In the November 5, 2008 Issue:

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Federal TBED Funding and Programs Could Expand under Obama Administration
After two years of campaigning, President-elect Barack Obama has begun shaping the agenda for his coming administration. Though nothing is certain at this point, throughout his campaign, President-elect Obama reiterated his support for TBED-related initiatives and plans to increase funding for research and innovation. His Plan for Science and Innovation, released in September, makes a wide range of TBED commitments, touching on clean energy investment, STEM education, entrepreneurship and basic research.

Last month the New York Times, with research from the Information Technology and Innovation Foundation (ITIF), estimated the annual cost of Obama's innovation plan at $85.6 billion. The president-elect pledged during the campaign to double the current level of funding for basic research over the next ten years at federal science agencies and to fully fund the America Competes Act, signed by President George Bush, at $5.9 billion annually.

In order to foster private sector innovation, the Obama plan would make the research and development tax credit permanent, double funding for the Manufacturing Extension Partnership, create an Advanced Manufacturing Fund to increase collaboration between university researchers and industry and invest in a nationwide network of public-private incubators. The plan would also increase research spending on defense and homeland security, including DARPA and Homeland Security ARPA.

The plan also called for: restoring the role of White House science advisor to a senior-level position, the Assistant to the President for Science and Technology would report directly to the President and would serve as Director of the Office of Science and Technology Policy (OSTP); and, strengthening the role of the President's Council of Advisors on Science and Technology (PCAST), which would offer private sector and academic insight into federal innovation policy.

Also included in the plan was a new $500 million Technology Investment Fund that would build on existing federal education technology programs by offering matching grants to ensure that technology is integrated in public schools. The funds would be used to introduce new high-tech learning tools, build a new technology-based curriculum and help connect teachers through social networks to increase collaboration. In order to improve the quality and number of science and technology educators, the plan called for 40,000 Teaching Service scholarships of up to $25,000 each to increase the number of teachers in high-need subjects and underserved regions. Federal science, technology, engineering and mathematics (STEM) education policy would be coordinated by a new STEM Education Committee in OSTP. This committee would also be charged with devising a new method of tracking student achievement in STEM subjects.

At the university-level, the plan calls for tripling the number of National Science Foundation Graduate Research Fellowships from 1,000 to 3,000 and creating a new Opportunity Tax Credit for college students. A Community College Partnership Program would help enhance STEM education at two-year schools to encourage community college students to transition into STEM programs at four-year universities.

Clean energy and green-collar jobs programs took center stage in Obama's plan to strengthen the U.S. economy. His New Energy for America plan called for investing $150 billion over the next ten years to catalyze private efforts to help commercialize clean energy advancements and to build the infrastructure for new fuel and electricity technology. An additional $50 billion over the next five years would capitalize a federal Clean Technologies Deployment Venture Capital Fund to invest in promising energy technology projects. A new $1 billion program would allocate funds to states to help convert manufacturing centers into producers of clean energy technology. The plan also supported job training programs for military veterans and disadvantaged youth to get the skills needed to find work in the green economy.

Find out more about President-elect Obama's Plan for Science and Innovation at: http://www.barackobama.com/pdf/issues/FactSheetScience.pdf

ITIF has published a breakdown of the costs of Obama's innovation plan at: http://www.itif.org/index.php?id=176

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111th Congress Further Shifts to Dems; 110th May Consider Stimulus Package
Tuesday’s elections will allow the Democrats in Congress to expand their majorities in both the House and the Senate. With several races still to be decided, the exact composition of the House is undetermined, although Democrats picked up at least 18 seats, according to the Washington Post. As of Thursday afternoon, there are 57 seats in the Senate for Democrats and those who caucus with the Democratic party, 40 seats for the Republicans, and 3 seats yet to be decided – with Georgia going to a special runoff later this month, Minnesota heading for a recount, and Alaska too close to call.

When the new 111th Congress convenes in January, it will have two years of budgets to consider. That’s because Congress has not completed the budgetary process for FY 2009, which began in October. President Bush signed a continuing resolution the day before FY09 was to start, which outlines appropriations for the Departments of Defense, Homeland Security, and Veterans Affairs, but keeps funding levels at or below FY 2008 levels for all other Departments until March 6, 2009.

Additionally, the 111th will be dealing with new committee assignments and chairs as a result of President-elect Obama's win. With Sen. Biden's elevation to Vice President, the chairmanship of the Senate Foreign Relations Committee will be open, setting off a cascade of changes in committee chairs. This will intensify if as published reports speculate, Sen. Byrd is forced to step aside from the chairmanship of the Senate Appropriations Committee and other senators are appointed to Cabinet posts. On the House side, there will be changes in Republican leadership as two of the House Republican leadership have indicated they are stepping down from their leadership positions.

