SSTI Digest

The state budget process is winding down across the country and SSTI continues to review the final budgets for funding for innovation-based programs. This week, we found level funding for South Carolina programs including MEP and regional-based economic development efforts, while university programs in Texas are taking a hit, and in West Virginia Gov. Jim Justice refused to sign the state budget although he will allow the legislatively approved measure to become law. Unless otherwise noted, the figures below represent level funding from the previous budgets. South Carolina South Carolina Gov. Henry McMaster signed the state’s 2018 budget (HB 3720) that would support several tech-based economic development programs that are funded through the Department of Commerce including: $1.3 million for the South Carolina Manufacturing Extension Partnership; $500,000 (up from $100,000 in FY 2016-2017 actual funding levels) for the South Carolina Small Business Development Centers; $250,000 for the South Carolina Council on Competitiveness – a nonpartisan, business-led non-profit organization committed to advance the long-term economic competitiveness of…

Proposed under previous South Carolina Gov. Nikki Haley, the state’s FY 2017-2018 budget request calls for approximately $3.5 billion to be spent on K-12 and higher education funding including: $5 million for industry certifications and credentials; $2 million in funding for modernization of the state’s careers centers through the Career and Technology Education (CATE) programs; and, $500,000 in funding for highly qualified professionals to leave their occupations to enter a new career teaching at CATE centers – each participant would receive an annual $5,000 scholarship for up to 10 years. The budget also proposed funding to support endowed chairs at institutions of higher education, the MEP center, the SBDCs, and the South Carolina Council on Competitiveness. In the former governor’s proposed budget, the Commission on Higher Education would provide continued support for 51 SmartState Centers and endowed chairs at institutions of higher education.  Launched in 2002, the state legislature committed more than $30 million in lottery funds over six years to support the SmartState program. Through this investment, the Commission of…

More governors delivered their state of the state addresses and this week we bring you TBED news from governors around the country. Areas of focus include tech infrastructure needs, diversifying economies, cybersecurity and education. While some governors are giving their inaugural addresses, Gov. Nikki Haley used her time to bid farewell. Following are excerpts from the past week’s addresses. Colorado Gov. John Hickenlooper gave his annual state of the state address last Thursday, focusing on infrastructure needs – notably roads, but also tech needs: “We need a comprehensive focus on infrastructure that supports not just transportation, but also broadband, education, healthcare, and our environment.  “Today, I’m announcing the creation of a broadband office to help us get from 70% to 85% coverage by the time we leave office and 100% by 2020. “We need to include pathways not just to four-year degrees but also to technical training and skills certificates for the many jobs in Colorado that require advanced skills like cybersecurity training. … If we do this right, there should be an opportunity…

Over the last several months, the Economic Development Administration (EDA) has announced millions of dollars in grants to support tech-based economic development efforts in communities across the country (see recent Digest articles from August 18 and September 8). The most recent announcements of grant funding will provide targeted funding to expand and build facilities that support entrepreneurial/business development in Oklahoma, Pennsylvania, and Wyoming as well as workforce efforts in South Carolina. Each of the grants also addresses a specific regional need or key industries including growth in advanced manufacturing sectors, attraction of foreign direct investment, and support for key regional tech-focused industries such as agriculture and healthcare. Oklahoma Two organizations located in Oklahoma City will receive $1.9 million in grants to provide business and technical support to manufacturing and service companies and to purchase critical equipment needed to boost workforce training opportunities in the medical sector. The Oklahoma Center for Advancement of Science and Technology (OCAST) will receive $1 million to provide business and technical…

To build 21st century workforces in key S&T sectors, several new public-private initiatives have been launched in South Carolina, New Jersey, Utah, and Montana. These initiatives are intended to better align the educational training of students with the needs of industries that each respective state has identified as a key industry cluster. Target industries include advanced manufacturing, aerospace, biotechnology, chemistry and plastics, and cyber security. South Carolina Earlier this month, in partnership with the South Carolina Manufacturers Alliance, the state announced the launch of the South Carolina Future Makers (SC Future Makers) workforce initiative. The initiative’s mission is to increase the skilled workforce pipeline entering advanced manufacturing and technical-related careers. Via a web-based portal, individuals can search for careers in the state’s 10 key industry clusters. The portal also provides information on apprenticeships, technical colleges, and four-year colleges to expose and connect South Carolina’s next generation to all of the state’s educational and career-development opportunities. In partnership…

