SSTI Digest

Knowing that research universities are integral to the innovation in this country, states continue their efforts to build the economy by supporting efforts to move the research from the labs to the market. In our ongoing review of state activities in 2019 (see our stories on free tuition offerings, climate change and clean energy), this week we report on new initiatives launched in 2019 that were focused on commercialization of technology. The following programs represent some of those efforts. Alabama Alabama Gov. Kay Ivey participated in a ribbon-cutting ceremony in June for the state’s Invention to Innovation Center (I²C) on the campus of the University of Alabama in Huntsville. The I²C is a regional initiative that will serve as the focal point for incubation, education and support for entrepreneurs across a 15-county region in northern Alabama and south central Tennessee. The program seeks to foster, promote and accelerate the commercialization of technology-based ventures through incubation, co-working, mentorship, funding, and strategic support. The I²C is focused on stimulating the growth of both new and existing regional science and…

This week we nearly finish our state of the state coverage, save two remaining governors (Louisiana and Minnesota) who have yet to present their addresses. In reviewing the speeches for news on innovation efforts, we find education taking the main stage in Florida and Tennessee, while Alabama and Ohio’s governors are hoping to build the state’s workforce, and North Carolina, still recovering from natural disasters, wants to decrease greenhouse gas emissions and provide tuition assistance for community college. Many governors are presenting separate budget addresses, and we will continue to monitor those for news on innovation initiatives. Alabama Gov. Kay Ivey, in a state reeling from catastrophic tornado damage this week, focused on rebuilding and growing the state economy, in part through technology activities, as well as educational efforts: “As we anticipate the rising demand of the computer science field, we are continuing our efforts to enhance computer science education in Alabama. Last year, I signed legislation establishing the Alabama School of Cyber Technology and Engineering. We also secured additional funding to create the Alabama…

Alabama Gov. Kay Ivy announced the Alabama HBCU Co-Op Pilot Program to provide students at the state’s 14 Historically Black Colleges and Universities (HBCUs) with the opportunity for hands-on work experience in STEM fields as well as create greater collaboration between Alabama’s HBCUs, industry, and government. Participating students will be required to complete three co-op semesters with some of the state’s top companies in order to gain a sense of professional experience in the area of their majors. Upon successful completion of the program, students will receive a Certificate of Completion. The pilot program is scheduled to launch in early 2019.

The Appalachian Regional Commission (ARC) announced its latest round of grants for Partnerships for Opportunity and Workforce and Economic Revitalization (POWER). The 35 grants totaling $26.5 million support workforce training and education in manufacturing, technology, healthcare, and other industry sectors; invest in infrastructure enhancements to continue developing the region's tourism, entrepreneurial, and agriculture sectors; and, increase access to community-based capital, including impact-investing funds, venture capital, and angel investment streams. The awards are projected to create or retain over 5,400 jobs and leverage more than $193 million in private investment into 59 Appalachian counties. A few of the awards (with SSTI members in boldface) are highlighted here:

The ability of states to deliver the services promised to its residents relies on their fiscal soundness. With most states beginning their fiscal year in July, SSTI has reviewed the current fiscal standing for each state and here presents a snapshot of our findings. Most states ended their fiscal year with a surplus and continue to recover from the Great Recession, with a growing economy and job gains. However, they face continuing demands on their budgets, with expanded Medicaid payments and the growing opioid crisis confronting nearly every state. Such decisions affect the state’s ability to fund innovation efforts, from the amount of support available for higher education and STEM programs, to funding for entrepreneurship, and forging public private partnerships to strengthen innovation programming that the private sector cannot fully support. Our analysis found that some states that rely on the energy sector to fund their spending priorities continue to struggle, while others are already factoring in anticipated revenues as a result of new Supreme Court rulings involving gaming and online sales tax collections.

State economic growth relies on the availability of a workforce capable of filling open positions. But increasingly around the country, one of the top concerns of employers is finding the right talent to fill these roles. Beyond corporate strategies in hiring, states are increasingly developing new initiatives to keep their pipeline of talent flowing. SSTI has found a variety of new initiatives being considered around the country, from foundation support for scholarships for credentials in high-demand fields in New Hampshire to pending legislation to support, with state funding, a Pathways in Technology Program (P-Tech) in California. Alabama Earlier this month Gov. Kay Ivey announced a new initiative to help the state add half a million skilled employees to its workforce by 2025, but the plan will use existing funds to help achieve this goal. The new initiative, called Success Plus, prioritizes five areas: awareness; access and success; pathways; leadership and collaboration; and assessment and continuous improvement. It focuses largely on ways to inform the state’s residents about the increasing needs for skilled workers, make them more aware of available…

In February, SSTI highlighted several state-led efforts to address the rural broadband gap, which affects more than 30 percent of rural America who currently lack access to adequate broadband service. The states’ efforts should help revitalize rural communities by aiding small business formation and manufacturers’ expansion, and improve educational achievement/workforce training for local citizens. As some state legislative sessions wrap up, several more governors and state lawmakers have created new initiatives to address this significant issue. Alabama, Colorado and Washington provide the most recent examples of new commitments, including some reversing bans on public broadband provision when the private market fails to deliver.

