SSTI Digest

Among the $410 million in items Gov. Rick Scott struck from Florida’s 2018 budget were more than 100 appropriations totaling more than $20 million that would support STEM education, higher ed, R&D and innovation. Instead, the governor wants the state to spend more money promoting tourism. Scott vetoed more than $20 million for innovation-oriented economic development items.

The last of the state of the state addresses are trickling in, with Florida’s governor this week making the case for the state’s economic development organization and business incentives, which the Florida House of Representatives have targeted for elimination. Last month Kentucky Gov. Matt Bevin called for education reform and highlighted the competition for state funds in workforce development. Ohio and Louisiana’s governors are scheduled to deliver their remarks in April.

In the latest round of state budget proposals, TBED initiatives receive mixed reviews. Some governors are boosting funding while others in cash-strapped states are proposing cuts.

Since the beginning of July, the Economic Development Administration (EDA) has announced almost $7.3 million in grants to support advanced manufacturing and support workforce development efforts in communities impacted by the decline coal industry. In Florida and Washington, the EDA announced funding to support the facilities that can house local manufacturing firms and provide the space and equipment necessary for them to create jobs. In New York, Pennsylvania, and West Virginia, the EDA accessed funding made available through EDA's Investing in Manufacturing Communities Partnership (IMCP) and Partnerships for Opportunity and Workforce and Economic Revitalization (POWER) initiative to support workforce development efforts that address job losses due to the decline of coal industries in those states.

Florida

Because a research base that generates new knowledge is a key pillar of a technology-based economy, an important strategy in technology-based economic development is the expansion of research capacity. While states may go about addressing this in a variety of ways (e.g., R&D tax-credits, university-industry partnerships, recruiting eminent scholars), Florida drew national attention when it took a different approach last decade, allocating more than $450 million to attract nine research institutes through its Innovation Incentive Program (IIP). Recently, one of those attracted institutes, the San Diego-based Sanford-Burnham Prebys Medical Discovery Institute – which received approximately $367 million in state and local incentives to open an Orlando location – announced that it was having discussions with the University of Florida to exit the state and turn the Florida operations over to the university.

Many states across the country already have, or will soon have, signed budgets ready for the 2017 fiscal year.  Over the past few months, SSTI has examined gubernatorial addresses and proposed budgets for a preview of technology-based economic development spending in the coming year. This week, we take a look at what initiatives and spending levels survived spending negotiations in Alabama, Florida, Idaho and New Mexico, as well as an update on the budget situation in Pennsylvania.

Alabama
In February, SSTI reported that Gov. Robert Bentley’s $1.9 billion fiscal year 2017 budget proposal included $7.5 million in funds for the Alabama Department of Economic and Community Affairs (ADECA), with another $202.4 million in earmarked funds. The enrolled bill, delivered to the governor last week, includes these allocations.

Despite its location more than 180 miles south of Gainesville, FL,  Sarasota County – which is far better known for its cultural and environmental amenities than industrial strength – will be home to the University of Florida’s first engineering extension office. Supported by more than $3 million in financial contributions from civic, philanthropic, and university organizations, the Sarasota County Innovation Station will be a physical location designed to encourage local students to look into UF's engineering program, provide internships through relationships with local businesses, and support startups and other entrepreneurial endeavors.

Florida Higher Education – Is the Cheapest Fiscally Sound? provides evidence for the connection between state funding for universities and productivity. Florida Research Consortium and Florida Chamber Foundation combine a variety of data to advance three connections: 1) state funding for universities is exponentially related to total funding for universities; 2) total funding for universities is related to research quality; and 3) research quality is related to productivity within Metropolitan Statistical Areas. Although the report should be read with caveats regarding causality and constructed indices, the evidence and argument are worth discussing with university research stakeholders. Read more at: http://www.floridaresearch.org/files/Florida%20Higher%20Education%20-%20Is%20the%20Cheapest%20Fiscally%20Sound.pdf.

A number of governors around the U.S. have already begun rolling out budget proposals for the next legislative session. This week, SSTI examines gubernatorial spending recommendations related to research, commercialization, STEM education and entrepreneurship in Florida and Wyoming.

Florida

Gov. Rick Scott released his $79.3 billion spending plan for fiscal year 2017, promoting the proposal’s $1 billion in spending reductions and elimination of 1,000 state government jobs. The governor recommends permanently ending income taxes on manufacturing and retail businesses, as well as sales taxes on manufacturing equipment.

Over the past few months, SSTI has followed proposals issued by governors in their budget requests, State of the State Addresses, Inaugural Speeches and other events. Now that many governors have signed spending bills, the SSTI Digest will check on the status of these proposals, and examine the state of technology-based economic development funding in the states. This week, we review actions in Florida and Rhode Island.

Florida
Gov. Rick Scott signed a $78.7 billion FY16 budget (SB 2502-A) on Tuesday, vetoing $461 million in spending. The lengthy list of vetoed funding for projects includes:

SSTI's Tech Talkin' Govs series has returned as governors across the country formally convene 2015 legislative sessions. The series highlights new and expanded TBED proposals from governors' State of the State, Budget and Inaugural addresses.

The final installment of this year’s series includes excerpts from speeches delivered in Alabama, Florida, Ohio, Pennsylvania and Texas. Read the first, second, third, fourth and fifth installments of this year’s series.

Governors in Maryland, Minnesota, and Florida proposed substantial funds to higher education in their budgets this week, with an emphasis on affordable education and expanded research capacity.

Maryland
Gov. Larry Hogan’s structurally balanced $40.5 billion FY 2016 budget marks the first time in 10 years that the state’s general fund spending would be aligned with available general fund revenues, according to the governor’s office.  Included in Gov. Hogan’s proposed budget allowance is: