Notably, the president’s proposed FY 2018 budget would eliminate funding for Community Development Block Grants. These grants received $3.0 billion in the FY 2017 budget. The proposed FY 2018 budget would provide $85.0 million for research and technology at the Department of Housing and Urban Development, a $4.0 million (4.5 percent) decrease from FY 2017.
Research and development activities in the Department of Transportation’s (DOT) would face a considerable decrease under the president’s proposed FY 2018 budget.
The president’s proposed FY 2018 budget would provide $976.9 million in total funding for Career and Technical Education (CTE) within the U.S. Department of Education, a $148.1 million (13.2 percent) decrease. National CTE programs would receive $27.4 million in the proposed budget, a $20 million (270.3 percent) increase. State grant-based CTE programs would receive $949.5 million in FY 2018, a $168.1 million (15 percent) decrease.
The Science Mission Directorate within the National Aeronautics and Space Administration (NASA) would receive $5.7 billion in the president’s proposed FY 2018 budget, a $53.1 million (0.9 percent) decrease from FY 2017.
The Department of Justice (DOJ) would receive $27.7 billion in FY 2018 discretionary funding under the president’s budget request, a $1.2 billion (4.2 percent) decrease.
The administration’s FY 2018 budget request for the Department of Homeland Security (DHS) is $44.1 billion, a $5.2 billion (10.5 percent) decrease in non-disaster, net discretionary funding, excluding disaster-relief funding. The proposed budget would include $975.8 million in new funding for “high-priority tactical infrastructure and border security technology improvements to provide a layered defense at the border and effective surveillance technology and equipment.”
The president’s FY 2018 budget request would provide $28.0 billion in total funding for the Department of Energy, a $2.7 billion (8.9 percent) decrease from the FY 2017 omnibus. Notably, the proposed budget would eliminate the ARPA-E program, which received $306 million as part of the FY 2017 omnibus. The proposed budget “refocuses the Department’s energy and science programs on early-stage research and development (R&D) at the national laboratories to advance American primacy in scientific and energy research in an efficient and cost effective manner,” according to the DOE.
The administration’s FY 2018 budget request for the Department of Health and Human Services (HHS) is $69.8 billion in discretionary spending, reflecting a $14.6 billion (17.3 percent) decrease from FY 2017 estimated funding levels. Discretionary spending accounts for approximately 7 percent of the total proposed HHS budget. Mandatory spending for programs like Medicare, Medicaid and the Children’s Health Insurance Program account for the balance. Total FY 2018 budget authority for HHS would be $1.1 trillion (0.03 percent increase over FY 2017 estimates).
The president’s FY 2018 budget proposal for the National Science Foundation (NSF) would provide $6.7 billion – a $840.9 million (11.2 percent) decrease in funding.
The FY 2018 budget proposal would terminate much of Treasury’s support for capital access. The Administration would not provide additional funding for the State Small Business Credit Initiative (SSBCI), allowing the program office to close at the end of FY 2017. The Community Development Finance Institutions (CDFI) Fund would experience dramatic changes under the budget.
The administration’s budget proposal would dramatically reduce funding throughout the EPA. The Office of Science and Technology, which houses the Agency’s R&D and tech transfer initiatives, would be reduced by $263 million to $450.8 million (36.8 percent decrease).
Secretary of Commerce Penny Pritzker announced the launch of the Economic Development Administration's (EDA) 2015 Regional Innovation Strategies (RIS) Program competition to spur innovation capacity-building activities in regions across the nation. Under the 2015 announcement, SBA will commit $10 million for two funding opportunities.
The 2017 SSTI Creating a Better Future Award provides the perfect opportunity to show other practitioners, as well as policymakers, the success you have achieved at creating a better future for your region through science, technology, innovation and entrepreneurship. To be eligible, submit a brief application that highlights one of your organization’s most successful initiatives. Award categories encompass research; entrepreneurship and capital; competitive industries and economic opportunity; and, recognition for the most promising initiative. Check out the categories and more information at sstiawards.org.
Visit our SSTI awards resources page for the call for applications, writing samples, and to listen to the information call.
Don’t delay – deadline for applications is May 26.
SSTI continues its reporting on actions taken by state legislatures to invest in economic growth through science, technology, innovation and entrepreneurship. This week, we look at the budgets passed and signed by governors in Arizona, where R&D infrastructure will get a boost at the state’s public universities, Montana, which will see an increase in funding for some higher education research facilities, and Nebraska, where the state maintained the amount authorized for funding to small businesses for commercialization activities.
Arizona
In part one of two, SSTI will examine NIH’s proposed changes that will place limits on individual researcher funding.
