In This Week's Issue
SSTI News and Analysis
State Tax Revenues Rise to Pre-Recession Levels, but Local
Governments See Decline
A steady increase in personal income and sales taxes has helped
state tax revenue in most states to surpass previous peak levels
seen at the start of the recession. All regions of the country saw
gains in the fourth quarter of 2011, with the exception of the Far
West. The Plains had the largest gain, at 12.5 percent, followed by
the Great Lakes states at 8.9 percent. However, tax collections for
local governments are not faring as well mostly due to the lagged
impact of falling housing prices on property tax collections.
Findings are from a recent Nelson A. Rockefeller Institute of
Government report that looks at the impact of taxes on state
revenue and highlights trends affecting state revenue changes.
The report finds that state tax collections have risen steadily
with eight straight quarter increases. In the fourth quarter of
2011, total state tax revenue rose by 3.6 percent compared to a
year ago and the income tax and sales tax revenues increased by 4.2
and 2.4 percent, respectively. Only seven states reported declines
in total tax revenue during the fourth quarter of 2011
— Arizona, California, Louisiana, Massachusetts,
New Hampshire, North Carolina, and Vermont. Twelve states reported
double-digit increases during the same time period. Revenue gains
were especially strong in Alaska and North Dakota, which the report
attributes to booming oil and natural gas industries.
Gains in personal income taxes were greatest in the Southwest region and in the Great Lakes
region, which is mostly due to a legislated tax
increase in Illinois, the report finds. Thirty-eight states
reported growth for the fourth quarter of 2011. Connecticut, a
state that also enacted tax increases, reported a 22.9 percent gain
in personal income tax revenue. When Illinois and Connecticut are
excluded, personal income tax collections for the nation grew by
only 1.3 percent.
Although sales tax collections were higher in fourth quarter
2011 than the same time last year, collections were still down by
3.2 percent from the same period of 2007. The Plains and New
England regions reported the largest increases in sales tax
collections at 10.6 and 8.4 percent. Thirty-eight of the 45 states
with broad-based sales taxes reported growth in collections for the
fourth quarter of 2011 and four states reported double-digit gains.
Declines were reported in six states including Arizona, California
and North Carolina.
Local tax collections, which rely heavily on property taxes, are
steadily declining because of the lagged impact of falling housing
prices, the report finds. Over the last four quarters, the real,
year-over-year decline in local taxes averaged 1 percent. The
report points to a growing divide between state and local revenue
trends. While state revenues have been recovering for several
quarters in real terms, local revenues have been declining in real
value. If current trends continue, services funded by local
governments, such as education and public safety, are likely to be
under severe fiscal pressures, the report warns.
The state revenue report is available at:
http://www.rockinst.org/pdf/government_finance/state_revenue_report/2012-04-19-SRR_87.pdf.
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U.S. Energy Department Launches Award Program to Promote Women in Clean Energy
The U.S. Department of Energy (DOE) has launched a new program to advance the participation and leadership of professional women in clean energy. The U.S. Clean Energy Education and Empowerment program will select a team of 20 distinguished ambassadors to serve as spokeswomen and mentors for women in clean energy and to participate in a symposium this fall. In addition, a new DOE awards program will recognize mid-career clean energy innovators, entrepreneurs and policy advocates with $10,000 cash prizes. Learn more...
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Commission Calls for Redesign of U.S. Community College System
U.S. community colleges are in dire need of an overhaul, according to a report issued by the 21st Century Commission on the Future of Community
Colleges. Currently, fewer than half (46 percent) of all student who enter community college with the goal of earning a degree or certificate achieve
that goal. About 60 percent of students entering community college
after high school must take developmental education classes to prepare for college-level work. Also, community college students are
frequently unable to make smooth transitions into four-year institutions or the job market after graduation. The commission calls for a redesign of the
system that would focus efforts on local employment needs, emphasize transparency and accountability and offer coherent pathways for students.
The commission was convened by the American Association of Community Colleges (AACC) last summer, with support from the Bill & Melinda Gates
Foundation, the Kresge Foundation, ACT and the Education Testing Service. After a nationwide listening tour and finding broad consensus on the urgent
need for reform, the commission assembled the report to sketch a framework for the reinvention of the system.
The report offers seven recommendations to redesign, reinvent and reset the community college system as a more vibrant resource for students and
communities. Recommendations include:
- Increase completion rates to 50 percent by 2020 while maintaining quality and accessibility by building structured pathways
for students, promoting transfers to baccalaureate institutions and identify and assisting students who have already earned 30 credit hours;
- Reduce by 50 percent the number of entering students unprepared for college-level work by collaborating with K-12 districts
and redesigning developmental education programs;
- Prepare students for available jobs and fill local labor market needs by designing stacked credential systems, identifying local
needs, and creating partnerships to increase the value of an associate degree;
- Meet the needs of students and communities by creating an open learning environment and offering venues to engage with
institutional leaders;
- Collaborate with other institutions to collect student and graduate data and offer transparent documentation of student
skills;
- Create new incentives for all educational institutions and students to support the value of a community college education;
and,
- Implement policies and practices that promote rigor, transparency and accountability to increase the quality and acceptance of associates
programs.
