Illinois
Gov. Pat Quinn unveiled a $26 billion capital plan that includes investments in energy and the environment and access to capital programs to boost job creation and retention. The Illinois Jobs Now initiative would be financed in part with federal stimulus funds. More than $1 billion in federal recovery money would be directed to the Department of Commerce and Economic Opportunity (DCEO) for programs promoting renewable energy, energy efficiency, clean coal technology, broadband deployment, electric grid expansion, and science and technology research.

Highlights of the proposed FY10 Capital Budget include:

• $450 million for a Community Revitalization program to provide funds for governmental entities and nonprofits for access to capital aimed at promoting the creation and retention of jobs, business development, economic development, and commercial revitalization within communities;
• $95 million used in cooperation with the National Science Foundation to create a next-generation supercomputing facility at the University of Illinois. These funds, along with federal matching funds, will be used to assist Illinois businesses, universities and research centers in creating innovative technologies;
• $75 million for research and development of new energy technologies;
• $17 million for Fermi National Accelerator Laboratory to match federal funds to assist in construction of laboratory and office space at the Illinois Accelerator Research Center; and,
• $13 million for Argonne National Laboratory toward the construction of the Advanced Protein Crystallization Facility.

Gov. Quinn is seeking a tax hike for individuals and corporations to balance the budget. His proposal would raise the individual tax rate from 3 percent to 4.5 percent and the corporate rate would jump from 4.8 percent to 7.2 percent, reports the Chicago Tribune.

Operating and Capital Budget documents are available at: http://budget.illinois.gov/.

Louisiana
To lessen the impact of steep budget cuts on higher education institutions, Gov. Bobby Jindal proposed using $218.7 million in federal stimulus funds to offset a decrease of $431.6 million in general funds for higher education in FY09-10. Within the higher education budget, the governor recommends $6.5 million in one-time funding for endowed chairs and professorships. This funding, along with $5.9 million from the Louisiana Quality Education Support Fund, would be used to match private donations. Lawmakers provided $8 million in one-time funds for endowed chairs last year (see the July 2, 2008 issue of the Digest).

The FY10 proposed budget is 14.7 percent less than the existing budget, and a total $1.75 billion in savings is needed to balance the FY10 budget, according to the governor’s office. Proposals for savings include eliminating Louisiana Economic Development’s traditional workforce development and training program at a cost savings of $2.5 million in statutory dedications. Budget documents note that with the creation of the Fast Start program, the traditional activity was found to be duplicative. Additionally, the Louisiana Workforce Commission, formerly the Department of Labor, would eliminate the remainder of its $3.6 million in general funds for the upcoming year.

Within the Department of Economic Development, Gov. Jindal recommends:

• $27 million for the Governor’s Economic Development Rapid Response program to provide for industrial or business development projects that promote cluster economic development;
• $3.4 million for Fast Start ($400,000 more than last fiscal year) for comprehensive workforce training;
• $2.8 million for the Louisiana Small Business Loan program for the venture capital program, business and industrial development corporation program, micro loan program, and the contract loan program;
• $2.65 million from the Louisiana Economic Development Fund to support operating expenses for the state’s three life science incubators;
• $1.9 million for a state economic competitiveness, benchmarking, planning and research initiative;
• $800,000 for technical assistance to small and emerging businesses, including managerial and development assistance and entrepreneurial training;
• $500,000 for operational expenses of the National Center for Advanced Manufacturing facility and development of new undergraduate and graduate courses in advanced manufacturing; and,
• $400,000 to support Louisiana business incubators.

Another $10 million in recurring funds is recommended for workforce training in high-demand fields through the Louisiana Community and Technical College System, an initiative established last session by lawmakers.

The FY09-10 Executive Budget documents are available at: http://doa.louisiana.gov/opb/pub/FY10/FY10ExecBudget.htm.

North Carolina
Gov. Bev Perdue’s proposed 2009-11 biennial budget invests heavily in science and technology priority areas for the state.

