SSTI Digest

Recognizing Louisiana’s lag in some prosperity metrics, loss of talent over the past decade, and need to build a more competitive economy among its southern state peers, the Louisiana Economic Development (LED) has created a strategic plan that emphasizes innovation, technology, and entrepreneurship as the means to address the challenges and opportunities it faces in creating a more robust and talent-attracting economy. The Positioning Louisiana to Win: 2025 Comprehensive Statewide Strategic Plan, released in March 2025, details several recommendations and initiatives that seek to nurture homegrown entrepreneurs, startups and technology-driven businesses; attract and retain talent; and modernize the state’s traditional industries, educational, and training programs to ensure that key sectors and Louisianans are positioned to prosper from a more competitive technology-based economy. Emphasizing technology and innovation as drivers of economic growth and recognizing that talent and entrepreneurship are critical for creating a prosperous economy, the plan underscores the need for Louisiana to attract /expand technology sectors as cultivators of…

The U.S. National Science Foundation announced awards totaling approximately $40 million to support research and STEM workforce development in Delaware, Guam, Kentucky, Louisiana, and Vermont, according to a January 22 NSF press release. These grants are part of the NSF Established Program to Stimulate Competitive Research (NSF EPSCoR). “Strengthening Partnerships for Advancing Research Capacity in Delaware” is led by the University of Delaware and delivered in partnership with the Delaware EPSCoR State Committee, Delaware State University, Delaware Technical Community College, Goldey-Beacom College, and Wilmington University. The award abstract, notes that the project is expected to strengthen the data and intellectual property infrastructure among the participating institutions, boost interdisciplinary team-based research, improve communication and access to STEM programming, and support entrepreneurial training.  “Optimizing Research Infrastructure in Guam” is led by the University of Guam in collaboration with Guam Community College. The project’s award abstract states the funding enables “student research experiences to employ a near-peer mentoring…

After a busy election season that saw gubernatorial elections in 36 states, newly elected and re-elected governors delivered their annual State of the State addresses, kicking off new programs and reviewing the conditions of their states. SSTI reviews the speeches every year and covers news of new developments and initiatives the governors have highlighted as they relate to the innovation economy. New programs are laid out here in the governors own words as excerpts from their State of the State or budget addresses. Not all governors delivered a State of the State, and some that did may not have revealed new innovation-related initiatives and so are not included in our coverage. Common initiatives among the governors that touched on innovation included an emphasis on workforce, education and broadband; water issues for Western governors; and, clean energy. Alabama Gov. Kay Ivey delivered her 2023 State of the State on March 7 and called on legislators to “look ahead and crate an economic development strategy for the 2030s.” “… I am calling on you to get behind our playbook for economic success, what I am calling The Game Plan.” “We will…

As state budgets move into the legislatures for final negotiations and approvals, the last of the governors have addressed their constituents and put forth their proposals. While a renewed sense of hope is seeping into the latest addresses, governors are still cautious and guarded in proposing new programs. Broadband, small business, education and workforce initiatives continue to be among the innovation-related initiatives announced by the state leaders, with the intent that those efforts will also boost the economic recovery of the states. Louisiana Gov. John Bel Edwards, in acknowledging the unusual circumstances of his April 12, 2021, State of the State address (he gave it from the A.W. Mumford Stadium on the campus of Southern University as opposed to a usual address inside the House chamber due to COVID-19 safety precautions) sounded a hopeful note, saying, “A new day is dawning with every shot in every arm.” In addition to the pandemic, Louisiana is still recovering from the two hurricanes that hit its coast, and the governor said that “no state is more adversely impacted by climate change….” He said the state will be a leader in reducing carbon emissions…

In general, the effect of the pandemic on states’ budgets due to the wave of business, retail, and commerce shutdowns, as well as other reduced economic activity across the nation, is not entirely known, or too early to forecast; however, a number of states are beginning to experience the initial impacts of a substantial downturn. With several states having already enacted their 2020-21 budgets, special sessions are expected later this year to deal with declining revenues. Others ended sessions early without a new fiscal year spending plan in place. Many are also acting quickly to help mitigate the effects of lost revenues and an increased demand for services. Some of the states’ impacts and actions are outlined below. Alaska officials report that the drop in global oil prices will likely add $300 million to the state's current year (2020) budget deficit. The Alaska Journal of Commerce reports the state Legislative Finance Division told lawmakers that the state could experience a $600 million revenue reduction in the 2021 fiscal year, which starts July 1. In Arkansas, lawmakers were called into special session to address an estimated $353 million hit to the state’s…