AACC also proposes the creation of a 21st Century Center that would coordinate the implementation of these recommendation and act as a repository for
promising practices.
Read Reclaiming the American Dream: Community Colleges and the Nation's Future...
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Executives Want Education Policy Interventions to
Help U.S. Competitiveness
Only 11 percent of business executives believe the U.S.
educational system prepares workers for today's
economy, according to a recent survey by ConvergeUS,
Preparing America's 21st Century
Workforce: the Business Sector Weighs in on Educational Gaps &
Common Core State Standards. ConvergeUS surveyed
almost 300 business executives on their attitudes regarding the
current state of the U.S. workforce. The most significant trend was
the overall lack of confidence by business executives in the U.S.
education system; approximately 33 percent of business executive
believe that the U.S. does a poor job of preparing workers.
Educational policy changes were most often cited by respondents
(66 percent) as necessary to make the U.S. more competitive in the
world economy. Other areas important in need of policy changes to
increase competitiveness include investments in research and
development (56 percent of respondents) and corporate tax reform
(54 percent). According to respondents, three objectives standout
as the most important to a high school education:
- 88 percent of executives said teaching students to think and
solve problems is very important;
- 80 percent said focusing on basics such as reading, writing and
mathematics is very important; and,
- 72 percent said providing skills so students can be productive
workers is very important.
Respondents also were asked in what areas can recent college
graduates improve upon to be more successful in the global
workforce:
- 61 percent said improving writing and communication skills
would help a lot;
- 59 percent said improving critical thinking and problem-solving
skills would help a lot;
- 44 percent said improving graduates creative thinking would
help a lot; and,
- 43 percent said improving math skills would help a lot.
The survey also assessed respondents'
awareness of Common Core State Standards (CCSS) initiative to
establish a national framework that will prepare students for
college and the workforce. Only 18 percent were very familiar with
it. In comparison, 46 percent of respondents were not familiar with
them.
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Talent Will Define Future of Manufacturing, Study
Finds
Talented human capital is singled out as the most critical
resource differentiating the prosperity of countries and companies
in the manufacturing sector, in a new report from the
World Economic Forum. Even as unemployment remains high across the
globe, about 10 million jobs cannot be filled because of a
growing skills gap. Experts say the problem is likely to worsen as
more skilled workers retire. The report highlights key trends that
will define manufacturing competition over the next 20 years.
A 2011 survey by Deloitte and the Manufacturing Institute found
that 67 percent of U.S.-based manufacturers are facing a moderate
to severe shortage of available, qualified workers and more than
half expect the shortage to grow in the next five years. In fact,
about 5 percent or around 600,000 manufacturing jobs remain
unfilled in the U.S.. Exacerbating the problem is an ageing
workforce, especially in emerging countries. In China, 28 percent
of the population will pass age 65 by 2040. The retirement trend is
worldwide and is expected to sustain for the next 10 years,
according to the report.
So what is being done and what can be done to remedy the talent
shortage? The authors points to recent efforts in China and India
to reduce brain drain and develop local talent. China implemented a
series of incentives such as granting special privileges to
graduates from foreign universities, offering special promotions to
high-salaried positions, and facilitating visa documents for
domestic and international travel. In India, the government has
engaged private industry and mobilized a new organization called
the National Skill Development Corporation to identify and fund
vocational education businesses. Efforts in other nations,
including the U.S., include collaboration among corporations,
academia and private organizations such as customized education and
training in high-schools and community colleges.
Some of the other key differentiators identified in the report
include the ability to innovate, increased competition between
nations to attract foreign direct investment, growing materials
resource competition, and the infrastructure to enable
manufacturing to flourish. Additionally, clean energy strategies
and effective energy policies will be top priorities for
manufacturers and policymakers, the report concludes.
The Future of Manufacturing: Opportunities to Drive Economic
Growth is available at:
http://www3.weforum.org/docs/WEF_MOB_FutureManufacturing_Report_2012.pdf.
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Around the World in TBED
Innovation quickly is becoming a key concept for the world's economies. Increasingly nations are turning their economic development efforts towards building 21st century economies that are cleaner, more efficient and built on collaboration, both domestically and internationally. The European Union, New Zealand, South Korea and the United Kingdom have announced new initiatives that target increasing their overall competiveness not simply in the short-term, but long-term.
United Kingdom
United Kingdom (UK) launched a contest to support up to two pilot wave energy projects in hopes to scale up the clean technologies in the country.
Companies and organizations across the country will be able to bid for a share of the £20 million (approximately $32.2 million) prize to establish
one of the two pre-commercial projects. Currently, marine power has the potential to provide up to 20% of current electricity demand in the UK, as well
as support thousands of jobs. Read the press release...