The governor’s budget seeks to close a cumulative $6.4 billion gap – a far cry from last year when lawmakers dedicated a portion of surplus funds to university projects and Small Business Innovation Research (SBIR) grants (see the July 16, 2008 issue of the Digest).

To continue development of the biofuels industry, foster green building industry programs, and leverage private sector investments in clean technology and renewable energy, the governor recommends $5 million in federal stimulus funds for the NC Green Business Fund. The executive budget also includes $2 million in special funds for the effort – the same as last year.

With an unemployment rate of more than 8.7 percent in North Carolina, Gov. Perdue announced a plan to train workers for 21^st century jobs aligned with the state’s needs through the community college system. Specifically, the budget proposal includes $3 million in federal stimulus funds to provide grants to 20 community colleges for technical education programs in transportation, industrial, military, and green technology sectors.

The initiative, dubbed Jobs Now, hopes to address the reluctance of colleges to start new programs due to a lack of startup funds. The governor’s budget also recommends a recurring $5 million for equipment and technology needs at community colleges to reduce program waiting lists. Additionally, these funds could be leveraged with funds from the Golden LEAF Foundation for technical education and equipment training.

For the Department of Commerce, Gov. Perdue recommends $48.5 million, including:

• $15.4 million for the NC Biotechnology Center ($4 million less than last year);
• $2 million to the NC Small Business Fund to increase the state’s competitiveness in attracting and leveraging SBIR grant funding;
• $1.5 million (the same as last year) for the Defense and Security Technology Accelerator, focusing on opportunities in industries related to homeland security and national defense;
• $370,952 (the same as last year) for the North Carolina Board of Science and Technology; and,
• $250,000 for the North Carolina Aerospace Alliance to help leverage additional funding from the Golden LEAF Foundation to expand and grow the state’s aerospace industry.

No additional funding is recommended for the Biofuels Center of North Carolina, which received an initial $5 million appropriation in 2007-08.

The e-NC Authority – a statewide broadband initiative – would receive $495,000 in recurring funding, the same as last year. The General Assembly also will consider legislation for additional operating funds for the authority and a proposal to provide additional funds for incentive deployment, infrastructure refurbishment in public access centers, and incentive funds for matching federal stimulus monies.

The capital budget includes $10 million for the University of North Carolina-Chapel Hill Biomedical Research Imaging Center. A total of $20.5 million has been committed for the center and an additional $229.5 million is needed for later phases of the project, which is scheduled for completion in 2013. The governor intends to finance the completion of the project using bonded indebtedness beginning in 2010-11, and according to budget documents, repayment would be shared with UNC-Chapel Hill, UNC hospitals, and the general fund.

The governor’s 2009-11 proposed budget is available at: http://www.osbm.state.nc.us/ncosbm/osbm_library/superpubs/bgt0911.shtm.

The implementation plan provides $90 million in ARRA funding for CDFI Financial Assistance awards. Combined with FY09 standard annual funding, the CDFI Fund expects to make $145 million in Financial Assistance awards in this fiscal year. Another $8 million will support qualified Community Development Entities (CDEs) in Native American communities.

Financial Assistance awards invest in qualified CDEs that provide financial products and services in low-income and underserved communities. The awards enable CDFIs to leverage private capital to respond to the needs of their target market, and take the form of equity investments, loans, deposits, or grants. CDFIs provide loans, investments, training, technical assistance and basic financial services such as checking or savings accounts.

The new CDFI Fund plan not only increases the amount of financial support available through the Financial Assistance program, but also adjusts the program’s rules to accommodate the growing need for development capital. Though applicants were always permitted to request awards of up to $2 million, awards were generally capped at $1 million or less. The fund now intends to make awards up to the $2 million limit. The pool of awards also will grow and the program expects to make more awards than in 2008. Applications that already have been submitted in 2009 may be reconsidered in light of the new changes. Even though the 2009 round of funding is closed, a new application window will be opened for new applicants. Awards will be announced in two rounds, in June and in September.

