state budget

On March 1, Massachusetts Gov. Maura Healey introduced and filed her administration’s anticipated economic development measure, AN Act Relative to Strengthening Massachusetts’ Economic Leadership, or the Mass Leads Act. The measure seeks to reauthorize the state’s life sciences investments at $1 billion for the next decade, launch a separate $1 billion, 10-year climatetech initiative, and build on the momentum of the state's CHIPS + Science wins by proposing targeted investments in advanced manufacturing and robotics. It also includes $100 million to create an Applied AI Hub in Massachusetts. It seeks to advance the strategies, implement the policies, and fund the initiatives Healy laid out in her economic development plan, Team Massachusetts—Leading Future Generations, which was released in December and presented in her 2024 State of the State address.

Last week, Pennsylvania Governor Josh Shapiro and the Pennsylvania Department of Community & Economic Development (DCED) released what they are describing as the Commonwealth’s first comprehensive Statewide Economic Development Strategy in nearly 20 Years. Seeking to build a more competitive, inclusive, and innovative economy that positions Pennsylvania for the technologies of the future, the administration identified five sectors (Agriculture, Energy, Life Sciences, Manufacturing, and Robotics and Technology) for focus and resource investment. While some of those sectors already are foundational to the state, taken all together, the administration believes they will make Pennsylvania competitive in research and development, entrepreneurship, attraction and retention of businesses and workforce, and economic growth.

Last week (Jan. 3), Maryland’s state comptroller released the state’s first State of the Economy report. The 110-page document uses publicly available data, academic research, and government studies to analyze relevant economic indicators within the state. It compares that data across neighboring states and nationally to better understand the current economic climate and to help Maryland policymakers understand the sources of weakness, as well as identify the strengths and opportunities available, and to leverage those resources for more sustained, long-term economic growth.

In his budget proposal, Maryland Gov. Wes Moore proposed $10 million in funding for a new program that would provide grants of up to $2 million to defray specified costs associated with an eligible innovation infrastructure project; the projects are intended to support innovation in eligible technology sectors including advanced manufacturing; aerospace; agriculture; artificial intelligence; biotechnology; blue technology; cybersecurity; defense; energy and sustainability; life sciences; quantum; and sensor and robotics. The governor also proposed $1 million in new funding for the creation of the Maryland Equitech Growth Fund, which would use multiple investment vehicles including direct investments, grants, and loans leveraged with private capital to promote a culture of innovation and entrepreneurship and to meet the goals of promoting equitable economic development in Maryland’s advanced technology sectors.

Attracting investment to a coal-dependent region with a state-of-the-art AgriTech research and development center is under consideration in Kentucky while Rhode Island is proposing greater investment in developing its blue economy. Kentucky Gov. Andy Beshear and Rhode Island Gov. Daniel J. McKee have both targeted new innovation initiatives to grow their state’s economy in their recently proposed budgets.

Earlier this month, California Gov. Gavin Newsom released his proposed FY 2022-2023 budget, which he said “reinforces our role as the global leader in climate protection, innovation and job creation.” The budget focuses on new investments and “positions the state as a global leader in innovation and solutions to both mitigate and adapt to the changing climate.” The proposal includes billions in one-time funding from various sources over five years to advance the state’s climate and opportunity budget and provide equitable climate solutions. Additional money is proposed for innovation hubs, clean energy and more.

As the economic fallout continues from the coronavirus pandemic and associated shutdown, states are still uncertain as to what their financial situations might be as they attempt to craft their new spending plans for a quickly approaching new fiscal year, which for most states start July 1. Last month, New Jersey state leaders took a unique approach to the situation by extending the current fiscal year from June 30 to September 30. The extension addresses a number of issues.

Although uncertainty and fear about the state’s fiscal situation continue to grow, New York’s 2021 budget stands strong in its commitment to deliver a green economy and resilient communities, preserve natural ecosystems and ensure access to clean drinking water. The State of New York has recently approved its budget for the fiscal year of 2021, which includes investments focusing on environmental resilience, conservation, green energy, and carbon-free transportation.

Funds for entrepreneurial training, technical assistance with R&D, and matching grants for innovative small businesses are among the items now part of Minnesota’s economic development toolkit thanks to new funding in the state’s recently signed FY 2020 biennial budget. Under the approved budget, Launch Minnesota will receive $2.5 million in each of the next two fiscal years to support innovation and entrepreneurship. Originally called the Minnesota Innovation Collaborative in Gov. Tim Walz’s proposed budget, the suite of Launch Minnesota programs will be administered by the state’s Department of Employment and Economic Development. The program includes four types of grants: funds for universities and nonprofits offering entrepreneurial training; funds for startups in need of R&D and other types of technical assistance; funds to alleviate housing and/or childcare expenses for entrepreneurs; and, matching funds for SBIR/STTR Phase II awardees.

Innovation initiatives are seeing increased funding in some states as legislatures across the country begin to finalize budget bills and other legislation. SSTI continues to monitor these developments and this week we cover budget bills in Idaho that saw small increases to the Manufacturing Extension Partnership (MEP) program, as well as increases in the Small Business Development Center (SBDC) and STEM Action Center, and new funding for a computer science initiative. South Dakota will see an increase in funding for the Governor’s Office of Economic Development and West Virginia passed bills creating an SBIR/STTR matching grant program, support for community and technical college tuition assistance, expansion of broadband service, and other innovation-related initiatives in its budget that passed earlier in March.