SSTI Digest

SSTI has analyzed more recently released state budgets for TBED-related initiatives, and this week we present findings from our review of AZ, GA, IA, IN, UT and VA.    Arizona Arizona Gov. Doug Ducey’s proposed $9.8 billion FY 2018 budget would support R&D infrastructure at the state’s three public universities (University of Arizona, Arizona State University, and Northern Arizona University) through the newly-announced University Capital Investment Program. This program would enable universities to use the transaction privilege tax revenues that they generate for as much as $1 billion in bonding for new research and development infrastructure, including deferred maintenance projects. Education is a major emphasis of the governor’s proposed budget, and while the majority of funds go toward teachers and schools more broadly, Ducey also proposes $5 million in new investments to help connect rural schools to high-speed internet, as well as $200,000 to support a new statewide computer science and coding initiative. The Arizona Commerce Authority (ACA), the state’s main economic development arm, would receive $54,969,…

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 the school year kicks off, several corporate foundations have announced new commitments to support hands-on K-12 science, technology, engineering and mathematics (STEM) experiences for children across the country. These new partnerships continue a trend of corporate funders bypassing funding for STEM curriculum development to focus on active learning experiences that are shown to have positive impact on STEM retention. Among the corporate foundations making announcements include Microsoft Philanthropies, Motorola Solutions Foundation, and Qualcomm. On September 5, Virginia Tech University (Virginia Tech) and Qualcomm Inc. announced the launch of the  Qualcomm Thinkabit Lab at Virginia Tech’s Northern Virginia Center in Falls Church, VA. Through a multi-year partnership, the Thinkabit Lab experience offers both teachers and students an engaging learning environment including access to laboratory space, a makerspace, and classroom sessions. The intent of the Thinkabit Lab is to offer K-12 students “first introduction to hands-on STEM learning and real-world careers.”  Additionally, Virginia Tech faculty research will assess how…

A month after a federal court ruled that high-speed Internet service can be defined as a utility, four states have announced commitments to expand high quality, reliable broadband services to rural areas and other underrepresented groups. Two Midwest states, Wisconsin and Minnesota, will provide funding to help support projects that improve access to broadband and spur economic prosperity. California and Virginia are exploring strategies to improve their respective state’s broadband networks. The Minnesota Department of Employment and Economic Development (DEED) announced $35 million in broadband funding to expand broadband infrastructure in Minnesota. Approved during the 2016 legislative session, DEED will award grants through its Border-to-Border Broadband Development Grant Program to pay for up to 50 percent of project development costs in unserved and underserved areas of the state, according to mhta.org. A maximum of $5 million per grant will be available. Under the new funding, $5 million will be targeted for underserved areas of the state and $500,000 for projects that propose to expand the availability and adoption of broadband service to areas…

In June, Virginia Gov. Terry McAuliffe announced that Virginia businesses can offer registered apprenticeships to individuals in three cybersecurity occupations – Information Security Analyst; Cyber Security Analyst; and, Incident Response Analyst. The Virginia Apprenticeship Council approved the three new registered apprenticeships as well as the criteria that registered apprentices in cybersecurity must learn and demonstrate through the program for the necessary proficiency in the cybersecurity field. Administered by the Virginia Department of Labor and Industry, the state’s registered apprenticeship program combines on-the-job learning with classroom-related instruction – classroom instruction is often delivered by a local community college or career and technical education center. To incentivize companies to hire cybersecurity apprentices, the state also recently launched the Registered Apprenticeship Related Instruction Incentive Program – a tax incentive program that provides companies up to $1,000 per year per registered apprentice for up to 10 registered apprentices. These new registered apprenticeships are part of Gov. McAuliffe’…

While the recent Job Openings and Labor Turnover Survey (JOLTS) has some economists concerned that the U.S. economy is running out of qualified workers to fill existing openings, several states have announced workforce programs that are intended to address the skills-gap and build the talent pipeline in their respective states. These programs are intended to build regional partnerships between local workforce development agencies, economic development agencies, industry, and others. Approaches include a statewide apprenticeship tax credit in Alabama; occupation training for high-demand occupations in Texas; and, incumbent workforce training in Virginia. In May, the Alabama legislature passed the Apprenticeship Tax Credit Act of 2016 (SB 90) that provides Alabama business with an income and financial institution excise tax credit of $1,000 each for up to five apprentices hired during the prior taxable year. The program is capped at $3 million annually. The intent of the program is to help businesses address the lack of an available, trained workforce, according to Rosemary Elebash, the state director of the Alabama National Federation of Independent Business (NFIB).The…

