SSTI Digest

Due to a number of requests from SSTI Weekly Digest readers, we have prepared the accompanying table presenting the 1998 "R&D Intensity" rankings for all 50 states and the District of Columbia. R&D Intensity is considered a state's total R&D performance as a percentage of the Gross State Product. Readers' requests came as a result of an April 6, 2001 SSTI Weekly Digest article on a recent Issue Brief from the National Science Foundation, R&D Spending is Highly Concentrated in A Small Number of States. Figures for only the top ten states were provided in the Issue Brief. Return to the top of this page

The Best Practices program in the Department of Housing and Urban Development (HUD), which for the past five years has highlighted and honored hundreds of varied and effective approaches to community development, has been discontinued. The program publications, website and annual conference provided state and local economic development efforts easy access to information and contacts for successful practices worthy of emulation. HUD Secretary Martinez has determined that funds required to continue Best Practices would be used more effectively to increase training for HUD staff. The agency website reports HUD will look for “other means to achieve the original objectives of the Best Practices program at a sustainable cost.” The scheduled August symposium in Washington, D.C. will not be held, and there is no longer a deadline or need to submit nominations for Best Practice awards. For the time being, many of the past examples of successful community development programs can still be found at: http://www.hud.gov/whatworks/

Joe Alviani has resigned as Executive Director of the Massachusetts Technology Collaborative to accept a position in the private sector. MTC Executive Vice President Philip Holahan is serving as Interim Executive Director. The Vermont Economic Progress Council has named Fred Kenney as Executive Director. VEPC is the nine-member panel established in 1994 with members appointed by the Governor to provide long-term economic policy planning. In 1998 it was given the responsibility of implementing the Economic Advancement Tax Incentives Act and reviewing applications for tax incentives. After seven years of serving as the first president of the Connecticut Technology Council, Laura Kent is resigning her position at the end of June. The Council now boasts over 400 members. Pennsylvania Governor Tom Ridge has promoted Tim McNulty to the new position of Deputy Chief of Staff for Technology Initiatives. Return to the top of this page

Joe Alviani has resigned as Executive Director of the Massachusetts Technology Collaborative to accept a position in the private sector. MTC Executive Vice President Philip Holahan is serving as Interim Executive Director.

The Vermont Economic Progress Council has named Fred Kenney as Executive Director. VEPC is the nine-member panel established in 1994 with members appointed by the Governor to provide long-term economic policy planning. In 1998 it was given the responsibility of implementing the Economic Advancement Tax Incentives Act and reviewing applications for tax incentives.

After seven years of serving as the first president of the Connecticut Technology Council, Laura Kent is resigning her position at the end of June. The Council now boasts over 400 members.

Pennsylvania Governor Tom Ridge has promoted Tim McNulty to the new position of Deputy Chief of Staff for Technology Initiatives.

The Bush Administration's first budget request offers a mixed bag for state, local, and non-profit practitioners and policymakers in tech-based economic development. In research categories, the budget reflects the Administration's research emphasis in defense, biotechnology, and life sciences. The budget also reorganizes the nation's energy research priorities. Most other research categories were held at FY 2001 funding levels or received modest increases or cuts. Most notable exceptions are the Department of Commerce's Advanced Technology Program (ATP) which is slated for a two-year hiatus from funding new projects while the program is reviewed, and the industrial research programs in the Department of Energy's Office of Industrial Technologies. Some discussion of these shifts are presented below. For economic development programs, the Administration's first budget presents a philosophical change with significant implications. Nearly every program that provides direct support to the private sector, either as loans or grants, experiences potential elimination or large reductions.…

Research funding levels, with the exception of $150 million in Congressional earmarks, remain relatively flat between FY 2001 appropriations and the President's FY 2002 request. Economic development and Digital Divide programs, on the other hand, take several hits. Selected agency program highlights include: Distance Learning & Telemedicine (DLT) Loans and Grants – continuation funding levels from FY 2001 of $25 million in grants and $300 million in loans to support access to advanced telecommunications services for improved education and health care in rural areas. (See Broadband below though for earmark) Broadband Telecom Services in Rural America – $100 million in direct loans and $2 million in loan/grant combinations taken from the DLT pool (FY 2001 $100 million, pilot program) to support broadband transmission and local dial-up Internet services in rural areas. Fund for Rural America – Authorization to use the $30 million balance of funds provided in FY 2000 is requested. Funds would be split evenly between rural development activities and…

The total agency budget request is $4.8 billion, $300 million less than the FY 2001 appropriation level. The majority of the reduction is absorbed by elimination of new project funding for the Advanced Technology Program, a 67 percent cut or $30 million for the Technology Opportunities Program, and a $77 million cut in Economic Development Administration programs. Selected Commerce program highlights include: Technology Administration, including the National Institute for Standards & Technology (NIST) – $495.7 million ($109.4 million less than the FY 2001 appropriation level) Under Secretary for Technology/Office of Technology Policy, including the Office of Space Commercialization – $8.2 million (increase of $176,000 over FY 2001 after rescissions) Experimental Program to Stimulate Competitive Technology (EPSCoT) – no funding requested. Advanced Technology Program (ATP) – $13 million in additional funding and all $145.4 million of FY 2001 funds would support outstanding commitments (no new awards would be made in FY 2001 or FY 2002…

The Administration budget request calls for a $2.6 billion increase for missile defense alternatives and new technology development. The President plans to increase military research by $20 billion over the next five years. Research, Development, Testing & Evaluation (6.1, 6.2, and 6.3 spending categories) would grow by only two percent in FY 2002, however. The American Institute of Physics reports the final Defense budget request will be released on May 15.

The agency's total FY 2002 budget request of $19.2 billion reflects a drop of 2.3 percent. The DOE science budget would increase to $3.16 billion, representing an increase of one-tenth of one percent. Shifts within the R&D budget reflect the President's priorities in fossil fuel research: $150 million in new matching federal funds will support the Clean Coal Power Initiative. Funding for Biological and Environmental Research, on the other hand, falls by more than eight percent. Energy Conservation research drops 46.3 percent over FY 2001 and funding for Renewable Energy Resources would drop by 36.4 percent, although the Administration has committed to introduce a budget amendment adding $39 million for hydrogen related research and restoring 9 percent of the FY 2001 energy conservation research funding level. An additional $1.2 billion in FY 2004 funding for alternative energy development is promised contingent on royalties from oil and gas drilling in the Artic National Wildlife Refuge. Compared to the FY 2001 appropriation, the Administration has requested 41 percent less funding for…