SSTI Digest

Geography: Delaware

States scramble to negotiate final budgets; DE, LA, ME, MO, NH, VT and WA reviewed for innovation funding

With a July 1 start to the fiscal year in most states, several states that were at an impasse over their budget faced at least partial shutdowns. Last minute negotiations restarted services in both Maine and New Jersey, while Illinois, which has been operating without a budget since 2015, faces threats of a downgrade in their credit rating if a deal cannot be reached. This week we present our findings of innovation funding from seven states, including $2 million in funding for a new public-private economic development organization in Delaware, an increase in funding in Louisiana for the state’s scholarship program for higher ed, and cuts to higher ed funding in Missouri, which also saw a severe drop in its funding to the Missouri Technology Corporation. Efforts in Maine, New Hampshire, Vermont and Washington are also detailed below.

State economic development efforts shifting

Traditional economic development efforts at the state level are undergoing increasing scrutiny as budgets are being constrained. Two new studies show a shift in focus away from traditional approaches of tax incentives and reliance on major employers, to broader strategies relying more on the private sector and human capital. A report released by the Delaware Economic Development Working Group recommends shifting many of the core responsibilities of the Delaware Economic Development Office (DEDO) to a new nonprofit. And a report focused on Indiana details the decline in footloose jobs in the state despite local government investments in business attraction, indicating a reevaluation of public policy is needed, the authors contend.

New Faces in Gubernatorial Offices

Twelve gubernatorial seats were up for election Tuesday, five of which were held by incumbents seeking reelection. Four of those – Montana Gov. Steve Bullock (D), Oregon Gov. Kate Brown (D), Utah Gov. Gary Herbert (R) and Washington Gov. Jay Inslee (D) – were reelected for second terms. In North Carolina, Democratic candidate and State Attorney General Roy Cooper has a lead of less than one percent over incumbent Gov. Pat McCrory. Gov. McCrory has not conceded and the result is pending a canvass of votes, which may not be complete until November 18.

17 Governors Sign Accord to Promote Clean Energy, Economic Prosperity

A bipartisan group of 17 governors signed the Governors’ Accord for a New Energy Future – a joint commitment to support the deployment of renewable, cleaner and more efficient energy technologies and other solutions to make the U.S. economy more productive and resilient as well as spur job creation in member states. The multi-state effort will work to implement clean energy policies and initiatives in four areas: clean energy, clean transportation choices, a modern electrical grid, and plan for a new energy future. Although the accord doesn’t provide specific efforts, senior advisors to participating governors are expected to convene shortly to discuss initial steps to pursue their shared priorities and commitments according to solarindustrymag.com.

Workforce Training Takes Central Role in DE, KY, MA Budget Proposals

Many governors around the country have begun laying out priorities for the next legislative session. In the coming weeks, SSTI will review gubernatorial addresses and budget proposals related to economic development. This week, we highlight developments in Delaware, Kentucky and Massachusetts.

Budget Update: Hawaii Sets Ambitious Energy Goals; TBED Spending Approved in DE, OR, WI

Now that many governors have signed spending bills and legislative sessions are drawing to a close, the SSTI Digest will check on the status of proposals related to the innovation economy, and examine the state of technology-based economic development funding in the states. This week, we review spending bills in Delaware, Hawaii, Oregon, and Wisconsin.

Manufacturing Groups, Private Sector Tapped to Advance Delaware Workforce

Delaware Gov. Jack Markell outlined a FY15 budget proposal with further detail and funding levels for TBED priorities announced in his recent State of the State address. The budget would provide $1 million to create a faster path to degree or certificate completion in advanced manufacturing and establishes a $3 million cyber workforce initiative. Higher education institutions would be tapped as partners for the new initiatives, and also would receive an additional $2 million for federal R&D matching grants as part of the budget recommendations.