In this week’s review of state budget proposals, Alabama and Arizona’s governors are proposing funding increases for higher education, while Louisiana is facing cuts due to a budget shortfall. In Hawaii, the governor is seeking supplemental funding for the Hawaii Technology Development Corp to expand its grant making capacity, while Idaho and South Carolina’s governors are seeking more money for workforce programs.

SSTI’s Tech Talkin’ Govs feature returns as governors across the country roll out their state of the state addresses. We review each speech for comments relevant to the innovation economy, and bring you their words directly from their addresses. In this second installment, we present excerpts from governors in Alabama, Colorado, Georgia, Indiana, Kansas, Nebraska, South Dakota and Washington. Workforce development and/or apprenticeship programs receive attention in all of the below excerpts. The Alabama governor said she is seeking an additional $50 million for higher education, while the Georgia governor talked about reorganizing their technical college system. In Indiana the governor is challenging the state economic development department to create thousands of new jobs and said in the first quarter the state will begin to make strategic investments to build and support more innovation and entrepreneurship through the already established $250 million Next Level Indiana Trust Fund.

As more state legislatures are coming to the close of their sessions, more state budgets are being finalized. This week SSTI takes a look at the final appropriations for Alabama, which is decreasing its innovation funding in higher ed; Florida, whose governor signed a budget after vetoing more than $20 million in STEM, higher ed, R&D and other innovation funding; Nevada, with positive news in technology-based economic development funding; and Tennessee, where the Department of Economic and Community Development’s state funding is down by more than 27 percent compared to FY 2017. Alabama Alabama Gov. Kay Ivey signed both the state’s general fund bill (HB155) and the education bill (SB129) for FY 2018. Within the state’s education budget, the Alabama Technology Network will receive $4.9 million. The Alabama Innovation Fund will receive $2.4 million – a 17.2 percent decrease from FY 2017. The fund operates two programs: a renewal program, which helps support university high technology infrastructure, and a research program, which allocates funding for commercialization and university-industry partnerships. Other efforts included in…

In the latest round of state budget proposals, TBED initiatives receive mixed reviews. Some governors are boosting funding while others in cash-strapped states are proposing cuts. Alabama Gov. Robert Bentley’s FY 2018 budget would boost spending on education, provide government workers a cost of living adjusted raise, and remove the sales tax on groceries. Notable for technology-based economic development is $2.9 million for the Alabama Innovation Fund in FY 2018, an increase of 20.1 percent from FY 2017. The fund operates two programs: a renewal program, which helps support university high technology infrastructure, and a research program, which allocates funding for commercialization and university-industry partnerships.   Additionally, the Alabama Technology Network would receive $4.9 million in FY 2018, the same as it received in the previous fiscal year. Connecticut Faced with a $1.7 billion deficit, Gov. Dannel Malloy’s $20 billion FY 2018-2019 biennial budget includes little in the way of new funding. The state’s Department of Economic and Community Development would receive $29.9 million in FY 2018 and $29.3…

Bond issues supporting higher education goals got mixed results in Tuesday’s election. A bond issue in Rhode Island to be used for the renovation and construction of the University of Rhode Island’s College of Engineering buildings was a winner in this year’s election, receiving 59.3 percent approval. The bond issue that would have created the Montana Biomedical Research Authority was not as lucky, with 56.9 percent of voters there rejecting the measure. Two other economic development measures fared well with Arkansas voters approving (65.22 percent) a referendum removing caps on state-issued bonds to help finance economic development projects and services. Alabama voters also approved (59.22 percent) an amendment giving communities the power to create zones to attract industry to the state. Other education funding initiatives had limited success. Proposition 51 in California authorizing $9 billion in general obligation bonds to fund improvement and construction of school facilities for K-12 schools and community colleges passed (59.41 percent). New Mexico voters approved authorizing $142.356 million in bond issuance for certain higher educational,…