SSTI Digest

With more than 30 percent of rural America still lacking access to what the FCC considers adequate broadband, governors from across the country are working toward diverse strategies to build rural broadband capacity. By providing rural communities with access to full-speed, stable broadband, these governors hope that they can revitalize rural communities by helping small business formation and expansion as well as improve educational achievement/workforce training for rural citizens. Governors have announced new initiatives in Michigan, Missouri, North Carolina, and Wyoming, and in Wisconsin, Gov. Scott Walker is calling for Federal Communications Commission (FCC) rule changes to increase access to broadband internet across the country. Michigan Gov. Rick Snyder signed Executive Order 2018-2, which directs the Michigan Consortium for Advanced Networks to identify gaps in broadband service coverage and capacity, current efforts underway to address connectivity issues, and key strategies and recommendations for the state and private sector to pursue to achieve enhanced connectivity. The Consortium must present a plan by August 1, and after completion of the…

SSTI’s Tech Talkin’ Govs feature continues 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 fourth installment, we present excerpts from governors in California, Hawaii, Massachusetts, Michigan, North Dakota, South Carolina and Wisconsin. This week’s review includes states like California with its goal for lower carbon output to Hawaii and Massachusetts who are looking to increase their use of renewable energy sources. Meanwhile, energy-dependent North Dakota is looking to diversify its economy and Wisconsin seeks ways to build its workforce.

Overall growth in manufacturing should accelerate this year and grow even more in 2018, according to recent projections from the Manufacturers Alliance for Productivity and Innovation (MAPI). As a way to support manufacturers — especially small and medium sized ones — two states recently announced programs to boost their productivity. In Wisconsin, The Transformational Productivity Initiative (TPI) will develop tools for companies to assess and improve productivity, while New York has developed a grant program to boost productivity in key manufacturing sectors. Designed to improve productivity performance in Wisconsin’s small and midsize manufacturers, The Transformational Productivity Initiative (TPI) is a new public private partnership between the Wisconsin Economic Development Corporation (WEDC), the Wisconsin Manufacturing Extension Partnership (WMEP) and the Milwaukee 7 (M7). WEDC has awarded M7 a $190,000 matching grant to implement the new program, which seeks to perform two main tasks. First, the initiative will develop a set of diagnostic and assessment tools designed to educate companies on the factors affecting productivity, such as…

Connecticut and Wisconsin both ended their protracted budget negotiations with the governors signing budgets in late September and late October. Faced with budget constraints and uncertainty about the spending plan, Connecticut’s funding for economic and community development is decreasing along with funding for the state’s MEP center and Manufacturing Supply Chain program, with no general funds provided for them in the second year of the biennium. Wisconsin appears to be maintaining its status quo on TBED-related initiatives and has increased funding to universities that increase enrollments for “high-demand” degree programs, making $5 million available on a competitive basis.

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…

SSTI again presents its latest round of Tech Talkin’ Govs, where governors’ comments about TBED issues are excerpted from their state of the state and inaugural addresses. Today’s roundup includes STEM spending and workforce development in Idaho, education in Arizona, manufacturing in Connecticut and a nod to technological change in North Dakota, inaugural addresses from new governors in Vermont and Indiana, and more reports from governors who gave their addresses on the 10th. Next week the Digest will continue with Part II of Tech Talkin’ Govs featuring news from the next round of addresses. Vermont During the first week of January Gov. Phil Scott gave his inaugural address focusing on the state’s shrinking workforce and its implications to a joint session of the Vermont legislature. “From 2000 to 2010 the number of 25-45 year olds in Vermont decreased by 30,000… This is compounded by our shrinking workforce. Since 2010, we’ve lost 16,000 workers… and that downward trend continues. … But we literally cannot afford to ignore this issue anymore. We must have a laser-focus on attracting…

