SSTI Digest

With the slowdown in the economy, there is widespread concern about the kind of painful belt-tightening which occurred in the states in the early 1990s. Because of this perception and the rapid change in so many states’ fiscal situations, the National Conference of State Legislatures (NCSL) released this week a new survey to update its January 4, 2001, State Fiscal Outlook for 2001. NCSL found that 33 states -- down from 44 reported only seven weeks earlier -- still report that revenues are on target or above forecasted levels for the current fiscal year. The likely reason for the 11-state decrease is lower than anticipated November and December revenues. Medicaid and increased funding for education are the two main expenditures pressuring states’ budgets. 



States most affected by the slowdown are located in the South and in the Great Lakes region: Alabama, Arkansas, Indiana, Kentucky, Michigan, Mississippi, North Carolina, Ohio, South Carolina, Tennessee, and Virginia. 

On February 26, President Bush issued a memorandum to 21 departments, agencies and other executive offices to create an Interagency Working Group on Federalism. The group is to: 



a) Identify initiatives that promote principles of federalism, such as: 

Release of the first solicitation of proposals for the new $3.5 million Federal and State Technology Partnership (FAST) has been delayed until the end of March, according to attendees of the National Small Business Innovation Research (SBIR) Conference held in Tulsa this past week. SSTI's March 1 presentation regarding FAST (a 16-slide Powerpoint file) is available by email request to skinner@ssti.org

The headlines of many tech and business publications scream of massive Internet incubator layoffs, closures, and restructuring. The rapid rise and fall of these organizations has left some local tech-based economic development practitioners wondering if encouraging the growth of incubator facilities is a worthwhile strategy to pursue. Closer scrutiny of the incubator phenomenon of the last few years, however, reveals many communities and states are increasing their investments in facilities to encourage technology start-ups at the same time for-profit incubators are closing. 

The National Science Foundation has published online the latest edition of the annual series: Science & Engineering State Profiles: 1998-99. By presenting one-page statistical summaries for each state, the District of Columbia, and Puerto Rico, Profiles provides rankings, state and US figures for easy reference across 30 science and engineering statistics as well as the distribution of federal R&D obligations by department and performer. 

With the 1994 School-to-Work Opportunities Act sunsetting this year and the increasing importance of developing a skilled workforce for a tech-based economy, many are asking if the initiatives launched or expanded by the Act have been successful. According to School-to-Work: Making A Difference in Education, a new report from the Institute on Education and the Economy at Columbia University, early results are encouraging, but there are areas for improvement given the opportunity presented by reauthorization. 



To prepare their findings the Institute reviewed the findings and conclusions of more than 130 local, state, regional, and national studies completed on School-to-Work programs. A complete bibliography is included at the end of the document. 



Accomplishments 

Two new Governors, Bob Wise of West Virginia and Wisconsin's Scott McCallum, have put tech-based economic development in the forefront of their respective economic agendas.



West Virginia

In his first State of the State Address, delivered February 14, and the Economic Development Plan released during his campaign for office, Governor Bob Wise outlined several tech-based economic development and education initiatives for the state to pursue immediately. He followed up the address by giving the state assembly several specific legislative proposals.



Governor Wise's proposals include:

The latest word in the national press regarding the FY 2002 budget President Bush will present to Congress next week suggests President Bush may propose significant cuts in investment in research and tech-based economic development. Many of the programs potentially under fire are instrumental to state and local efforts to promote stronger economic growth through science and technology.



A Feb. 15 story in the Wall Street Journal, "White House Is Planning Broad Cuts in U.S. Firm's Government Subsidies" reports the Office of Management and Budget has called business loan and grant programs for technology and economic development "corporate subsidies" that are "unjustified" and "low priority." The article singles out the International Trade Administration, the Overseas Private Investment Corporation, and parts of the Agriculture Department.