On April 20, the Virginia General Assembly sent three economic development-focused bills (HB 1343, HB 846, and HB 834) to Gov. Terry McAuliffe. The bills include the creation of a new research fund and the creation of a network of regional economic development councils. Although the bills have yet to be signed, Gov. McAuliffe has publicly supported each of them. This package of economic development initiatives was originally proposed in the governor’s economic development strategy as well as his recent budget proposal. However, it took some compromise between the governor’s original proposals and the General Assembly to reach a final package. The General Assembly passed HB 1343 to establish the Virginia Research Investment Committee to administer grants and loans from the Virginia Research Investment Fund – that also is created by the bill. The intent of the fund is to promote research, development, and commercialization in the Commonwealth. The State Council of Higher Education for Virginia (SCHEV) is tasked with developing the guidelines related to administration and award of grants from the fund. Once applications are submitted to SCHEV, the…

Virginia Gov. Terry McAuliffe announced the creation of a pay-for-performance workforce training program that will help Virginia workers acquire the industry certifications and occupational licenses that meet the needs of key businesses in each region of the state. The New Economy Workforce Credential Grant Fund and Program is part of a $20 million commitment to support workforce efforts across the state over the next two years including $12.5 million for credential incentives, $6 million for equipment needed by career and technical training programs, and $1.5 million for a veterans’ portal to strengthen outreach to this key population. The New Economy Workforce Credential Grant Fund and Program will take a two-step approach to helping state residents pay for the cost of attendance while working toward a certification or license. According to the governor’s office press release, the New Economy Workforce Credential Grant Fund will provide grants covering two-thirds of the tuition for students who are enrolled in a workforce training program designed to fill in-demand jobs in their home region. The incentives program provide one-third of the costs when…

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…

While many states have begun negotiations on budget plans for FY17 and beyond, Pennsylvania has made some progress on FY16 spending. Gov. Tom Wolf signed a partial budget that funded many agencies and programs related to economic development, but that did not include higher education funding and other operations. In the coming months, SSTI will review gubernatorial addresses and budget proposals related to economic development. This week, we highlight developments in Hawaii, New Mexico, Pennsylvania and Virginia. Hawaii Gov. David Ige released his $13 billion proposed fiscal year 2017 supplemental budget in late December, building on the biennial budget passed last year. The governor’s office is touting $729 million in infrastructure and economic development spending and another $248 million for education. The boost for infrastructure spending would support improvements to airports in Kona and Honolulu, and the modernization of Honolulu harbor. Most of the new education funding would support capital improvements, but $4 million is provided for the operating costs of the University of Hawaii’s Cancer Center. The proposed supplemental budget…

In the face of declining state funding and drawn-out budget negotiations, universities are moving beyond traditional budget procedures to secure funding for their economic development activities. Over the past few months, several universities have leveraged new sources of public and private funds to establish seed funds for university technology. These efforts are intended to increase the number of businesses emerging from their respective educational and research programs and spur regional economic prosperity. PennsylvaniaIn Philadelphia, Drexel University announced that it will establish a $10 million seed fund to make early stage investment in technologies developed by Drexel-affiliated entrepreneurs. The university will raises $5 million in funding that will be matched by Ben Franklin Technology Partners of Southeast Pennsylvania (BFP) over the next 10-years to support the fund. In addition to committing $5 million in funding, BFP will open an office at Innovation Center @3401, a workspace and resource center for early stage tech and business services companies. Innovation Center @3401 is operated by Drexel University and the University City Science Center, and…

As the Federal Aviation Administration continues to propose regulations around the fledging unmanned aircraft system (UAS) industry in order to ensure that it integrates into the current system as well as possible, states are beginning to act in order to improve their own competitiveness. The FAA Modernization and Reform Act of 2012 directed the FAA to establish a test sites program for the UAS, taking into account geographic and climatic diversity, location of ground infrastructure, and research needs in choosing the sites. In December 2013, the FAA announced the selection of six public entities in Alaska, Nevada, New York, North Dakota, Texas, and Virginia for test sites, all of which became operational in 2014. With test site operations allowed to continue until February 2017 under current law, state agencies, in conjunction with universities and the private sector, are attempting to take advantage of the industry’s vast potential: more than 100,000 jobs created through the year 2025, with an expected economic impact of $82 billion, according to a report by the Association for Unmanned Vehicle Systems International. North DakotaNorth Dakota Gov. Jack…