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SSTI Digest

People

The e-newsletter of the National Association of Seed and Venture Funds, NASVF Net News, reports Sallie Traxler has become the Executive Director for the Council of Development Finance Agencies. Also, the e-newsletter reports Dan Loague has been promoted to the position of NASVF Executive Director.

People

Bill Borgmeyer has retired from his position as Coordinator of Technology Development for the Missouri Technology Corporation.

Ag-based Economic Development for the New Economy

Few economic sectors have experienced the combined economic, technological, social, biological, and – now with threats of mad cow and foot-and-mouth diseases – medical pressures that confront American agriculture. Adding the challenges of competing in the knowledge-based economy presents a formidable task for rural regions.



New Valley Connexions, a public-private partnership in California that teams agriculture businesses with both state and local governments as well as the larger business, financial, and educational communities, may provide a worthy model for study and replication in other parts of the country. Core funding for the initiative was provided by the Division of Science, Technology and Innovation within the California Technology, Trade and Commerce Agency.



Additional California Funding Offered for Rural Telecom Efforts

Complementing California’s support for New Valley Connexion, described above, is the state’s $2 million Rural E-Commerce program. Administered by the Division of Science, Technology and Innovation within the California Technology, Trade & Commerce Agency, Rural E-Commerce provides grants to non-profit organizations, educational institutions, and local governments for innovative, community-driven solutions to the telecommunications challenges faced by rural residents.



Examples of projects eligible for Rural E-Commerce support include rural telecommunications planning, rural network infrastructure, innovative applications, education and training, and related community planning efforts. According to the request for proposals, Rural E-Commerce grants also can be used as matching funds for rural communities competing for federal and foundation grants in areas relevant to rural e-commerce, such as the Technology Opportunities Program (TOP) and the Public Telecommunications Facilities Program.



Rhode Island Explores Tax Changes for High Tech

Eliminating all state taxes on long-term capital gains and providing incentives to encourage biotech start-ups and investment are among the recommendations advanced in The Competitive Edge: Rethinking Rhode Island Tax Policy for Success in the New Economy, the first report from the Tax Competitiveness Committee of the Rhode Island Economic Policy Council (RIEPC). Governor Lincoln Almond requested RIEPC review the state’s tax policy and recommend mechanisms for enhancing Rhode Island’s tax competitiveness in the New Economy.



The report identifies four specific recommendations for the state to consider to encourage high-wage, New Economy growth, including:

Connecticut Releases Draft Plan for IT Workforce Development

With 26 percent more of its workforce involved in information technology (IT) than the national average and with IT-producing industries growing faster in the state than the national average, Connecticut has possibly felt the pinch of the IT worker shortage more than other parts of the country. Add to that the fact that the number of IT-related graduates from the state’s universities and community colleges declined during the late 1990s.



As a result, last year the state legislature ordered the development of a statewide IT workforce development strategy. Responsibility for the plan was given to the state Office for Workforce Competitiveness (OWC) and the Connecticut Economic Resource Center, Inc. (CERC). CERC is a private, not-for-profit 501(C)(6) corporation formed through a partnership of utility/telecommunications companies and state government in 1992.



People

President Bush has announced several more nominations for key positions for the tech-based economic development community, including:

People

President Bush has announced several more nominations for key positions for the tech-based economic development community, including:

People

Roberto Salazar is leaving his post as the Director of the New Mexico Office of Science and Technology at the end of March to assume the position of State Director of the USDA's Rural Development Agency for New Mexico.



SSTI Weekly Digest Takes Spring Break

The SSTI Weekly Digest will be taking a brief spring break and will resume publication on Friday, April 6.

EDA Offers $411 Million for Local Economic Development

The Economic Development Administration (EDA) is offering nearly $411 million in financial assistance for distressed areas. The agency has already begun accepting proposals and will continue to do so until the $410,972,866 allocated for FY 2001 is exhausted. EDA seeks proposals for projects that will significantly benefit areas experiencing or threatened with substantial economic distress, and targets assistance to communities with the highest economic distress. Such distress may exist in a variety of forms such as high levels of unemployment, low income levels, large concentrations of low-income families, significant declines in per capita income, substantial loss of population because of the lack of employment opportunities, large numbers or high rates of business failures, sudden major layoffs or plant closures, military base closures, natural or other major disasters, depletion of natural resources, or reduced tax bases.



Accessing Capital: News from the South

While venture capital is harder to come by these days in most parts of the country due to the dot-com crash and stock market declines, investment capital may flow more easily in two southern states based on two initiatives.



Florida: $450 Million for CAPCOs Considered

The state legislature is currently considering CAPCO legislation to triple the maximum limit for tax breaks granted to insurance companies that invest in Florida companies through venture capital funds. Senate Bill 1130, passed unanimously in the Banking and Insurance committee this week, now moves to the Commerce and Economic Opportunities Committee for consideration. More information is available at: http://www.leg.state.fl.us/Welcome/index.cfm