In the July 25, 2003 Issue:

Copyright State Science & Technology Institute 2003. Information in this issue of the SSTI Weekly Digest was prepared under a cooperative agreement with the U.S. Department of Commerce, Economic Development Administration. Redistribution to all others interested in tech-based economic development is strongly encouraged — please cite the State Science & Technology Institute whenever portions are reproduced or redirected. Any opinions expressed in the Digest do not necessarily reflect the official position of the U.S. Department of Commerce.

Subscription to the SSTI Weekly Digest is free. If you are reading a forwarded copy of this issue and would like to receive your own copy each week directly, please subscribe at http://www.ssti.org/Digest/digform.htm. Requests to unsubscribe also may be completed at http://www.ssti.org/Digest/digform.htm.


SSTI Annual Conference Agenda Set
We recognize that SSTI's annual conference quickly has become the premier professional development event annually for the tech-based economic development field. It's quite an honor, but it is also quite an obligation. Our conference participants have come to expect a level of unsurpassed quality. At least, that's what they tell us in the evaluations.

It presents a challenge, but SSTI staff seem to like challenges. We always strive to exceed expectations, so for the 7th annual conference we...

SSTI's 7th annual conference, Building Tech-based Economies: From Policy to Practice, will be held in Seattle on October 21-22. The agenda is impressive. The participants will be top-notch. The conference facility, hotel, city and host organization are wonderful.

In short, we are confident SSTI's 7th annual conference is exactly what you and your tech-based economic development efforts need this year. The conference will be intense but Seattle's an excellent place for unwinding before or after the event.

A detailed 20-page brochure describing Building Tech-based Economies: >From Policy to Practice will be mailed in the next week or so, but is available now as a PDF document on our website: http://www.ssti.org/conference03.htm [expired]

Since there are several thousand of you getting this notice at the same time, please note: if the page isn't available because of server overload when all of you try to download the brochure at the same time, please wait a minute or two and try again. Thanks.

return to the top of this page

NCSL: States Optimistic Worst of Budget Woes Now Behind Them
The backdrop for this year's annual meeting of the National Conference of State Legislatures (NCSL) was painted in budget cuts, tax increases and nearly three years of gloomy economic news. Only adding salt to the wounds, the meeting was held in California, a state whose FY 2003 deficit – now carried over into FY 2004 because of partisan squabbling – could swallow the entire budget approved in more than half of the states in attendance.

Nevertheless, the states' elected representatives believe FY 2004 will be better and revenues will rebound, according to the latest NCSL fiscal report, State Budget and Tax Actions 2003. Of the 49 states required to balance their budgets, 43 have done so for FY 2003 by turning first to their reserves, specific fee increases and cost cutting measures, the report observes.

The 2003 net increase in taxes at this point, with 42 states reporting, is 1.3 percent of 2002 tax collections. That number may change as more states balance their budgets, but this is only the second time in nine years states have had to bump up taxes. From 1995 to 2001, states lowered taxes every year, as much as 2 percent.

As states tapped reserves to help balance budgets, aggregate budget reserves have fallen. They dropped 48 percent over the past fiscal year, from $22.4 billion at the end of FY02 to $11.6 billion at the end of FY03. The aggregate balance combines states' general fund ending balance with their rainy-day funds.

The states may finally be turning the corner, though, after quarter upon quarter of impending gloom, NCSL reports. State fiscal officers are predicting revenues to rebound in FY04. In 2004, general fund ending balances are expected to rise slightly from FY03 levels. No state participating in the study is predicting a deficit at the end of this fiscal year.

During the past three years, states have had to close a cumulative $200 billion budget gap. In addition to fee and tax increases, to balance FY04 budgets:

State Budget and Tax Actions 2003 is available at: http://www.ncsl.org/programs/fiscal/presbta03.htm

return to the top of this page

Mayors Also See Economic Rebound Looming
As states forecast the worst fiscal crisis in half a century may be ending, the nation's mayors, too, see marked economic improvement on the horizon, according to a report released last Thursday by the U.S. Conference of Mayors. However, they remain concerned that the economy is still not generating jobs at a sufficient level for U.S. workers.

The organization's second annual Metro Economies Report shows the metro job market shrunk by 1 percent in 2002, evidence of the beginning of a jobless economic recovery, it fears. However, U.S. metros will grow 2.1 percent in 2003 and a projected 3.4 percent in 2004, the report estimates.

The report contains data on each of the nation's 319 metro areas, including 2002 and 2003 employment growth figures. In total, U.S. metro economies grew by only 1.8 percent after inflation in 2002, while the national economy grew at a 2.4 percent rate.

"We are hopeful that the early signs of economic recovery in our metro areas will gain momentum into next year, and our report gives us reason for optimism," said new Conference President, Mayor James Garner of Hempstead, New York. "But jobs are still a concern for us, we still have anemic job growth that we are watching very closely."