So will the current lame-duck 110th Congress take any legislative action before it concludes?
 
Holding a post-election press conference Wednesday, House Speaker Nancy Pelosi discussed her desire for the current Congress to approve a stimulus package before the end of the year. The next opportunity to consider the stimulus would be soon, around Nov. 17, as Congressional lawmakers are due back in Washington D.C. to choose party leaders for the next Congress.
 
While Speaker Pelosi had called for a new $150 billion stimulus package last month, at Wednesday’s press conference she said she would settle this month for a $61 billion package. The structure of the package to be debated in the coming weeks may be similar in composition to an earlier $61 billion version, which passed the House in September but did not make it through the Senate.

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Several Statewide TBED Issues Win Voter Approval
The outcome of Tuesday’s election resulted in several wins and some defeats for TBED among the more than 150 ballot measures presented to voters across the nation. Outlined below are the unofficial election results of select ballot measures from each state’s respective election office and local media reports as of Wednesday, Nov. 5. More detailed information on the measures is provided in last week’s issue of the Digest, which is available at: http://www.ssti.org/Digest/2008/102908.htm#election.

Arkansas
Voters approved 63 percent to 37 percent a constitutional amendment authorizing the General Assembly to establish, operate and regulate state lotteries to fund scholarships and grants for residents enrolled in two- and four-year colleges and universities in the state. Voters also approved a measure to shift the state’s budgeting from a two-year cycle to an annual cycle.

California
Two measures supporting renewable energy were defeated by California voters. Proposition 7, requiring public and private utilities to generate a percentage of their power from renewable energy, was defeated 65 percent to 35 percent. Proposition 10, authorizing the state to borrow $10 billion over 30 years for renewable energy spending, was defeated 60 percent to 40 percent.

Colorado
Voters rejected a proposal to raise taxes on oil and natural gas production. Measure 58 was supported by Gov. Bill Ritter, who proposed using the estimated $300 million generated from the increase to fund college scholarships and environmental programs, reports the Rocky Mountain News. Additionally, Measure 59, a proposal to transfer excess revenues typically returned to taxpayers into a savings account for public education, was also defeated by voters.

Florida
Florida voters rejected a proposal authorizing counties to levy a local option sales tax to supplement funding for public community colleges by a margin of 56.5-43.5 percent.

Maryland
Voters approved 58 percent to 41 percent an amendment to the state constitution authorizing up to 15,000 video lottery terminal gaming machines in four counties and the city of Baltimore. A portion of the revenue from the gaming is directed toward public education.

Massachusetts
A measure to eliminate the personal income tax was overwhelmingly defeated 69 percent to 31 percent, according to unofficial results reported by the Boston Globe. The Massachusetts Bay Authority announced a $357 million sale of bonds following the election results; the decision to sell the bonds was postponed until after the election because repealing the income tax would have made tax-free debt less attractive, reports Reuters.

Michigan
Voters approved 53 percent to 47 percent a proposal that amends the state constitution to allow research on embryonic stem cells created for fertility treatment that would otherwise be destroyed.

Missouri
A measure requiring investor-owned electric utilities to generate or purchase electricity from renewable energy sources sources equaling at least 2 percent of retail sales by 2011 and 15 percent by 2021 passed with 66 percent of the vote.

Montana
Montana residents voted in support of a referendum to continue a special 6-mil levy on all real estate and personal property, with the funds supporting the university system. The measure, which keeps the levy in place through 2019, was approved 56 percent to 44 percent.

Nebraska
Proposed Amendment 1, removing a requirement that cities use only general tax revenue for economic and industrial development projects and programs, was defeated 54 percent to 46 percent by voters, keeping the mandate intact.

North Dakota
Taxpayers in North Dakota will continue to pay the same income tax following defeat of Statutory Measure 2. The proposal, rejected by 70 percent of the vote, would have cut the income tax rate in half for individuals and by 15 percent for corporations.

Local Elections
Voters approved a university-backed initiative to finance the Johnson County Education Research Triangle in Kansas by raising $15 million annually through an eighth-cent sales tax increase. By a margin of 57 percent to 43 percent, voters supported the initiative, which is aimed at helping Kansas City secure a top 20 spot as one of the nation’s leading bioscience research hubs, according to The Kansas City Star.  The Johnson County Research Triangle Authority will distribute the funds equally across three campuses:

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Elected Governors Stress Importance of TBED and Economic Development
Eleven gubernatorial elections were held across the U.S. on Tuesday, resulting in the selection of three new governors – with TBED initiatives spread throughout their campaigns' messages.