Across the U.S. people are working to build a more talented, skilled workforce, but often those efforts happen in isolation, separated from larger economic development efforts without engaging community and business leaders. A recently released playbook from the Aspen Institute and Futureworks, Communities That Work Partnership Playbook, aims to change a siloed approach and explores seven regional efforts to develop the local workforce for different industries and occupations. The playbook highlights key takeaways and is intended to provide guidance to others developing talent pipelines.  SSTI also talked with individuals in Milwaukee and Kansas City about their regional efforts to develop the talent pipeline.  The Communities that Work Partnership was jointly launched in April 2015 by the U.S. Economic Development Administration (EDA) at the Department of Commerce and the Workforce Strategies Initiative at the Aspen Institute (AspenWSI) to document and accelerate the development of employer-led regional workforce partnerships across the country. Seven regional teams were selected competitively in July 2015 to participate in an exchange…

A month after a federal court ruled that high-speed Internet service can be defined as a utility, four states have announced commitments to expand high quality, reliable broadband services to rural areas and other underrepresented groups. Two Midwest states, Wisconsin and Minnesota, will provide funding to help support projects that improve access to broadband and spur economic prosperity. California and Virginia are exploring strategies to improve their respective state’s broadband networks. The Minnesota Department of Employment and Economic Development (DEED) announced $35 million in broadband funding to expand broadband infrastructure in Minnesota. Approved during the 2016 legislative session, DEED will award grants through its Border-to-Border Broadband Development Grant Program to pay for up to 50 percent of project development costs in unserved and underserved areas of the state, according to mhta.org. A maximum of $5 million per grant will be available. Under the new funding, $5 million will be targeted for underserved areas of the state and $500,000 for projects that propose to expand the availability and adoption of broadband service to areas…

In the face of declining state funding and drawn-out budget negotiations, universities are moving beyond traditional budget procedures to secure funding for their economic development activities. Over the past few months, several universities have leveraged new sources of public and private funds to establish seed funds for university technology. These efforts are intended to increase the number of businesses emerging from their respective educational and research programs and spur regional economic prosperity. PennsylvaniaIn Philadelphia, Drexel University announced that it will establish a $10 million seed fund to make early stage investment in technologies developed by Drexel-affiliated entrepreneurs. The university will raises $5 million in funding that will be matched by Ben Franklin Technology Partners of Southeast Pennsylvania (BFP) over the next 10-years to support the fund. In addition to committing $5 million in funding, BFP will open an office at Innovation Center @3401, a workspace and resource center for early stage tech and business services companies. Innovation Center @3401 is operated by Drexel University and the University City Science Center, and…

Since the establishment of the Tennessee Promise in 2014, the first statewide free community college effort, community college systems and states are outlining their own strategies to make a two-year education free for students in their region in attempt to create an educated, qualified workforce that addresses the needs of industry and promotes economic prosperity. While it may remain too early to judge the benefits and the costs of these programs – lawmakers and educational professionals remain divided on the issue.  In Wisconsin, Milwaukee Area Technical College (MATC) announced a plan to offer tuition-free enrollment to low-income, academically qualified high school seniors starting in the fall of 2016. Called the MATC Promise, the privately funded program is intended boost MATC’s enrollment and create a pathway to receive a college degree for students from families who otherwise could not afford to send their kids to college. In  exchange for MATC covering the difference between students' federal and state financial aid and the cost of tuition and fees, students will be required to perform at least eight hours of community service…

For many states, broadband connectivity is becoming an increasingly important tool used to improve the economic well-being of residents, especially in rural areas. While some have paved the way for publicly funded municipal broadband providers, others, such as North Carolina and Tennessee, have filed suit with the Federal Communications Commission and joined the telecommunications industry in their opposition. Over the course of the summer, several states announced their own measures to improve broadband adoption as a means to support economic development and improve the quality of life in rural areas. Recent research has explored the economic value of rural broadband adoption. Sponsored by the National Agricultural and Rural Development Policy Center (NARDeP), a study released last year found that, between 2001 and 2010,  rural counties where more than 60 percent of households adopted broadband experienced higher income growth and smaller unemployment growth than those counties that did not. The study, Broadband׳s contribution to economic growth in rural areas: Moving towards a causal relationship, also finds that rural counties where fewer than 40 percent of…

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…