SSTI Digest

More than half of the governors have now delivered their state of the state addresses, and TBED initiatives continue to play a prominent role in their plans. Higher ed’s affordability and/or role in the workforce are concerns in Montana, South Carolina, Utah and Vermont. Maryland is looking at clean energy and higher education. Utah is also grappling with burgeoning growth while Vermont considers measures to increase its workforce. Maryland Gov. Larry Hogan’s Jan. 30 state of the state address cited the “historic economic growth and record job creation” the state has experienced to fund education and the state’s other priorities, including eight legislative proposals in tax relief over the next five years. His TBED focus includes: “Tax cuts for the college graduates who worked hard to earn their degree, only to face the harsh reality of crippling student loan debt.” “We’re also proposing tax incentives to revitalize some of our forgotten communities and to make our state’s 149 opportunity zones the most competitive ones in the nation. And tax incentives to encourage the creation of thousands of…

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.

Governors continue to be cautious in their budget proposals, with many TBED programs seeing level funding or modest increases and cuts in some states while few new programs are being introduced. Kentucky is transferring one program to economic development, while at the same time reducing its funding. Missouri is proposing short-term benefits that may impact longer-term growth, while New York is looking to fund its life sciences initiative announced last year and Vermont is proposing an increase for its growth and innovation pilot project. Kentucky Kentucky Gov. Matt Bevin released his FY 2019-20 Biennial Budget Proposal, which would eliminate approximately 70 programs and cut spending at many state agencies by 6.25 percent, according to the Lexington Herald Leader. Bevin proposes a transfer of the Kentucky’s Science and Technology Funding program to the Cabinet for Economic Development (from the Council on Postsecondary Education), which would result in a transfer of $5.1 million to the cabinet to support the Science and Technology Funding program (down from $5.7 million in FY 2018). This would result in total general revenue funding of $28.4 million for the…

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 first installment, we present excerpts from governors in Arizona, Florida, Indiana, Iowa, Mississippi, New York and Vermont. With the seat up for election in 36 states this fall, many governors are delivering what may be their last state of the state address (see last week’s story on the definite turnover in 17 states and another 19 eligible for reelection). Some governors are more specific in their addresses regarding the innovation economy, such as Idaho where its governor is seeking additional money for college and career advising, an additional $5 million for the Opportunity Scholarship program, and a new position to coordinate the work of all its higher education institutions. Iowa’s governor is calling on the legislature to pass the Future Ready Iowa Act and proposes a new scholarship for Iowans who decide to pursue up to a two-year degree in a high-demand field as well as more money for apprenticeships. Taxes are taking a large part of the discussion for many governors. For instance, the Florida governor is hoping for a constitutional amendment to make it more difficult for future legislators to raise taxes, while in New York, the governor says the state will challenge the federal tax code.

Startup innovators from around the country have the opportunity to exhibit their ideas and win $10,000 during the Catalysts of the Climate Economy national innovation summit in Burlington, Vermont, Sept. 6-8. Innovators in the climate economy are encouraged to enter a contest that will result in five competitors pitching their ideas to a panel of judges, with the winning idea garnering the top prize. Entries for Round 1 of the competition – where innovators tweet their formula/idea on improving the climate economy – must be received by July 30th. A select number of entries will be invited to present their ideas during the conference, where all attendees will vote on the top five startup ideas. Produced by the Vermont Council on Rural Development, the conference will bring together participants in the climate economy to explore the next stage of economic development in a low-carbon future.

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…

Twelve gubernatorial seats were up for election Tuesday, five of which were held by incumbents seeking reelection. Four of those – Montana Gov. Steve Bullock (D), Oregon Gov. Kate Brown (D), Utah Gov. Gary Herbert (R) and Washington Gov. Jay Inslee (D) – were reelected for second terms. In North Carolina, Democratic candidate and State Attorney General Roy Cooper has a lead of less than one percent over incumbent Gov. Pat McCrory. Gov. McCrory has not conceded and the result is pending a canvass of votes, which may not be complete until November 18. As of this publication, there are seven new governors taking office: ·         Democratic Congressman John Carney won the seat in Delaware. ·         Republican Lt. Gov. Eric Holcomb won in Indiana. ·         Republican and former Navy Seal Eric Greitens won in Missouri. ·         Republican Chris Sununu won in New Hampshire. ·         Republican…

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…

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…

This week, governor’s in eight states released their budget proposals. Balanced budgets and fiscal austerity were undoubtedly emphasized by the governors, yet funding for STEM education and workforce development initiatives were increasingly popular. NevadaGov. Brian Sandoval’s education-heavy $7.3 billion biennial budget for FY 2016-17 includes considerable amounts of TBED funding, such as $10 million over the biennium for the Knowledge Fund. The Fund, which was created by AB 449 during the 2011 legislative session, provides grants that: establish technology outreach programs; recruit, hire, and retain researcher teams and faculty; construct research laboratories, facilities, and related equipment; and, provide matching funds for federal and private sector grants. Additional funding is also added to continue the Center of Excellence efforts to be a world leader in water technologies that focus on dealing with arid conditions. To support STEM education and professional development, Gov. Sandoval introduced the Nevada Ready 21 Technology Program. Funded with $48.8 million over the biennium, the program provides grants to middle and high schools to…

Now in its 15th year, SSTI's Tech Talkin' Govs series has returned as governors across the country formally convene the 2014 legislative sessions. The series highlights new and expanded TBED proposals from governors' State of the State, Budget and Inaugural addresses. The first edition includes excerpts from speeches delivered in California, Kentucky, and Vermont.  This year, several governors have combined their inaugural addresses with the traditional address to the state legislature. Remarks from these speeches related to technology, innovation and economic development will be included in the roundups. CaliforniaGov. Jerry Brown, Inaugural Address, Jan. 5, 2015 “… I propose three ambitious goals to be accomplished within the next 15 years: increase from one-third to 50 percent our electricity derived from renewable sources; reduce today's petroleum use in cars and trucks by up to 50 percent; and, double the efficiency of existing buildings and make heating fuels cleaner. “We must also reduce the relentless release of methane, black carbon and other potent pollutants across industries. And we must…

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…