SSTI Digest

California Gov. Gavin Newsom recently released the state’s new  Jobs First Economic Blueprint, a comprehensive plan and major statewide economic initiative designed to spur sustainable economic growth on a region-by-region basis, to reflect the diverse character of the many parts and peoples of California.  Made up of 10 strategic industry sectors, including clean energy, advanced manufacturing, healthcare, agriculture and agtech, technology, and innovation, the California Jobs First Economic Blueprint will guide the state’s investments into the policies and programs that seek to create more jobs, faster and to ensure that the investments are sustainable and inclusive (including the regions’ rural, disadvantaged, or underserved communities). As such, the plan provides for: $125 million in funding to support new, ready-to-go projects that advance the regions’ strategic sectors (which includes manufacturing, construction, agriculture, tourism/recreation, the creative economy and tech), $92 million in total funding for new apprenticeship and jobs programs, of which $52 million is allocated towards new apprenticeships with a focus on high-demand sectors…

FYI This Week, a science policy newsletter from the American Institute of Physics, reported in their November 25 article Commerce aims to commit CHIPS money before Trump returns that “Commerce Secretary Gina Raimondo said … she is trying to allocate all the semiconductor manufacturing and research funds appropriated by the CHIPS and Science Act before President Joe Biden leaves office." Since Raimondo made that statement, the U.S. Department of Commerce (DoC) has announced the following CHIPS and Science Act Awards: Up to $35.5 million awarded to BAE Systems Electronic Systems, a BAE Systems Inc business unit. The award is intended to support the modernization of the company’s Microelectronics Center in Nashua, New Hampshire. Up to $23.9 million awarded to Rocket Lab, the parent company of space power provider SolAero Technologies Corp. The award is intended to help the company create a “robust and resilient” supply of space-grade solar cells that power spacecraft and satellites. The company’s facility is in Albuquerque, New Mexico. The investment is expected to create over 100 direct jobs. Up to $75 million in direct funding awarded to Absolics, an affiliate of the…

Gov. Gavin Newson of California announced that the state is approved for $1.1 billion of funding from the State Small Business Credit Initiative (SSBCI), which represents the largest funding amount that has been approved in the SSBCI program. The funding will support the launch of a new $200 million venture capital program and and will help fund small business credit support programs. The allocated amount will be equally split between the California Infrastructure and Economic Development Bank (IBank) and the California Pollution Control Financing Authority. In addition to small business loan guarantees, IBank is expected to use approximately $200 million of its SSBCI funds for a new venture capital program, which is designed to create a more inclusive venture capital ecosystem by supporting underrepresented venture capital managers; investing in underrepresented entrepreneurs and business owners; investing in geographic areas that are socio-economically disadvantaged or that receive very limited venture capital funding; and, promoting climate equity and climate justice.   According to the U.S. Department of the …

Three states — Indiana, California and Arkansas — have recently participated in international diplomacy, creating strategic connections and developing agreements to address climate change and trade barriers with the United Kingdom, New Zealand, and Canada. These recent agreements may suggest a shift toward innovation-focused diplomacy at the state level with nations across the globe. An Indiana and the United Kingdom agreement is marked by the signing of a memorandum of understanding (MOU), which developed a framework to remove barriers to trade and investment. The MOU aims to allow businesses in the U.K. and Indiana to create jobs, export, invest, and expand. Both entities are specifically interested in promoting green trade and accelerating the development of clean technologies in their regions. The U.K. says it hopes to sign more MOUs this year, and Indiana serves as a strategic first choice with its strengths in advanced manufacturing, pharmaceuticals, and renewable energy. The U.K. is not the only nation interested in signing MOUs with U.S. states. An MOU between Arkansas and Israel formed an agreement to encourage cooperation between …

Earlier this month, California Gov. Gavin Newsom released his proposed FY 2022-2023 budget, which he said “reinforces our role as the global leader in climate protection, innovation and job creation.” The budget focuses on new investments and “positions the state as a global leader in innovation and solutions to both mitigate and adapt to the changing climate.” The proposal includes billions in one-time funding from various sources over five years to advance the state’s climate and opportunity budget and provide equitable climate solutions. Additional money is proposed for innovation hubs, clean energy and more. In looking to further economic growth and job creation, the budget: restores business tax credits, including research and development credits and net operating losses that were limited during the COVID-19 Recession, and proposes an additional $250 million per year for three years for qualified companies headquartered in California that are investing in research to mitigate climate change. includes a new tax credit for businesses that opt in to develop green energy technologies (totaling $100 million per year for three years…

