SSTI Digest

Over the past few months, SSTI has followed proposals issued by governors in their budget requests, State of the State Addresses, Inaugural Speeches and other events. Now that many state legislatures have begun approving budgets, the Digest will check on the status of these proposals, and examine the state of technology-based economic development funding in the states. This week, we review actions in Arkansas, Mississippi and New York. ArkansasGov. Asa Hutchinson signed off on $8.5 million in FY16 funding for the operation of the Arkansas Science and Technology Authority (ASTA) (SB 31). Beyond operations, $1.9 million was appropriated for ASTA's seed capital investments and another $18.7 million was allotted for the Arkansas Acceleration Fund. Up to $5 million of the Acceleration Fund dollars will be available for use by Innovation Arkansas. The Acceleration Fund received another $30 million through a separate operations budget (SB 111) for the Arkansas Economic Development Commission. ASTA's MEP office, Arkansas Manufacturing Solutions, will receive $2.6 million, including $941,110 in federal funds, $257,182 in state funds and $1.5 million from the…

Over the last couple weeks, governors in Arkansas and Mississippi presented budgets to their stage legislature. In Arkansas, term-limited Gov. Mike Beebe presented two budget proposals for the 2015-17 biennial budget to state lawmakers. However, Gov.-elect Asa Hutchison also will present a budget to the legislature that may differ from Gov. Beebe’s proposal and potentially impact funding for state agencies due to a proposed $100 million individual income tax cut. Mississippi Gov. Phil Bryant released his fiscal year 2016 (FY16) executive budget recommendations highlighted by a $52 million increase in funding for public education including a $3 million commitment for the Mississippi Works Scholarship Program. ArkansasOutgoing Gov. Beebe presented two FY16 budget proposals to the Arkansas General Assembly. Although the term-limited governor will be no longer hold office when the budget is approved, he is required by state law to submit a budget. Gov. Beebe presented two budgets to assembly members: one including almost $26 million in scheduled tax cuts and one that would delay those cuts. The two budgets provide Gov. Beebe’s insight on how delaying, or…

In case you missed it, the midterm elections were on Tuesday, resulting in Republicans taking control of Congress, several new governors, and five states endorsing minimum wage increases. Although the 146 state ballot measures up for vote were a quarter-century low, several proposals were relevant to the TBED community, as highlighted in a Digest article last week. Voters ultimately approved many of these proposals, although initiatives related to higher-education in North Dakota and Oregon both failed.  Issue Three in Arkansas was approved by voters, officially banning lobbyist gifts to state officials, prohibiting direct corporate and union contributions to candidates, and doubling the time needed before former politicians can become lobbyists. It appeared that the measure was headed to defeat, largely because in addition to these provisions, Issue Three also increases term limits to 16 years per office.  Colorado voters overwhelmingly rejected Proposition 105, an initiative to label genetically engineered foods, with more than 68 percent of voters saying no to the labeling. About $900,000 was contributed in support for the initiative, mainly from…

On November 4, 42 states will vote on 146 ballot issues across a wide array of issues. In addition to initiatives on gun control, bear baiting, and the minimum wage, several initiatives relevant to the TBED community are also up for decision. SSTI has gathered information on many of these and will discuss their results after next week’s elections. Arkansas voters will decide on Issue Three, an initiative that seeks to establish an independent citizens’ commission to evaluate salaries for public officials, eliminate free meals and gifts to state politicians, prohibit politicians from receiving donations from corporations, and restructure term limits for state senators and house representatives. Currently, Arkansas’ state representatives can serve six years in office, while senators can serve eight. Issue Three will allow politicians to serve 16 years in either chamber, rather than forcing them to switch chambers after serving at the current limits. The bill will also force legislators to wait two years before they can become a lobbyist. In Colorado, residents will vote on Proposition 105, which would require any prepackaged, processed food or raw…

Eager to attract investment and spur startup activity, city and state officials launched entrepreneurship programs, high-tech R&D centers, and sector-specific facilities as part of the innovation hub trend in 2013. Research suggests that cities and regions with strong, established tech sectors tend to produce more startups. For example, a white paper from the Kauffman Foundation found the recent adoption of entrepreneurship programs in many cities is more an indication of the underlying strength of the region and its base of talent on which those programs can build rather than a cause of startup activity. Using an appendix of the top metro areas by startup density in high-tech and ICT sectors for 1990 and 2010, the study examines the relative performance of the areas over the past 20 years in terms of high-tech entrepreneurship. Specifically, the author wanted to find out what areas saw the biggest increases or decreases in high-tech startup density, compare relative performance by different size MSAs, and discover whether or not the top metro areas identified for 2010 were the same as in 1990. Findings indicate many areas currently considered new startup…

Gov. Lincoln Chafee has nominated Deputy Director William Parsons to lead the Rhode Island Economic Development Corporation. Gov. Rick Perry has appointed J. Bruce Bugg, Jr. as president and chairman of the Texas Economic Development Corp. Gov.-elect Steve Bullock tapped Meg O'Leary to be the Montana Commerce Department director. Thomas McDonnell, a Ewing Marion Kauffman Foundation trustee since 2003 and board chairman since 2006, has been elected CEO of the foundation. Blake Perry has been appointed as the interim president of the Arkansas Science & Technology Authority. Charlie Moret has joined TechTown as managing director, entrepreneurial programs. Previously, he served as managing director of business development at Connecticut Innovations Inc. David Oliver, professor of genetics, development and cell biology, and associate dean of the Iowa State College of Liberal Arts and Sciences, has been named interim vice president of research and economic development, effective January 1, 2013.

