funding for vital local government services .

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Founded in 1919, the Aerospace Industries Association (AIA) is the premier
trade association representing the nation's manufacturers of commercial,
military and business aircraft, helicopters , aircraft engines, missiles,
spacecraft, materiels, and related components and equipment

We are pleased that our alternative recommendations are helping to
provide a basis for broadening pension reform discussions.

For a copy of the CSAC and League pension reform proposals, visit
the associations' Web sites:
CSAC: www.

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Bond-Mikulski provision levels playing field for federal employees in job
competitions

WASHINGTON, The American Federation of Government
Employees (AFGE) today praised Senate Transportation, Treasury, the Judiciary ,
Housing and Urban Development, and Related Agencies Appropriations
Subcommittee Chairman Christopher "Kit" Bond (R-Mo.
"This bipartisan effort is an excellent beginning towards dealing with the
multitude of problems and inequities in the controversial OMB Circular A-76
privatization process ," said AFGE National President John Gage."

AFGE is the largest federal employee union, representing 600,000 workers
in the federal government and the government of the District of Columbia.

News Editors/Political Writers

SACRAMENTO, Calif. We appreciate
the Governor's responsiveness to the concerns expressed by local
government regarding reform of the current public pension system .
We plan to once again unify our partners in local government to
work closely with the Governor and legislature on this important
reform.

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csac.

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"
Douglass also pointed out that while U. These reforms would lower the
disproportionate financial risks that confront many aerospace companies as a
result of their high R and D investments to validate the performance of new
technologies before they can enter production. 1736 before the end of the year. "The House of
Representatives recently voted in favor of an amendment to that chamber's
version of this funding bill that would give lawmakers an opportunity to
rewrite the privatization process so that it would be fair and accountable.--- -The League of
California Cities, California State Association of Counties and
California Special Districts Association issued the following joint
statement in response to Governor Schwarzenegger 's press conference
today pertaining to pension reform:

The Governor's willingness to draw upon the expertise of law
enforcement and local government shows great leadership.