Search

The recently approved Inflation Reduction Act with new incentives for electric vehicle ownership and energy efficiency is likely to continue a trend among states for the location of major economic development projects, a trend toward everything mega—megasites, megadeals, mega factories, and mega projects. These large-scale manufacturing projects typically feature incentives from state and local governments, such as access to shovel-ready megasites or large tax incentive packages. These new "mega" trends have raised the stakes and increased competition between states as they advocate for the bid of electric vehicle and battery companies looking to expand.

Connecticut Gov. Ned Lamont launched the Community Investment Fund 2030 (CIF), a five-year grant program of up to $875 million to foster economic development in historically underserved communities across Connecticut. Eligible projects include capital improvements as well as small business support programs that provide revolving loans, gap financing, microloans, or start-up financing.

The National Institute of Standards and Technology (NIST) is accepting applications to operate Manufacturing Extension Partnership (MEP) centers in Kentucky, Nebraska, Rhode Island and South Dakota. The NIST Hollings Manufacturing Extension Partnership funds 51 centers in all 50 states and Puerto Rico which provide experts who enhance the performance of local manufacturers. Funding awards will include almost $19.8 million to support small and medium-sized manufacturing companies in the four listed states.

A new commentary from a senior policy analyst at the Federal Reserve Bank of Cleveland examines the extent to which disparities exist between Black and whites in labor market outcomes such as levels of labor force participation, unemployment rates, and earnings. Economic inclusion trends have been studied at the national level, but this commentary takes a look at how those disparities vary within and across states with a specific look at the Fourth Federal Reserve District states of Kentucky, Ohio and Pennsylvania.

Faced with the sudden, unprecedented fallout from the COVID-19 pandemic, Gov. Ned Lamont last month launched a new resource to provide workers and businesses in Connecticut with career tools, including partnering with Indeed and workforce training providers. Last week, the Mississippi Legislature passed a bill appropriating $55 million for short-term training and support of programs for training of employees and others displaced due to the health crisis. Minnesota is partnering with Coursera to offer free courses to its workers that have lost jobs because of the pandemic. And noting the reality that many of the jobs previously held in the service industry will not recover, the Wisconsin Economic Development Corporation reported that “the first priority for recovery is to reskill and upskill these workers, and get them back to work as soon as possible, at family-sustaining wages that offer them a strong future.” These efforts are just a few of the initiatives underway across the country to address the workforce crisis.

With nearly 40 of the state governors now having given a state of the state or budget address, innovation themes continue to echo in their reviews of past accomplishments and plans for the coming year. There is a priority on education (both on teacher salaries and preK initiatives as seen in Alabama, in addition to higher education and a focus on its affordability with Connecticut proposing free tuition for community college for recent high school grads and Pennsylvania putting additional dollars into scholarships), energy, workforce, broadband and a special emphasis on distressed communities in Connecticut and Tennessee. While SSTI continues to review the addresses and features excerpts as they relate to innovation intiatives in this series, remaining speeches will be scattered over the coming weeks.

In 2019, the administrations and legislatures in many states grappled with if and how to adjust state economic development initiatives to leverage the federal Opportunity Zone (OZ) program. The actions of 12 states that implemented new activities are described below.

Democrats made some gains in Virginia’s Legislature, and in Kentucky, the governor’s seat looks to be turning over to a Democrat, but the current Republican is requesting a recanvass in the close race. If those results hold, Democratic challenger and current Attorney General Andy Beshear will take the seat from incumbent Gov. Matt Bevin, ending the state’s Republican trifecta (where one party holds the governorship and both chambers of the legislature). Mississippi’s gubernatorial seat remained in Republican control, while the gubernatorial election in Louisiana takes place on Nov. 16, and the incumbent Democratic governor there is seeking another term. Following Tuesday’s elections, the divided government in Virginia turned into a Democratic trifecta in Virginia, as Republicans lost their hold in both the House and Senate. Those outcomes and results from several state legislative elections, along with the results of several innovation-related initiatives, are highlighted below.

When Gov. Janet Mills addressed the United Nations General Assembly on Sept. 23, it was the first time a sitting governor of Maine has been asked to address the body. She had been invited as part of her participation in the UN Climate Action Summit 2019, and has made tackling climate change and embracing renewable energy key priorities of her administration. She is not the only governor stepping into the role where the federal government has backed out. Twenty five states are now part of the United States Climate Alliance; a collection of states that have committed to taking action that addresses the climate challenge and implement policies that advance the goals of the Paris Agreements, aiming to reduce greenhouse gas emissions by at least 26-28 percent below 2005 levels by 2025. Mills, along with governors from Illinois, Montana, Nevada, New Mexico and Pennsylvania, all joined this year. They are part of the increasing action seen across the states in clean energy, climate change and carbon reduction. This story takes a look at some of the 2019 developments in the states.

While higher education remains a viable path to economic advancement, adults without a postsecondary degree are increasingly benefitting from non-degree certificates and certifications, according to a recent report. As automation and technological advances demand more skills from workers in the changing economy, Strada Education Network and Lumina Foundation partnered to determine the value and impact of the growing number of non-degree credentials. They found that certificates and certifications can stand as a beneficial stand-alone credential, leading to higher full-time employment rates and annual incomes, although the findings vary among occupations and there are gender gaps across all occupations.

Reviewing another slate of governors’ state of the state and inaugural addresses reveals some recurring themes. With a focus on maintaining gains made since the Great Recession and increasing budgets, many governors are holding off on major new initiatives, but are proposing means to increase broadband access, diversify their economies, build renewable energy efforts, and increase their rainy day funds in case of an economic downturn. SSTI presents part 2 of our Tech Talkin’ Govs series, with coverage of governors in Colorado, Connecticut, Oregon, Virginia, West Virginia and Wyoming.

The ability of states to deliver the services promised to its residents relies on their fiscal soundness. With most states beginning their fiscal year in July, SSTI has reviewed the current fiscal standing for each state and here presents a snapshot of our findings.

Most states ended their fiscal year with a surplus and continue to recover from the Great Recession, with a growing economy and job gains. However, they face continuing demands on their budgets, with expanded Medicaid payments and the growing opioid crisis confronting nearly every state. Such decisions affect the state’s ability to fund innovation efforts, from the amount of support available for higher education and STEM programs, to funding for entrepreneurship, and forging public private partnerships to strengthen innovation programming that the private sector cannot fully support.

Our analysis found that some states that rely on the energy sector to fund their spending priorities continue to struggle, while others are already factoring in anticipated revenues as a result of new Supreme Court rulings involving gaming and online sales tax collections.