SSTI Digest

Now in its 14th year, SSTI's Tech Talkin' Govs series has returned as governors across the country formally convene the 2014 legislative sessions. The series highlights new and expanded TBED proposals from governors' State of the State, Budget and Inaugural addresses. The first edition includes excerpts from speeches delivered in Idaho, Kentucky, New York, Virginia, and West Virginia.

Oklahoma Gov. Mary Fallin announced that Jonna Kirschner, executive director of the Oklahoma Commerce Department, will serve on a transition team to establish a new workers’ compensation system. Vaughn Clark , the Commerce Department’s director of community development, was named as interim executive director.

Colorado Gov. John Hickenlooper named Mark Sirangelo, who is head of Sierra Nevada Corp., as chair of the Colorado Innovation Network and the state's new chief innovation officer.

John Rhodes has been appointed as president and CEO of NYSERDA.

Measuring impact is critical to the success and sustainability of any economic development initiative, and as the national debate over fiscal austerity and taxpayer spending continues, TBED organizations can expect increased scrutiny and accountability for their investments.

Amid growing skepticism from the public, lawmakers increasingly struggle with finding a balance for funding new efforts that may take awhile to pay off with more pressing state needs. This year, measures to encourage the creation or expansion of high-growth companies through the use of tax incentives have been unveiled in several states. At the same time, lawmakers in some states are pushing for greater disclosure requirements through transparency measures. SSTI has compiled pending and recently approved legislation below.

The National Institute of Standards and Technology (NIST) has awarded cooperative agreements to organizations in South Dakota and Kentucky to fill absences of the Hollings Manufacturing Extension Partnership (MEP) program. After 10 years, South Dakota will again have an MEP center — the South Dakota Manufacturing and Technology Solutions, housed at the University of South Dakota in Vermillion. NIST has provided $400,000 to South Dakota Manufacturing and Technology Solutions for the center. Previously, South Dakota had been served by the North Dakota MEP center. Kentucky's new MEP center will be operated by Advantage Kentucky Alliance, which received nearly $490,000 to start the center at Western Kentucky University. Read more...

In an attempt to leverage the economic promise of young people, the state of Kentucky is launching a new public-private initiative designed to enhance creative thinking and entrepreneurial skills. The Governor's School of Entrepreneurs will be launched this summer as an experiential program that brings together representatives from Kentucky's science, engineering, design, entrepreneurial, and higher education communities to teach promising high school students from across the state on business fundamentals, entrepreneurship, product design, and creative thinking. The program is modeled after the long-running Governor's Scholars program for academically gifted students.

To better serve all parts of the state by connecting experienced mentors with startup companies, the Kentucky Innovation Network has a new name and logo, a tighter focus, and expanded services. Established in 2002 as the Innovation and Commercialization Center program, the Kentucky Innovation Network will offer services to entrepreneurs from 13 locations across the state, and as part of the re-branding effort, three smaller centers will be upgraded to full-service centers. The centers offer services such as business mentoring, assistance to growth strategy and access to funding and capital networks. Officials say the new name complements an increased emphasis on promoting the network's statewide, multi-office capabilities and resources. Read more...

Businesses that received Kentucky incentives reported creating 55,173 jobs between 2001 and 2010, according to a report from the Anderson Economic Group (AEG). In addition, each year approximately 33,000 jobs were maintained due to the incentives. In 2010, the gross cost to the commonwealth was $140 million and averaged $3,330 per job per year between 2001 and 2010. The report's authors also compared Kentucky to 15 peer states (e.g., Indiana, Missouri, South Carolina) and provided ways to encourage growth in knowledge-based industries. Read the report...

Richard Bendis has been named the first president and CEO of BioHealth Innovation, Inc. a regional private-public partnership focusing on commercializing market-relevant biohealth innovations and increasing access to early stage funding in Central Maryland.

RI Gov. Chafee on May 17 accepted the resignation of Keith Stokes, executive director of the Rhode Island Economic Development Corporation. The RIEDC's deputy director, William Parsons, currently is serving in Stokes' place. Although a successor for Stokes has not been named yet, the governor has nominated six people to the board that oversees RIEDC after the vice chair and other members resigned. The nominations are subject to Senate confirmation.

In Pittsburgh, PA, The Technology Collaborative is dissolving. Innovation Works will take over some of TTC's programs.

Michael Pazzani, vice president for research and economic development at Rutgers, has accepted the position of vice chancellor for research and economic development at the University of California, Riverside, effective July 1.

As many states near the mid-point of their 2012 legislative sessions, we thought it would be a good time to take a look at some of the bills advancing in statehouses that could impact states' efforts to improve economic conditions. Several states are seeking to advance access to capital initiatives as they continue to struggle with declining revenue and tight credit restrictions. The following overview provides a sampling of TBED bills supporting access to capital, R&D enhancements and higher education standards.

Providing Access to Capital

The Arizona Senate approved last month a bill to empower the state to facilitate $250 million in loans to manufacturers and other businesses by allowing third parties to sell income and insurance premium tax credits to venture capital firms, banks and other lenders, reports The Arizona Capitol Times. Supporters say the program, which has been employed at the federal level over the last decade under the New Markets structure, has been adopted successfully by nine other states. The measure awaits action in the House.

SSTI's Tech Talkin' Govs series has returned for its 12th annual edition. The series highlights new and expanded TBED proposals from governors' State of the State, Budget and Inaugural addresses across the nation. The first installment includes excerpts from speeches delivered in Georgia, Iowa, New York, Kentucky, South Dakota, Vermont, and Virginia. Georgia Gov. Nathan Deal, State of the State Address, Jan. 10, 2012 "... I want to announce two ambitious goals. Georgians deserve a world-class, public medical university, and it will be a priority of this administration to have a medical college among the top 50 nationally. ... "... Also within this push, the Georgia Health Sciences University will seek to become the state's second National Cancer Institute designated Cancer Center ... This designation would mean greater access to research dollars and enhance our ability to recruit top cancer specialists. "... To support this goal of a second Georgia-based Cancer Center, my budget proposal includes an investment of $5 million. ... "...

Lawmakers and technology industry leaders in Georgia and Kentucky are hoping to establish capital programs during the 2012 legislative sessions in an effort to support new business creation and remain competitive with states already offering lucrative incentives.

In what is considered typical for an odd-numbered year, only 34 questions have been certified in nine statewide ballots this election year. Some of those measures include redirecting funds to support higher education, revenue enhancements for states, and repealing legislation that limits collective bargaining for public employees.

Ballot Initiatives

Colorado
Voters in Colorado will decide on a measure to increase the state income and sales tax to 5 percent and 3 percent, up from 4.63 percent and 2.9 percent, respectively. Reports estimate the measure would generate about $3 billion to help fund education. The measure is Proposistion 103.