SSTI Digest

Governors are reaching into their toolkits to build tech-based economies, utilizing Opportunity Zones, tax credits, broadband infrastructure and workforce development initiatives among other things. This week, as we continue to review their state of the state addresses for TBED news, we see some governors still trying to reshape their states’ struggling economies while others are building on past successes and proposing new initiatives. Arkansas wants to become a technology hub and is proposing a Technology and Innovation Council to help achieve that goal. Delaware is hoping to build on its Angel Investor Tax Credit and utilize Opportunity Zones to spur development. Energy and climate change are on the agendas for many governors, and this week we see it called out by governors in Delaware, Hawaii, New Jersey, New Mexico and New York. Tools for rural development are on the radar in Georgia, while workforce development and education are just part of the plan in New Jersey and New York. In his Jan. 15 state of the state, Arkansas Gov. Asa Hutchinson highlighted his goal of making the state a technology hub: “… One of my goals for Arkansas is…

New York Gov. Andrew Cuomo has announced more than $763 million for economic development projects throughout the state as part of the regional economic development council (REDC) competition. The program, which tasks leaders in 10 regions to determine economic development priorities, has awarded more than $6.1 billion across 7,300 projects since its inception in 2011. In each region, funding went toward projects such as infrastructure, main street revitalization, feasibility studies, strategic planning, microenterprise funds, and workforce development. Of the total amount distributed this year, more than $20 million went to projects related to technology-based economic development. A (non-exhaustive) list of New York projects related to technology-based economic development receiving funding in this most recent round can be found below, while a full list of awarded projects can be found here. New York City The Icahn School of Medicine at Mount Sinai will renovate a Mount Sinai Health System-owned building into a state-of-the-art dry lab facility as the first phase of its life sciences hub capital plan. The research component of the dry lab will be complemented by an…

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.

Gov. Andrew Cuomo announced more than $755 million in economic and community development funding awarded through Round VII of the Regional Economic Development Council initiative. The Regional Councils were established in 2011 as a community-based and performance-driven approach to economic development. Each of the 10 regions of the state must develop strategic plans tailored to their region. Each region also competed for designation as a “top performer,” to receive up to $20 million in additional Empire State Development grant funding. The most recent announcements, including the five top performers are: Central New York: Top Performer Awardee | $86.4 million supporting 112 projects Mohawk Valley: Top Performer Awardee | $85.5 million supporting 101 projects Capital Region: Top Performer Awardee | $85.0 million supporting 110 projects Mid-Hudson: Top Performer Awardee | $84.8 million supporting 113 projects Long Island: Top Performer Awardee | $84.3 million supporting 98 projects Western New York: Regional Council Awardee | $68.8 million supporting 112 projects Southern Tier: Regional Council Awardee | $67.3 million…

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…

This week we continue our series on state legislation pertaining to the innovation economy that has been enacted this year around the country. This second installment of the States of Innovation 2017 series deals with free tuition. A number of states took action to increase the education and skills of their workforce by implementing free or greatly reduced tuition programs at either community colleges or state colleges. The move to increase access to higher education while not new, took up increased urgency this year. With Arkansas, Florida, Kentucky, New York, North Carolina, Rhode Island and Tennessee all taking action this past year, Maine and North Carolina were among others considering other options but as of today’s publication not moving the proposals forward.

SSTI continues its reporting on actions taken by state legislatures to invest in economic growth through science, technology, innovation and entrepreneurship. This week, we look at the budgets passed and signed by governors in Iowa, New York and North Dakota, finding mostly level and some increased funding for innovation programs in Iowa and New York – including free tuition at in-state colleges for qualifying residents – while North Dakota is looking at decreased funding for programs. Iowa Iowa recently passed a budget for FY 2018. Within the Economic Development Authority, the High Quality Jobs Fund, which provides funding for innovation programs, maintained funding of $15.9 million. However, a decrease in the authority’s available reserves leaves the innovation funding expected to decrease by two-thirds to $5.5 million in FY 2018. Two new programs, STEM scholarships and a mentoring partnership, receive $1 million and $93,000 in new funding, respectively. At the Board of Regents, the Agricultural Experiment Station ($29.9 million), Center for Biocatalysis and Bioprocessing research and tech transfer facility ($724,000), University…

On April 8, New York Gov. Andrew Cuomo announced that the Excelsior Scholarship program will be included in the state’s FY 2018 budget, after having been approved by the legislature. In its first year, the state will commit $163 million to provide tuition-free options for New Yorkers from ‘middle-class’ families at the state’s public institutions of higher education. Under the Excelsior Scholarship program, students can attend any of the colleges or universities that comprise the State University of New York and the City University of New York systems. After completing their degree, the scholarship requires that recipients must work or live in the state after graduation for the same number of years that they receive support. Cuomo contends that over 75 percent of the state’s 940,000 families with college-aged children would qualify for the program. The program would be phased in over the next three years beginning this fall, as was detailed in an earlier Digest story. Unlike federal grant programs (e.g., Pell Grants) that require only 12 credits per semester, the Excelsior Scholarship program requires that student enroll in college full…

  NY Gov. Andrew Cuomo delivered his state of the state address over three days and six different speeches, and released his proposed FY 2018 budget following the talks. Some of his major proposals affecting the technology-based economic development field include proposals he had revealed earlier and have previously been covered in the Digest, including his proposal for free tuition as well as a major investment in the life sciences.  In keeping with our Tech Talkin’ Govs series and budget reviews, some excerpts from his various speeches are detailed here, as well as a closer analysis of his proposed budget. From his Mid-Hudson address: “We flipped that whole equation. And that’s what we call our Regional Economic Development Councils. We put together business leaders, academic leaders in every region, and we said to them ‘you come up with the business plans for your region and we will fund your vision.’ And it is working, and it is working very well. $4.6 billion invested in the REDC’s since 2011. And it’s created 210,000 jobs, 5,200 projects all across the Mid-Hudson area. 476 million, in 600 hundred…

Two states are looking to make college more affordable through state programs aimed at decreasing or eliminating tuition costs. The New York legislature will decide the fate of a new proposal for free tuition at its state universities for middle income earners there, while in Kentucky students may be eligible for financial aid through the Work Ready Kentucky Scholarship Program. In New York, Gov. Andrew M. Cuomo announced the first signature proposal of his 2017 agenda: making college tuition-free for New York’s middle class families at all SUNY and CUNY two- and four-year colleges. If the proposal is passed by the legislature, the new initiative would be phased in over three years, beginning for New Yorkers making up to $100,000 annually in the fall of 2017, increasing to $110,000 in 2018, and reaching $125,000 in 2019.  Once fully phased in, the tuition assistance is projected to cost $163 million annually. The initiative would work by leveraging New York State’s other aid programs, such as the Tuition Assistance Program and other federal grants. The additional state funding would cover remaining costs for eligible students.   In 2014…