SSTI Digest

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.

Twelve gubernatorial seats were up for election Tuesday, five of which were held by incumbents seeking reelection. Four of those – Montana Gov. Steve Bullock (D), Oregon Gov. Kate Brown (D), Utah Gov. Gary Herbert (R) and Washington Gov. Jay Inslee (D) – were reelected for second terms. In North Carolina, Democratic candidate and State Attorney General Roy Cooper has a lead of less than one percent over incumbent Gov. Pat McCrory. Gov. McCrory has not conceded and the result is pending a canvass of votes, which may not be complete until November 18.

As of this publication, there are seven new governors taking office:

·         Democratic Congressman John Carney won the seat in Delaware.

·         Republican Lt. Gov. Eric Holcomb won in Indiana.

·         Republican and former Navy Seal Eric Greitens won in Missouri.

·         Republican Chris Sununu won in New Hampshire.

Over the last few weeks, Indiana and Michigan have announced the launch of manufacturing-focused innovation centers to help transform manufacturing sectors that are long-standing drivers of economic prosperity in their respective state into 21st century global hubs for manufacturing innovation. In partnership with key local industry partners, these centers are intended to help spur job creation while reimaging the role of manufacturing in their state through innovation. Purdue University in Indiana and its public/private-sector partners want to capitalize on the strength of the state’s composites manufacturing sector by launching a new manufacturing innovation institute focused on the advanced manufacturing of composite materials. In Michigan, automakers have partnered with the state and other groups to support the future of transportation through two automotive-focused innovation centers.

Indiana Gov. Mike Pence announced plans to invest $1 billion over the next 10 years to advance innovation and entrepreneurship in the state, and to ensure the Hoosier State plays a leading role in solving 21st century challenges, while supporting Indiana’s long-term economic growth, job creation and talent attraction. The 10-year proposal centers on and seeks to enhance the collaborative partnerships between government, education and research institutions, as well as communities in the private sector, while focusing on further advancing Indiana’s current economic momentum and innovation activities.

To drive state competitiveness and job creation, Indiana and Mississippi announced new efforts to engage regional institutions of higher education and other organizations to provide workers with the skills that match the needs of existing industry as well as attract new business and industry to their state. Through the Indiana Department of Workforce Development (DWD), the state will commit $22 million to fund industry-led regional partnerships aimed at aligning education and workforce needs. Mississippi Gov. Phil Bryant announced the creation of a new workforce training fund to allow state leaders to allocate dollars toward workforce training with a focus on recruiting new business to the state. 

Indiana

Over the last two months, the state announced the winners of the first round of Skill UP Indiana! and is now accepting applications for the second round of the program. Via these two rounds of funding, the state will commit up to $22 million to encourage the development of sector-focused training and education programs for in-demand occupations as well as teach necessary workforce skills and competencies as identified by local employers.

The Indiana Biosciences Research Institute (IBRI), first unveiled in May 2013, is a statewide public-private partnership advanced by BioCrossroads that considers itself the first industry-led collaborative life sciences research institute in the country. Late last month, the institute announced two new grants totaling $100 million that would support scientific innovation addressing metabolic disease and poor nutrition. 

Of the $100 million in grants announced by IBRI, $80 million would come from the Lilly Endowment, with $45 million granted unconditionally and the remaining $35 million subject to dollar-for-dollar matching, encouraging contributions from the broader life sciences community. The Eli Lilly and Company Foundation contributed $20 million, which qualifies for the endowment’s match. An additional $15 million remains to be matched.

The Indianapolis-based Lilly Endowment announced three grants totaling $42 million to boost regional development efforts in 11 counties located in Southwest-Central Indiana with a focus on research and development, workforce and education, and efforts to enhance quality of life. The recently formed Regional Opportunity Initiatives will receive $25.9 million to implement an education and workforce plan as well as a regional opportunity fund for quality-of-place investments. The Lilly Endowment awarded $16 million to the Central Indiana Corporate Partnership Foundation to establish an Applied Research Institute near the Naval Surface Warfare Center, Crane Division. To address societal challenges faced by rural communities, Indiana University Foundation will receive $126,000. In December, Gov.

The National Governors Association’s (NGA) Center for Best Practices launched the 2016 Policy Academy on Scaling Work-Based Learning – a pilot program in six states that blends work experience and applied learning to develop youth and young adults’ foundational and technical skills to expand their education, career and employment opportunities. The goal of the program is to connect 16- to 29-year-olds with middle-skills career opportunities in STEM-intensive industries such as advanced manufacturing, health care, information technology and energy. The six states that will take part in the 18-month pilot program include Indiana, Iowa, Montana, New Hampshire, Utah, and Washington.  Read the press release: http://www.nga.org/cms/home/news-room/news-releases/2015--news-releases/col2-content/states-look-to-increase-career.default.html. 

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 Alaska, Colorado and Indiana.

AlaskaThe Alaskan legislature reached a fiscal year 2016 operating budget agreement earlier this week (HB 72), but were unable to close a $3 billion gap. Gov. Bill Walker convened a special session on Wednesday to demand that lawmakers find a way to balance the budget.

Under the current agreement, legislators allocated $3 million for economic development and $11.5 million for an eighth round of renewable energy project grants through the Alaska Energy Authority.

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 second installment of this year’s series includes excerpts from speeches delivered in Arizona, Idaho, Indiana, South Dakota, Virginia, Washington, Wisconsin and West Virginia. Read last week’s installment featuring speeches in California, Kentucky and Vermont here.

ArizonaGov. Doug Ducey, State of the State Address, Jan. 12, 2015“… Last week, I signed an order placing a moratorium on new regulations in the executive branch. It was a good beginning, but only a beginning.

As governors around the country begin their newest terms, their proposed budgets are beginning to take shape. Although few governors specifically target technology based economic development, after the first wave of budgets a variety of initiatives related to workforce development and higher education have garnered support. 

California

Gov. Jerry Brown released his proposal for a $164.7 billion budget for FY 2015-16 with a $113.3 billion general fund. As budget deliberations continue until June 15th, it is expected that resistance will come from both the University of California (UC) system and Democratic policymakers hoping to restore the health and social services programs that were reduced during the most recent recession. 

New York Gov. Andrew Cuomo recently announced the fourth round of regional economic development grants to support tailored approaches to job creation in different areas of the state. The $709.2 million in awards are part of the state’s ongoing Regional Economic Development Council (REDC) initiative begun in 2011. Regional strategies have long been a key component of state development policy, enabling policymakers to encourage institutional partnerships with a focus on the specific needs of local economies. New York’s approach supports individual projects proposed by regional councils. Other models have been proposed in Indiana and Kentucky.