SSTI Digest

SSTI’s latest Tech Talkin’ Govs installment excerpts TBED highlights from governors’ speeches in Alaska, Indiana, Michigan, New Mexico, Nevada and Rhode Island. Education and workforce are focal points in this latest round of the state of the state addresses, as they have been in the two previous posts. Varying issues are factored into the speeches, from the $3 billion fiscal gap in Alaska to the proposed free college tuition in Rhode Island. Alaska Gov. Bill Walker, facing a $3 billion fiscal gap, delivered his third state of the state address to the State Legislature on Jan. 18 in Juneau: “Here is the hard truth. Denial doesn't make the problem go away. Hope doesn't pay the bills. We need to pass a plan to stabilize our fiscal future. And we need it now. “We must do a better job of preparing our youth for the challenges of the future. To meet this challenge, we need to rethink our entire system of public education. Alaskans must be at the heart of this effort. “We have already begun. Through an active public outreach process, the State Board of Education has identified five priorities for Alaska…

Bond issues supporting higher education goals got mixed results in Tuesday’s election. A bond issue in Rhode Island to be used for the renovation and construction of the University of Rhode Island’s College of Engineering buildings was a winner in this year’s election, receiving 59.3 percent approval. The bond issue that would have created the Montana Biomedical Research Authority was not as lucky, with 56.9 percent of voters there rejecting the measure. Two other economic development measures fared well with Arkansas voters approving (65.22 percent) a referendum removing caps on state-issued bonds to help finance economic development projects and services. Alabama voters also approved (59.22 percent) an amendment giving communities the power to create zones to attract industry to the state. Other education funding initiatives had limited success. Proposition 51 in California authorizing $9 billion in general obligation bonds to fund improvement and construction of school facilities for K-12 schools and community colleges passed (59.41 percent). New Mexico voters approved authorizing $142.356 million in bond issuance for certain higher educational,…

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…

This week, leaders in Illinois and New Mexico announced new investments to help seed and early stage technology startups access equity capital. The Illinois Treasurer will launch the Illinois Growth and Innovation Fund, which would invest $220 million over the next three years in 15-20 funds across the state. No more than 15 percent of the money will be placed with any particular fund. The state’s investment will target emerging tech companies, beginning later this quarter. New Mexico plans to launch a $40 million fund-of-funds, dubbed the Catalyst Fund. The state will target micro-funds in New Mexico, which must be able to match the state’s investment. The State Investment Council hopes the effort will double the amount of seed and early stage funding available in the state, according to the Albuquerque Journal.    

While many states have begun negotiations on budget plans for FY17 and beyond, Pennsylvania has made some progress on FY16 spending. Gov. Tom Wolf signed a partial budget that funded many agencies and programs related to economic development, but that did not include higher education funding and other operations. In the coming months, SSTI will review gubernatorial addresses and budget proposals related to economic development. This week, we highlight developments in Hawaii, New Mexico, Pennsylvania and Virginia. Hawaii Gov. David Ige released his $13 billion proposed fiscal year 2017 supplemental budget in late December, building on the biennial budget passed last year. The governor’s office is touting $729 million in infrastructure and economic development spending and another $248 million for education. The boost for infrastructure spending would support improvements to airports in Kona and Honolulu, and the modernization of Honolulu harbor. Most of the new education funding would support capital improvements, but $4 million is provided for the operating costs of the University of Hawaii’s Cancer Center. The proposed supplemental budget…

New Mexico Gov. Susana Martinez has released the state’s first comprehensive energy plan since 1991. Her administration characterizes the plan as an “all of the above” approach with an emphasis on improving infrastructure, creating new incentives and streamlining regulations. Though the plan does not feature support for energy technology R&D, it prioritizes reducing fresh water consumption and improving workforce training for energy jobs.  In Vermont, a recent report notes that the state has grown clean energy employment by more than 6 percent in the last year. The New Mexico plan outlines a strategy to leverage the state’s position as the fourth highest net-energy supplier to the United States into new jobs and energy independence. Pillars of the plan include funding for infrastructure projects, such as rail lines and electric transmission, incentives for natural gas, a low-carbon energy portfolio standard and the removal of regulatory barriers. The rapid development of the state’s oil, natural gas and nuclear energy sectors have left employers in need of workers training in energy fields. The state identifies a number of…

Last week, New Mexico Gov. Susana Martinez signed House Bill 2 into law, new tax incentive legislation that, according to the governor, expands the state’s economic development toolkit. The bill received bipartisan support, in the GOP-controlled House, where it passed 60-2, and the majority-Democrat Senate, where it was approved 31-11. According to the Martinez administration, the package is expected to cost between $6.5 million and $11.5 million per year. The bill expands six incentives already established, while two new tax breaks are created. Most notable for New Mexico’s TBED community are the New Mexico Angel Tax Credit and the Technology Jobs and Research and Development Tax Credit Act. The expanded New Mexico Angel Tax Credit makes $2 million in total tax credits per year available to all investors (up from $750,000), while increasing the total amount each individual investor can make to $62,500 per year (up from $25,000). The update also increases the number of credits individual investors can claim to five per year (from two) and the time the credit can be carried forward to five years (from three). The legislation also combines two existing…

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 budgets in Arizona, New Mexico, South Dakota, Utah, West Virginia and Wyoming ArizonaArizona legislators approved many of Gov. Doug Ducey's proposals to dramatically reduce higher education spending. The governor's budget recommended ending all funding for three of the state's community colleges. Under the approved bill, community colleges in Maricopa and Pima will lose all state support, though the Pinal County Community College system would receive about $2 million, according to an article in The Arizona Republic. However, STEM and workforce programs at state-funded community colleges will receive about $5 million. Legislators approved even larger reductions for the state's higher education system than the governor proposed. Gov. Ducey proposed a $75…

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…

The U.S. Small Business Administration has announced four new Regional Innovation Clusters that will be included among its portfolio of high-performing regional networks. Awardee clusters will receive $500,000-$550,000 for mentoring, counseling, pitch development and other small business support programs.  The new members of SBA’s cluster portfolio include Milwaukee’s Water Technology Cluster, Southeastern New Mexico’s Autonomous and Unmanned Systems Cluster, a Retail, Supply Chain and Food Processing Cluster spanning the Ozarks region and a Marine Industries Cluster in several Gulf Coast states. The four awardees will join SBA’s current portfolio of seven regional clusters from around the country. The geographic scope of these clusters varies considerably, with one defense-focused cluster based entirely in San Diego County, and another Advanced Power Cluster with participants in 30 states. In addition to offering funding for cluster development, SBA has aggressively tracked the development of these clusters and the impact of various initiatives. A July 2014 report on the third year of the cluster program observed that all seven participants…

University-focused initiatives that help bring new technologies and products to market help drive regional economic development and encourage an entrepreneurial culture on campuses. To create stronger connections with the private sector, eliminate barriers between universities and the innovation community, and better support industry needs, some higher education institutions are honing in on entrepreneurship and commercialization activities. A November report from the Brookings Institution on university technology transfer delves into economic factors that have led to the organic emergence of a new model for technology transfer, including pressure on universities to be more responsive to market forces. This “nurturing startups model” incentivizes faculty to partner with local business incubators and capital investors to commercialize their research and technologies, the author says. The report also finds that only a few universities have been able to generate significant revenue from technology transfer activities and concludes with recommendations for government to better support these efforts. At the same time, the latest licensing activity survey…

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,…