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Tech-Talkin' Governors: The 2002 State of the State and Budget Addresses

January 11, 2002

Each year, SSTI looks at the various addresses given by the nation's governors at the beginning of the year. While the aftermath of September 11 weighs heavily in the content of this year's State of the State addresses, the important role tech-based economic development plays for strengthening state and local economies during a recession has not been overlooked by many governors.

Not all news is positive, however. As nearly every state confronts less-than-anticipated revenues and the resulting budget deficits, tech-based economic development initiatives face fiscal challenges.

Over the next few weeks, the SSTI Weekly Digest will highlight those portions of the speeches concerning programs, policies, and issues immediately affecting the tech-based economic development community. This week's addresses include:

California

Gray Davis, 2002 State of the State Address, January 8, 2002

http://video.dot.ca.gov/state/index.html

  • Proposes new Cabinet-level Labor and Workforce Development Agency to reorganize and streamline the 34 different programs in 13 different agencies presently totaling $4.6 billion.

Colorado

Bill Owens, 2002 State of the State Address, January 10, 2002

http://www.state.co.us/owenspress/2002_state_of_state.htm

  • Requests continued funding to wire rural Colorado through the Multi-Use Network.

Florida

Jeb Bush, Education Budget, January 8, 2002

http://sun6.dms.state.fl.us/eog_new/eog/library/releases/2002/january/

ed_funding-01-08-2002.html

  • Total funding to community college system increases by 6.3 percent to $1.2 billion. The budget also includes a 2.5 percent tuition increase for community colleges.
  • $5 million in workforce development is proposed to advance nursing and teaching programs in community colleges. In total, the budget proposes to increase workforce development spending by $25 million to restore community college funding to pre-Special Session levels and commits an additional $19 million in General Revenue to the community college program fund.

Idaho

Dirk Kempthorne, State of the Budget Address, January 9, 2002

http://www2.state.id.us/gov/mediacenter/speech/sp02/20020BudgetMsg.html

  • Despite budget cuts across state agencies, recommends the continuation of the Promise Scholarship program by adding $3 million to fully support the second year of the program.

Minnesota

Jesse Ventura, Budget Request, January 10, 2002

http://www.finance.state.mn.us/

  • Five percent cut beginning in FY 2003 for the University of Minnesota and Minnesota State Colleges and University system.
  • $12.5 million (a 10.6 percent increase) added to the financial aid program to help safeguard students from tuition increases.

New York

George Pataki, 2002 State of the State Address, January 9, 2002

http://www.state.ny.us/sos2002text.html

  • Access to capital — a need voiced by traditional small businesses and high-tech, start-up enterprises — will be addressed by adding $100 million in new funds to the Excelsior Linked Deposit Program this year, which provides low cost loans to small and start-up businesses across the state.
  • Proposes an investment of $250 million this year for initial funding of five Centers of Excellence in Ithaca, New York, Rochester, and Syracuse and on Long Island.

South Carolina

Jim Hodges, Budget Address, January

http://www.state.sc.us/governor/ then click on "Budget 2002-2003"

  • Maintains general fund appropriations for higher education and recommends they be exempt from any mid-year cut.
  • Recommends $30 million to properly fund scholarships at their anticipated level.
  • Recommends $244 million in bonding authority be granted to those higher education projects previously funded, but which only received brief funding.
  • Proposed Education Lottery Allocations:
    • $40 million for Endowed Chairs at South Carolina Research Universities to strengthen the state's universities, while providing a major incentive for attracting high-tech, well-paying businesses. Non-research universities will receive technology money to enhance their ability to provide well-prepared graduates to fill these high-tech jobs of the future.
    • $61 million to provide free tuition for technical colleges and two-year institutions.
    • $45 million to fund additional LIFE Scholarships increasing from $3,000 to free tuition plus $300. This will be an additional $2,000 scholarship for a maximum benefit of $5,000.
    • $4.1 million to provide a $3,000 HOPE scholarship for entering college freshmen who do not meet the LIFE criteria, but have a B average.
    • Continue to reward the state's brightest high school students and ensure they pursue their college education in South Carolina — $4 million from lottery proceeds to enhance the Palmetto Scholarship level to $7,000.

West Virginia

Bob Wise, 2002 State of the State and Budget Address, January 9, 2002

http://www.state.wv.us/governor/2002sos.htm

  • Creation of a new group called the Governor's Ambassador Council, made up of business leaders from across the nation who have strong connections to West Virginia. This council will advise the state on strategic issues, make sure that the state's strengths are known to business decision makers, and provide objective external reviews of business policies. The council also will help develop a plan to encourage talented young people to stay in West Virginia or move there from other states.
  • Proposed a tax credit to help people pay off student loans so that new graduates will be encouraged to stay, or to move to West Virginia.
  • Proposed $3 million for the Sunny Day Fund to provide financial flexibility to attract new businesses and create new jobs.
  • To draw in venture capital to encourage entrepreneurship and create jobs, the West Virginia Investment Management Board is ready to move forward with a $25 million plan to attract $75 million in federal funds for a total of $100 million in new investment capability for businesses in West Virginia.
  • Seeks to join the 46 states that allow local governments to attract private investment in their communities through tax increment financing.
  • Proposes to replace existing unproductive incentives with four new tax credits for economic opportunity, manufacturing, electric generation, and research and development.
  • In addition to the state's new tax credit for research, proposes a sales tax exemption for research and development activity which will cut the material costs of West Virginia researchers by 6 percent.
  • Governor's budget will provide funding to match a $9 million grant from the National Science Foundation to support biomolecular science and information technology research efforts at Marshall University and West Virginia University.
  • The higher education research budget will be increased by 250 percent.
  • Introducing legislation to permit universities to partner with the private sector to attract and keep outstanding faculty.
    West Virginia