Since the establishment of the Tennessee Promise in 2014, the first statewide free community college effort, community college systems and states are outlining their own strategies to make a two-year education free for students in their region in attempt to create an educated, qualified workforce that addresses the needs of industry and promotes economic prosperity. While it may remain too early to judge the benefits and the costs of these programs – lawmakers and educational professionals remain divided on the issue. 

Five North Carolina communities have been selected to participate in InnovateNC, a two-year economic development initiative centered on sharing knowledge, tools and resources between partner regions. Asheville, Greensboro, Pembroke, Wilmington and the city and county of Wilson were chosen from the 18 applicant regions. The initiative is spearheaded by NC State University’s Institute for Emerging Issues with nine partners and supported by a grant from the Kenan Creative Collaboratory.

While most state legislative sessions ended over the summer, a number of states only recently approved spending for FY16. Governors in Alabama, North Carolina and New Hampshire have approved budgets in the past few weeks, each after months of tense negotiations. SSTI reviews budgets in each of these states for spending related to technology-based economic development. For past articles in this series, visit ssti.org/tags/state-budget.

Aligning industry needs with workforce training has gained renewed focus in states and emerged as a national priority. This week, President Obama announced two grant programs totaling $600 million in existing funds that challenge academic institutions and businesses to design job training for the globalized economy and set industry-recognized standards. States are increasingly partnering with community colleges and industry to fill in-demand jobs, and with tight budgets, new efforts in Georgia and North Carolina also aim to enhance worker training by reallocating existing resources or restructuring programs.

Building on a bare bones structure for privatizing economic development established last session, Gov. Pat McCrory outlined a plan for transitioning the state’s Department of Commerce to a public-private partnership, effective July 1. The move, according to the governor, will allow for more flexibility to support businesses and achieve savings for the state. Several innovation-focused investments also were presented as part of the recommended state budget adjustments for FY15, including matching and incentive funds for early stage, high-tech companies and funding to assist campuses in commercializing technology.

Last year, 108 unique institutional funders made a total of 260 investments in North Carolina companies, according to a report from the Council for Entrepreneurial Development. The 2013 Innovators Report details the $461 million in equity investments, grants and awards received by firms, including support from venture investors, angel networks, foundations, federal agencies, competitions, crowdfunding and other sources. Life sciences firms generated the most activity with $275 million in 134 deals, driven by the biopharmaceutical industry.

Breaking a two-year impasse, legislators in Illinois were able to pass a state budget that reinstitutes an R&D tax credit and implements workforce development programs. In California, the Governor’s Office of Business and Economic Development (Go-Biz) will see a 28 percent increase in funding, while other innovation initiative are receiving level funding. In other states whose budgets SSTI analyzed this week for TBED-related funding, we found that Innovate Mississippi was able to maintain state funding and new funding was appropriated for workforce development at the state’s community and junior colleges; a variety of programs were cut in North Carolina; and, Ohio will not get funding for a state office focused on commercializing research across key industries that the governor had proposed. More findings from California, Illinois, Mississippi, North Carolina and Ohio are detailed below.

With more than 30 percent of rural America still lacking access to what the FCC considers adequate broadband, governors from across the country are working toward diverse strategies to build rural broadband capacity. By providing rural communities with access to full-speed, stable broadband, these governors hope that they can revitalize rural communities by helping small business formation and expansion as well as improve educational achievement/workforce training for rural citizens.

This week we nearly finish our state of the state coverage, save two remaining governors (Louisiana and Minnesota) who have yet to present their addresses. In reviewing the speeches for news on innovation efforts, we find education taking the main stage in Florida and Tennessee, while Alabama and Ohio’s governors are hoping to build the state’s workforce, and North Carolina, still recovering from natural disasters, wants to decrease greenhouse gas emissions and provide tuition assistance for community college.

Earnings for Appalachian manufacturing workers grew 3.4 percent from 2012 through 2017 to an average of $63,583. The growth is in the Appalachian Regional Commission’s Industrial Make-up of the Appalachian Region, 2002-2017, which reviews employment and wages by sector across the region. Appalachian workers overall saw earnings increase by 3.7 percent over the five years.

Research universities and their partnerships with industry, including an institution’s research capacity, are important elements to building a state’s economy as well as the national economy and talent pipeline and workforce.

Last week Pennsylvania Gov. Tom Wolf issued an executive order directing the Department of Environmental Protection (DEP) to join the Regional Greenhouse Gas Initiative (RGGI), joining nine other Northeast and Mid-Atlantic states in a market-based collaboration to reduce greenhouse gas emissions from power plants and combat climate change. And in North Carolina, Gov.

Ten states from across the country have been selected as part of a unique program designed to grow and strengthen their manufacturers. Over the course of the next year, interdisciplinary state teams will meet together in Washington, D.C., and separately in their home states, to develop and refine strategies impacting manufacturing industries.

North Carolina is gaining ground nationally in its innovation capacity and the number of innovation-oriented establishments in the state has increased by twice the national rate, according to a new report from the North Carolina Board of Science, Technology and Innovation.

While job openings surpassed 7.1 million in August, companies across the country still are struggling to attract staff with relevant skills. To address this issue, states are developing new workforce development efforts to address the increased demand.

SSTI has reviewed the ballot initiatives across the country that affect innovation. Several states have energy initiatives on their ballots, while higher education funding is at play in Maine, Montana, New Jersey and Rhode Island. Utah could become only the second state to fund its schools through gas taxes, if a measure there is passed. At the same time, four states have ballot issues addressing redistricting commissions which could have a significant impact on state legislative makeup when lines are redrawn after the 2020 census.

Arizona