In 2019, the administrations and legislatures in many states grappled with if and how to adjust state economic development initiatives to leverage the federal Opportunity Zone (OZ) program. The actions of 12 states that implemented new activities are described below. Notably, many of these state efforts require applications and reports on OZ projects — unlike the federal OZ incentive. Some created a new requirement specific to OZs and some states placed the OZ benefits within existing initiatives that already require such information sharing. Investor use of state OZ benefits, therefore, may be one means by which the costs and benefits of the federal program will be able to be evaluated. Readers should be aware that full appreciation of the state-level benefits for OZ investment go beyond the distinct initiatives described below. Of the 44 states that have an income or capital gains tax, all but five conform with the federal OZ benefits — meaning that investors will receive state capital gains deferrals, reductions and waivers. Alabama The state created a multi-tiered incentive structure providing increasing support as projects make a greater commitment…

Democrats made some gains in Virginia’s Legislature, and in Kentucky, the governor’s seat looks to be turning over to a Democrat, but the current Republican is requesting a recanvass in the close race. If those results hold, Democratic challenger and current Attorney General Andy Beshear will take the seat from incumbent Gov. Matt Bevin, ending the state’s Republican trifecta (where one party holds the governorship and both chambers of the legislature). Mississippi’s gubernatorial seat remained in Republican control, while the gubernatorial election in Louisiana takes place on Nov. 16, and the incumbent Democratic governor there is seeking another term. Following Tuesday’s elections, the divided government in Virginia turned into a Democratic trifecta in Virginia, as Republicans lost their hold in both the House and Senate. Those outcomes and results from several state legislative elections, along with the results of several innovation-related initiatives, are highlighted below.

As voters head to the polls next week, some will be deciding the fate of innovation and development-related initiatives, while voters in Kentucky, Louisiana and Mississippi will be voting in gubernatorial elections. The initiatives include a possible additional $3 billion in Texas for cancer research. And in Louisiana, Mississippi, New Jersey and Virginia, legislative chambers are holding regular elections. Those races and initiatives are covered below.

This week SSTI wraps up this year’s coverage of innovation-related initiatives covered in governors’ state of the state and budget addresses. This week Louisiana Gov. John Bel Edwards was the last governor to deliver a state of the state address in 2019, and he used his time to highlight the state’s surplus, a first since he has been in office. The governor is taking advantage of the new financial security to focus on funding for basics such as teacher pay and education among other things. He also voiced his support for raising the minimum wage and closing the gender wage gap in Louisiana: “I am also committed to ensuring all high school students have access to dual enrollment opportunities at our colleges. Students who participate in dual enrollment are more likely to meet college readiness benchmarks and boast higher college completion rates. It’s a chance for students to get real college experience before they get there. And it could even be a chance for Louisiana colleges to have an edge on keeping high-performing students in state after they finish high school.” “… I support a constitutional amendment to…

NexusLA announced the launch of Apprenti Louisiana –  the state’s first registered information technology (IT) apprenticeship program. NexusLA, a Research Park Corporation subsidiary, will partner with Apprenti to support the program. Apprenti, a Seattle-based apprenticeship model, was launched in 2015 by the Washington Technology Industry Association and is now expanding in communities across the U.S.

The ability of states to deliver the services promised to its residents relies on their fiscal soundness. With most states beginning their fiscal year in July, SSTI has reviewed the current fiscal standing for each state and here presents a snapshot of our findings. Most states ended their fiscal year with a surplus and continue to recover from the Great Recession, with a growing economy and job gains. However, they face continuing demands on their budgets, with expanded Medicaid payments and the growing opioid crisis confronting nearly every state. Such decisions affect the state’s ability to fund innovation efforts, from the amount of support available for higher education and STEM programs, to funding for entrepreneurship, and forging public private partnerships to strengthen innovation programming that the private sector cannot fully support. Our analysis found that some states that rely on the energy sector to fund their spending priorities continue to struggle, while others are already factoring in anticipated revenues as a result of new Supreme Court rulings involving gaming and online sales tax collections.

The last of the governors’ state of the state addresses for this year have been delivered, and New Jersey’s governor presented his first budget address. SSTI has continued to review the addresses for news on TBED initiatives and presents excerpts of their addresses concerning such initiatives below. Louisiana’s governor is focused on addressing a fiscal cliff while preserving education gains in the state. New Jersey’s governor laid out a vision embracing green energy in the state and growing high school STEM-focused programs. And New Hampshire’s governor touted the state’s fiscal strength and said he would continue to build momentum on STEM initiatives with a new partnership for an annual robotics competition. Louisiana Gov. John Bel Edwards delivered his state of the state Monday before the opening of the regular legislative session, which follows closely on the heels of an unsuccessful special session focused on the state’s budget deficit. The budget’s impact on higher education was on his mind as he drove the point home with a warning on funding for higher education and its implications for developing a trained workforce…