The complete report is available online at: http://www.usmayors.org

return to the top of this page

Congress Boosts Rural Distance Learning, Telemedicine, Broadband Program
The 2004 budget for the U.S. Department of Agriculture, as passed by the House of Representatives mid-July, includes $678 million for the Distance Learning, Telemedicine and Broadband program (DLT). Through loans, grants and loan and grant combinations, DLT provides the facilities and equipment to link rural education and medical facilities with more urban centers and other facilities. The goal is to provide rural residents access to better health care through technology and increase educational opportunities for rural students.

The 2004 appropriation is $241 million more than the DLT received last year and $264 million more than the agency requested in the Administration's 2004 budget. The House budget greatly shifts the emphasis of the program toward loans, cutting the funding available for grants by nearly 42 percent while increasing the pool of funds available for loans by 67 percent. In all, the House approved $25 million for Distance Learning and Telemedicine Grants, $636 million for Distance Learning and Telemedicine loans, $9.116 million for Broadband Telecommunications loan subsidy and $8 million for Broadband Grants.

Not to be outdone, the Senate Appropriations Committee has recommended FY 2004 funding levels of nearly $686 million for DLT, including $40 million for distance learning and telemedicine grants and $10 million for broadband grants.

More information on DLT is available at: http://www.usda.gov/rus/telecom/dlt/dlt.htm

Readers can follow the USDA FY 2004 appropriations bill through Congress at: http://thomas.loc.gov/home/approp/app04.html

return to the top of this page

DHS Opens First University Center of Excellence Solicitation
Late last week, the Department of Homeland Security (DHS) released a Broad Agency Announcement (BAA) calling for academic white papers that will focus on specific areas related to social science issues. This is the first step in the review process for colleges and universities that would like to be selected as a Homeland Security Center of Excellence (HS-Center). The Department anticipates selecting at least one HS-Center by end of November 2003 and up to nine more HS-Centers by end of 2004.

The university-based Homeland Security Centers of Excellence initiative was developed in response to language contained in the Homeland Security Act requesting the establishment of a coordinated, university-based system to enhance the nation's homeland security. The President's budget called for $10 million in funding for the university programs for FY 2004.

"We anticipate the Centers' will pursue research opportunities across a number of relevant areas in the physical, natural, information and chemical sciences and in engineering and the social sciences," said Under Secretary for Science and Technology, Dr. Charles McQueary. "In addition, universities will be expected to coordinate their efforts with relevant Federal Agencies and private institutions to minimize duplication of research and development, enhance communications between programs and leverage financial support."

The initial BAA solicits white papers focusing on risk-based economic modeling on the impact and consequence of terrorism. White papers must be submitted electronically and received no later than August 11, 2003.

Along with Oak Ridge Associated Universities (ORAU), DHS will develop a team of expert external evaluators to review the submissions based on merit and make recommendations to a select committee of the Department. Candidates will be selected and invited to submit full and detailed proposals. Following limited site visits, DHS will make an award announcement of one center by the end of November.

Earlier this year, DHS requested the Association of American Universities and National Association of State Universities and Land Grant Colleges help identify existing Homeland Security Research efforts on university campuses. In that effort, a joint survey resulted in a significant number of responses from the country's top research universities indicating the competition to be selected as a HS-Center may be intense.

For more information, the BAA is available at http://www.dhs.gov/dhspublic/interapp/press_release/press_release_0220.xml or http://www.orau.gov/dhsuce.

return to the top of this page

Move to Consolidate TA, NTIA Draws Mixed Reactions on the Hill
Congressional responses to the Administration's recent proposal to merge the Department of Commerce's technology and telecommunications operations into one coordinated agency ranged from a hearty endorsement to dead in the water, according to Capitol Hill-focused news media. House Rules Committee Chairman David Dreier praised the legislation, the National Journal's Technology Daily recently reported, while Senator John McCain, chairman of the Senate Commerce Committee, is quoted by the RCR Wireless News as saying, "I don't think there is support for that here."

The 21st Century Innovation Act of 2003, submitted to Congress by U.S. Secretary of Commerce Don Evans on July 17, would combine the Technology Administration (TA), the National Telecommunications and Information Administration (NTIA), and the e-commerce policy functions of the International Trade Administration (ITA) into one agency which would be called the Technology and Telecommunications Administration. A press release accompanying the legislation stated "the change will enable the Department to better serve the technology and telecommunications industries through enhanced coordination in domestic and international policy development."

Technology and telecommunications policies currently fall under the jurisdiction of all three bureaus. Also falling under TA is the National Institute of Standard and Technology (NIST), which houses two programs targeted for elimination by the Administration — the Advanced Technology Program and the Manufacturing Extension Partnership.

