SSTI Digest

Cybersecurity efforts have been increasing across the country. In July, Virginia Gov. Terry McAuliffe, who also serves as chair of the National Governors Association (NGA), announced that 38 governors signed A Compact to Improve State Cybersecurity – a multi-state, coordinated cybersecurity effort focused in three areas that will Enhance state cybersecurity governance; Prepare and defend their states from cybersecurity events; and, Grow the nation’s cybersecurity workforce. The compact was the culmination of McAuliffe’s Meet the Threat: States Confront the Cyber Challenge. In addition to the compact, new cybersecurity-focused economic development efforts have been launched in several states including Delaware, Kentucky, and Wyoming. Meanwhile, NIST has released a cybersecurity workforce framework intended for use by all sectors in the states

With a July 1 start to the fiscal year in most states, several states that were at an impasse over their budget faced at least partial shutdowns. Last minute negotiations restarted services in both Maine and New Jersey, while Illinois, which has been operating without a budget since 2015, faces threats of a downgrade in their credit rating if a deal cannot be reached. This week we present our findings of innovation funding from seven states, including $2 million in funding for a new public-private economic development organization in Delaware, an increase in funding in Louisiana for the state’s scholarship program for higher ed, and cuts to higher ed funding in Missouri, which also saw a severe drop in its funding to the Missouri Technology Corporation. Efforts in Maine, New Hampshire, Vermont and Washington are also detailed below. Delaware The FY 2018 budget passed by the Delaware legislature and signed by Gov. Jay Carney would allocate up to $2.0 million for the Delaware Prosperity Partnership, a new public-private economic development organization. As described in a April 2017 Digest article, the Delaware Prosperity Partnership is tasked with functions…

Traditional economic development efforts at the state level are undergoing increasing scrutiny as budgets are being constrained. Two new studies show a shift in focus away from traditional approaches of tax incentives and reliance on major employers, to broader strategies relying more on the private sector and human capital. A report released by the Delaware Economic Development Working Group recommends shifting many of the core responsibilities of the Delaware Economic Development Office (DEDO) to a new nonprofit. And a report focused on Indiana details the decline in footloose jobs in the state despite local government investments in business attraction, indicating a reevaluation of public policy is needed, the authors contend. Delaware Gov. John Carney created a 14-member working group as his first official act in office in January. The final report from the group, Rethinking Economic Development in Delaware, argues that the state can no longer count on past economic engines like heavy manufacturing to produce jobs. Instead, economic development efforts require a “reset” and should capitalize on new growth sectors like financial technology, health care and…

Twelve gubernatorial seats were up for election Tuesday, five of which were held by incumbents seeking reelection. Four of those – Montana Gov. Steve Bullock (D), Oregon Gov. Kate Brown (D), Utah Gov. Gary Herbert (R) and Washington Gov. Jay Inslee (D) – were reelected for second terms. In North Carolina, Democratic candidate and State Attorney General Roy Cooper has a lead of less than one percent over incumbent Gov. Pat McCrory. Gov. McCrory has not conceded and the result is pending a canvass of votes, which may not be complete until November 18. As of this publication, there are seven new governors taking office: ·         Democratic Congressman John Carney won the seat in Delaware. ·         Republican Lt. Gov. Eric Holcomb won in Indiana. ·         Republican and former Navy Seal Eric Greitens won in Missouri. ·         Republican Chris Sununu won in New Hampshire. ·         Republican…

A bipartisan group of 17 governors signed the Governors’ Accord for a New Energy Future – a joint commitment to support the deployment of renewable, cleaner and more efficient energy technologies and other solutions to make the U.S. economy more productive and resilient as well as spur job creation in member states. The multi-state effort will work to implement clean energy policies and initiatives in four areas: clean energy, clean transportation choices, a modern electrical grid, and plan for a new energy future. Although the accord doesn’t provide specific efforts, senior advisors to participating governors are expected to convene shortly to discuss initial steps to pursue their shared priorities and commitments according to solarindustrymag.com. The 17 signatories are: Gov. Jerry Brown (CA); Gov. Dannel Mallory (CT); Gov. Jack Markell (DE); Gov. David Ige (HI); Gov. Terry Branstad (IA); Gov. Charlie Baker (MA); Gov. Rick Snyder (MI); Gov. Mark Dayton (MN); Gov. Brian Sandoval (NV); Gov. Maggie Hassan (NH); Gov. Andrew Cuomo (NY); Gov. Kate Brown (OR); Gov. Tom Wolf (PA); Gov. Gina Raimondo (RI); Gov. Peter Shumlin (VT);  Gov. Terry…

Many governors around the country have begun laying out priorities for the next legislative session. In the coming weeks, SSTI will review gubernatorial addresses and budget proposals related to economic development. This week, we highlight developments in Delaware, Kentucky and Massachusetts. DelawareOn Thursday, Gov. Jack Markell offered a $4.1 billion budget plan for fiscal year 2017 a week after delivering his final State of the State address. At last year’s address, Gov. Markell introduced the Delaware Promise Initiative, a decade-long initiative to ensure that 65 percent of all Delaware residents had a college degree or professional certificate by 2025. This year, he reviewed the steps already taken to accomplish that goal, including the launch of Delaware’s TechHire IT training initiative, the Accelerated Career Pathways program for high school-level manufacturing training and his $1 million commitment to the Pathways to Prosperity program. He pledged to continue those efforts, as well as to invest in the entrepreneurship support programs and reforming the corporate tax code. The Delaware Competes Act, which would reduce corporate income tax for…