Only one of the races resulted in a change of party affiliation in the top state position, Missouri, where Democrat Jay Nixon defeated Republican Congressman Kenny Hulshof after current-Governor Matt Blunt declared he would not seek another term. Democrats now hold twenty-nine governorships, expanding on their significant gains in 2006. Governors retaining their seats include John Hoeven (R-ND), Christine Gregoire (D-WA), Brian Schweitzer (D-MT), Jon Huntsman (R-UT), Joe Manchin (D-WV), Mitch Daniels (R-IN), John Lynch (D-NH), and Jim Douglas (R-VT).

Several of the governors-elect made economic development and TBED a part of their platforms throughout their candidacy. Here is a sampling of policies and programs announced by some of the governors-elect on their official websites as collected by SSTI:

Delaware
State Treasurer Jack Markell (D) notes in his economic development plan that he became Nextel's 13th employee in 1989, in addition to being a colleague of Senator-elect Mark Warner (D) of Virginia. To improve the tech-based capacity of Delaware, he promotes exploring the creation of a university venture fund and encouraging additional incentives to stimulate business investment in R&D. On the education front, Markell supports introducing early college programs and dual-credit programs to high schools, establishing a partnership with Delaware State University to place summer interns in high-tech companies, and wants to create a new need-based scholarship program for those seeking four-year degrees, going beyond Delaware's existing SEED scholarships for two-year degrees.

Find more details at: http://www.markell.org/issues.aspx

 
Missouri
Governor-elect Jay Nixon (D) has been the State Attorney General for the past 16 years, and promoted several proposals for improving access to higher education during the campaign. For example, Nixon supports a $25 million initiative to expand the number of schools engaged in Missouri's A+ School Program, which provides free tuition to high school students with a 2.5 GPA to attend a two-year community college or technical school. Also proposed is the $36 million "Missouri Promise" initiative, which would allow students who participate in the A+ Schools Program to attend a Missouri state college or university tuition free for four years, if the student attains a 3.0 GPA in community college and completes 50 hours of community service each year.

Read more about Govenor-elect Nixon's plans at: http://www.jaynixon.com/issues/education

North Carolina
Last month, Governor-elect and current Lieutenant Governor Bev Perdue (D) released an economic plan in the wake of the nation's financial crisis to help keep the state's high-tech industries growing during the difficult times ahead. Her New Economy Plan calls for a renewed effort to attract defense/aerospace jobs, and to support the creation of green-collar jobs through initiatives like the state's new Green Business Fund. The plan also includes capital gains tax breaks for entrepreneurs, and further development of the One North Carolina Small Business Fund. Under Governor-elect Perdue's College Promise plan, North Carolina will expand access to EARN scholarships, making tuition free for high school students who proceed directly to a community college. Eighty percent of community college students will be eligible for a new $4,000 annual stipend to pay for books and other education-related expenses.

Read more about the New Economy Plan at: http://www.bevperdue.com/release_details.asp?id=1006

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Dems Pick up Five State Legislative Chambers; GOP Picks up Four
Democrats took control of five legislative chambers in Tuesday's elections: Delaware House, Nevada Senate, New York Senate, Ohio House, and Wisconsin Assembly. The Republicans picked up control of four chambers: Montana Senate, Oklahoma Senate, and both the House and Senate of Tennessee. Two houses, the Alaska Senate and the Montana House, are now tied, according to information compiled by the National Conference of State Legislatures (NCSL) and published reports.
 
Starting in 2009, Democrats will control both chambers in 27 legislatures, Republicans will control both in 14 states, and the chambers will be split in eight states. Nebraska has a unicameral legislature and does not figure into this calculation.
 
Of those eight split states, five of them – Indiana, Kentucky, Michigan, Ohio, and Pennsylvania – will have their Senate controlled by the Republicans and their House controlled by the Democrats. One state, Virginia, will be split with a Democrat Senate and a Republican House. The remaining two, Alaska and Montana, will have one of their chambers tied.
 
Including the results from the recent gubernatorial elections, Democrats now control the executive and legislative branch in 17 states (Arkansas, Colorado, Delaware, Illinois, Iowa, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Oregon, Washington, West Virginia, and Wisconsin). Republicans retain control of both the executive and legislative branches in eight states (Florida, Georgia, Idaho, North Dakota, South Carolina, South Dakota, Texas, and Utah).
 
NCSL reports that the Senate of New Hampshire is the first legislative chamber in the U.S. to have a majority of women members, as 13 of the 24 seats are now held by women.
 
Additional state by state elections results by the NCSL, which compare seats in each chamber of each state both pre-election and post-election 2008, can be found at: http://www.ncsl.org/statevote/StateVote2008.htm#

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