SSTI Digest

Four short years ago, 37 states were in fiscal crisis, many making several rounds of deep spending cuts to cope with the most dramatic reduction in revenues in 20 years. In all, more than $15 billion were shaved from state budgets. Twenty-one states experienced negative revenue growth in FY 2003, forcing even deeper cuts. The fiscal winter of '02-'03 slowed many states' strategies for supporting growth in their knowledge-based economies.



In contrast, the latest June 2006 Fiscal Survey of the States, prepared by the National Association of State Budget Officers and the National Governors Association, reveals only four states were forced to reduce enacted budgets during FY 2006 because of revenues falling short of projections when budgets were enacted. The four were Indiana, Louisiana (post-Katrina), New Jersey and Rhode Island.

A $1.46 million grant from the Economic Development Administration to the Sirti Foundation is making possible a $3 million loan fund to technology companies within a 10-county region of Eastern Washington. The program provides another example of the non-traditional use of EDA funds to support tech-based economic development strategies. In addition, the deal structure may serve as a model to help other public agencies encourage TBED activities typically outside the scope or possibility of many public entities.

Despite industry claims to the contrary, the recovery of the U.S. information technology (IT) sector has not created enough new jobs for IT workers, according to a new report from the Washington Alliance of Technology Workers. Information Technology Labor Markets: Rebounding, but Slowly reveals that the recent increase in IT spending has not led to a full recovery in the labor market.



The Alliance worked with the University of Illinois at Chicago's Center for Urban Economic Development (CUED) to prepare the report. CUED finds that only 76,300 IT jobs have been created in the U.S. since April 2003. This represents less than a quarter of the 383,100 jobs lost during the 2001-2003 recession. IT employment growth remains sluggish and well below pre-recession levels.

The federal government distributed $26.7 billion to universities in the U.S. in fiscal year 2003 - a 9.4 percent increase from the FY 2002 total of $24.4 billion, a recently released National Science Foundation report reveals. Federal Science and Engineering Support to Universities, Colleges, and Nonprofit Institutions: Fiscal Year 2003 details federal science & engineering (S&E) activities to the nation's institutions of higher education.



The NSF report divides federal S&E obligations to universities into six categories: R&D; R&D plant; facilities and equipment for S&E instruction; fellowships, traineeships and training grants; general support for S&E; and other S&E activities.

Southern Growth Policies Board, in partnership with the National Institute of Standards and Technology (NIST), has designed a survey to identify the needs of small and medium-sized manufacturers in the area of information technology. The 20-question survey takes only a few minutes to complete and the results will be used to develop new programs to help small and medium-sized manufacturers. To participate, visit http://www.surveymonkey.com/s.asp?u=358482117916. For more information, contact Charity Pennock at cpennock@southern.org.