SSTI Digest

SSTI has reviewed another mix of state budgets as governors across the country continue to release their proposals. Some states, like California and North Dakota, are seeing cuts in the amount of money designated for TBED-related work, while others like Minnesota are in a more favorable fiscal situation and continue to fund such initiatives. Still others, like Rhode Island, are proposing new initiatives. California Gov. Jerry Brown’s proposed FY 2018 budget includes a phase out of the Middle Class Scholarship program, which the budget indicates would save the state almost $116 million by FY 2021. The program provides financial assistance for college students from families with incomes and assets up to $156,000. The governor’s recommendation is based on “the state’s overall financial condition,” the desire to provide “long-term stable growth in funding for the [University of California] and [California State University], and to maintain the broad Cal Grant entitlement for the state’s neediest students.” While the new budget notes that the 2016 budget included $22 million for UC for innovation and entrepreneurship, it…

A bipartisan group of 17 governors signed the Governors’ Accord for a New Energy Future – a joint commitment to support the deployment of renewable, cleaner and more efficient energy technologies and other solutions to make the U.S. economy more productive and resilient as well as spur job creation in member states. The multi-state effort will work to implement clean energy policies and initiatives in four areas: clean energy, clean transportation choices, a modern electrical grid, and plan for a new energy future. Although the accord doesn’t provide specific efforts, senior advisors to participating governors are expected to convene shortly to discuss initial steps to pursue their shared priorities and commitments according to solarindustrymag.com. The 17 signatories are: Gov. Jerry Brown (CA); Gov. Dannel Mallory (CT); Gov. Jack Markell (DE); Gov. David Ige (HI); Gov. Terry Branstad (IA); Gov. Charlie Baker (MA); Gov. Rick Snyder (MI); Gov. Mark Dayton (MN); Gov. Brian Sandoval (NV); Gov. Maggie Hassan (NH); Gov. Andrew Cuomo (NY); Gov. Kate Brown (OR); Gov. Tom Wolf (PA); Gov. Gina Raimondo (RI); Gov. Peter Shumlin (VT);  Gov. Terry…

While many states have begun negotiations on budget plans for FY17 and beyond, Pennsylvania has made some progress on FY16 spending. Gov. Tom Wolf signed a partial budget that funded many agencies and programs related to economic development, but that did not include higher education funding and other operations. In the coming months, SSTI will review gubernatorial addresses and budget proposals related to economic development. This week, we highlight developments in Hawaii, New Mexico, Pennsylvania and Virginia. Hawaii Gov. David Ige released his $13 billion proposed fiscal year 2017 supplemental budget in late December, building on the biennial budget passed last year. The governor’s office is touting $729 million in infrastructure and economic development spending and another $248 million for education. The boost for infrastructure spending would support improvements to airports in Kona and Honolulu, and the modernization of Honolulu harbor. Most of the new education funding would support capital improvements, but $4 million is provided for the operating costs of the University of Hawaii’s Cancer Center. The proposed supplemental budget…

Now that many governors have signed spending bills and legislative sessions are drawing to a close, the SSTI Digest will check on the status of proposals related to the innovation economy, and examine the state of technology-based economic development funding in the states. This week, we review spending bills in Delaware, Hawaii, Oregon, and Wisconsin. DelawareEarlier this month, Gov. Jack Markell signed a $3.9 billion FY16 operating budget (HS 1 for HB 225) and $456 million capital budget (SS 1 for SB 160). Under the approved budget, the state's Economic Development Office would receive about $2.8 million in general funds and $6 million in special funds. About $1.7 million is appropriated for the state's Blue Collar workforce programs. In his State of the State, Gov. Markell proposed using programs, such as the Blue Collar grants, to provide 65 percent of the state's workforce with degrees or certificates by 2025. HawaiiIn May, Gov. David Ige signed a $26 billion budget (HB 500) that included about $30 million in tech-related appropriations. The budget provides funding for the state's High Technology Development Corporation (HTDC) to…

Hawai’i Gov. David Ige signed into law a bill (HB 623) that would increases the state’s renewable portfolio standards to 30 percent by the end of 2020; 70 percent by the end of 2040; and, 100 percent by the end of 2045. With the passage of the new renewable energy mandate, the state became the first in the country to have a statewide renewable goal of 100 percent. This marks a drastic shift from the state’s current distinction as the country’s most oil-dependent state. The state spends nearly $5 billion a year on foreign oil, according to a release from the governor’s office. Luis Salaveria, director of the Hawai’i Department of Business, Economic Development and Tourism, hopes that the new mandate will drive investment and make the state a more attractive destination for entrepreneurs and businesses from around the world, looking to develop, test, and prove emerging renewable technologies and strategies. The state is on track to reach its first milestone of 30 percent by the end of 2020 due previous state investments intended to support the growth of solar and wind startups. Read the press release…

