SSTI Digest

Despite overall signs of improving fiscal health in 2005, half of the nation’s cities have been forced to raise new revenues to address gaps created by rising employee health care and pension costs, as well as increases in public safety and infrastructure needs, according to a National League of Cities (NLC) survey released last week.

Results from City Fiscal Conditions in 2005 show that nearly half (48 percent) of the cities surveyed increased fees and charges for city services in order to balance budgets in 2005. Only 26 percent say they relied on increases in property taxes, while even smaller numbers increased sales tax rates, income tax rates and other tax rates.

Many Wall Street analysts reacted to last month's jobs numbers with fears of inflation, but a new report released by the U.S. Conference of Mayors Jan. 27 finds those new jobs often are associated with smaller paychecks than those before the last recession. A declining standard of living is not a goal for any state or local economic development program, so the findings present new challenges on how to create higher wage jobs in the future.

The Metro Economy Report found jobs created after the 2003 recession have paid working Americans about $9,000 less annually than the jobs lost during the recession. The report, released at the organization's annual winter meeting, showed that the 10 sectors that lost the most jobs through the end of 2003 paid an average wage of $43,629, while the 10 sectors with the largest increases in employment in 2004-2005 paid only $34,378, a staggering 21 percent decline.

The first two installments of SSTI's annual look at how TBED will play in the 2006 legislative priorities of the governors can be found in the Digest archives on our website: http://www.ssti.org/Digest/digest.htm

Delaware

Gov. Ruth Ann Minner, Budget Proposal, Jan. 26, 2005

"My budget also includes $632,400 to fund 10 additional math specialists. We put 22 math specialists in middle schools last year, and while I had hoped to add more than 10 this year, we simply cannot do that and maintain our modest budget growth...

Innovation and national competitiveness increasingly are capturing the attention of Congress as the 2006 legislative agenda takes shape. The latest addition is a bipartisan package of three bills introduced to address 20 recommendations outlined in Rising Above the Gathering Storm: Energizing and Employing America for a Brighter Economic Future, a National Academies of Science report issued last October.

The three-part Protecting America's Competitive Edge Act (PACE Act), introduced by Senators Pete Domenici (R-NM), Jeff Bingaman (D-NM), Lamar Alexander (R-TN), and Barbara Mikulski (D-MD), would greatly increase federal investment in math and science education, basic science and energy research, and R&D tax incentives.

Total funding for research and development is expected to increase by approximately 2.9 percent to $329 billion in 2006, according to the joint Battelle-R&D Magazine annual forecast. The projected increase, from the estimated $320 billion spent in 2005, covers all R&D expenditures across industry, government and academia.

 

To survive economically in an innovation-based economy, Fresno needs to foster the creativity of its people and attract others into the population, says a recent report from the Fresno Creative Economy Council. While encouraging creativity to spur innovation and economic growth has captured the attention of cities and regions across the continent, how to accomplish that goal is less clear for many. Civic leaders for the central California community of 460,000 believe they have charted an achievable course.

The report to Mayor Alan Autry and the Fresno City Council looks at four spheres of change for transforming Fresno into a community that will retain, attract, develop, and support knowledge workers. These include mindset, smart growth, urban living, and quality of place. Within each sphere are strategic goals alongside several recommendations to be implemented by city leaders.

Southern Growth Policies Board has launched its 2006 online survey at http://www.southern.org/main/surveyintro.shtml to poll Southern citizens on their attitudes towards innovation and technology, and their role in the economic future of the region. All Digest readers within the Southern Growth's service-area are encouraged to share their opinions and ideas on strategies for increasing the role of innovation and technology in southern businesses, universities and governments, and the potential of technology to create jobs and wealth in the South. The 12-question survey should take only a few minutes to complete.

Bill Badger announced he will resign as president and CEO of the Anne Arundel County Economic Development Corp. to take an executive position with M&T Bank.

Roger Biagi was named to the newly created position of director of government relations at the New York State Office of Science, Technology and Academic Research.

The North Carolina Solar Center promoted Steve Kalland to the position of executive director.

Thomas Persons Sr., president and CEO of the South Carolina Technology Alliance, was appointed to the newly created South Carolina Venture Capital Authority.

Bill Badger announced he will resign as president and CEO of the Anne Arundel County Economic Development Corp. to take an executive position with M&T Bank.

Roger Biagi was named to the newly created position of director of government relations at the New York State Office of Science, Technology and Academic Research.

The North Carolina Solar Center promoted Steve Kalland to the position of executive director.

Thomas Persons Sr., president and CEO of the South Carolina Technology Alliance, was appointed to the newly created South Carolina Venture Capital Authority.