Maria Haley, the executive director of the Arkansas Economic Development Commission passed way Sept. 13 after suffering a brain aneurysm. The U.S. Commerce Department's Economic Development Administration announced Matthew Erskine will join the agency as the U.S. deputy assistant secretary of Commerce for Economic Development and chief operations officer. Tom Palisin has been named the acting deputy director of the Technology Investment Office at the Pennsylvania Department of Community and Economic Development. The University of Utah selected Bryan Ritchie to be the next director of its Technology Commercialization Office. Paul Washington has been named Denver's director of economic development. John Ryan has been named the director of the Vermont Agriculture Development Program. The new program will provide comprehensive technical support to help the state's value-added food enterprises manage their growth. Two administrators in Workforce Development & Continuing Education at Pennsylvania College of Technology have been appointed to assistant vice president positions. Larry Michael was named assistant vice president…

Arkansas Gov. Mike Beebe and the state's Workforce Cabinet announced a $2.7 million pilot program — STEM Works — focused on Science, Technology, Engineering and Math (STEM) education in high schools. STEM Works will be made up of two components. The first component will focus on overhauling the state's STEM curriculum at the high school level to better prepare high school graduates to pursue college degrees in STEM disciplines. The second component — UTeach — will attempt to attract qualified college graduates to become STEM educators. During the pilot stage, schools from across the state will be encouraged to adopt a STEM curriculum made up of components from two national STEM education initiatives. Participating school districts will create New Tech High Schools, a component of the New Tech Network model — a nonprofit organization that works with schools, districts and communities to implement an interactive STEM education model. The program also will support the implementation of Relevant Education for Active Learning (REAL) Schools, a component of the Environmental and Spatial Technology (EAST) schools model — a national…

The second installment of SSTI's Tech Talkin' Govs' series includes excerpts from speeches delivered in Arkansas, Connecticut, Idaho, Kansas, New Hampshire, Virginia, Washington, and Wyoming. Our first installment was in the Jan. 5 Digest. ArkansasGov. Mike Beebe, State of the State Address, Jan. 11, 2011"I want to tie funding for higher-education institutions more closely to coursework completion and graduation rates, not simply to enrollment. These tax dollars must produce college graduates, not just fill up seats. We can and must double the number of college graduates in Arkansas by 2025 if we are to stay competitive. This is a lofty goal aimed at the future, but we must begin implementing it today." ConnecticutGov. Dan Malloy, Inaugural Address, Jan. 5, 2011"We will put in place an economic development strategy that makes sense for the 21st century economy, aggressively competing with other states and nations for lucrative biotech, nanotech, fuel cell technology and stem cell research jobs. "We will join Connecticut to the Energy Economy, attracting companies that reduce our…

Governors in Arkansas, Mississippi and Wyoming recently unveiled spending plans for the upcoming year or biennium. Funding for many tech-based investments would be maintained or increased under the governors' proposals. New proposals range from additional funds for energy research at the University of Wyoming to new funding mechanisms for colleges and universities in Mississippi. Funding for S&T efforts in Arkansas would remain level. Arkansas Gov. Mike Beebe unveiled a $4.6 billion spending plan for the upcoming year that includes $17.4 million for the Arkansas Science and Technology Authority, the state's lead tech-based economic development organization. This includes $7.9 million in ARRA funds for a project within the Office of Health Information Technology. Authorized funding for the Authority was $9.4 million last year, which incorporated $206,190 in ARRA funds. The governor recommends level funding of $1.9 million for the Seed Capital Investment program, which provides up to $500,000 to support initial capitalization or expansion of tech-based companies and $257,182 in state funds for the Manufacturing Extension Network, the same as last year. The…

As economists and policymakers debate the details of how and when the nation will recover from the recession, the topic of entrepreneurship and the role it will play in shaping the new economy continually arises. In the coming years, some analysts predict a rise in entrepreneurship both as a result of massive layoffs and an aging workforce not yet ready or able to retire. Highlighting the correlation between joblessness and the uptick in entrepreneurship, several recent news articles have featured stories of the unemployed forgoing disappointing job searches and the corporate environment to pursue business ownership. At the same time, the U.S. may be on the cusp of an entrepreneurial boom thanks to its aging population. A recent report by the Kauffman Foundation finds the highest rate of entrepreneurial activity belongs to 55-64 year olds. The study points to several factors driving this shift, including changes in job tenure, an increase in life expectancy, and the continued decline of lifetime employment and the experience and tacit knowledge such employees carry with them. Additionally, stronger regulations aiming to prevent the rise of giant organizations may help…

While there is no question that the economic recession has taken a toll on states' fiscal conditions, the degree by which states are affected can vary widely from one state to another, as evidenced most recently in Arkansas and Georgia. In Arkansas, legislators wrapped up their 2009 session with a plan to distribute a $300 million surplus, while the budget agreement made in Georgia would cut spending by $1.6 billion in the coming year. The following overview provides an outline of legislative actions affecting the two states' programs that support tech-based economic development efforts. Arkansas Operating with a nearly $300 million surplus, lawmakers passed a spending plan last week that authorizes funds for several economic development projects, including $50 million for Gov. Mike Beebe's Quick Action Closing Fund to attract new businesses to the state.  Act 1415, approved by the legislature, authorizes up to $9.7 million for the Arkansas Science and Technology Authority in FY10. Additional funds for Science and Technology Authority projects are included in the General Improvement Fund (GIF) bill, which allocates surplus funds that may be distributed…