SSTI Digest

SSTI’s Tech Talkin’ Govs feature continues as governors across the country are wrapping up their state of the state addresses. We review each speech for comments relevant to the innovation economy, and bring you their words directly from their addresses. In this latest installment of Tech Talkin’ Govs, Arkansas is celebrating its low unemployment while Maine says it will focus on a commercialization bond and grow the workforce in part through a student debt relief program. Connecticut wants new goals for clean energy and Wyoming’s focus on economic diversification continues with the governor there calling for full funding for the ENDOW initiative.

With more than 30 percent of rural America still lacking access to what the FCC considers adequate broadband, governors from across the country are working toward diverse strategies to build rural broadband capacity. By providing rural communities with access to full-speed, stable broadband, these governors hope that they can revitalize rural communities by helping small business formation and expansion as well as improve educational achievement/workforce training for rural citizens. Governors have announced new initiatives in Michigan, Missouri, North Carolina, and Wyoming, and in Wisconsin, Gov. Scott Walker is calling for Federal Communications Commission (FCC) rule changes to increase access to broadband internet across the country. Michigan Gov. Rick Snyder signed Executive Order 2018-2, which directs the Michigan Consortium for Advanced Networks to identify gaps in broadband service coverage and capacity, current efforts underway to address connectivity issues, and key strategies and recommendations for the state and private sector to pursue to achieve enhanced connectivity. The Consortium must present a plan by August 1, and after completion of the…

States are beginning their next round of budget proposals, following last year’s cautious approach to budgeting. SSTI begins its review of the proposals this week, presenting findings on how states are funding elements of the innovation economy with a review of Alaska, Colorado, Florida and Wyoming state budgets. While Alaska and Wyoming continue to recover from budget shortfalls exacerbated by their dependence on the energy industry, Colorado and Florida both include initiatives to increase funding to higher education and Mississippi looks to join those state offering free tuition with a proposal for free community college through the creation of a Mississippi Works Scholars Program.

The executive council of ENDOW, an economic development initiative started by Wyoming governor Matt Mead, has announced its preliminary recommendations to diversify and grow the state’s economy, including statewide programs to support tech-based economic development that total more than $36 million. Notable among the recommendations are $6 million for a proposed Wyoming Research and Innovation Fund that provides matching funds as a way to leverage federal R&D opportunities and $5 million to develop a new organization called Startup:Wyoming, which would administer the Fund and provide support to entrepreneurs throughout the state.

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

State budget season shifts from the proposal stage to legislative approval. Over the coming months, the Digest will cover funding of relevant programs. Our first look includes $2.5 million in Wyoming for the Economically Needed Diversification Options for Wyoming (ENDOW) program and $4.6 million in South Dakota for the Office of Research Commerce. Wyoming Wyoming’s Economically Needed Diversification Options for Wyoming (ENDOW) program, which was announced in November 2016 by Gov. Matt Mead, approved by the state legislature in February 2017, and signed by the governor earlier this month, will receive $2.5 million from the state’s rainy day fund in FY2017-2018. Funding for ENDOW includes $1.0 million to create a strategy for growing and diversifying Wyoming's economy around technology, as well as  $1.5 million for the state’s community colleges to respond to key workforce training needs. In late February, the state revealed the official website for ENDOW, which includes a survey to solicit interest from the public. South Dakota Gov. Dennis Daugaard signed SB 17, South Dakota’s FY 2018 budget bill. While the…

The perils of regional economies being too dependent on single industry clusters, particularly as it affects the financing of state governments, are playing out in the Great Plains. Kansas, New Mexico, North Dakota, Oklahoma and Wyoming have been or still are experiencing recessions, beginning as early as spring 2015 for two, according to a new analysis by Jason P. Brown for the Tenth Federal Reserve District. Testing two different approaches for assessing economic status, Brown’s review of national and state recession occurrences during the past 36 years found states whose economies are heavily dependent on the energy sector experience more recessions than the nation overall. Fortunately, for most of the energy states, recessions are usually shorter in duration than national downturns. Until the Great Recession, the business cycles of the states in the Tenth Federal Reserve District heavily dependent on the fossil energy cluster tracked well with non-energy states. Beginning in winter 2009, a strong divergence began, that appears to be expanding still. Those Tenth District states with more diversified economies are performing twice as well as the energy…