Similar changes have been made for the Native American CDFI Assistance program. The fund expects $14.5 million in total award funding to be available for FY09. This year’s round of awards will be capped at $750,000 instead of $500,000. Submitted applications will be reconsidered and a new application window will be announced in the coming weeks.

CDFI’s New Markets Tax Credit program, which grants an income tax credit for making qualified equity investments in designated CDEs, will divide the additional $3 billion in tax credit authority between the FY08 and FY09 award rounds. CDFI will reevaluate applications from 2008 and though no new applications will be accepted, many organizations that did not originally receive funding may now receive an award. With the additional FY09 funding, the program is expected to make approximately 100 awards, which will be announced in October.

Match Requirements Waived
ARRA also included language that waives several requirements for applicants to increase the availability of financial support. Awardees no longer are required to obtain matching funds from non-federal sources in order to receive grants. Also, ARRA lifts the $5 million limit on CDFI Fund financial assistance over a three-year period. These waivers apply to any awards made during the 2009 fiscal year, whether they were made from standard annual appropriations or from ARRA funding.

Treasury’s CDFI Fund implementation plan is available at: http://www.cdfifund.gov/recovery/implementationplan.pdf

Lawmakers approved SB 240, allocating $33 million in one-time federal stimulus funds to the state-funded initiative to grow Utah’s knowledge economy. The bill also modifies provisions relating to USTAR’s Governing Authority adding the executive director of the Governor’s Office of Economic Development as a member and vice chair of the authority. The appropriation grew significantly from the earlier version of the bill allocating $10 million for operating expenses and funding for research teams.

The approved FY10 budget includes $15.9 million for USTAR operating expenses with $14.1 million earmarked for Research Teams and $983,400 allotted for Technology Outreach.

The Public Education budget provides $6.2 million ($700,000 less than last fiscal year) for USTAR Centers, a program to extend the school year for math and science teachers. Lawmakers eliminated the remaining $5 million appropriated last year for differentiated performance pay for math and science teachers leaving no remaining funding for the year-old program. A portion of those funds ($300,000) will be used to establish a one-year pilot teacher compensation program based on student achievement in elementary schools.

In addition to existing funds of $250,000, lawmakers added $2 million in one-time funds for the Engineering Initiative within the Higher Education budget. This program seeks to increase the number of engineering graduates throughout the state.

To provide a competitive edge for recruiting clean-energy businesses, lawmakers passed HB 430, creating renewable energy development zones and providing a refundable tax credit on 100 percent of tax liability for alternative energy projects within the zones. The legislation stipulates that incentives are “post-performance” and businesses must meet standards set by the Governor’s Office of Economic Development. These include direct investment within the boundaries of a zone, creation of new incremental jobs in the state, significant capital investment or the creation of high paying jobs or significant purchases from Utah vendors and providers, and the generation of new state revenues.

The enrolled version of the budget bill is available at: http://le.utah.gov/~2009/htmdoc/sbillhtm/sb0002.htm.

Two years of study went into the report, which highlights the success that neighboring states, such as Pennsylvania and North Carolina, have had in investing in TBED. The initial study concluded that West Virginia would have to move quickly to remain competitive in light of the progress already being made in other states.

To do so, the state would have to overcome several barriers to high-tech growth, including a lack of technology talent, early stage capital, serial entrepreneurs, national awareness and technology leadership. A successful plan would have to build on the state’s strengths such as its large number of nonprofit, academic and federal research institutions, an increased focus on tech transfer and commercialization at its public universities and a growing technology sector in the North Central part of the state.

The plan proposes 18 action steps to help build a thriving statewide technology community over the next few years. Key recommendations include:

• Increasing the number of STEM researchers at West Virginia University and Marshall University by 20 percent;
• Double competitive funding from federal agencies every five years;
• Create a TBED office at the state Department of Commerce;
• Create an early-stage, proof-of-concept gap fund of $2.5 million for technology development and commercialization; and,
• Increase by ten percent per year the number of doctorates awarded in STEM fields by 2015.

TechConnectWV also released two supplemental reports that outline strategies for specific industries. The reports analyze the state’s current strengths and challenges in advanced energy and energy-related technology and the identification, security and sensing technology industry.