The legislation proposes the newly named agency be headed by the Under Secretary for Technology and Telecommunications. However, the Assistant Secretary for Communications and Information, Assistant Secretary for Technology Policy, and the Director of NIST would maintain their leadership roles of NTIA, OTP and NIST, respectively. In addition, the Assistant Secretary for Communications and Information would remain the telecommunications advisor to the President. All four positions must be confirmed by the U.S. Senate.

A Question and Answer page on the Technology Administration's (TA) website states the "reorganization could be achieved without any jurisdictional changes. However, the Department feels strongly that Congress should determine the best course of action regarding Congressional oversight."

TA also reports receiving endorsement for the plan from American Electronics Association, Business Software Alliance, CapNet, eBay, Information Technology Association of America, Information Technology Industry Council, TechNet, US Telecom Association, AT&T, SBC, VeriSign and WindRiver Corp.

Reportedly in response to the Administration's merger proposal, McCain introduced the next day and the Senate Commerce Committee quickly passed a reauthorization bill for TA maintaining its current structure. The July 21 RCR Wireless News story reported McCain has no plans to hold hearings on the consolidation this year.

More information on the draft legislation is available at: http://www.technology.gov/PRel/pr071703.htm

return to the top of this page

Headlines Reveal Incubators Remain Popular Tool for TBED
With the sustained depth of the recession, the IT crash, the rapid growth in unemployment and the speculative office construction craze of the late 1990s, one would expect office vacancies to climb and property lease rates to edge down in many cities. Following this thought further might suggest, with cheaper office space available, the need for publicly supported low-rent technology incubator space would decrease.

SSTI sifts through hundreds of publications each week, monitoring issues of importance to the tech-based economic development community. If the above logic holds true, then after nearly three years of recession we should be reading accounts of incubators across the country closing their doors for lack of tenants, right?

Well, we aren't and for good reason. Publicly supported technology incubators offer more than inexpensive office space. Nearly all incubators provide access to additional services and facilities that enhance the capabilities of their tenants, increasing the likelihood of sustained growth and expansion. Advanced telecommunications, entrepreneurial business assistance, intellectual property patenting and licensing services, linkages to seed capital and financing, access to graduate and university researchers, and specialized facilities such as wet labs — these are just a few examples.

The success rate and employment growth of technology incubator clients is better than companies struggling on their own – sales revenues and jobs being important ingredients for local economic development – so it is not too surprising that the headlines tell instead about announcements of more incubators being planned, under construction, opening or expanding. Here's a sampling taken from news accounts during just the week of July 10-July 17:

More general information on establishing and operating successful technology incubators is available through the National Business Incubation Association: http://www.nbia.org/

return to the top of this page

Useful Stats: NSF Releases 2000-01 State S&E Profiles
The National Science Foundation (NSF) has published online the Science & Engineering State Profiles: 2000-2001, a set of 52 science and engineering (S&E) profiles summarizing state-specific data on personnel and finances. Rankings and totals are given for the 50 states, Washington, D.C., and Puerto Rico, and the report includes a data source page. (For Puerto Rico, the data sources for some variables differ from those used to obtain state data; comparable data do not exist on total and industry R&D performance for Puerto Rico.)

The NSF databases used include doctoral scientists and engineers; S&E doctorates awarded, including by major S&E fields; S&E graduate students and postdoctorates; federal R&D obligations by agency and performer; total and industrial R&D expenditures; and academic R&D expenditures, including by major S&E fields.

Data from non-NSF sources include population, civilian labor force, per capita personal income, federal expenditures, public higher education expenditures, patents, small business innovation research awards, and gross state product originating in sectors such as manufacturing, agriculture, trade, government and services.

Three Microsoft Excel tables summarizing the entire report also are available on the website below.

Science & Engineering State Profiles: 2000-2001 can be downloaded at: http://www.nsf.gov/sbe/srs/nsf03324/start.htm

return to the top of this page

People

Blair Carnahan will be the first director of the new Columbus Regional Technology Center in Columbus, Ga. The new facility will house an incubator, the Columbus Georgia Tech regional office and the Columbus office of the Small Business Development Center.

The Sacramento Regional Technology Alliance is losing its executive director as Clare Emerson has announced she is relocating to oversee AEA's Texas office.

John Kotek, formerly with Argonne National Laboratory-West, has been named deputy manager of the Department of Energy's Idaho Operations Office. The office oversees the Idaho National Engineering and Environmental Laboratory.

Utah House Speaker Marty Stephens began his term as President of the National Conference of State Legislatures during its annual meeting last week.

return to the top of this page

State Science & Technology Institute
5015 Pine Creek Drive
Westerville, OH  43081
Phone: (614) 901-1690
Fax: (614) 901-1696
Email: ssti@ssti.org

© 2003 State Science and Technology Institute. All rights reserved.