SSTI Digest

Steve Bazinet has been hired as executive director of the Maine Center for Enterprise Development.

In the midst of a national economic downturn, coupled with stagnant to little growth in wages for even college-educated individuals, state efforts to build a qualified workforce and attract industries in emerging fields that pay above-average wages are crucial to ensuring economic growth.
 
A recent report on income trends issued jointly by the Center on Budget and Policy Priorities and the Economic Policy Institute finds that one in five U.S. families has a lower income today than they did at the start of the decade. Analyzing state-by-state income trends over the past 20 years, the report also finds a long-standing trend of growing inequality between families in the wealthiest income bracket and those in the middle- to lower-income brackets. In fact, while incomes have declined by 2.5 percent among the bottom fifth of U.S. families since the late 1990s, the data indicates that incomes have increased by 9.1 percent among the top fifth.

Three states recently wrapped up their 2008 legislative sessions, resulting in the passage of operating and capital budgets for the upcoming fiscal year. State lawmakers approved funding for new and existing TBED initiatives aimed at diversifying the states' economies through increased investments in energy programs, higher education research initiatives and science, technology, engineering and mathematics (STEM) fields. 



South Dakota

Lawmakers agreed to Gov. Mike Rounds’ recommendation of a one-time appropriation of $3.8 million for construction-related expenditures and $887,000 in operating costs to supplement an $8 million grant for a high speed data network connecting universities and research centers across the state (see the Dec. 12, 2007 issue of the Digest).

 

The legislature also supported a bond proposal for science facility and laboratory upgrades at the state’s six public universities. HB 1085 authorizes the South Dakota Building Authority to finance up to $74.5 million through the issuance of bonds for projects that are part of an overall strategy to boost the state’s research capabilities.

 

The fiscal year 2009 approved budget includes $25.4 million in total funds for the Division of Economic Development within the Department of Tourism and State Development, the same level requested by the governor. The recommendation for the Division of Research and Commerce is $4 million from the general fund, and the South Dakota Science and Technology Authority is slated to receive $19.2 million in other funds, a slight increase over FY08.



A $3 million increase was approved for the state's four postsecondary technical institutes -- $2 million for program enhancements and equipment purchases and $1 million for maintenance and repairs. Gov. Rounds opposed the measure and criticized lawmakers for providing funding for the technical institutes while rejecting his proposal of $2.9 million for the third year of the Classroom Connections program, which provides laptop computers to high school students, reports the Associated Press. Lawmakers also rejected the governor's proposal for a mobile computing environment for the state university system and failed to pass a bill that would require the Department of Education to develop a framework for a high school for the 21st century with project-based curriculum in STEM fields.



A bill to provide a 2-cent tax reduction for biodiesel blended fuel supported by the governor was passed by the legislature. Gov. Rounds has until March 17 to veto the bills.



Utah

Lawmakers passed the FY09 budget and FY08 supplemental appropriations last week, providing additional funds for the Utah Science, Technology and Research Initiative (USTAR) and directing any remaining funds from last fiscal year to the governing agency. The USTAR Governing Authority is slated to receive $19.3 million in general funds, which includes $11 million for research teams and $4.9 million for Technology Outreach. An additional $2.5 million is included for a one-time expenditure for USTAR research teams and $12 million is earmarked in the capital budget for USTAR research buildings. Another $6.9 million is included in the Public Education budget to establish USTAR Centers, a program to extend the school year for math and science teachers.



Lawmakers also passed SB 103, providing more than $20 million to the state's institutions of higher education from the Education Fund for FY 2008-09 enhancements, according to the Utah Daily Chronicle. This includes funding to advance math and science fields, promote regional economic development, improve laboratories, and hire more science faculty. Additional higher education initiatives slated for funding within the budget include:

A complete description of this opportunity and others is available at http://www.ssti.org/posting.htm.



South Dakota State University is creating a new office of technology transfer and is hiring a director to lead this new office. Some of the responsibilities for this position include working with inventors to file invention disclosures and to determine commercial potential; marketing intellectual property and managing the intellectual property protection process; developing training programs; ensuring compliance with policies and procedures relative to technology transfer and commercialization; and drafting and reviewing agreements to advance research opportunities. An MBA, MS, MA or PSM degree in an appropriate field is required.

Just as several states have announced projected budget shortfalls, at least three governors have revealed stable fiscal conditions for the coming year with proposed funding to support new and expanded education and research initiatives.

