SSTI Digest

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.

With a July 1 start to the fiscal year in most states, several states that were at an impasse over their budget faced at least partial shutdowns. Last minute negotiations restarted services in both Maine and New Jersey, while Illinois, which has been operating without a budget since 2015, faces threats of a downgrade in their credit rating if a deal cannot be reached. This week we present our findings of innovation funding from seven states, including $2 million in funding for a new public-private economic development organization in Delaware, an increase in funding in Louisiana for the state’s scholarship program for higher ed, and cuts to higher ed funding in Missouri, which also saw a severe drop in its funding to the Missouri Technology Corporation. Efforts in Maine, New Hampshire, Vermont and Washington are also detailed below. Delaware The FY 2018 budget passed by the Delaware legislature and signed by Gov. Jay Carney would allocate up to $2.0 million for the Delaware Prosperity Partnership, a new public-private economic development organization. As described in a April 2017 Digest article, the Delaware Prosperity Partnership is tasked with functions…

Proposed state budgets in Louisiana, Massachusetts and North Carolina show support for innovation and higher education, with some states better positioned in their levels of support while some programs are experiencing cuts. North Carolina unveiled new programs supporting a variety of tech-based economic development initiatives, while Louisiana is restoring full funding for its state scholarships for residents despite its budget deficit. Louisiana Despite facing a $440 million budget deficit, Gov. John Bel Edwards presented a FY 2017-2018 budget proposal calling for $209.4 million for the TOPS program (Taylor Opportunity Program for Students) – a program of state scholarships for Louisiana residents who attend any of the Louisiana public colleges and universities or the Louisiana Community and Technical College system. This commitment would restore the TOPS program to full-. While the TOPS program is slated for full funding, eight of the state’s technical and community colleges (LCTCS) intend to merge campuses after facing 16 state budget cuts over the last eight years. Due to this declining…

The Delta Regional Authority  (DRA) released the Regional Development Plan III (RDPIII) – an economic development strategy to help guide DRA’s 252-county region’s economic growth over the next five years. In RDPIII, DRA identifies three goals and related action items to guide its economic development efforts in the Delta region: Improved Workforce Competitiveness – Advance the productivity and economic competitiveness of the Delta workforce; Strengthened Infrastructure – Strengthen the Delta region’s physical, digital, and capital connections to the global economy; and, Increased Community Capacity – Facilitate local capacity building within Delta communities, organizations, businesses, and individuals. In addition to the overall strategy, DRA also published eight state strategies for Alabama; Arkansas; Illinois; Kentucky; Louisiana; Mississippi; Missouri; and, Tennessee. Each state strategic plan includes state specific action items for DRA and a SWOT analysis as well as a profile of existing economic development efforts and key state demographics. 

SSTI’s analysis of gubernatorial addresses, strategic plans and budget proposals continues this week with highlights from Alabama, Louisiana, Oklahoma, Pennsylvania and Tennessee. Governors are facing difficult fiscal situations in several of these states, often scaling back tech-based economic development efforts. Tennessee Gov. Bill Haslam, however, is using a fiscal surplus to invest in higher education and regionally focused economic initiatives. Alabama Gov. Robert Bentley rolled out his Great State 2019 plan during his State of the State address earlier this month, with many aspects included in his proposed fiscal year 2017 budget. Education and workforce efforts plan a key role in the plan and include the FUTURE scholarship program to provide every student with the chance to attend a state community college, and a consolidation of the state’s regional workforce development councils. The governor instructs the Office of Broadband Development to step up its efforts to expand access to high-speed data services, particularly telemedicine. Last year, Gov. Bentley permanently established the Alabama Small Business Commission and Advisory Committee,…

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 Alaska, Connecticut, Louisiana, South Carolina and Vermont. AlaskaOn June 30, following a second special legislative session, Gov. Bill Walker signed a $9.8 billion (HB 2001) FY16 budget. The governor, however, vetoed $200 million in tax credits, which will delay payment to the state's oil and gas companies. The budget allocates $5.2 million for Community and Regional Affairs and $1.6 million for Economic Development. The campuses of the University of Alaska are slated to receive $247.5 million, with $785,900 for its Small Business Development Center. ConnecticutGov. Dannel P. Malloy signed a $40 billion biennial state budget (HB 7061) on June 30. The final bill rescinded and adjusted several business taxes that had been either passed or proposed earlier in the legislative session, according to the Hartford Courant. Initial funding…

The Delta Regional Authority (DRA) announced the establishment of a consortium for research and innovation that is intended to have a long-term positive economic impact on the region. The 35-member consortium will be comprised of universities and other private and public institutions in eight states – Alabama, Arkansas, Illinois, Kentucky, Louisiana, Mississippi, Missouri, and Tennessee. DRA selected Arkansas State University to lead the consortium and bring together university research officers and local economic development leadership to support the commercialization efforts and economic impacts of research universities in the DRA's footprint. Founding members of the consortium include Delta State University, Louisiana State University, Mississippi State University, Southeast Missouri State University, University of Memphis and University of Tennessee at Martin. Read the announcement…