Several more State of the State addresses were delivered already this month, leaving just a few states yet to go and the pandemic and recovery from the pandemic, not surprisingly, continue to feature heavily in governors’ plans. Energy opportunities, tax cuts, broadband and shifts in the model for higher education are in play in this week’s review of addresses from California, Florida, New Hampshire and Wyoming. California Gov. Gavin Newsom, March 9, delivered his third State of the State address in a virtual presentation from Dodger Stadium – one of the nation’s largest community vaccination sites. Newsom called for “a path to close inequities. There is no economic recovery without economic justice.” “We have more scientists, engineers, researchers, and Nobel laureates than any other state. To keep this conveyor belt for talent moving, we will keep investing in UC, CSU, and community colleges,” Newsom said. “California has the most innovation, venture capital, and small-business investment in this country. We will keep fostering every small entrepreneur—the drivers of our GDP.” He said the state will invest in a $10 billion infrastructure program that will…

In general, the effect of the pandemic on states’ budgets due to the wave of business, retail, and commerce shutdowns, as well as other reduced economic activity across the nation, is not entirely known, or too early to forecast; however, a number of states are beginning to experience the initial impacts of a substantial downturn. With several states having already enacted their 2020-21 budgets, special sessions are expected later this year to deal with declining revenues. Others ended sessions early without a new fiscal year spending plan in place. Many are also acting quickly to help mitigate the effects of lost revenues and an increased demand for services. Some of the states’ impacts and actions are outlined below. Alaska officials report that the drop in global oil prices will likely add $300 million to the state's current year (2020) budget deficit. The Alaska Journal of Commerce reports the state Legislative Finance Division told lawmakers that the state could experience a $600 million revenue reduction in the 2021 fiscal year, which starts July 1. In Arkansas, lawmakers were called into special session to address an estimated $353 million hit to the state’s…

Two more governors have delivered their state of the state addresses over the past two weeks, with help for students taking the stage in New Hampshire while California’s governor enumerated the state’s growth and strengths, but devoted most of his remarks to the ongoing problem of homelessness. There are just a few remaining addresses, and SSTI will continue to cover the governor’s remarks and bring you excerpts of their speeches as they relate to their innovation initiatives. New Hampshire In Feb. 13 address, Gov. Chris Sununu lauded the state’s population growth, credited the state’s workforce initiatives and said the state is now ranked as the third most popular destination in the Northeast for millennials. “Last year we announced the creation of the New Hampshire Career Academy — an innovative program that allows for students in New Hampshire schools to receive a high school diploma, associate's degree, and a guaranteed job interview — all at no extra cost to the student or taxpayer. And just last week, we officially opened enrollment in the program at our community colleges. Students can start signing up now. …” “… Last year, I budgeted for…

Voters on both coasts may be asked to approve funding this year to help combat the challenges of climate change. Governors in both New York and California are proposing measures to tackle environmental issues, with New York Gov. Andrew Cuomo launching a “Restore Mother Nature Act,” which his office is calling the nation’s most aggressive program for habitat restoration and flood reduction, and California Gov. Gavin Newsom is proposing a climate budget that would invest $12.5 billion over the next five years. In New York, Cuomo’s $3 billion ‘Restore Mother Nature’ Bond Act would require approval by the voters in November. The program would reduce flood risk and revitalize critical fish and wildlife habitats by among other ways, reclaiming natural floodplains, preserving open space, conserving more forest areas and expanding renewable energy. He is also proposing a four-part electric vehicle initiative, a plan to reduce emissions from residences and commercial buildings, and a workforce development initiative. His plan also includes a new refundable, discretionary Green Jobs Tax Credit, totaling up to 7.5 percent of wages for each net new job created along with a…

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. California A standoff between the Trump administration and California centered on emission…

New Mexico Gov. Michelle Lujan Grisham became the latest governor to propose a plan for free tuition, with what has been called the “one of the most ambitious attempts to make higher education more accessible.” If approved, the plan would allow in-state students to attend any of the 29 state public colleges or universities, regardless of income. It is designed as a “last-dollar” program. If approved, it would be just the second state to offer full tuition coverage to its residents (New York offers the Excelsior scholarship, which will be fully phased in in 2020), according to New Mexico’s governor. The New Mexico program would be “an absolute game-changer” for the state, according to the governor, who said in a prepared release that higher education has been a victim of the recession and that by making college more accessible to students in the state, the state would in turn see improved economic growth, improved outcomes for workers and families, and a better trained and better compensated workforce. While New Mexico’s efforts are still in the proposal stage and Virginia’s governor has announced that he will…

Educating the next generation of workers, ensuring they will have the skills necessary for the jobs of the future and paying attention to the actions that will affect the climate are all on the agendas of the latest round of governors giving their state of the state and budget addresses. A focus on skills can be seen in addresses from governors in California, Maine, Michigan, Oklahoma and Pennsylvania. States are also continuing with initiatives to forward attention on climate change, as reflected in Maine’s climate agenda and Michigan joining other states in the Climate Alliance. California Gov. Gavin Newsom gave his first state of the state address:  “We must map out longer-term strategies, not just for the utilities’ future, but for California’s energy future, to ensure that the cost of climate change doesn’t fall on those least able to afford it.” “California needs a comprehensive statewide strategy to uplift and upskill our workers, to ensure technological advancements in AI, blockchain, big data, are creating jobs, not destroying them, and to reform our institutions so that more workers have an ownership…