More governors delivered their state of the state addresses and this week we bring you TBED news from governors around the country. Areas of focus include tech infrastructure needs, diversifying economies, cybersecurity and education. While some governors are giving their inaugural addresses, Gov. Nikki Haley used her time to bid farewell. Following are excerpts from the past week’s addresses. Colorado Gov. John Hickenlooper gave his annual state of the state address last Thursday, focusing on infrastructure needs – notably roads, but also tech needs: “We need a comprehensive focus on infrastructure that supports not just transportation, but also broadband, education, healthcare, and our environment.  “Today, I’m announcing the creation of a broadband office to help us get from 70% to 85% coverage by the time we leave office and 100% by 2020. “We need to include pathways not just to four-year degrees but also to technical training and skills certificates for the many jobs in Colorado that require advanced skills like cybersecurity training. … If we do this right, there should be an opportunity…

As new and supplemental state budgets are being proposed, SSTI is monitoring the proposals and will report on developments impacting prosperity through science, technology, innovation and entrepreneurship. The first budgets released – from Colorado, Mississippi, Oregon and Wyoming – represent a mixed bag with new initiatives proposed in three states and program elimination in the fourth.   Colorado Colorado Gov. John Hickenlooper’s proposed budget includes an overall 3.3 percent increase in spending but requires legislative changes to Taxpayer's Bill of Rights (TABOR) rebates and reductions relative to inflation on K-12 education spending, in addition to other measures, to close a potential $500 million gap. Approximately $160 million in new funding is proposed for an Aerospace Engineering Science Building at University of Colorado-Boulder and an Institute for Biological and Translational Therapies at Colorado State University. An economic development policy proposed in the budget would require regions to incorporate succession plans into their state-supported strategic plans - a best practice known to be…

Over the last several months, the Economic Development Administration (EDA) has announced millions of dollars in grants to support tech-based economic development efforts in communities across the country (see recent Digest articles from August 18 and September 8). The most recent announcements of grant funding will provide targeted funding to expand and build facilities that support entrepreneurial/business development in Oklahoma, Pennsylvania, and Wyoming as well as workforce efforts in South Carolina. Each of the grants also addresses a specific regional need or key industries including growth in advanced manufacturing sectors, attraction of foreign direct investment, and support for key regional tech-focused industries such as agriculture and healthcare. Oklahoma Two organizations located in Oklahoma City will receive $1.9 million in grants to provide business and technical support to manufacturing and service companies and to purchase critical equipment needed to boost workforce training opportunities in the medical sector. The Oklahoma Center for Advancement of Science and Technology (OCAST) will receive $1 million to provide business and technical…

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 New York, South Dakota, Wyoming. New YorkGov. Andrew Cuomo and New York legislators reached an agreement on fiscal year 2017 spending late last week. The resulting budget includes a new $15 minimum wage, paid family leave, a $4.2 billion middle class tax cut and $55 billion in transportation infrastructure spending. The approved legislation provides $20.1 million in general funds for operations at the Department of Economic Development, with another $54.5 million in aid to localities.  Of this aid, $43.3 million will support the High Technology Program, which funds a number of centers of excellence around the state.  The Industrial Technology Extension Service is allocated $921,000 in general funds, while the Training and Business Assistance Program will receive $9.…

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. Gov. Scott proposed the creation of a new $250 million business attraction fund based on the Texas Enterprise Fund to help the state compete for large job creation projects. Another $42.5 million would be allocated for economic development public-private partnerships, including $17.5 million for Space Florida and $25 million for operations at Enterprise Florida. Another $80 million would be directed toward marketing efforts. The MAF Center for Advanced Manufacturing Excellence FloridaMakes center would receive $500,000. Florida’s 24…