In order to build a prosperous, globally competitive economy in Louisiana, state universities must take on a greater role as hubs of regional innovation, according to a report from the Public Affairs Research (PAR) Council of Louisiana. The report includes 46 recommendations to transform the state's economy by revamping existing innovation programs, and boosting university research. PAR's strategic plan is based on a review of innovation policies in other states, particularly Georgia and the work of the Georgia Research Alliance. PAR focuses on how existing state support for Louisiana R&D is spread too thin among the state's programs and allocated in inefficient ways. In particular, the Board of Regents Support Fund has been designed in such a way that funding is inconsistent and has not been targeted toward industries and operations that could have the greatest economic impact. Highlights from the recommendations include: Appoint a dedicated statewide leader to support Louisiana innovation; Provide sustainable support for the new WISE Fund, particularly for its research component; Reorganize the Regents Support Fund to promote the state's…

Several governors released their proposed budgets over the last two weeks, and while some states continue to deal with budget shortfalls that prevent many new initiatives from coming into fruition, governors in Pennsylvania and North Carolina included numerous proposals focused on innovation and economic development. Additionally, governors in Louisiana and Massachusetts highlighted new workforce development proposals.  Pennsylvania Pennsylvania Gov. Tom Wolf’s proposed $33.8 billion fiscal year 2015-16 budget prioritizes strengthening the commonwealth’s middle class, allocating funds to a variety of workforce, economic development, and education initiatives. To enhance Pennsylvania’s business friendliness, Gov. Wolf proposes lowering the Corporate Net Income Tax (CNIT) from 9.99 percent to 5.99 percent, improving the commonwealth’s ranking from second-highest to fourteenth-lowest. For technology-based economic development, Gov. Wolf proposes an increase of $100 million for the Ben Franklin Technology Development Authority Fund, meant to support entrepreneurs, established companies, and manufacturing innovation. This increase would be…

Purdue University, the University City Science Center, and Washington State University announced the creation of new investment funds to support the growth of university-affiliated startups in their respective communities. These three recently announced commercialization funds all share a common trend – they will be managed or assisted in the management process via public-private partnerships. In Baton Rouge, LA, the Research Park Corporation also announced the creation of a fund to assist Louisiana State University researchers compete for commercialization funding from the university. Purdue UniversityIn partnership with the Indiana Economic Development Corporation, the Purdue Foundry announced the creation of the Elevate Purdue Foundry Fund, a three-year, $2 million fund to support qualified Purdue-affiliated startups. The funds are intended to support a startup venture that will commercialize licensed Purdue University intellectual property or that will leverage other Purdue assets such as research collaborations. It will offer two levels of support: Black Award – a $20,000 convertible nonrecourse note; and, Gold Award – a debt or equity…

This article is part of SSTI's series on trends in state technology-based economic development legislation in 2014. Read our other entries covering legislative action on patent reform, research capacity, technology commercialization & infrastructure, tax credits & STEM and manufacturing & clusters. Addressing accessibility, affordability and ensuring workforce preparedness topped legislators’ agendas in many states during the 2014 sessions. States and regions are increasingly competing for talent as the trend toward growing and nurturing innovation ecosystems continues. Attracting and retaining high-tech companies also requires states to have a steady stream of tech-savvy workers. Specifically, policymakers are interested in matching worker skills with industry sectors important to their communities, and many of the efforts put into place during the legislative sessions focus on building long-term relationships between industry and higher education. Three states, Louisiana, Utah and Wisconsin, dedicated notably large sums of money toward workforce training with a STEM focus. One of the largest investments was made in Louisiana, where…

A project underway between IBM and Louisiana State University’s School of Engineering aims to better meet employer needs by tripling the number of computer science graduates in five years. Hoping to generate more partnerships like these, lawmakers approved legislation supported by Gov. Bobby Jindal that allows colleges and universities to compete for funds in an effort to produce graduates in high-demand areas. A smaller percentage of the funds distributed under the new Workforce and Innovation for a Stronger Economy (WISE) Fund will be based on federally funded research expenditures.  HB 1033 establishes the WISE Fund within the state treasury and outlines responsibilities for a strategic planning council, operating as an independent subcommittee of the Board of Regents.  The recently approved FY15 budget allocates one-time funding of $40 million, $11 million of which is included in the capital budget. Ongoing funding is subject to appropriation by the legislature each fiscal year. Colleges and universities competing for the funds are required to secure a private match of at least 20 percent, which can include in-kind donations of…