SSTI's Tech Talkin' Govs series has returned as governors across the country formally convene the 2015 legislative sessions. The series highlights new and expanded TBED proposals from governors' State of the State, Budget and Inaugural addresses. The fourth installment of this year’s series includes excerpts from speeches delivered in Hawaii and Montana. Read the first, second  and third installments of this year’s series. HawaiiGov. David Y. Ige, State of the State, Jan. 26, 2014“…We need to nurture an “innovation economy,” in which entrepreneurs use technology to develop new processes and products from existing ones, like smart phone makers who have taken their products far beyond the original concept of a mobile phone and created entire new markets. “It’s a whole new economic paradigm which we need to support with modern infrastructure, whether it’s expanding our broadband network or building innovation parks. That’s why we are providing $10 million for the HI Growth initiative to support innovation.” MontanaGov. Steve Bullock, The State of Our…

Robbie Melton has been named the executive director and CEO of the High Technology Development Corporation. Gov. Bobby Jindal has appointed Louisiana Tech University president Les Guice to chair the Louisiana Innovation Council. Brian Cummings, formerly Ohio State University’s vice president of technology commercialization, has joined Alta Ventures as the Midwest representative. KP Reddy, community catalyst at ATDC, has been named interim general manager. Previously, Michael Hersh held the position of general manager. The Michigan State University Foundation has named David Washburn, president and CEO of the University of Tennessee Research Foundation, as its executive director. Gov. Rick Snyder created the Michigan Office for New Americans and named Bing Goei as its director. The office is tasked with attracting and retaining highly skilled immigrants. In New Hampshire NH-ICC and the abi Innovation Hub have merged and will be known as the abi HUB. The new entity will promote innovation, commercialization and acceleration.

The U.S. Department of Defense Office of Naval Research has announced a $30 million investment in Energy Excelerator, an accelerator for cleantech companies within the Pacific International Center for High Technology Research (PICHTR). Energy Excelerator originally launched three years ago with $10 million in seed funding from the Department of Energy. The new funding will be used to expand the accelerator’s capital and entrepreneurial support programs for clean energy startups in Hawaii and the Asia Pacific region. Read the announcement...

A number of states recently have taken action to expand R&D tax credits and other legislation that would support innovation, commercialization and manufacturing. Hawaii, California, Maryland, Texas, and Florida have signed into law tax incentives and R&D tax credits and an R&D tax credit in New Hampshire went into effect.  The Maine legislature also passed a capital tax credit that will begin in 2014. In late June, the Maine Senate and House passed LD 743, which will extend the Maine Seed Capital Tax Credit. The original tax credit program was created in 1989 with a $30 million cap. This extension will provide an annual cap of $5 million in tax credits to qualifying investors, beginning in 2014. “A tax credit certificate may be issued to an investor other than a private venture fund in an amount not more than 50 percent of the amount of cash actually invested in an eligible Maine business in any calendar year,” according to the bill. The business invested in must be “a manufacturer or a producer of a value-added natural resource product.” The New Hampshire tax credit in SB 1 took effect in late May.  SB 1 increases the…

At the close of many recent legislative sessions, states across the country moved to strengthen their high-tech workforce while supporting industry cluster development. In Washington state, the Working Washington Agenda has received bipartisan support to strengthen the state’s economic foundations on a wide range of fronts. The final bill provides funding for STEM education, improves workforce training programs, and assists with the growth of key industries. One highlight of legislation supporting cluster development is the creation of a Joint Center for Aerospace Technology Innovation, backed by $1.5 million in state funding, which is being used to fund 18 research projects across the state. Each grant connects an in-state aerospace company with public university partners to support the commercialization of new technologies. Currently, the University of Washington, Washington State, and Western Washington are participating. The program is designed to assist aerospace companies of all sizes, and includes $300,000 in grants for 12 high schools to adopt aerospace assembly programs. The Working Washington Agenda also directs $40 million toward the creation of…

Yuka Nagashima, executive director of the High Technology Development Corp. and center director for the Innovate Hawaii program, has resigned from both posts and will leave the state agency in August. Nagashima will be leaving for Denmark to support her husband's research career. Len Higashi, current senior economic development manager, was selected to become the acting executive director. Raja Krishnamoorthi has been appointed vice chairman of the Illinois Innovation Council by Gov Pat Quinn. Jason Hall has been named the St. Louis Regional Chamber's vice president for business development and corporate counsel, effective June 28. Hall's most recent position was as deputy director for the Missouri Department of Economic Development. E. Gordon Gee, president of The Ohio State University announced plans to retire, effective July 1. Executive vice president and provost Joseph Alutto was named interim president. Rep. Jo Bonner announced he will retire from Congress on Aug. 15 in order to take a newly created position of vice chancellor for government relations and economic development at the University of Alabama System. Joan Dunbar…

Envisioned as a comprehensive state-level program to support an entrepreneurial ecosystem, the HI Growth Initiative was approved by lawmakers to diversify the state's economy and promote the development of high-growth, entrepreneurial businesses. Backed by Gov. Neil Abercrombie, the initiative has three main objectives focused on helping entrepreneurs commercialize intellectual property, access business mentors, network with global investors, and gain access to follow-on capital. Funds will be managed by the Hawaii Strategic Development Corporation. Lawmakers approved $6 million for the effort in FY14. The governor had requested $20 million over two years (see the Feb. 27, 2013 issue of the Digest). View the bill: http://www.capitol.hawaii.gov/session2013/Bills/HB858_CD1_.PDF