The general report identifies the energy industry as a nearer-term opportunity for growth in West Virginia. Although alternative energy sources should be a vital part of their energy plan, the report highlights the state’s plentiful and inexpensive fossil-based fuel resources as its key advantage in becoming a global leader in advanced energy. The plan calls for aligning the state’s many organizations associated with the energy industry and promoting greater collaboration between companies and research institutions. To accomplish this, the report recommends creating an energy steering committee with sub-committees focused on high-priority areas, taking a greater national role in energy by establishing both in-state and interstate energy programs and establishing a new industry-university collaborative center at West Virginia University.

Biometrics is also proposed as a nearer-term opportunity for West Virginia. The plan calls for establishing a lead committee, attracting more biometric support companies and aggressively promoting the state as a leader in the industry. Specific action steps include realignment of research at state-controlled facilities to spur the creation of new biometric companies, additional funding for related technology commercialization at state universities, and more funding for university-industry collaboration.

Two more reports are expected in the coming months, which will provide similar plans for the advanced materials and chemicals industry and molecular diagnostics, therapeutics and targets delivery systems.

West Virginia Blueprint for Technology-Based Economic Development is available at: http://www.techconnectwv.com/news-downloads/

SSTI has prepared a table that shows for each state the amount of R&D expenditures from 2003 to 2007, the percent change and relative rank over this period, the percentage of each state’s expenditures that originate from the federal government, and the relative rank of this percentage.

California led the nation with $6.7 billion in expenditures at its universities and colleges, followed by New York and Texas with $3.9 billion and $3.4 billion respectively. Maryland, Massachusetts, and Pennsylvania were in the $2 billion to $3 billion range in FY07, while six states – Illinois, Ohio, Michigan, Florida, Georgia, Wisconsin – had amounts larger than $1 billion. Fifteen states had amounts lower than $300 million.

From 2003-2007, the U.S. saw a 23.3 percent increase. Maine experienced the largest five-year jump greatly exceeding the national average, rising by 63.7 percent to $137 million in FY07. Four other states – South Dakota, Hawaii, Ohio, North Carolina – increased by more than 35 percent from 2003 to 2007. No states witnessed a decrease in expenditures over that time.

Vermont, Colorado, Hawaii, Massachusetts, as well as the District of Columbia received more than 75 percent of their academic R&D funding from the federal government in FY07. On the other end of the spectrum, Wyoming had only 32 percent come from federal funds. Nevada, South Carolina, Arkansas, and Oklahoma round out the five states with the lowest percentages of their academic R&D expenditures from the federal government.

Other sources of academic R&D expenditures in the tables come from state and local governments, industry, and the institutions themselves.

The chart is available at: http://www.ssti.org/Digest/Tables/032509at.htm

Academic Research and Development Expenditures: Fiscal Year 2007 is available at: http://www.nsf.gov/statistics/nsf09303/?govDel=USNSF_178

In the U.S., there were 10.00 science and engineering PhDs awarded per 100,000 people in 2006. In that year, the District of Columbia had the highest ratio among jurisdictions with 58.08 S&E PhDs awarded per 100,000 people. This was followed by Massachusetts (26.78), Rhode Island (20.79), Delaware (17.12) and Maryland (14.96). Thirty-four of the states had a per capita number less than the U.S. average, and six states had less than five PhDs awarded per 100,000 people.

Over the five-year period from 2002 to 2006, the U.S. witnessed a 14.3 percent increase in per capita S&E PhDs awarded. Arkansas was the state with the highest S&E PhDs per capita increase, at 47.5 percent. This was followed by West Virginia, Rhode Island, Nevada, and Delaware. Twelve states had per capita increases higher than 25 percent, while eight states saw a decrease.

The chart is available at: http://www.ssti.org/Digest/Tables/032509t.htm

NSF’s “S&E Doctoral Awards” series is available at: http://www.nsf.gov/statistics/pubseri.cfm?seri_id=11