On May 2, the National Institutes of Health (NIH) announced that it intends to implement a new approach to grant funding with the purpose of increasing the number of researchers receiving grants. These proposed changes are due to a highly skewed distribution of NIH funding with 10 percent of NIH-funded investigators receiving over 40 percent of funding. NIH intends to roll out specific policies and procedures as part of the new approach – titled the Grant Support Index (GSI) – that will assess effectiveness of NIH research investments. During this time, NIH also will seek feedback from on how best to implement the individual grant funding limits.
On May 16 of last year, the Securities and Exchange Commission (SEC) finally allowed both accredited and non-accredited investors to engage in regulation crowdfunding. Under the new SEC rules, startups and other private companies could offer equity in return for capital to help support business growth. As of May 2017, total contributions under the regulation crowdfunding into startups and small businesses are over the $40 million mark with an average investment of $833 per investor.
In an unexpected twist, the FY 2017 budget passed earlier this month by Congress has more dislikes than likes for evidence-based program and policy design, despite being embraced strongly by both Presidents Donald Trump and Barack Obama. Masked under a variety of different nomenclatures – performance contracting, social impact bonds, pay for success, for example – evidence-based programming incorporates rigorous metrics to assess the effectiveness of public policy toward meeting its goals and basing expenditures accordingly.
Adults in Tennessee seeking to return to the classroom will have a new option for free tuition at community colleges, part of an expansion of the Tennessee Promise scholarship program. The newly passed and expanded Tennessee Reconnect legislation extends eligibility for free tuition to persons who have been out of school for longer periods of time or who may have never attended college. It is part of Gov. Bill Haslam’s “Drive to 55” focus, where he hopes to increase the percentage of the state’s adults equipped with a college degree or certificate to 55 percent; it is currently closer to 30 percent in Tennessee.
In a market economy, what people are willing to pay determines something’s value. Airline tickets are a good example. For most of the major airlines, the price to purchase a seat the day of a flight seems to be some multiple of how much the airline thinks they can get away charging versus any drive to actually see the seat used. This supply-demand principle falls apart though with valuations set for startup companies funded by equity investors, such as angels or venture capitalists. In the risk capital business, a number of possible factors influences a startup company’s value – most tied to future markets, comparables, or dreams of big exits. Recent research from the University of British Columbia and Stanford University suggests just how surprisingly risky – and overly optimistic – this approach is.
In a recent Digest article, SSTI covered research highlighting the oversized role that offshoring multinationals had in manufacturing employment decline from 1983 to 2011. During this time, deindustrialization and manufacturing unemployment had a profound impact on community approaches to economic development.
The Economic Development Administration is seeking applications through June 23 for the 2017 Regional Innovation Strategies program. Through SSTI’s work with Congress, a record $17 million is available this year. Along with increased funding, the notice of funding availability includes a few changes from previous years. More information will also be available in a webinar SSTI is hosting with EDA on May 22 at 3 p.m. EDT.
As the state budgeting process comes to a close, SSTI will report over the coming weeks on actions taken by state legislatures to invest in economic growth through science, technology, innovation and entrepreneurship. Up this week is a look at commitments that legislatures in Arkansas and Idaho have made including funds for a new accelerator program, Manufacturing Extension Partnership (MEP) centers, and more than $14 million for a biosciences research institute.
Every state and the District of Columbia experienced real GDP growth in the fourth quarter of 2016, according to the latest estimates released by the U.S. Bureau of Economic Analysis. The positive news means only energy-dependent Alaska, North Dakota and Wyoming saw real GDP fall over the year compared to the end of 2015. Experiencing growth of more than 5 percent between 2015 and 2016 were the District of Columbia, Nevada, Utah and Washington.
The Kauffman Foundation released a new report analyzing entrepreneur development in St. Louis and Kansas City. Entrepreneurial Ecosystem Momentum and Maturity, The Important Role of Entrepreneur Development Organizations and Their Activities, by Ken Harrington, proposes a framework that names a four-step entrepreneur development process from problems and ideas to customer-funded venture that feeds into higher-stage venture development and, ultimately, economic development. Under this framework, Harrington explores how entrepreneurship is supported in each community by organizations such as KCSourceLink and BioSTL.
On April 27, Federal Communications Commission (FCC) Chairman Ajit Pai released a Notice of Proposed Rulemaking (NPRM) that would impact net neutrality in the U.S.. The Restoring Internet Freedom act, which will be voted on at the May 18 FCC meeting, would end the utility-style regulatory approach intended to preserve net neutrality. Pai’s office contends that the FCC 2015 decision to subject internet service providers (ISPs) to Title II utility style regulations reduces the incentive for innovation in the industry and threatens the open Internet it is purported to preserve.