The UK also has the potential to become a world-leader in smart grid technologies and the development of intelligent networks that would revolutionize
the way power is generated and used, according to a report from Ernst and Young, Smart Grid: A Race Worth Winning. The report estimates that
additional investment of £23 billion (approximately $37 billion) will be needed, but that this will deliver benefits of up to £19 billion
(approximately $31 billion), creating close to 10,000 high-paying jobs and establish a £5 billion (approximately $8 billion) export market. Read the report...
New Zealand
New Zealand announced the creation of the Ministry of Business, Innovation and Employment (MBIE). Effective July 1, the new ministry will fuse together
four existing government entities and assume their existing functions. MBIE will play a central role in shaping and delivering a strong national
economy that focus on innovation. New Zealand's Economic Development Minister Steven Joyce expects businesses to see the Government moving faster and
in a more coordinated way to tackle the issues that matter to business. The consolidation also will save the country up to $11 million per year. Read
the press release...
European Union & South Korea
The European Union (EU) and South Korea announced a range of initiatives to strengthen research cooperation including joint initiatives in energy,
industrial technologies, information technology and nanotechnology research, according to an article in University World News. The two sides also will cooperate on assessments of nanotechnology safety
standards and the development of test beds on smart grids able to power electric vehicles. Other initiatives include the establishment of joint
EU-South Korean workshops in specific research fields and exchange programs for both students and researchers. Read the article...
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SSTI Events
Next Week's SSTI Member-only Webinar
The Obama Administration's Manufacturing Strategy: Funding and Partnership Opportunities in FY12-13
The Administration has identified manufacturing as a key
priority of the nation's economic
revitalization. Over the past year, several reports have identified
the need and new programs have been established to respond.
The National Institute of Standards and Technology plays a central
role in the federal response. Phillip Singerman, NIST
Associate Director for Innovation and Industry Services (and former
SSTI Board member), will provide an overview. Contact Noelle at
sheets@ssti.org for additional
details on the webinar or for info on being a member today!
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SSTI's 2012 Webinar Series: Inspiring
Thought Continues
Every Third Thursday at 3:00 PM ET
Using Cluster
Roadmapping to Determine Your Strategic Direction
Thursday, May 17
Because industry roadmaps provide strategic guidance for economic
development efforts to accelerate innovation and commercial
activity, they can be a dynamic tool for setting priorities,
allocating resources, aligning stakeholders and focusing efforts.
This webinar will provide a behind-the-scenes look at how one
region is using a proven, consensus-driven methodology for
developing industry-driven roadmaps that will help to capture
significant economic growth within seven years. Representatives
from NorTech will discuss how they used the InSevenSM roadmap
process to develop a shared regional vision and define specific
opportunities and action plans based on leveraging existing
regional assets.
Register
Today!
Featuring:
- Rebecca Bagley, President & CEO, NorTech
- Dave Karpinski, Vice President, NorTech
- Nicholas Bush, Founder and Principal, Bush Consulting
Group
As part of SSTI's Membership Benefits all members receive one
complimentary webinar. Not a member? Join today and start receiving
benefits immediately. Contact Noelle at sheets@ssti.org for more
information.
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TBED People and Job Opportunities
Job Corner
TechTown, Detroit's business incubator in partnership
with Wayne State University is seeking a managing director of
entrepreneurial programs. This role is responsible for
overseeing the execution of all TechTown entrepreneurial and talent
programs, including acceleration for new entrepreneurs entering
pre-seed and seed-development phase, mentors, and interns. The
selected candidate will be responsible for oversight of capital
funding for TechTown clients and relationships with key TechTown
partners and donors in the community.
Read more job postings
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Staff Picks
Large Nonprofits Underutilized Asset for Regional Economic
Vitality, Study Finds
These "anchor institutions" such as universities and hospitals
contribute to the regional economy through direct employment and
supporting industry clusters, but their lack of integration with
other regional development strategies dampens their potential for
positive impact.
Read more ...
Transformational Entrepreneurship as a New Model of Economic
Growth
The author of this
post says uniting the scalable tools of technology
entrepreneurship with the moral ethos of social entrepreneurship
could become a primary source of socioeconomic value creation.
Web Pioneers, Innovators and Global Connectors Inducted into
Internet Hall of Fame
Inductees include the inventor of datagrams, Al Gore and a lawyer who wrote
the open source license for Mozilla.
Read more ...
New Talent Program in Connecticut Engages College Students to
Solve Tech Problems
The new program from Connecticut Innovations matches students
with companies to work on a project involving a technological
challenge. Grants of up to $25,000 per project are provided to
companies for student compensation.
Read more ...
Map Displays Community Block Grants Funding Following
Cuts
This
map allows you to click on communities to compare 2011 and 2012
funding levels for the Community Block Grants program, which was
cut by $390 million for FY12.
Toronto's MaRS Creates Accelerator
Called JOLT, the new accelerator will select up to 15 web and
mobile companies annually, providing mentorship, seed financing and
access to angel and venture capital.
Read more ...
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