 

South Dakota

Gov. Mike Rounds unveiled his fiscal year 2009 budget recommendation to lawmakers last week, which includes funding for construction and operation of a high-speed data network connecting universities and research centers across the state. The High Speed Research, Education and Economic Development Network is a dim-fiber optic solution that will enable all six universities, the underground laboratory at Homestake Mine, University Center, EROS data center, and state government to share massive amounts of research data with scientists worldwide by utilizing the highest network speeds available, according to the governor’s press office.



The bulk of the construction costs - $8 million - is provided through a grant from the Great Plains Education Foundation. Gov. Rounds is recommending $3.8 million in FY09 general funds for remaining construction costs and $887,000 in operating costs. SDN Communications will build the network and provide $10 million in incentives for state broadband needs. Overall, the project represents a $30 million investment over 20 years.

 

Gov. Rounds said in a press release that the effort will help the state to achieve its goal of becoming a recognized leader in research and technology development under the 2010 initiative, an aggressive economic development strategy that focuses on tourism revenues, entrepreneurship, and R&D (see the Oct. 31, 2003 issue of the Digest).

 

The governor’s recommendation for higher education also includes a $65 million bond proposal over 25 years for science facility and laboratory upgrades at the state's six public universities. The bonds would be paid for with $2.3 million annually in state general funds and $2.3 million from student tuition and fees.

 

Additionally, the Regent’s budget recommendation includes ongoing funding for South Dakota Opportunity Scholarships and a slight increase in funding for the South Dakota School of Mines and Technology, which specializes in undergraduate and graduate education with an emphasis on science and engineering.

 

Utah

Focusing on raising academic standards across the state, Gov. Jon Huntsman Jr. is asking the legislature to approve $11 million in ongoing funding to be distributed among three initiatives: extended instruction in math and science, establishing a Science, Technology, Engineering and Mathematics program, and the Utah Science, Technology and Research (USTAR) high schools – currently in the planning phase. Overall, the governor is recommending $23 million in ongoing and $41.5 million in one-time funding for teacher recruitment, facilities and new and existing programs.

 

In support of the Engineering and Computer Science Initiative at the state’s institutes of higher education, Gov. Huntsman is recommending $2 million to produce engineering and technical graduates that will meet the needs of Utah businesses.

 

The USTAR initiative – created by the legislature in 2006 to leverage the state’s research universities in creating and commercializing technologies – would receive $25.4 million in FY09, which includes an additional $5 million for research and commercialization efforts in energy development. Gov. Huntsman's FY09 budget is available at: http://governor.utah.gov/gopb/budget.html

 

Wyoming

Referring to the state’s FY 2009-10 biennial budget at a news conference as “stable rather than skyrocketing,” Gov. Dave Freudenthal is asking the legislature to approve a significant portion of funds anticipated from the federal government to be used for alternative energy research and technology development. Beginning this month and continuing over the next several years, Wyoming is slated to receive $550 million in Abandoned Mine Lands funds following renewal of the Abandoned Mine Land Reclamation program by Congress.

 

Gov. Freudenthal recommends directing $17.4 million to fund critical research efforts at the University of Wyoming School of Energy Resources, $1.2 million for clean coal and carbon sequestration, and $10 million to the State Land and Investment Board for county road and bridge construction costs associated with the proposed coal-to-liquid plant. In anticipation of the federal government delaying transfer of these funds, the governor recommends allocating $28.6 million in general fund reserves for the aforementioned projects.

 

The governor also announced that two of the state’s critical higher education funds providing scholarships and faculty positions should reach their fully funded levels in 2008 – the Hathaway Endowment and the Excellence in Higher Education Endowment Fund (see the March 14, 2005 issue of the Digest). Gov. Freudenthal’s budget recommendation is available at: http://ai.state.wy.us/budget/index.asp

Gov. Mike Rounds recently announced that South Dakota will join a national partnership, led by many of the country's leading information and communication technology (ICT) companies, to improve science and technology education and the skill set of the state's high-tech workforce. The Partnership for 21st Century Skills, an ICT advocacy organization, will advise the state on designing curriculum that meets the needs of software, electronics, networking, telecommunications and Internet-based companies. South Dakota is the fifth state to partner with the organization, which will begin a full assessment of the state's K-12 and higher education system later this year.

