SSTI Digest

Over the last month, the Economic Development Administration (EDA) announced over $8 million in grants to expand entrepreneurial and business support services in Alabama, New York, and Texas including: $2.9 million to PortAL – a business incubator in Mobile, AL –  to renovate and modernize the former Threaded Fasteners building to provide entrepreneurial support services and house tech startups; $2.6 million to High Tech Rochester to facilitate the development of the Rochester-Finger Lakes Business Accelerator Hub Facility that will provide incubator space for high-growth potential startup businesses as well as services for existing manufacturing companies; $2 million to the University of Alabama (UA) to expand the UA Economic Development Resource Center in Tuscaloosa that provides economic development outreach services to businesses, governments, and citizens of Alabama; and, $1.3 million to the University of Houston to establish a Community Innovation Center that will support workforce training and entrepreneurship programming to the surrounding community.

While the recent Job Openings and Labor Turnover Survey (JOLTS) has some economists concerned that the U.S. economy is running out of qualified workers to fill existing openings, several states have announced workforce programs that are intended to address the skills-gap and build the talent pipeline in their respective states. These programs are intended to build regional partnerships between local workforce development agencies, economic development agencies, industry, and others. Approaches include a statewide apprenticeship tax credit in Alabama; occupation training for high-demand occupations in Texas; and, incumbent workforce training in Virginia. In May, the Alabama legislature passed the Apprenticeship Tax Credit Act of 2016 (SB 90) that provides Alabama business with an income and financial institution excise tax credit of $1,000 each for up to five apprentices hired during the prior taxable year. The program is capped at $3 million annually. The intent of the program is to help businesses address the lack of an available, trained workforce, according to Rosemary Elebash, the state director of the Alabama National Federation of Independent Business (NFIB).The…

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. 

Many states across the country already have, or will soon have, signed budgets ready for the 2017 fiscal year.  Over the past few months, SSTI has examined gubernatorial addresses and proposed budgets for a preview of technology-based economic development spending in the coming year. This week, we take a look at what initiatives and spending levels survived spending negotiations in Alabama, Florida, Idaho and New Mexico, as well as an update on the budget situation in Pennsylvania. AlabamaIn February, SSTI reported that Gov. Robert Bentley’s $1.9 billion fiscal year 2017 budget proposal included $7.5 million in funds for the Alabama Department of Economic and Community Affairs (ADECA), with another $202.4 million in earmarked funds. The enrolled bill, delivered to the governor last week, includes these allocations. The governor has pledged to veto the general fund budget due to an “unacceptable” allocation for the state’s Medicaid program and other issues. The Republican leadership, which controls both houses of the legislature plan to override any such measure, according to AL.com. FloridaOn March 17, Gov. Rick Scott…

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,…

While most state legislative sessions ended over the summer, a number of states only recently approved spending for FY16. Governors in Alabama, North Carolina and New Hampshire have approved budgets in the past few weeks, each after months of tense negotiations. SSTI reviews budgets in each of these states for spending related to technology-based economic development. For past articles in this series, visit ssti.org/tags/state-budget. AlabamaLast week, Gov. Robert Bentley signed Alabama FY 2016 General Fund Appropriations bill (HB1, Second Special Session 2015) following a second special session of the legislature. Funding for many state agencies was reduced by 5.5 percent, and $80 million in use tax revenue from the state’s Education Trust Fund was moved to the General Fund. The spending bill provides $1.75 billion, including $7.4 million for the Alabama Department of Economic and Community Affairs (ADECA) and $5.2 million for the Department of Commerce. Of the Commerce Dept. funding, $75,000 is appropriated to support the state’s Robotics Technology Park. North CarolinaGov. Pat McCrory has signed a $21.7 billion budget bill (H97)…

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…

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…

SSTI's Tech Talkin' Govs series has returned as governors across the country formally convene 2015 legislative sessions. The series highlights new and expanded TBED proposals from governors' State of the State, Budget and Inaugural addresses. The final installment of this year’s series includes excerpts from speeches delivered in Alabama, Florida, Ohio, Pennsylvania and Texas. Read the first, second, third, fourth and fifth installments of this year’s series. AlabamaGov. Robert Bentley, 2015 State of the State Address, March 3, 2015"This Session we will introduce the Made in Alabama Accelerate Alabama Jobs Incentive Package. Our current incentives are 15 years old, out of date and 100 – percent dependent on borrowing money. "This new incentives package will no longer be based solely on debt. "It will increase incentives for new projects that locate in rural areas, like Vernon, Alabama. "It will offer incentives for those who invest in Small Businesses and Start-Ups. "It will provide research and development credits for work done with Alabama-based research centers. And…

Investments and policy to support innovation-focused agendas have flourished with the close of the 2014 legislative sessions in several states. Crowdfunding legislation, incentives for attracting talent, higher education affordability, punishing patent trolls, and encouraging greater accountability are some of the areas where lawmakers focused their efforts. States Support Crowdfunding LawsTwo states passed legislation to amend state securities laws in order to allow entrepreneurs to raise capital through crowdfunding platforms. Maine passed LD 1512 last month (see related Digest article) and more recently, a measure (HB 2023) was passed in Washington that enables businesses to raise up to $1 million through crowdfunding websites. The law stipulates that contributions must come from residents and businesses in the state. At least five other states have passed similar laws, and a related bill is making its way through the Alabama legislature. Enhancing Incentives for Job CreationNebraska lawmakers passed LB 1114, a measure that extends for another five years the Business Innovation Act, a program that offers technical assistance and R&D grants to…

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,…

The second installment of SSTI’s Tech Talkin’ Govs series includes excerpts from speeches delivered in Alabama, Arizona, Georgia, Iowa, Kansas, Rhode Island, South Dakota, Vermont and Virginia. The first installment is available here. Alabama Gov. Robert Bentley, State of the State Address, Jan. 14, 2014 “We must create greater opportunity for Alabamians to acquire the skills needed for higher-paying jobs. Companies are looking for and jobs are waiting for skilled workers. ... “... We will present legislation creating a Statewide Workforce Council of business and industry leaders who will advise educators and colleges on the workforce needs on the types of jobs needed in each region. “We will expand the number of Career Coaches. We will expand Dual Enrollment Programs, so that students may attend high school and a 2-year college at the same time. ... Once implemented, this program will improve high school graduation rates and increase the number of higher-skilled workers.” Arizona Gov. Jan Brewer, State of the State Address, Jan. 13, 2014 "This year I am calling on the legislature…