Tech Talkin’ Govs: Part III

Tech Talkin’ Govs: Part III

R&D Tax Credits in Many States Seek to Help Business Development, Innovation

A number of states recently have taken action to expand R&D tax credits and other legislation that would support innovation, commercialization and manufacturing. Hawaii, California, Maryland, Texas, and Florida have signed into law tax incentives and R&D tax credits and an R&D tax credit in New Hampshire went into effect.  The Maine legislature also passed a capital tax credit that will begin in 2014.

Massachussetts Leads, Delaware Gains in 2012 ITIF Index

The Information Technology and Innovation Foundation (ITIF) released the sixth edition of its bi-annual State New Economy Index last month. The report uses 26 indicators to assess the progress states have made adjusting to the realities of the innovation economy. Massachusetts lead in the rankings, as it has since the lauch of the index, while Delaware rose four ranks since 2010 to occupy second place. Read The 2012 State New Economy Index...

Gubernatorial Candidates Make the Case for TBED

On November 6, in addition to the presidential election, eleven state and two territorial gubernatorial contests will be decided. Seven of these races (Delaware, Missouri, North Dakota, Puerto Rico, Utah, Vermont, and West Virginia) include a sitting governor running for re-election, while the remaining six (American Samoa, Indiana, Montana, New Hampshire, North Carolina and Washington) are open races.

Tech Talkin' Govs: Part III

The third installment of SSTI's Tech Talkin' Govs' series includes excerpts from speeches delivered in Delaware, Hawaii, Massachusetts, Mississippi, and Utah. The first and second installments are available in the Jan. 11 and Jan. 18 editions of the Digest. Delaware Gov. Jack Markell, State of the State Address, Jan. 19, 2012 "Following up on the recent "Imagine Delaware' forum sponsored by the News Journal, we are finding new ways to support entrepreneurs. Over the last months, we studied best practices at entrepreneurial support centers around the country... Working with Representatives Lavelle and Bryon Short and groups like First State Innovation, we will apply what we have learned to further support emerging start-ups and growing companies in Delaware." Hawaii Gov. Neil Abercrombie, State of the State Address, Jan. 23, 2012 "Not only is it important to emphasize brick and mortar, we must also build an infrastructure for technology to meet the demands of the 21st century. This is the intellectual and social infrastructure that we must have to provide opportunities and experience for our people to become an advanced workforce that can compete in the global marketplace. "We will move forward on our Hawai'i Broadband Initiative by requesting $2.9 million to enhance online services for eHawaii.gov, advance research for transpacific fiber landing stations statewide, and initiate a 'one-to-one' laptop program for Hawai'i's public schools, to provide laptops for every student." Massachusetts Gov. Deval Patrick, State of the Commonwealth Address, Jan. 23, 2012 "... We need a unified community college system in Massachusetts. In a unified system, students would find courses specifically tailored to meet local workforce needs alongside a core curriculum that emphasizes STEM subjects and with credits that are easily transferable to another community college or a four-year college. ... "... To support this mission, I will propose in my budget to streamline the funding and governance of community colleges, and to increase overall funding by $10 million. I challenge the business community to match that new funding with an additional $10 million. I also propose to channel more state workforce training dollars through the community colleges. With this sharper focus, simpler structure, increased funding and greater accountability, community colleges can help us better prepare people for the middle skills jobs of today and tomorrow." Mississippi Gov. Phil Bryant, State of the State Address, Jan. 25, 2012 "Also, I am transmitting to the legislature the Energy Sustainability and Development Act of 2012. This will create incentives for manufacturing and industrial employers to make energy efficiency upgrades that result in significant savings, allowing them to be more competitive, retain or hire more workers, and further invest in their operations. It will create the Biomass Center for Excellence, which will be a partnership of the public, private, and education sectors to coordinate and promote biomass research, development, and manufacturing." Utah Gov. Gary Herbert, State of the State Address, Jan. 25, 2012 "... [W]e must also innovate safer and cleaner ways to extract natural resources and utilize energy. As Governor, I am calling on the private sector and our major universities to lead out! Our goal is to create an 'energy research triangle' that launches Utah into a new era of energy technology innovation!"

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