 

Gov. Rounds has created the P21 Advisory Council, a new advisory body, as part of plans for the organization. The 20-member council includes leaders from South Dakota businesses, universities, the governor's office and the state legislature. Council members will help translate the partnership's framework for 21st century education into policies that will address the specific needs of the South Dakota ICT economy.

 

The partnership will augment the governor's efforts to improve STEM education through South Dakota's 2010 Education Initiative, begun in 2004. That initiative has already taken several actions towards preparing students for high-tech careers, including a state scholars program that connects schools to local businesses, a statewide virtual high school program and a renewed focus on improving the effectiveness of state technical institutes. In addition, the state has set the goal of providing every student with a laptop by 2010. South Dakota offers a one-to-two match to district investment in the program. As of this fall, about 25 percent of high schools will receive laptops, according to an Associated Press report.

 

The partnership hopes that by cooperating with state governments to reform public education, it can improve the skill set of state workforces. The advocacy organization includes many of the country's largest ICT employers, including Apple, AT&T, Cisco Systems, Dell, Intel, Microsoft and Verizon. States, such as South Dakota, that join the partnership's State Leadership Initiative receive assistance in applying the Partnership's educational framework, which includes skills related to ICT technologies, and financial literacy and entrepreneurship.

 

This framework has already been employed in North Carolina, West Virginia and Wisconsin in cooperation with the Partnership. Massachusetts joined earlier last month. North Carolina, the first state partner, has instituted a number of framework-related initiatives since joining in 2005.  These include a program for high school students to attend in undergraduate courses, a survey of innovative teaching methods, and program that allows high school seniors to apply their accumulated knowledge to a research project.

 

Read more about the Partnership for 21st Century Skills at: http://www.21stcenturyskills.org/index.php

South Dakota recently announced it is reorganizing its programs to support entrepreneurs and high-tech start-ups. Instead of offering assistance to new firms through small, targeted programs, the state will reallocate the funding for these smaller programs into a larger fund with fewer restrictions on how that money can be spent. The change will allow the state greater leeway to assist expanding businesses, many of which were not eligible for the existing support programs. Mike Youngberg, finance manager of the Governor's Office of Economic Development, believes the change in tactics will help the state target higher-paying, high-tech jobs through its support programs and help retain its high-tech businesses.



Earlier this month, the South Dakota state legislature voted to end two smaller programs that offered funding to start-ups and their investors. The programs were created in 2004 and 2005 as sub-funds of the state's Revolving Economic Development and Initiative (REDI) Fund. South Dakota's Entrepreneur Support Program provided loans of up to $50,000 to help entrepreneurs begin building their business and seeking other forms of capital. This program targeted start-ups at the earliest stages of business formation and focused the state's efforts toward new, rather than expanding, businesses. The other cancelled sub-fund, the state's Capital Investment Entity Program, encouraged investors to increase their investment in South Dakota companies by offering a four-to-one match up to $1 million. This approach, however, required the participation of angels and venture capital investors, which can be scarce -- not only in South Dakota, but in most areas outside of Silicon Valley, Route 128, and a few other select metropolitan areas.



Funding for the eliminated programs will be reserved for the larger REDI Fund, which has fewer restrictions on the nature and amount of loans that can be offered to attract and retain new businesses. The fund and its sub-funds resulted in 22 loans in 2006, totaling more than $10 million. The South Dakota Office of Economic Development's most recent annual report says the REDI Fund, along with its sub-funds, have helped companies create more than 33,178 jobs in South Dakota over the program's 20-year lifetime.



Find out more about the South Dakota REDI Fund at: http://www.sdreadytowork.com/business/financing/REDI.asp

South Dakota State University named Teresa McKnight as the first permanent director of the Innovation Campus at SDSU, the university's new research park.

The University of South Dakota appointed Terry Young as the director of research and development, a newly created position.

The South Dakota Biotech Association (SDBIO) is seeking an executive director to manage and coordinate its daily operations, communications initiatives, government relations, member services, and marketing. The executive director will establish a yearly budget and determine funding sources, develop a strategic plan for growth and expansion, and carry out duties, as set by the board of directors. A bachelor's degree is required; an MBA or J.D. degree is preferred. Background experience with government or business also is preferred. More information on this opportunity and others is available through the SSTI Job Corner at http://www.ssti.org/posting.htm.

William Even was named South Dakota's new economic development director.

Trisha Batra was named executive director of Absolutely! Aberdeen, an economic development group serving the Aberdeen, S.D., area.