SSTI Digest

Using one-time lottery surplus funds available for fiscal year 2008, Gov. Joe Manchin wants to invest $80 million in world-class research and specialized job training to propel the state toward a knowledge-based economy. The proposal was unveiled to lawmakers during Gov. Manchin’s State-of-the-State Address last week in conjunction with the fiscal year 2009 budget recommendation.



Citing a skilled labor shortage for West Virginia companies, Gov. Manchin said that to improve the workforce, the state must target higher education and workforce development investments. The governor’s plan, dubbed “Bucks for Jobs” is twofold. First, he proposes the state create a $50 million education research trust fund modeled after Kentucky’s successful “Bucks for Brains” initiative. The state’s leading research universities – West Virginia University and Marshall University – are the proposed recipients of the endowment, which will require a dollar-for-dollar match by private donations. Funds will be used to simulate world-class R&D and attract venture capital, which will eventually lead to jobs in emerging, high tech and high-wage industries, Gov. Manchin said during his address.



The second part of the plan invests $30 million in two advanced technical centers that will serve as training centers to meet the specialized needs of businesses. Federal and state workforce training programs will be coordinated into a single and comprehensive “Training Bucks” program under the plan. Additional recommendations for spending surplus lottery funds include $7.1 million to expand Allied Health programs at community and technical colleges and $2 million for the College Foundation of West Virginia to create a single source of information for preparing for and financing a college education.



To retain college graduates at a higher rate, Gov. Manchin is proposing the Promise Board develop a rule requiring recipients of the Promise Scholarship to work in the state following graduation as a condition of not having to pay back the loan. The governor’s FY 09 budget recommendation includes an additional $816,000 to the Promise Scholarship program and $660,000 to the Higher Education Grant Program to meet the statutory requirement of 2 percent growth.



The West Virginia High Tech Consortium Foundation, a technology organization focusing on the statewide, regional and national high-technology business sector, is slated to receive $235,783 under the governor’s general fund budget recommendation.



Gov. Manchin also addressed energy initiatives during his state-of-the-state speech, saying that he is committed to working toward development of clean coal technologies and the construction of clean coal power and fuel liquefaction plants.



The governor’s FY 2009 Budget Recommendation is available from the State Budget Office at: http://www.wvbudget.gov/

The Putnam County Development Authority (W.Va.) has appointed Heather Lewis as its new economic development project director.

Ernest Andrade, director of the Charleston Digital Corridor, announced he is stepping down as a city council member, effective Aug. 30.

The 82nd Annual Congress of Cities in Charlotte, N.C., elected Jim Hunt, a councilmember of Clarksburg, W.Va., as the new president of the National League of Cities. Hunt follows Washington, D.C., Mayor Anthony A. Williams.

The West Virginia Venture Connection has named John Hale as executive director.

Technology specialist David Levine, hired by Gov. Joe Manchin in March, is leaving the governor's office to become executive director of the Robert C. Byrd National Technology Transfer Center.

As rural America undergoes economic restructuring and communities strive to make the transition from traditional to knowledge-based economies, nurturing innovation is an important strategy that is helping rural areas create an environment for business growth and job creation. On July 17–19, 2005, the Appalachian Regional Commission will hold Incubating Innovation and Entrepreneurship: Supporting Business Incubation and Knowledge-Based Enterprise in Appalachia to help tech-based economic development professionals in the region to better address the issue.

West Virginia Gov. Joe Manchin signed last week legislation establishing the Department of Commerce and streamlining the support operations for the state’s economic development efforts. Senate Bill 1002, approved during the recent special session of the West Virginia Legislature, renamed the Bureau of Commerce the Department of Commerce. The bill encompasses all of the divisions, offices, boards and commissions under the former Bureau, with the exception of the Water Development Authority and Economic Development Authority – two agencies that become independent.

West Virginia Gov. Joe Manchin has appointed Nancy Sturm and Jay Cole to serve, respectively, as the state’s education technology coordinator and governor's liaison for education policy, both new policy positions.

West Virginia University’s plan to develop strong research capabilities in a number of focused areas, creating hundreds of new jobs, may be completed in half the time originally anticipated. Gov. Bob Wise announced last week a $24.4 million funding package to jump-start the implementation of new research facilities and laboratories on the WVU campus.

Implementation of the Global Grid Exchange, a state-sponsored open public computing grid in West Virginia, is underway. Hewlett Packard will provide the infrastructure technology that will power the grid, an initiative of the West Virginia High Technology Consortium (WVHTC) Foundation.

The jury's still out on the appropriate role or effectiveness of most tax credits to encourage tech-based economic development (TBED), but most politicians and economic development practitioners believe their state is at a competitive disadvantage without at least a few breaks.