Many governors around the country have begun laying out priorities for the next legislative session. In the coming weeks, SSTI will review gubernatorial addresses and budget proposals related to economic development. This week, we highlight developments in Arizona, Maryland, Missouri and South Carolina. ArizonaLast week, Gov. Doug Ducey released his $9.5 billion budget proposal for fiscal year 2017 and presented his second State of the State Address. The governor highlighted his office’s work in reducing spending, offered several tax-reduction proposals and pushed for additional funding for the state’s child safety system and a boost for K-12 education. Gov. Ducey also noted that immediately before his address, he signed an executive order creating the Governor’s Council on the Sharing Economy, to help encourage growth and innovation in this emerging economic sector. The council will develop recommendations to help improve the environment for businesses based on ridesharing and other peer-to-peer services. Under the proposed budget, the Arizona Commerce Authority would receive $48.7 million, including $21.8 million from the general fund and…

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…

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 third installment of this year’s series includes excerpts from speeches delivered in Delaware, Michigan, Mississippi, New Mexico and South Carolina. Read the first and second installments of this year’s series.   DelawareGov. Jack Markell, State of the State Address, Jan. 22, 2015“… This year, I ask the General Assembly, our schools, our colleges, and our businesses to join me in committing to the Delaware Promise. This is a new goal for our state. By 2025, 65 percent of our workforce will earn a college degree or professional certificate. Everyone will earn at least a high school diploma. …” “…First, we will create an initiative called Pathways to Prosperity, which will establish partnerships with Delaware employers, universities, and our K-12 system to prepare students for a bright future in key industries. High school…

As governors around the country begin their newest terms, their proposed budgets are beginning to take shape. Although few governors specifically target technology based economic development, after the first wave of budgets a variety of initiatives related to workforce development and higher education have garnered support.    California Gov. Jerry Brown released his proposal for a $164.7 billion budget for FY 2015-16 with a $113.3 billion general fund. As budget deliberations continue until June 15th, it is expected that resistance will come from both the University of California (UC) system and Democratic policymakers hoping to restore the health and social services programs that were reduced during the most recent recession.  Of the general fund, 12.4 percent is projected to go toward higher education, with the UC and the California State University (CSU) system each receiving about $3.1 billion, and the California Community College (CCC) system receiving $8.1 billion. By providing an increase of $119.5 million to both, both the UC system and the CSU system will be able to hold tuition flat. The budget also provides $25 million for…

SSTI Excellence in TBED award winners produce real results that are changing the landscape of their communities, expanding infrastructure to grow high-tech sectors and improving the competitiveness of their regions. Their efforts haven’t gone unnoticed in the broader innovation community. Over the past couple of months, award winners have grabbed headlines – and funding – for their impressive work. U.S. Secretary of Commerce Penny Pritzker stopped by Clemson University’s Center for Automotive Research to tout its success in workforce development. In St. Louis, Monsanto recently awarded $2.5 million to BioSTL to support bioscience startups and, in Arizona, a $1 million grant will help fund ASU accelerator programs. Commerce Secretary Touts CU-ICAR Model U.S. Secretary of Commerce Penny Pritzker has prioritized workforce development as part of her platform – particularly focusing on matching worker skills with industry demands. As she toured CU-ICAR last week, Secretary Pritzker said ICAR's campus “is a tremendous example of an educational institution conducting the type of leading-edge research that will keep America…

Several bills aimed at supporting startups, advancing research and improving the workforce have been introduced with the start of the 2014 sessions. Some of the proposed legislation offers a glimpse into the investment priorities of governors and lawmakers in the wake of economic recovery. Providing innovative companies with access to startup funds is a continued theme from previous years. Some states are seeking to expand tax credits for angel investors or offer new tax credits to encourage emerging industries. Other bills focus on generating more skilled workers quickly and positioning universities to enhance regional economic competitiveness. Two More States Introduce Crowdfunding Bills Lawmakers in Alabama and Maine hope to make it easier for startup companies to raise money through crowdfunding platforms with legislation to amend state securities laws. In Alabama, the Senate unanimously approved SB 44, allowing individuals to invest up to $5,000 in a venture. Small businesses are limited to raising $1 million through crowdfunding websites. Legislators in Maine will consider LD 1512, An Act to Increase Funding for Startups. Similar to the Alabama bill,…

Bill Kirkland will head the new Office of Economic Engagement that will begin operations July 1 at the University of South Carolina. The new entity will facilitate business development statewide, and work through USC&'s seven regional campuses. John Carey, a former state representative, was appointed by Gov. John Kasich as the chancellor of the Ohio Board of Regents. Nancy Bryan will be welcomed as the new president & CEO of BioFlorida at their 10th Annual Celebration of Biotechnology on May 9. Nashville Mayor Karl Dean has created a new Office of Innovation to make government services more efficient and transparent, and to help with economic development. The city has hired Kristine LaLonde and Yiaway Yeh as co-chief innovation officers.