Now that many governors have signed spending bills and legislative sessions are drawing to a close, the SSTI Digest will check on the status of proposals related to the innovation economy, and examine the state of technology-based economic development funding in the states. This week, we review spending bills in Delaware, Hawaii, Oregon, and Wisconsin. DelawareEarlier this month, Gov. Jack Markell signed a $3.9 billion FY16 operating budget (HS 1 for HB 225) and $456 million capital budget (SS 1 for SB 160). Under the approved budget, the state's Economic Development Office would receive about $2.8 million in general funds and $6 million in special funds. About $1.7 million is appropriated for the state's Blue Collar workforce programs. In his State of the State, Gov. Markell proposed using programs, such as the Blue Collar grants, to provide 65 percent of the state's workforce with degrees or certificates by 2025. HawaiiIn May, Gov. David Ige signed a $26 billion budget (HB 500) that included about $30 million in tech-related appropriations. The budget provides funding for the state's High Technology Development Corporation (HTDC) to…

Delaware Gov. Jack Markell outlined a FY15 budget proposal with further detail and funding levels for TBED priorities announced in his recent State of the State address. The budget would provide $1 million to create a faster path to degree or certificate completion in advanced manufacturing and establishes a $3 million cyber workforce initiative. Higher education institutions would be tapped as partners for the new initiatives, and also would receive an additional $2 million for federal R&D matching grants as part of the budget recommendations. Much of the governor’s address focused on the urgency to match skilled workers with industry needs. To do so, he plans to roll out a program in the fall geared toward providing juniors and seniors in high school with real-world manufacturing experience that leads to job-ready certifications – specifically in mechanical, electrical and computer engineering fields. Partners in the effort include the Delaware Manufacturing Association and the Manufacturing Extension Partnership, who will help indentify industries that offer hands-on training. The governor’s budget provides $1 million for the effort within the…

Tech Talkin’ Govs: Part III The third installment of SSTI’s Tech Talkin’ Govs series includes excerpts from speeches delivered in Delaware, Michigan, Missouri and New Mexico. Read part I and part II. Delaware Gov. Jack Markell, State of the State Address, Jan. 23, 2014 “As we send more of our students into higher education, we need to make sure that they have a roadmap from the classroom to employment, and that our major employers are working with our universities so that our youth are prepared for the workforce. I’m pleased to announce today that DuPont has agreed to partner with our colleges on this effort. “They will work to identify skills needed for entry-level positions, match those skills with courses offered by our colleges, and provide internships. ... “...  Let’s also ensure that those students who choose an accelerated career path – one that doesn’t involve a degree – get a head start on their futures. “This fall, we will roll out a new two-year comprehensive program in manufacturing technologies for high school juniors and seniors. The…

A number of states recently have taken action to expand R&D tax credits and other legislation that would support innovation, commercialization and manufacturing. Hawaii, California, Maryland, Texas, and Florida have signed into law tax incentives and R&D tax credits and an R&D tax credit in New Hampshire went into effect.  The Maine legislature also passed a capital tax credit that will begin in 2014. In late June, the Maine Senate and House passed LD 743, which will extend the Maine Seed Capital Tax Credit. The original tax credit program was created in 1989 with a $30 million cap. This extension will provide an annual cap of $5 million in tax credits to qualifying investors, beginning in 2014. “A tax credit certificate may be issued to an investor other than a private venture fund in an amount not more than 50 percent of the amount of cash actually invested in an eligible Maine business in any calendar year,” according to the bill. The business invested in must be “a manufacturer or a producer of a value-added natural resource product.” The New Hampshire tax credit in SB 1 took effect in late May.  SB 1 increases the…

The Information Technology and Innovation Foundation (ITIF) released the sixth edition of its bi-annual State New Economy Index last month. The report uses 26 indicators to assess the progress states have made adjusting to the realities of the innovation economy. Massachusetts lead in the rankings, as it has since the lauch of the index, while Delaware rose four ranks since 2010 to occupy second place. Read The 2012 State New Economy Index...

On November 6, in addition to the presidential election, eleven state and two territorial gubernatorial contests will be decided. Seven of these races (Delaware, Missouri, North Dakota, Puerto Rico, Utah, Vermont, and West Virginia) include a sitting governor running for re-election, while the remaining six (American Samoa, Indiana, Montana, New Hampshire, North Carolina and Washington) are open races. Of the races involving incumbents, four are a Democratic governors being challenged, while three sitting Republican governors are up for re-election — two of them for a full term after completing the terms of the previous governors who left for other positions. Five of the open races are a contest for a seat being vacated by a Democrat, while only one is currently held by a Republican. SSTI took a look at the TBED platforms of the candidates for governor. Delaware Jack Markell (D)Gov. Jack Markell has pursued a multi-pronged approach to economic development that includes providing small businesses access to credit, creating tax incentives for businesses to hire Delawareans, expanding the research and job training facilities at the…